Leidos Management Systems Designers, Inc. awarded $35.6M for professional services, exercising the first option year

Contract Overview

Contract Amount: $35,593,041 ($35.6M)

Contractor: Leidos Management Systems Designers, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-12

End Date: 2011-09-24

Contract Duration: 1,473 days

Daily Burn Rate: $24.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: IT

Official Description: PROFESSIONAL SERVICES PER SOW ASSOCIATED WITH PROJECT 112586- HNL31 PURCHASE ORDER FZ601485 TO EXERCISE THE 1ST OPTION YEAR AND TO ADD ADDITIONAL FUNDS.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20894

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $35.6 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: PROFESSIONAL SERVICES PER SOW ASSOCIATED WITH PROJECT 112586- HNL31 PURCHASE ORDER FZ601485 TO EXERCISE THE 1ST OPTION YEAR AND TO ADD ADDITIONAL FUNDS. Key points: 1. The contract value of $35.6 million over its period of performance suggests a significant investment in professional services. 2. Exercising an option year indicates satisfaction with contractor performance and continued need for services. 3. The award falls under the 'Computer and Software Stores' NAICS code, implying a focus on IT-related professional services. 4. The duration of 1473 days (approximately 4 years) points to a long-term engagement for these services. 5. The contract was awarded as a competitive delivery order, suggesting a degree of market vetting. 6. The total award amount is substantial, warranting scrutiny for value for money and performance outcomes.

Value Assessment

Rating: fair

Benchmarking the value of this $35.6 million contract is challenging without specific details on the services rendered. However, the duration of nearly four years suggests a consistent need and potentially a stable pricing structure. Comparing it to similar professional services contracts within the NIH or HHS would provide better context for assessing if the pricing is competitive. The absence of detailed performance metrics makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed. The number of bids received (3) is on the lower side for a competitive award of this magnitude, which could suggest limited market interest or a highly specialized service. While competition existed, the low number of bidders might have had a marginal impact on price discovery.

Taxpayer Impact: A competitive award, even with a limited number of bidders, generally offers better value to taxpayers than a sole-source procurement. It ensures that at least some market forces were at play in determining the final price.

Public Impact

The primary beneficiaries are likely the National Institutes of Health (NIH) and the Department of Health and Human Services (HHS), receiving professional services crucial for their operations. The services delivered are associated with 'Computer and Software Stores,' suggesting support for IT infrastructure, software development, or related technical expertise. The geographic impact is centered in Maryland (ST: MD, SN: MARYLAND), where the contractor is located and likely where services are performed or managed. Workforce implications could include employment opportunities for professionals in IT, project management, and other specialized fields within Leidos Management Systems Designers, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (3 bidders) may have reduced price pressure.
Lack of detailed performance metrics makes assessing contractor effectiveness difficult.
The substantial award amount requires ongoing monitoring for cost-effectiveness.

Positive Signals

Contract was competitively awarded, indicating some level of market vetting.
Exercising the option year suggests satisfactory performance and continued need for services.
Long contract duration implies a stable and potentially efficient working relationship.

Sector Analysis

The professional services sector, particularly within government contracting, is vast and competitive. This contract, falling under the 'Computer and Software Stores' NAICS code, likely relates to IT support, software solutions, or related consulting. The Department of Health and Human Services, and specifically the NIH, are major consumers of such services, with annual IT spending in the billions. Benchmarking this $35.6 million award against similar IT service contracts at NIH would provide better context for its relative size and cost.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, Leidos Management Systems Designers, Inc., is likely a large business. Analysis of subcontracting plans, if any, would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institutes of Health (NIH). Accountability measures are usually embedded in the contract's Statement of Work (SOW), with performance metrics and deliverables. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS IT Services Contracts
NIH Professional Services
Leidos Government Contracts
Computer and Software Services
Delivery Orders

Risk Flags

Limited Competition
Potential for Scope Creep
Technological Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $35.6 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. PROFESSIONAL SERVICES PER SOW ASSOCIATED WITH PROJECT 112586- HNL31 PURCHASE ORDER FZ601485 TO EXERCISE THE 1ST OPTION YEAR AND TO ADD ADDITIONAL FUNDS.

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 $35.6 million.

What is the period of performance?

Start: 2007-09-12. End: 2011-09-24.

What specific professional services were provided under this contract?

The provided data indicates that the services are associated with 'PROFESSIONAL SERVICES PER SOW ASSOCIATED WITH PROJECT 112586'. The NAICS code '443120' (Computer and Software Stores) suggests a focus on IT-related services. However, without the Statement of Work (SOW), the precise nature of these services remains unspecified. They could range from software development, system integration, IT consulting, hardware procurement support, or maintenance services. Understanding the SOW is crucial for a comprehensive analysis of the contract's purpose and value.

How does the $35.6 million award compare to other similar IT service contracts at NIH?

To benchmark this $35.6 million award, we would need to compare it against other IT professional services contracts awarded by the National Institutes of Health (NIH) over a similar timeframe and with comparable scopes of work. For instance, if NIH frequently awards contracts in the $5-10 million range for similar services, then $35.6 million over nearly four years might be considered a substantial, but potentially justified, investment. Conversely, if similar services are typically procured for less, it could indicate potential overpricing or a scope that is significantly larger than average. Access to detailed contract databases and spending reports from NIH would be necessary for a robust comparison.

What is the track record of Leidos Management Systems Designers, Inc. with the federal government?

Leidos Management Systems Designers, Inc. is a subsidiary or division of Leidos, a major government contractor. Leidos has a long history of performing a wide array of services for various federal agencies, including IT, defense, intelligence, and healthcare. Their track record generally includes large-scale system integration, cybersecurity, data analytics, and program management. Specific to this contract, the exercise of the first option year by NIH suggests a positive performance history on this particular engagement. A deeper dive into their contract history would reveal past performance ratings, any significant contract disputes, and the breadth of their federal footprint.

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

Contracts of this duration (nearly 4 years) and value ($35.6 million) carry several potential risks. Firstly, there's the risk of scope creep, where the project's objectives expand beyond the original SOW, leading to increased costs and delays. Secondly, technological obsolescence is a concern, especially in IT-related contracts; the services or solutions provided might become outdated before the contract ends. Thirdly, contractor performance risk exists; despite initial satisfaction, performance could degrade over time. Finally, there's the risk of vendor lock-in, making it difficult and costly to switch providers if performance issues arise or needs change. Effective contract management, clear performance metrics, and regular reviews are essential to mitigate these risks.

How has federal spending in IT professional services evolved, and where does this contract fit?

Federal spending on IT professional services has consistently grown over the past decade, driven by modernization efforts, cybersecurity needs, and the increasing reliance on digital infrastructure across agencies. This contract, valued at $35.6 million over approximately four years, represents a significant, but not extraordinary, investment within the broader context of federal IT spending. It aligns with the trend of agencies outsourcing complex IT functions to specialized contractors. The NIH, as a leading biomedical research agency, requires substantial IT support, making this contract a typical component of its operational budget for maintaining and advancing its technological capabilities.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

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: $35,593,041

Exercised Options: $35,593,041

Current Obligation: $35,593,041

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4550G

IDV Type: FSS

Timeline