Leidos Management Systems Designers Inc. received $45.3M for IT services from NIH, extending a contract awarded in 2007

Contract Overview

Contract Amount: $45,358,487 ($45.4M)

Contractor: Leidos Management Systems Designers, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-27

End Date: 2010-11-30

Contract Duration: 1,160 days

Daily Burn Rate: $39.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

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

Sector: IT

Official Description: BI: ADDITIONAL FUNDING ADDED TO CONTRACT # FZ601680(MSD), OPTION YEAR 1.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20894

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: BI: ADDITIONAL FUNDING ADDED TO CONTRACT # FZ601680(MSD), OPTION YEAR 1. Key points: 1. The contract's value increased by over $45 million, indicating significant scope expansion or additional services. 2. Awarded as a competitive delivery order, suggesting multiple vendors vied for this specific task. 3. The duration of the contract, spanning over 1100 days, points to a long-term need for these services. 4. The National Institutes of Health (NIH) is a major federal health research agency, implying the services are critical to its mission. 5. The contract falls under 'Computer and Software Stores' (NAICS 443120), suggesting IT hardware or software support. 6. The original award date of 2007 indicates a mature contract with a history of performance. 7. The contract was not set aside for small businesses, suggesting it was awarded to a large, established vendor.

Value Assessment

Rating: good

The contract value of $45.3 million for IT services over its period of performance appears reasonable given the scale of NIH operations. Benchmarking against similar IT support contracts at large federal health agencies would provide a more precise value-for-money assessment. The absence of detailed cost breakdowns makes a granular price assessment difficult, but the competitive nature of the award suggests a degree of price discipline.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This was awarded as a competitive delivery order, indicating that multiple vendors were likely solicited and submitted proposals. The 'full-and-open' competition level suggests a robust bidding process, which typically leads to better price discovery and a wider range of solutions. The specific number of bidders is not provided, but the competitive nature is a positive sign for efficient procurement.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and pricing for essential IT services required by the National Institutes of Health.

Public Impact

The primary beneficiaries are the researchers and administrative staff at the National Institutes of Health, who rely on robust IT infrastructure and support. The services delivered likely encompass IT support, software maintenance, hardware provision, or related technical assistance crucial for biomedical research. The geographic impact is centered around the National Institutes of Health's facilities, primarily in Maryland. The contract supports the federal government's IT workforce and potentially relies on specialized technical skills within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the IT services provided.
The extended duration of the contract, originating in 2007, raises questions about the adaptability to evolving technological landscapes.
Limited transparency on the specific breakdown of services and costs hinders a thorough value-for-money analysis.

Positive Signals

Awarded through a competitive delivery order process, indicating a degree of market vetting and potential for good pricing.
The significant funding suggests the services are critical and have been consistently required by the agency over time.
The contractor, Leidos Management Systems Designers, Inc., is a known entity in federal IT services, implying some level of established capability.

Sector Analysis

This contract falls within the Information Technology sector, specifically related to computer and software stores and services. The federal IT market is vast, with agencies like NIH being significant spenders on maintaining and upgrading their technological infrastructure to support complex research and administrative functions. Comparable spending benchmarks would involve analyzing IT support contracts across other large federal research and health organizations.

Small Business Impact

The contract was not awarded as a small business set-aside, nor is there an indication of significant subcontracting to small businesses in the provided data. This suggests the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Leidos actively engages small business subcontractors for specialized needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institutes of Health. Accountability measures are usually embedded in the contract's performance work statement and delivery schedules. Transparency is dependent on the agency's reporting practices and the public availability of contract details, which can vary.

Related Government Programs

NIH IT Support Services
Federal Health IT Procurement
Large-Scale IT Service Contracts
Competitive Delivery Orders
IT Infrastructure Modernization

Risk Flags

Contract Duration
Lack of Specific Performance Metrics
Limited Cost Transparency

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.. BI: ADDITIONAL FUNDING ADDED TO CONTRACT # FZ601680(MSD), OPTION YEAR 1.

