Leidos Inc. awarded $57.6M for FEMA training services, highlighting a need for professional development in emergency management
Contract Overview
Contract Amount: $57,623,325 ($57.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2012-08-22
End Date: 2016-09-21
Contract Duration: 1,491 days
Daily Burn Rate: $38.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: TRAINING DELIVERY SERVICES
Place of Performance
Location: ANNISTON, CALHOUN County, ALABAMA, 36205
State: Alabama Government Spending
Plain-Language Summary
Department of Homeland Security obligated $57.6 million to LEIDOS, INC. for work described as: TRAINING DELIVERY SERVICES Key points: 1. The contract's cost-plus award fee structure incentivizes performance but requires careful monitoring to ensure value. 2. Full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The contract duration of nearly 5 years indicates a significant, ongoing need for these training capabilities. 4. Performance context is crucial; the effectiveness of the training delivered directly impacts FEMA's operational readiness. 5. This contract positions Leidos as a key provider in the government training and professional development sector.
Value Assessment
Rating: good
The contract's total value of $57.6 million over approximately 4 years suggests a substantial investment in training. Benchmarking against similar large-scale training contracts is difficult without more specific service details. However, the cost-plus award fee (CPAF) structure allows for flexibility and incentivizes contractor performance, which can be a good value driver if managed effectively. The number of bids received (8) indicates a healthy level of interest, which typically correlates with reasonable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with 8 bids received. This indicates a competitive bidding process where multiple qualified vendors had the opportunity to propose their services. The high number of bidders suggests that the market for these specialized training services is robust and that the government likely received competitive proposals, contributing to price discovery.
Taxpayer Impact: For taxpayers, full and open competition generally leads to better pricing and a wider selection of qualified contractors, maximizing the value of federal dollars spent on essential training.
Public Impact
Federal Emergency Management Agency (FEMA) personnel benefit from enhanced skills in emergency preparedness, response, and recovery. The training delivered supports FEMA's mission to help people before, during, and after disasters. Geographic impact is nationwide, as FEMA operates across all states and territories. Workforce implications include the upskilling of federal employees, improving overall government capacity in disaster management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee contracts can sometimes lead to higher costs if not managed diligently, as contractor profit is tied to performance metrics.
- The long duration of the contract could present risks if training needs evolve significantly over time and the contract is not flexible enough to adapt.
Positive Signals
- Full and open competition with 8 bidders suggests a competitive environment that should drive value.
- The award fee structure incentivizes contractor performance, potentially leading to higher quality training delivery.
- The contract's focus on professional development aligns with the need for skilled personnel in critical government functions like emergency management.
Sector Analysis
This contract falls within the professional and management development training sector, a segment of the broader government services market. The North American Industry Classification System (NAICS) code 611430, Professional and Management Development Training, encompasses establishments primarily engaged in offering educational courses or training in a variety of subjects, such as job skills, safety, and personal development. The federal government is a significant purchaser of such services to ensure its workforce is adequately trained and prepared for diverse operational needs, particularly in critical areas like emergency management.
Small Business Impact
This contract was awarded to Leidos, Inc. and does not indicate any specific small business set-aside provisions or subcontracting requirements mentioned in the provided data. Without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support services.
Oversight & Accountability
The contract is a Definitive Contract awarded by the Department of Homeland Security, Federal Emergency Management Agency. Oversight would typically involve program managers within FEMA responsible for monitoring contract performance, adherence to the cost-plus award fee structure, and ensuring training objectives are met. Transparency is generally maintained through contract reporting mechanisms, and while specific IG jurisdiction isn't detailed, the DHS Office of Inspector General would have oversight authority over federal contracts.
Related Government Programs
- FEMA Disaster Preparedness Training
- Federal Employee Professional Development Programs
- Emergency Management Training Services
- Government Contractor Training Solutions
Risk Flags
- Cost-plus award fee structure requires diligent oversight to ensure value for money.
- Contract duration may pose risks if training needs evolve rapidly.
