HHS awards $57.8M for Computer Systems Design Services to Leidos, Inc. over 5 years
Contract Overview
Contract Amount: $57,832,097 ($57.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2009-06-01
End Date: 2014-05-31
Contract Duration: 1,825 days
Daily Burn Rate: $31.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: TAS::75 0511::TAS
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $57.8 million to LEIDOS, INC. for work described as: TAS::75 0511::TAS Key points: 1. Leidos, Inc. secured a significant contract for IT services. 2. The contract was awarded as a competitive delivery order. 3. Potential risks include cost overruns given the Cost Plus Award Fee structure. 4. The IT sector continues to see substantial government investment.
Value Assessment
Rating: good
The contract's total award value of $57.8M over five years suggests a substantial investment. Benchmarking against similar large-scale IT service contracts would provide further context on its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded as a competitive delivery order, this indicates that multiple vendors likely competed, fostering price discovery. The competitive nature should have driven a more favorable price.
Taxpayer Impact: The competitive award process likely resulted in a fair price for taxpayers, maximizing value for the services rendered.
Public Impact
Ensures continued operation and development of critical health IT systems. Supports the Centers for Medicare and Medicaid Services' mission. Impacts the efficiency and effectiveness of healthcare administration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize cost growth.
- Long contract duration may lead to scope creep or evolving needs.
Positive Signals
- Competitive award process suggests good value.
- Services are critical to agency operations.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design. Government spending in this area is consistently high, supporting essential digital infrastructure and services.
Small Business Impact
The data indicates this was not specifically set aside for small businesses, and the prime contractor is a large entity. There is no information on small business subcontracting.
Oversight & Accountability
As a delivery order under a larger contract vehicle, oversight would be managed by CMS. The Cost Plus Award Fee structure requires diligent monitoring to ensure performance and cost control.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Cost Plus Award Fee structure can lead to higher costs.
- Potential for vendor lock-in with long-term IT service contracts.
- Reliance on a single large contractor for critical systems.
- Evolving technology landscape may render current systems obsolete.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $57.8 million to LEIDOS, INC.. TAS::75 0511::TAS
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 (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $57.8 million.
What is the period of performance?
Start: 2009-06-01. End: 2014-05-31.
What specific systems or services are covered under this contract, and how do they align with CMS's strategic IT goals?
This contract, NA 541512, covers Computer Systems Design Services. While the specific systems are not detailed here, they are crucial for the Centers for Medicare and Medicaid Services' operations, likely supporting data management, processing, and user interfaces for healthcare programs. Alignment with strategic goals would depend on CMS's current IT modernization and cybersecurity priorities.
What are the key performance indicators (KPIs) and award fee criteria used to evaluate Leidos's performance and justify the award fee?
The Cost Plus Award Fee (CPAF) structure implies that performance is measured against defined criteria, and a portion of the fee is awarded based on subjective evaluation of the contractor's performance. Key performance indicators would likely include system uptime, response times, successful implementation of new features, adherence to security protocols, and overall user satisfaction. The specific criteria and evaluation process are critical for ensuring accountability.
How does the $57.8M total award value compare to similar IT system design contracts awarded by other federal agencies of comparable size and scope?
Without specific details on the scope of services and the complexity of the systems involved, a direct comparison is challenging. However, $57.8M over five years averages to over $11.5M annually. This figure is within the expected range for large-scale IT system design and support contracts for major federal agencies like HHS/CMS, especially considering the critical nature of healthcare data and systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
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: $57,832,097
Exercised Options: $57,832,097
Current Obligation: $57,832,097
Actual Outlays: $9,773
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200600024I
IDV Type: IDC
Timeline
Start Date: 2009-06-01
Current End Date: 2014-05-31
Potential End Date: 2014-05-31 00:00:00
Last Modified: 2023-05-11
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