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: 2007-09-27. End: 2010-11-30.

What specific IT services were provided under this contract, and how did they evolve over its lifespan?

The provided data indicates the contract falls under NAICS code 443120 (Computer and Software Stores) and was awarded as a competitive delivery order. While the exact services are not detailed, this classification suggests a focus on IT hardware, software, and potentially related support or maintenance. Given the contract's origin in 2007 and its extension, it likely encompassed a range of IT needs for the National Institutes of Health, potentially including procurement of equipment, licensing of software, and technical support services. The significant additional funding suggests either an expansion of scope to include new technologies or an increase in the volume of services required over time. Without access to the contract's performance work statement or task orders, a precise evolution of services cannot be determined, but it's reasonable to infer adaptation to NIH's changing IT requirements.

How does the $45.3 million value compare to similar IT service contracts at the National Institutes of Health or other large federal health agencies?

The $45.3 million awarded to Leidos Management Systems Designers, Inc. represents a substantial investment in IT services. To benchmark this value, one would typically compare it against IT support, hardware, and software contracts of similar duration and scope awarded by agencies like the Centers for Medicare & Medicaid Services (CMS), the Food and Drug Administration (FDA), or other components of the Department of Health and Human Services (HHS). Federal procurement data often shows large agencies spending tens to hundreds of millions on IT annually. While $45.3 million over the contract's life is significant, it may fall within the typical range for a multi-year, comprehensive IT support contract for an organization of NIH's size and complexity. A precise comparison requires access to detailed contract databases and filtering for comparable services, agencies, and contract lengths.

What were the key performance indicators (KPIs) for this contract, and did the contractor meet them?

The provided summary data does not include specific Key Performance Indicators (KPIs) or performance evaluation reports for this contract. Typically, KPIs for IT service contracts would relate to system uptime, response times for technical support, successful software deployments, hardware delivery timelines, and adherence to security protocols. Without access to the contract's Performance Work Statement (PWS) or any associated Contractor Performance Assessment Reporting System (CPARS) records, it is impossible to determine the specific metrics used or whether Leidos Management Systems Designers, Inc. met them. The fact that the contract received additional funding and was extended suggests a level of satisfactory performance, but this is an inference rather than a confirmed assessment.

What is Leidos Management Systems Designers, Inc.'s track record with federal IT contracts, particularly with the Department of Health and Human Services?

Leidos Management Systems Designers, Inc. (and its predecessor entities) has a significant history of performing IT and professional services contracts for various U.S. federal agencies, including the Department of Health and Human Services (HHS). As a large, established government contractor, Leidos routinely competes for and wins contracts across defense, intelligence, health, and civil sectors. Their portfolio often includes complex IT solutions, systems integration, cybersecurity, and data analytics. While specific performance details for every contract are not publicly available, their continued presence and success in winning federal awards suggest a generally positive track record. For contracts with HHS and its operating divisions like NIH, Leidos has been a consistent provider of IT and program management support, indicating familiarity with the agency's mission and operational needs.

How has federal spending on IT services like those potentially provided under this contract trended over the past decade?

Federal spending on IT services has generally trended upwards over the past decade, driven by the increasing digitization of government operations, the need for enhanced cybersecurity, modernization of legacy systems, and the adoption of cloud computing. Agencies like the National Institutes of Health (NIH) are critical hubs for research and data management, requiring continuous investment in IT infrastructure, software, and support. While specific budget allocations fluctuate based on agency priorities and overall fiscal conditions, the demand for IT services—ranging from hardware procurement and software licensing to complex system integration and cybersecurity—remains robust. Trends also show a shift towards agile development, data analytics, artificial intelligence, and cloud-based solutions, influencing the types of IT services agencies procure.

Industry Classification

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

Product/Service Code: ROPE, CABLE, CHAIN, FITTINGS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

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: $45,358,487

Exercised Options: $45,358,487

Current Obligation: $45,358,487

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4550G

IDV Type: FSS

Timeline