Tags
training-delivery-services, leidos-inc, department-of-homeland-security, federal-emergency-management-agency, professional-and-management-development-training, definitive-contract, full-and-open-competition, cost-plus-award-fee, alabama, emergency-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $57.6 million to LEIDOS, INC.. TRAINING DELIVERY SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $57.6 million.
What is the period of performance?
Start: 2012-08-22. End: 2016-09-21.
What is the historical spending pattern for FEMA training services under similar contracts?
Analyzing historical spending for FEMA training services requires access to detailed contract databases. However, the $57.6 million awarded to Leidos Inc. for training delivery services between 2012 and 2016 indicates a substantial and ongoing investment in this area. FEMA, as the primary federal agency for disaster response, consistently requires robust training programs to maintain operational readiness. Past contracts likely varied in scope and value, influenced by evolving threats, policy changes, and budget allocations. Understanding trends in spending would involve examining contract awards over multiple fiscal years, identifying key service areas, and noting any shifts in contractor landscape or pricing structures. This particular contract's value suggests a significant, multi-year commitment to professional development within the agency.
How does the performance of Leidos, Inc. on this contract compare to its other federal contracts?
Assessing Leidos, Inc.'s performance on this specific FEMA training contract requires detailed performance reviews and award fee determinations, which are not publicly available in the provided data. However, Leidos is a large, established government contractor with a broad portfolio across defense, intelligence, and civilian agencies. Their track record generally includes managing complex programs and delivering a wide range of services. To compare performance, one would need to analyze their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for this and other similar contracts. Factors such as on-time delivery, quality of service, cost control, and adherence to requirements would be key metrics. Without specific performance data for this contract, a direct comparison remains speculative, but Leidos's size and experience suggest a capacity to manage such requirements.
What are the key risks associated with a Cost Plus Award Fee (CPAF) contract for training services?
Cost Plus Award Fee (CPAF) contracts, like the one awarded to Leidos for FEMA training, present specific risks. The primary risk is that the government may pay higher overall costs compared to fixed-price contracts, as the contractor is reimbursed for allowable costs plus a fee that includes a base amount and an award amount tied to performance. If performance metrics are not clearly defined or are poorly monitored, the 'award' portion of the fee could be paid out without commensurate value delivered, leading to potential overspending. Contractor incentives might also focus on maximizing allowable costs rather than efficiency. Effective management, robust oversight, and clearly defined, measurable performance standards are crucial to mitigate these risks and ensure the government receives good value for its investment.
What is the market size and competitive landscape for professional and management development training for federal agencies?
The market for professional and management development training within the federal government is substantial and highly competitive. Agencies across all branches require continuous training to maintain workforce skills, adapt to new technologies, and comply with regulations. NAICS code 611430 (Professional and Management Development Training) provides a benchmark for the broader industry. Federal agencies often procure these services through various contract vehicles, including large indefinite-delivery/indefinite-quantity (IDIQ) contracts, task orders, and sole-source awards. The landscape includes large system integrators, specialized training firms, and educational institutions. Competition is generally robust for well-defined training needs, as demonstrated by the 8 bidders for this FEMA contract, suggesting a healthy ecosystem of providers capable of meeting diverse government requirements.
How does the geographic scope (Alabama) of this contract's award location relate to the service delivery?
The data indicates 'ST': 'AL' and 'SN': 'ALABAMA', which likely refers to the state where the contract was awarded or where the contractor's office is located, not necessarily the sole geographic scope of service delivery. Federal contracts, especially for agencies like FEMA, typically involve nationwide or even global service delivery. Training services can be delivered on-site at various FEMA facilities across the country, through online platforms, or at designated training centers. Therefore, while Alabama might be the administrative location for this contract, the actual training delivery would likely extend to support FEMA's operational needs wherever they arise, which is inherently a nationwide concern for disaster management.
Industry Classification
NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSFEEM-12-R-0007
Offers Received: 8
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,038,725
Exercised Options: $57,822,297
Current Obligation: $57,623,325
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $1,098,641
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-22
Current End Date: 2016-09-21
Potential End Date: 2016-09-21 00:00:00
Last Modified: 2023-10-02
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