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
- Cost Plus Fixed Fee contract type
- Long contract duration (7+ years)
- Lack of detailed cost breakdown for benchmarking
Positive Signals
- Full and Open Competition awarded
- Supports a critical public health service
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
- Office Administrative Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Long contract duration may not reflect evolving needs
- Lack of transparency on specific fee and cost breakdowns
- No indication of small business subcontracting opportunities
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 Services › Office Administrative Services › Office 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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