Leidos Federal Healthcare Inc. awarded $16.6M for IT support services to USAAC-ISA by GSA

Contract Overview

Contract Amount: $16,612,701 ($16.6M)

Contractor: Leidos Federal Healthcare, Inc.

Awarding Agency: General Services Administration

Start Date: 2008-10-02

End Date: 2010-03-31

Contract Duration: 545 days

Daily Burn Rate: $30.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE OBJECTIVE OF THIS PERFORMANCE WORK STATEMENT IS TO OBTAIN CONTRACTED INFORMATION TECHNOLOGY SUPPORT SERVICES TO ASSIST THE USAAC-ISA IN MEETING ITS MISSION OF PROVIDING INFORMATION SYSTEMS OPERATIONAL SUPPORT FOR THE USAAC. THE USAAC OPERATIONAL SCOPE PRIMARILY INCLUDES SYSTEMS OPERATIONS AND MAINTENANCE; SYSTEMS DESIGN AND ARCHITECTURE; INFORMATION ASSURANCE; AND PROJECT SUPPORT. ADDITIONAL SCOPE INCLUDES LIMITED SOFTWARE SYSTEMS DEVELOPMENT AND SUSTAINMENT NECESSARY TO SUPPORT THE USAAC-ISA FUNCTIONAL ACTIVITIES.

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

General Services Administration obligated $16.6 million to LEIDOS FEDERAL HEALTHCARE, INC. for work described as: THE OBJECTIVE OF THIS PERFORMANCE WORK STATEMENT IS TO OBTAIN CONTRACTED INFORMATION TECHNOLOGY SUPPORT SERVICES TO ASSIST THE USAAC-ISA IN MEETING ITS MISSION OF PROVIDING INFORMATION SYSTEMS OPERATIONAL SUPPORT FOR THE USAAC. THE USAAC OPERATIONAL SCOPE PRIMARILY INCLUDES SYSTE… Key points: 1. Contract provides essential IT operational support, systems maintenance, design, architecture, and information assurance. 2. Scope includes limited software development and sustainment to support USAAC-ISA's functional activities. 3. Contract type is Time and Materials, which can pose cost control challenges if not managed effectively. 4. The contract duration of 545 days suggests a focused, project-based need for IT support. 5. Awarded by the General Services Administration (GSA), indicating a centralized procurement approach. 6. The contractor, Leidos Federal Healthcare, Inc., is a significant player in the federal IT services market.

Value Assessment

Rating: fair

The contract value of $16.6 million over approximately 1.5 years for IT support services appears within a reasonable range for specialized federal IT needs. However, without specific benchmarks for the exact services rendered (e.g., cybersecurity, system architecture), a precise value-for-money assessment is difficult. The Time and Materials (T&M) contract type introduces inherent risk for cost overruns if not closely monitored, as it pays for direct labor hours and materials used. Comparing this to similar GSA IT support contracts would provide better context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER' (CT: COMPETITIVE DELIVERY ORDER), suggesting that multiple vendors likely had an opportunity to bid. The presence of 'no' (number of offers) as 2 indicates that at least two offers were received, which is a positive sign for competition. A competitive process generally leads to better pricing and service offerings as vendors vie for the contract. The specific details of the competition, such as the number of bidders and the evaluation criteria, would offer further insight into the robustness of the competition.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among competing firms.

Public Impact

The primary beneficiary is the USAAC-ISA, which receives critical IT support to maintain and enhance its information systems. Services delivered include operational support, systems maintenance, design, architecture, information assurance, and limited software development. The geographic impact is likely concentrated around USAAC-ISA's operational locations, primarily noted as Kentucky (ST: KY). Workforce implications include the direct employment of IT professionals by Leidos Federal Healthcare, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Limited details on specific performance metrics make it challenging to assess the quality of IT support provided.
The scope of 'limited software development' could expand, potentially increasing costs beyond initial estimates.

Positive Signals

Awarded through a competitive process, suggesting a degree of price discovery and vendor responsiveness.
Leidos Federal Healthcare, Inc. is an established contractor with experience in federal IT services.
The contract addresses core IT operational needs, crucial for the USAAC-ISA's mission.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT support services for a government agency. The federal IT services market is substantial, with agencies consistently seeking support for maintaining complex systems, enhancing cybersecurity, and modernizing infrastructure. Contracts like this are common as agencies outsource specialized IT functions to leverage external expertise and manage fluctuating workloads. Benchmarking against similar IT support contracts awarded by GSA or other agencies for operational maintenance and system design would provide a clearer picture of the market rates and competitive landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contractor, Leidos Federal Healthcare, Inc. may engage small businesses as subcontractors for specific components or services, depending on their own subcontracting plans and the nature of the work. The absence of a small business set-aside means the primary competition was likely among larger, established IT service providers.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) contracting officers and the USAAC-ISA, the end-user agency. Performance monitoring, invoicing review, and adherence to the contract's terms and conditions are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS-NG (now SAM.gov). Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

