Leidos Inc. awarded $94.5M for FEMA CDP Training, facing 6 bidders in a full and open competition

Contract Overview

Contract Amount: $94,547,523 ($94.5M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-08-18

End Date: 2022-05-22

Contract Duration: 2,103 days

Daily Burn Rate: $45.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF CDP TRAINING DELIVERY SERVICES

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $94.5 million to LEIDOS, INC. for work described as: IGF::OT::IGF CDP TRAINING DELIVERY SERVICES Key points: 1. The contract's value of $94.5 million over six years suggests a significant investment in training services. 2. A full and open competition with six bidders indicates a healthy market response and potential for competitive pricing. 3. The definitive contract type with a cost-plus-fixed-fee structure warrants scrutiny for cost control and performance incentives. 4. The contract duration of 2103 days (approx. 5.7 years) allows for sustained service delivery but requires ongoing performance monitoring. 5. The award to Leidos, Inc. places it as a key provider for FEMA's training needs in this specific domain. 6. The North American Industry Classification System (NAICS) code 611430 points to professional and management development training, a specialized sector.

Value Assessment

Rating: good

The total award of $94.5 million over approximately 5.7 years averages to about $16.6 million annually. Benchmarking this against similar large-scale federal training contracts is challenging without more specific service details. However, the presence of six bidders in a full and open competition suggests that the pricing was likely competitive. The cost-plus-fixed-fee (CPFF) structure means that costs are reimbursed, plus a fixed fee, which can incentivize efficiency but also requires careful oversight to prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. Six bidders participated in this competition, indicating a robust level of interest and a competitive marketplace for these training services. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competitions.

Taxpayer Impact: A full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services. This competitive environment helps ensure that taxpayer funds are used efficiently.

Public Impact

Federal employees, particularly within FEMA and potentially other homeland security-related agencies, are the primary beneficiaries of the professional and management development training provided. The services delivered encompass specialized training programs designed to enhance the skills and capabilities of federal personnel. The contract's performance location is indicated by the state code 'AL' (Alabama), suggesting a significant operational or delivery presence in that region. The training provided likely impacts the federal workforce by improving operational effectiveness, leadership skills, and emergency management expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The professional and management development training sector (NAICS 611430) is a significant part of the federal services market. Federal agencies consistently invest in training to maintain and enhance the skills of their workforce, particularly in areas like emergency management, leadership, and technical proficiency. This contract fits within that broader spending pattern, addressing specific needs for FEMA. Comparable spending benchmarks would typically involve analyzing other large federal training contracts, but the specific nature of 'CDP Training Delivery Services' makes direct comparisons difficult without more granular data on curriculum and delivery methods.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While there were six bidders in the full and open competition, the lack of specific small business participation or subcontracting requirements noted in the provided data suggests that small businesses may not have been primary awardees or significantly involved in subcontracting on this particular contract. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's Federal Emergency Management Agency (FEMA) contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee is justified by performance. Transparency is facilitated by the contract being awarded through a full and open competition, with the details of the award being publicly available. Inspector General jurisdiction would likely reside with the DHS Office of Inspector General, which has the authority to audit and investigate federal contracts for waste, fraud, and abuse.

Related Government Programs

Risk Flags

Tags

training-delivery, professional-development, management-development, fema, department-of-homeland-security, leidos-inc, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, six-bidders, alabama, naics-611430

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $94.5 million to LEIDOS, INC.. IGF::OT::IGF CDP 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 $94.5 million.

What is the period of performance?

Start: 2016-08-18. End: 2022-05-22.

What is the specific nature of the 'CDP Training Delivery Services' and how do they align with FEMA's mission?

The 'CDP Training Delivery Services' likely refer to programs focused on the Continuous Development Program or similar initiatives within FEMA, aimed at enhancing the skills and knowledge of its personnel. These services could encompass a wide range of training, from emergency response protocols and disaster recovery planning to leadership development and inter-agency coordination. The alignment with FEMA's mission is direct, as effective training is crucial for ensuring the agency can successfully prepare for, respond to, and recover from disasters and other emergencies. The professional and management development focus (NAICS 611430) suggests an emphasis on building robust leadership and operational capabilities within the agency.

How does the average annual cost of this contract compare to other large federal training contracts?

The total award of $94.5 million over approximately 5.7 years results in an average annual cost of roughly $16.6 million. Direct comparison to other large federal training contracts is difficult without knowing the specific scope, duration, and complexity of services provided. However, this figure places it within the range of significant federal training investments. For context, large-scale IT training or specialized defense-related training contracts can often exceed this amount annually. To provide a more precise benchmark, one would need to analyze contracts with similar NAICS codes, service delivery models (e.g., online vs. in-person, curriculum development), and target audiences within the federal government.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for training services?

The primary risk with a CPFF contract is that the government may end up paying more than necessary if the contractor's costs are not managed efficiently, even though the fee is fixed. While the fixed fee provides an incentive for the contractor to control costs to maximize profit, there's less direct incentive to reduce costs below the estimated level compared to a fixed-price contract. Risks include potential for scope creep if not tightly managed, contractor inefficiencies leading to higher overall costs, and the need for robust government oversight to validate incurred costs and ensure the fixed fee remains fair and reasonable throughout the contract's life. FEMA must actively monitor Leidos's expenditures and performance.

What is the track record of Leidos, Inc. in delivering large federal training contracts?

Leidos, Inc. is a major government contractor with a substantial track record across various federal agencies and service areas, including IT, logistics, and professional services. They have historically been awarded numerous large contracts, including those involving training and readiness support for defense and civilian agencies. While specific details on their past performance in delivering training services comparable to this FEMA contract would require a deeper dive into contract databases and performance reviews, their general profile suggests they possess the capacity and experience to manage such an award. However, past performance on unrelated contracts does not guarantee success on this specific training delivery requirement.

How has federal spending on professional and management development training (NAICS 611430) trended over the past five years?

Federal spending on professional and management development training, categorized under NAICS code 611430, has generally remained a consistent and significant area of investment for government agencies. While specific year-over-year fluctuations occur based on agency budgets, strategic priorities, and evolving workforce needs, the overall trend indicates sustained demand. Agencies continually invest in training to ensure their personnel possess up-to-date skills, leadership capabilities, and compliance knowledge. Factors like increased cybersecurity threats, evolving technological landscapes, and the need for effective crisis management (relevant to FEMA) often drive demand for specialized training, suggesting a stable to increasing trend in this sector over recent years.

What are the implications of the 'AL' state code for contract performance and geographic impact?

The 'AL' state code, indicating Alabama, suggests that a significant portion of the contract's performance, such as training delivery, administrative functions, or contractor personnel, is located or based in Alabama. This has implications for the geographic impact of the contract, potentially benefiting the local economy in Alabama through job creation or facility utilization. It also means that oversight and management efforts may need to consider the logistical aspects of operations within that state. For federal employees being trained, it could imply that some training sessions or administrative points of contact are situated in Alabama, influencing travel and participation requirements for personnel.

Industry Classification

NAICS: Educational ServicesBusiness Schools and Computer and Management TrainingProfessional and Management Development Training

Product/Service Code: EDUCATION AND TRAININGEDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFE20-16-R-0009

Offers Received: 6

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: $94,845,834

Exercised Options: $94,845,834

Current Obligation: $94,547,523

Subaward Activity

Number of Subawards: 126

Total Subaward Amount: $18,607,866

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2016-08-18

Current End Date: 2022-05-22

Potential End Date: 2025-11-26 00:00:00

Last Modified: 2025-11-25

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