Leidos Inc. awarded $194M for FDA full software development lifecycle support
Contract Overview
Contract Amount: $194,025,780 ($194.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2013-09-20
End Date: 2019-09-24
Contract Duration: 2,195 days
Daily Burn Rate: $88.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF ORA MARCS FULL SOFTWARE DEVELOPMENT LIFECYCLE SUPPORT.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $194.0 million to LEIDOS, INC. for work described as: IGF::CT::IGF ORA MARCS FULL SOFTWARE DEVELOPMENT LIFECYCLE SUPPORT. Key points: 1. Contract value represents significant investment in critical IT infrastructure. 2. Full and open competition suggests a robust bidding process. 3. Long contract duration (2195 days) indicates a need for sustained support. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. Contract awarded to a single vendor, Leidos, Inc. 6. The contract falls under 'Other Computer Related Services' NAICS code.
Value Assessment
Rating: good
The contract's total value of $194 million over approximately six years suggests a substantial investment in IT services. Benchmarking against similar large-scale software development contracts is challenging without more specific service details. However, the firm fixed-price structure implies that the government secured predictable costs, assuming the contractor can manage their expenses effectively. The absence of specific performance metrics or detailed cost breakdowns makes a precise value-for-money assessment difficult, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 7 bidders participating, the competition level appears healthy, which typically drives better pricing and service offerings for the government. The presence of multiple bidders suggests that the market has sufficient capacity and interest in providing these types of services.
Taxpayer Impact: The full and open competition process likely resulted in a more favorable price for taxpayers by leveraging market forces to obtain competitive bids.
Public Impact
The Food and Drug Administration (FDA) benefits from enhanced and sustained IT systems. Critical public health functions supported by reliable software infrastructure. Workforce within the FDA can rely on stable and functional software tools. Potential for job creation within the IT sector through Leidos, Inc.'s operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to long-term contract and specialized support.
- Risk of cost overruns if contractor's fixed-price estimates are inaccurate.
- Dependence on a single contractor for critical software development lifecycle support.
Positive Signals
- Firm Fixed Price contract shifts cost risk to the contractor.
- Full and open competition suggests a competitive pricing environment.
- Long contract duration provides stability for critical IT services.
Sector Analysis
This contract falls within the broader Information Technology sector, specifically focusing on software development and lifecycle support. The market for such services is large and highly competitive, with numerous firms offering specialized expertise. The FDA's need for comprehensive software support is typical for large government agencies managing complex data and regulatory processes. Comparable spending benchmarks would depend on the specific scope of services, but significant IT investments are common across federal agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, Leidos, Inc. Further analysis would be needed to determine if small businesses are involved in subcontracting opportunities under this contract, which could impact the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program officials within the FDA. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon budget. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- FDA IT Modernization Initiatives
- Federal Civilian IT Services Contracts
- Software Development Lifecycle Support Contracts
- Health IT Modernization Programs
Risk Flags
- Long contract duration may increase risk of vendor lock-in.
- Firm Fixed Price contracts can lead to cost overruns if not managed properly.
- Dependence on a single contractor for critical systems.
Tags
it, health-and-human-services, food-and-drug-administration, full-and-open-competition, delivery-order, firm-fixed-price, leidos-inc, software-development, it-support, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $194.0 million to LEIDOS, INC.. IGF::CT::IGF ORA MARCS FULL SOFTWARE DEVELOPMENT LIFECYCLE SUPPORT.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Food and Drug Administration).
What is the total obligated amount?
The obligated amount is $194.0 million.
What is the period of performance?
Start: 2013-09-20. End: 2019-09-24.
What specific software systems or applications are covered under this contract?
The provided data does not specify the exact software systems or applications covered by the 'IGF ORA MARCS FULL SOFTWARE DEVELOPMENT LIFECYCLE SUPPORT' contract. 'MARCS' likely refers to a specific system or suite of systems within the FDA's Office of Regulatory Affairs (ORA). Full software development lifecycle support typically encompasses all phases, including requirements gathering, design, development, testing, deployment, maintenance, and eventual decommissioning. Without further details, it's impossible to ascertain the precise scope of the software assets being supported, which is crucial for understanding the contract's true impact and value.
How does the $194 million award compare to historical IT spending by the FDA's Office of Regulatory Affairs?
To compare the $194 million award to historical IT spending by the FDA's Office of Regulatory Affairs (ORA), one would need access to ORA's historical IT budget and contract data. This contract, spanning from 2013 to 2019, represents a significant investment over its duration. If ORA's annual IT budget is in the tens or hundreds of millions, this contract would represent a substantial portion of their IT expenditure. A detailed analysis would involve summing up similar large-scale IT contracts awarded to ORA over previous fiscal years and comparing the trend. Without that historical context, it's difficult to definitively state whether this award is higher or lower than typical spending, but its magnitude suggests it was a major undertaking.
What are the key performance indicators (KPIs) used to measure the success of this contract?
The provided data does not include the specific Key Performance Indicators (KPIs) used to measure the success of this contract. For a full software development lifecycle support contract, typical KPIs might include metrics related to software quality (e.g., defect density, bug resolution time), project delivery timelines (e.g., on-time completion of milestones), system performance (e.g., uptime, response times), user satisfaction, and adherence to budget. The firm fixed-price nature of the contract implies that meeting defined deliverables within the agreed cost is a primary measure of success. However, the absence of explicit KPIs makes a granular assessment of contractor performance challenging based solely on the available data.
What is Leidos, Inc.'s track record with similar large-scale federal IT contracts, particularly within the healthcare or regulatory sectors?
Leidos, Inc. has a substantial track record of performing large-scale IT contracts for various federal agencies, including those in the healthcare and regulatory sectors. As a major government contractor, they have experience across a wide range of services, including software development, systems integration, cybersecurity, and IT infrastructure management. Their portfolio often includes work with agencies like the Department of Defense, Department of Veterans Affairs, and other civilian agencies requiring complex IT solutions. Specific to the FDA or similar regulatory bodies, Leidos has likely supported mission-critical systems that require high levels of reliability, security, and compliance. A deeper dive into their contract history would reveal specific projects, their durations, values, and performance ratings, providing a more detailed picture of their capabilities and past performance in comparable environments.
What are the potential risks associated with a single vendor, Leidos, Inc., providing comprehensive software lifecycle support for an extended period?
The primary risks associated with a single vendor like Leidos, Inc. providing comprehensive software lifecycle support for an extended period (2195 days) include potential vendor lock-in, reduced incentive for innovation, and the impact of contractor performance issues. Vendor lock-in can occur if the contractor develops proprietary solutions or deep institutional knowledge that makes it difficult and costly for the government to switch providers. Over time, with less competitive pressure, the contractor might have less incentive to proactively innovate or optimize services, potentially leading to stagnation. If Leidos experiences significant performance issues, staff turnover, or financial instability, it could severely disrupt the FDA's critical IT operations due to the comprehensive nature of the support. Mitigating these risks often involves strong contract management, clear performance standards, and contingency planning.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $196,975,689
Exercised Options: $194,025,780
Current Obligation: $194,025,780
Actual Outlays: $5,331
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSF223200950007I
IDV Type: IDC
Timeline
Start Date: 2013-09-20
Current End Date: 2019-09-24
Potential End Date: 2019-09-24 00:00:00
Last Modified: 2025-01-27
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