GSA IT Schedule Contracts
Information Technology Support Services
Federal Civilian IT Spending
Defense Information Systems Agency (DISA) Support Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Scope creep risk associated with software development and sustainment.
Need for robust performance monitoring to ensure service quality.
Reliance on contractor expertise for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.6 million to LEIDOS FEDERAL HEALTHCARE, INC.. THE OBJECTIVE OF THIS PERFORMANCE WORK STATEMENT IS TO OBTAIN CONTRACTED INFORMATION TECHNOLOGY SUPPORT SERVICES TO ASSIST THE USAAC-ISA IN MEETING ITS MISSION OF PROVIDING INFORMATION SYSTEMS OPERATIONAL SUPPORT FOR THE USAAC. THE USAAC OPERATIONAL SCOPE PRIMARILY INCLUDES SYSTEMS OPERATIONS AND MAINTENANCE; SYSTEMS DESIGN AND ARCHITECTURE; INFORMATION ASSURANCE; AND PROJECT SUPPORT. ADDITIONAL SCOPE INCLUDES LIMITED SOFTWARE SYSTEMS DEVELOPMENT AND SUSTAINMENT NECESSARY TO SUPPORT THE USAAC-IS

Who is the contractor on this award?

The obligated recipient is LEIDOS FEDERAL HEALTHCARE, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2008-10-02. End: 2010-03-31.

What is the track record of Leidos Federal Healthcare, Inc. in delivering similar IT support services to federal agencies?

Leidos Federal Healthcare, Inc., a subsidiary of Leidos, has a substantial track record in providing a wide array of IT services to federal agencies, including defense, intelligence, and civilian sectors. Their expertise spans IT infrastructure, cybersecurity, cloud services, data analytics, and systems engineering. They have held numerous large-scale contracts with agencies such as the Department of Defense, NASA, and the Department of Veterans Affairs. While specific performance metrics for this particular USAAC-ISA contract are not detailed here, Leidos's general history suggests they possess the capacity and experience to manage complex IT support requirements. A deeper dive into past performance evaluations and contract close-out reports for similar contracts would offer more granular insights into their reliability and effectiveness.

How does the $16.6 million contract value compare to other federal IT support contracts of similar scope and duration?

The $16.6 million contract value for approximately 1.5 years of IT support services is within the expected range for specialized federal IT engagements. However, a precise comparison is challenging without knowing the exact service mix (e.g., cybersecurity, network operations, help desk, software development) and the labor categories involved. GSA's IT Schedule 70 (now IT Professional Services) and other agency-specific IT support contracts can range from hundreds of thousands to tens of millions of dollars, depending on complexity and duration. Given the scope outlined (operational support, systems design, IA, limited development), this value suggests a significant but not exceptionally large contract. Benchmarking against contracts with similar PWS elements and contractor labor rates would provide a more accurate assessment of its relative value.

What are the primary risks associated with the Time and Materials (T&M) contract type for this IT support service?

The primary risk with a Time and Materials (T&M) contract type, like the one awarded to Leidos Federal Healthcare, Inc., is the potential for cost overruns. T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. Unlike fixed-price contracts, there is no ceiling on the total cost unless a contract ceiling is explicitly defined and managed. This means that if the project takes longer than anticipated, requires more resources, or if labor rates increase, the total cost to the government can escalate significantly. Effective oversight, including close monitoring of labor hours, material usage, and task completion, is crucial to mitigate these risks and ensure the government receives good value.

How effective is the competitive delivery order process in ensuring fair pricing for IT support services?

The competitive delivery order process is generally effective in ensuring fair pricing for IT support services by fostering competition among qualified vendors. When multiple vendors submit proposals, they are incentivized to offer competitive pricing and demonstrate superior technical capabilities to win the contract. The General Services Administration (GSA), which awarded this contract, often uses established Multiple Award Schedules (MAS) where pre-vetted vendors compete for task orders. The fact that two offers were received indicates a level of competition. However, the true effectiveness depends on the clarity of the requirements, the evaluation criteria, and the diligence of the contracting officers in assessing proposals to ensure the best value is obtained, not just the lowest price.

What are the potential implications of 'limited software systems development and sustainment' on the contract's overall cost and scope?

The inclusion of 'limited software systems development and sustainment' introduces a degree of uncertainty regarding the contract's final cost and scope. While described as 'limited,' software development can be complex and prone to scope creep if requirements are not precisely defined and managed. If the USAAC-ISA's needs evolve or if unforeseen technical challenges arise during development or sustainment, the effort required could exceed initial estimates. This aspect of the contract necessitates robust project management and change control processes to prevent cost overruns and ensure that the development aligns with the agency's strategic IT goals. The Time and Materials nature of the contract means that increased effort in this area will directly translate to higher costs.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 4THL21094003

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1 CURIE COURT, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $35,283,895

Exercised Options: $32,381,597

Current Obligation: $16,612,701

Parent Contract

Parent Award PIID: GS07T00BGD0019

IDV Type: GWAC

Timeline