HHS Awards $92M for OCSE Systems Operations and Maintenance to Leidos, Inc
Contract Overview
Contract Amount: $92,125,360 ($92.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2016-08-01
End Date: 2021-11-19
Contract Duration: 1,936 days
Daily Burn Rate: $47.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF OCSE SYSTEMS OPERATIONS AND MAINTENANCE AND CONTINUOUS IMPROVEMENTS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201
Plain-Language Summary
Department of Health and Human Services obligated $92.1 million to LEIDOS, INC. for work described as: IGF::CT::IGF OCSE SYSTEMS OPERATIONS AND MAINTENANCE AND CONTINUOUS IMPROVEMENTS Key points: 1. Significant contract value of $92.1M over 5 years. 2. Leidos, Inc. secured this contract through full and open competition. 3. The contract covers computer systems design services, a critical IT function. 4. Potential for cost savings or overruns exists within firm-fixed-price contracts.
Value Assessment
Rating: good
The contract's firm-fixed-price structure provides cost certainty. Benchmarking against similar IT systems operations and maintenance contracts is recommended to ensure competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT infrastructure maintenance and improvement, aiming for efficient service delivery.
Public Impact
Ensures continuity of critical government IT systems. Supports ongoing improvements to government operational efficiency. Provides stable employment for IT professionals within the contractor organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is substantial, requiring ongoing monitoring.
- Reliance on a single vendor for critical systems.
- Potential for scope creep in continuous improvement efforts.
Positive Signals
- Full and open competition promotes market-driven pricing.
- Firm-fixed-price contract offers budget predictability.
- Services are essential for government operations.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar IT operations and maintenance contracts should be considered to assess value.
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
Oversight is crucial to ensure Leidos, Inc. meets performance requirements and delivers value for taxpayer money throughout the contract's lifecycle. Regular performance reviews are essential.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for vendor lock-in.
- Risk of cost overruns if scope is not well-managed.
- Dependence on a single contractor for critical IT infrastructure.
- Need for continuous monitoring of performance and value.
Tags
computer-systems-design-services, department-of-health-and-human-services, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $92.1 million to LEIDOS, INC.. IGF::CT::IGF OCSE SYSTEMS OPERATIONS AND MAINTENANCE AND CONTINUOUS IMPROVEMENTS
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 $92.1 million.
What is the period of performance?
Start: 2016-08-01. End: 2021-11-19.
How does the awarded price compare to industry benchmarks for similar IT systems operations and maintenance contracts?
Without specific benchmark data for comparable contracts, a precise comparison is difficult. However, the firm-fixed-price structure suggests an attempt to control costs. Further analysis would involve researching government databases and industry reports for similar service contracts to assess if the $92.1 million over five years represents a competitive rate for the scope of work.
What are the key performance indicators (KPIs) for this contract, and how will performance be measured to mitigate risks?
Key performance indicators likely focus on system uptime, response times for maintenance requests, successful implementation of continuous improvements, and adherence to security protocols. Performance measurement would involve regular reporting by the contractor, government inspections, and user feedback. Robust oversight mechanisms are necessary to ensure these KPIs are met and to identify any deviations early.
What is the potential impact of vendor lock-in, given the long-term nature of this contract for critical IT systems?
Vendor lock-in is a potential risk when a single contractor manages critical systems for an extended period. This can limit future flexibility and potentially increase costs if the incumbent's pricing becomes uncompetitive. Mitigation strategies include ensuring clear contract exit clauses, maintaining comprehensive documentation, and periodically reassessing the market for alternative solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: NIHJT2010001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
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: $92,125,360
Exercised Options: $92,125,360
Current Obligation: $92,125,360
Actual Outlays: $6,844,442
Subaward Activity
Number of Subawards: 54
Total Subaward Amount: $10,167,593
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200034W
IDV Type: GWAC
Timeline
Start Date: 2016-08-01
Current End Date: 2021-11-19
Potential End Date: 2021-11-19 00:00:00
Last Modified: 2026-04-01
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