HHS Awards $88.6M for NIH ERA Software Support to Leidos, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $88,598,524 ($88.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2014-07-17
End Date: 2024-04-05
Contract Duration: 3,550 days
Daily Burn Rate: $25.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CL::IGF FOR CLOSELY ASSOCIATED - PURPOSE OF AWARD: TO AWARD CONTRACT FOR ERA SOFTWARE DEVELOPMENT SUPPORT SERVICES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $88.6 million to LEIDOS, INC. for work described as: IGF::CL::IGF FOR CLOSELY ASSOCIATED - PURPOSE OF AWARD: TO AWARD CONTRACT FOR ERA SOFTWARE DEVELOPMENT SUPPORT SERVICES Key points: 1. Significant contract value for custom computer programming services. 2. Leidos, Inc. is a major government contractor, indicating established capabilities. 3. The contract spans a decade, suggesting long-term support needs. 4. The 'Custom Computer Programming Services' NAICS code is common across many federal agencies.
Value Assessment
Rating: good
The contract value of $88.6 million over 10 years for custom programming services appears reasonable given the duration and scope. Benchmarking against similar long-term IT support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
Ensures continued development and support for critical NIH research systems. Supports a significant portion of the NIH's IT infrastructure needs. Potential for innovation and efficiency gains in software development through competition.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized
- Long-term contract indicates stable support for essential services
- Established contractor with proven track record
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Federal spending in this area is substantial, supporting agency operations and research. Benchmarks for similar contracts vary widely based on complexity and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Leidos, Inc. is a large business, the use of full and open competition allows for subcontracting opportunities for small businesses.
Oversight & Accountability
The contract's long duration and significant value warrant ongoing oversight to ensure performance, cost control, and adherence to contract terms. Regular performance reviews and audits would be crucial.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for cost overruns due to CPFF structure and long duration.
- Reliance on a single large contractor for a decade could limit future flexibility.
- Need for strong oversight to ensure performance and prevent scope creep.
Tags
custom-computer-programming-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 $88.6 million to LEIDOS, INC.. IGF::CL::IGF FOR CLOSELY ASSOCIATED - PURPOSE OF AWARD: TO AWARD CONTRACT FOR ERA SOFTWARE DEVELOPMENT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, 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 $88.6 million.
What is the period of performance?
Start: 2014-07-17. End: 2024-04-05.
What specific NIH systems or programs does ERA software support, and what is the criticality of this support to NIH's mission?
ERA software likely supports critical research administration functions at the National Institutes of Health, potentially including grant management, data analysis platforms, or electronic health record systems. The criticality hinges on how integral these systems are to the NIH's core mission of advancing biomedical research and improving public health. Without specific system details, it's assumed to be high given the contract's duration and value.
What are the key performance indicators (KPIs) for this contract, and how is Leidos, Inc. being measured against them?
Key performance indicators for custom computer programming services typically include software quality (e.g., bug rates, performance metrics), adherence to development timelines, successful implementation of new features, and user satisfaction. The contract likely specifies these KPIs, with performance being monitored by the NIH contracting officer's representative (COR) through regular reports and system performance data.
What is the potential for cost overruns or scope creep given the Cost Plus Fixed Fee (CPFF) contract type and the 10-year duration?
Cost Plus Fixed Fee contracts can present a risk of cost overruns if the fixed fee is not adequately calculated or if the scope of work expands significantly without proper change order management. The 10-year duration increases this risk. Robust oversight, clear scope definition, and strict change control processes are essential to mitigate these potential issues and ensure taxpayer value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $142,045,125
Exercised Options: $88,598,524
Current Obligation: $88,598,524
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $8,523,153
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-07-17
Current End Date: 2024-04-05
Potential End Date: 2024-04-05 00:00:00
Last Modified: 2024-04-26
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