Leidos Management Systems Designers Inc. awarded $45.4M for professional support services by NIH

Contract Overview

Contract Amount: $45,370,050 ($45.4M)

Contractor: Leidos Management Systems Designers, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2006-03-16

End Date: 2010-04-26

Contract Duration: 1,502 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $45.4 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1502 days indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 4. The services fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. NIH's reliance on this contract highlights the importance of specialized support for its research endeavors. 6. The geographic location of the contractor in Maryland may indicate a concentration of federal support services in the region.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details. However, the total award of $45.4 million over approximately four years suggests a significant investment in professional support services by NIH. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses the contractor for allowable costs plus a fixed fee, which can lead to higher costs if not managed carefully. Comparing this to similar broad professional support contracts would be necessary for a more precise value assessment.

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. The presence of 5 bidders suggests a reasonable level of competition for this requirement. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price and quality through a robust bidding process.

Public Impact

The National Institutes of Health (NIH) benefits from specialized professional support services, enabling its research and administrative functions. The services provided likely contribute to the advancement of scientific research and public health initiatives. The contract's impact is primarily concentrated within the federal research and health sector. The workforce implications include employment opportunities for professionals with expertise in scientific, technical, and management support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The broad nature of 'All Other Professional, Scientific, and Technical Services' makes it difficult to assess specific performance metrics without further detail.
The contract's duration of over four years requires ongoing performance management to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract has multiple bidders, suggesting market interest and potential for competitive pricing.
The contractor, Leidos Management Systems Designers, Inc., is a known entity in government contracting, implying some level of established capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a significant area of federal spending. This sector encompasses a wide range of support functions crucial for government operations, including research, consulting, and specialized technical assistance. Federal spending in this area often supports agency missions that require expertise beyond the capabilities of in-house staff. Benchmarking against similar contracts for broad professional support services would provide context on the scale of this award.

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. The primary focus of this award is on large business prime contractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health (NIH). Performance reviews, cost audits, and adherence to contract terms are standard oversight mechanisms. Transparency is facilitated through contract award databases, but detailed performance data may not be publicly available. The Inspector General's office for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Professional Services Schedule (PSS)
Management and Consulting Services
Scientific and Technical Support Services
Research and Development Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad service category ('All Other Professional, Scientific, and Technical Services') may obscure specific performance metrics.
Long contract duration necessitates ongoing performance management and adaptation to evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $45.4 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. PROFESSIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC..

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 $45.4 million.

What is the period of performance?

Start: 2006-03-16. End: 2010-04-26.

What is the specific nature of the 'All Other Professional, Scientific, and Technical Services' provided under this contract?

The provided data categorizes this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad classification that can encompass a wide array of activities not specifically covered by other categories. Without more detailed contract documentation, it is difficult to ascertain the precise services rendered. However, given the awarding agency is the National Institutes of Health (NIH), these services likely relate to supporting biomedical research, public health initiatives, scientific administration, data analysis, or specialized technical consulting that aids NIH's mission. The 'PROFESSIONAL SUPPORT SERVICES' description in the data further suggests a focus on expertise and specialized knowledge rather than routine tasks.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is characterized by the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with other common contract types like Firm-Fixed-Price (FFP), where the price is set regardless of actual costs, or Cost Plus Incentive Fee (CPIF), which includes incentives for meeting cost or performance targets. CPFF can be advantageous when the scope of work is not well-defined or is expected to evolve, providing flexibility. However, it carries a higher risk of cost growth for the government compared to FFP, as the contractor has less direct financial incentive to control costs beyond what is necessary to complete the work and earn their fee. For professional support services, FFP is often preferred for well-defined tasks, while CPFF might be used for research or development where uncertainty is higher.

What is Leidos Management Systems Designers, Inc.'s track record with federal contracts, particularly with NIH?

Leidos Management Systems Designers, Inc. is a subsidiary or related entity of Leidos, a major government contractor. Leidos, as a whole, has a substantial history of performing various types of contracts across multiple federal agencies, including the Department of Health and Human Services (HHS), of which NIH is a part. While specific performance details for this particular contract (awarded in 2006) are not publicly detailed here, Leidos generally has a significant presence in areas like IT services, systems engineering, and professional support. Their track record typically involves large-scale, complex projects. Federal contract databases often show numerous awards and task orders to Leidos entities, indicating a consistent ability to secure and execute government work. However, like any large contractor, they may have faced past performance reviews or disputes on specific contracts, which would require deeper investigation into individual contract histories.

What are the potential risks associated with a contract of this duration and type?

A contract lasting over 1500 days (approximately 4 years) and utilizing a Cost Plus Fixed Fee (CPFF) structure presents several potential risks. Firstly, the extended duration increases the risk of scope creep or misalignment with evolving agency needs if not actively managed. Secondly, the CPFF structure, while offering flexibility, can incentivize higher spending as the contractor is reimbursed for costs plus a fixed fee. This necessitates robust oversight to ensure costs remain reasonable and allocable to the contract's objectives. There's also a risk of contractor complacency over a long period, potentially impacting service quality or innovation. Finally, changes in government priorities or budget constraints during the contract's life could lead to modifications or early termination, impacting both the contractor and the agency's ability to achieve program goals.

How does the $45.4 million award compare to historical spending on similar professional support services at NIH?

Comparing this $45.4 million award to historical NIH spending on similar professional support services requires access to detailed historical procurement data. However, as a general benchmark, NIH is a massive agency with a substantial budget dedicated to research and operations, often relying heavily on external contractors for specialized expertise. Awards in the tens of millions of dollars for multi-year support contracts are not uncommon for agencies of NIH's size and mission scope. To provide a precise comparison, one would need to analyze NIH's spending trends for NAICS code 541990 or similar service categories over the contract's performance period (2006-2010) and compare it to other contracts of similar scope and duration awarded during that time. Without that granular data, it's reasonable to infer this represents a significant, but potentially typical, investment for long-term specialized support within a large federal research institution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2677 PROSPERITY AVE., SUITE 700, FAIRFAX, VA, 22031

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,937,694

Exercised Options: $49,113,693

Current Obligation: $45,370,050

Timeline