HHS awards $39.7M for Cancer Information Service support to Leidos Aspen Systems Corp

Contract Overview

Contract Amount: $39,712,093 ($39.7M)

Contractor: Leidos Aspen Systems Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2005-01-11

End Date: 2012-04-10

Contract Duration: 2,646 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TAS::75 0849::TAS "SUPPORT FOR THE CANCER INFORMATION SERVICE"

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.7 million to LEIDOS ASPEN SYSTEMS CORP for work described as: TAS::75 0849::TAS "SUPPORT FOR THE CANCER INFORMATION SERVICE" Key points: 1. Contract awarded to a single vendor, Leidos Aspen Systems Corp. 2. The contract spans over 7 years, indicating a long-term need. 3. The procurement method was 'Full and Open Competition'. 4. The contract type is 'Cost Plus Fixed Fee', which can lead to cost overruns. 5. The value of the contract is substantial at nearly $40 million.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar administrative support contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing outcomes and how they were evaluated against other bids are not detailed.

Taxpayer Impact: Taxpayer funds are being used for administrative support services for a critical health initiative. The cost-effectiveness of the chosen pricing structure will determine the ultimate taxpayer impact.

Public Impact

Supports the vital Cancer Information Service, providing crucial information to the public. Long-term contract suggests sustained government need for these services. Potential for cost escalation due to the Cost Plus Fixed Fee contract type. Ensures continuity of essential cancer-related information dissemination.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under administrative and support services, a common area of government spending. Benchmarks for similar services vary widely based on scope and duration, but nearly $40 million over 7 years suggests a significant operational scale.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The long duration and Cost Plus Fixed Fee nature of this contract warrant close oversight to ensure efficient use of taxpayer funds and adherence to the fixed fee parameters.

Related Government Programs

Risk Flags

Tags

office-administrative-services, department-of-health-and-human-services, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.7 million to LEIDOS ASPEN SYSTEMS CORP. TAS::75 0849::TAS "SUPPORT FOR THE CANCER INFORMATION SERVICE"

Who is the contractor on this award?

The obligated recipient is LEIDOS ASPEN SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $39.7 million.

What is the period of performance?

Start: 2005-01-11. End: 2012-04-10.

What was the final negotiated fixed fee and how was it determined?

The contract type is Cost Plus Fixed Fee, meaning the contractor is reimbursed for allowable costs plus a predetermined fixed fee. The specific amount of the fixed fee and the methodology used to arrive at that amount are crucial for understanding the contractor's profit margin and the government's value for money. Without this detail, it's difficult to assess the fairness of the overall compensation.

How did the competitive bids compare in terms of price and technical approach?

While the contract was awarded under 'Full and Open Competition', the specific details of the competing bids are not provided. Understanding the range of proposed costs and the technical solutions offered by different vendors would offer insight into whether the selected vendor's pricing was competitive and if their approach was optimal for the Cancer Information Service's needs.

What mechanisms are in place to control costs under this Cost Plus Fixed Fee contract?

Cost Plus Fixed Fee contracts require robust government oversight to manage allowable costs effectively. Key mechanisms include detailed audits, clear definitions of allowable expenses, and regular reviews of contractor spending. The effectiveness of these oversight mechanisms directly impacts the government's ability to prevent cost overruns and ensure the contract remains within budget expectations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesOffice Administrative ServicesOffice Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NO2CO5100013

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 2277 RESEARCH BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $244,704,368

Exercised Options: $182,984,033

Current Obligation: $39,712,093

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2005-01-11

Current End Date: 2012-04-10

Potential End Date: 2012-04-10 00:00:00

Last Modified: 2017-03-08

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