DHS awards $20.5M for student administration system support, raising questions about competition and value
Contract Overview
Contract Amount: $20,532,185 ($20.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2011-09-30
End Date: 2016-09-28
Contract Duration: 1,825 days
Daily Burn Rate: $11.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: STUDENT ADMINISTRATION AND SCHEDULING SYSTEM SUPPORT SERVICES
Place of Performance
Location: BRUNSWICK, GLYNN County, GEORGIA, 31524
State: Georgia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $20.5 million to LEIDOS, INC. for work described as: STUDENT ADMINISTRATION AND SCHEDULING SYSTEM SUPPORT SERVICES Key points: 1. The contract's value of $20.5 million over five years suggests a significant investment in IT infrastructure. 2. The lack of competition raises concerns about potential overpricing and limited innovation. 3. The firm-fixed-price contract type aims to control costs, but its effectiveness is diminished without competitive pressure. 4. The services provided are critical for the operational efficiency of the Federal Law Enforcement Training Center. 5. The contractor, Leidos, Inc., has a substantial presence in federal IT services, indicating experience but also potential market concentration. 6. The contract's duration of 1825 days (5 years) is typical for IT support services, allowing for stable operations.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of competitive data. The total award of $20.5 million over five years averages to approximately $4.1 million annually. Without comparable contracts or market rates for similar student administration and scheduling system support services, it's difficult to definitively assess if this represents excellent value. The firm-fixed-price structure suggests an attempt to manage costs, but the absence of competition means there's no market validation of the pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor can provide the required services, often due to proprietary technology, unique expertise, or urgent needs. The lack of multiple bidders means there was no opportunity for price discovery through a competitive bidding process, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. Without competing offers, the government lacked the leverage to negotiate the lowest possible price.
Public Impact
Federal law enforcement trainees and instructors benefit from a stable and functional student administration and scheduling system. The services ensure the efficient management of course schedules, student records, and administrative processes for the FLETC. The geographic impact is primarily at the Federal Law Enforcement Training Center locations, likely in Georgia. The contract supports IT professionals employed by Leidos, Inc., contributing to the federal IT workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated prices and reduced incentive for innovation.
- Sole-source awards can limit opportunities for other capable vendors, particularly small businesses.
- Reliance on a single contractor for critical IT infrastructure poses a risk if performance issues arise.
- The absence of market validation makes it difficult to ensure optimal value for taxpayer dollars.
Positive Signals
- The firm-fixed-price contract type provides cost certainty for the government.
- The contractor, Leidos, Inc., is an established entity with experience in federal IT services.
- The contract duration allows for continuity of essential services for the FLETC.
Sector Analysis
The IT services sector is a significant area of federal spending. This contract falls under custom computer programming services, a sub-sector focused on developing and maintaining specialized software solutions. The federal government is a major consumer of such services to support its vast array of operations. Benchmarking this specific contract is difficult without more granular data on similar system support services, but overall federal IT spending is in the hundreds of billions annually.
Small Business Impact
This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract. This could mean that a significant portion of the contract value does not flow down to the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security's Federal Law Enforcement Training Center. Accountability measures are established through the contract terms and performance metrics. Transparency is limited due to the sole-source nature, with less public information available compared to competed contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal IT Support Services
- Custom Computer Programming Services
- Department of Homeland Security IT Contracts
- Law Enforcement Training Systems
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Limited Innovation Incentive
Tags
it-services, custom-computer-programming, department-of-homeland-security, federal-law-enforcement-training-center, definitive-contract, firm-fixed-price, sole-source, large-contract, it-support, student-administration-system, leidos-inc, georgia
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $20.5 million to LEIDOS, INC.. STUDENT ADMINISTRATION AND SCHEDULING SYSTEM SUPPORT 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 Law Enforcement Training Center).
What is the total obligated amount?
The obligated amount is $20.5 million.
What is the period of performance?
Start: 2011-09-30. End: 2016-09-28.
What is Leidos, Inc.'s track record with the Department of Homeland Security and similar IT support contracts?
Leidos, Inc. is a major federal contractor with a significant history of performing IT services for various government agencies, including the Department of Homeland Security (DHS). They have a broad portfolio encompassing IT modernization, cybersecurity, data analytics, and system integration. For DHS specifically, Leidos has held numerous contracts across different components, often involving large-scale IT support and system development. Their track record generally indicates experience with complex government IT environments. However, the specific performance metrics and quality of service for this particular student administration and scheduling system support contract would require a deeper dive into past performance evaluations and any associated contract disputes or awards.
How does the $20.5 million award compare to similar student administration system support contracts within the federal government?
Directly comparing this $20.5 million award for student administration and scheduling system support is challenging without access to a comprehensive database of similar sole-source or competed contracts with detailed scope and duration. However, federal IT support contracts can range widely in value. For a five-year period, an average annual spend of $4.1 million for specialized system support is not uncommon for critical government functions. The lack of competition here prevents a direct price-to-price comparison with potentially lower bids from other vendors. To assess value, one would ideally benchmark against other sole-source awards for comparable systems or, more effectively, against what a competitive process might have yielded.
What are the primary risks associated with a sole-source award for critical IT infrastructure like the FLETC's student system?
The primary risks associated with a sole-source award for critical IT infrastructure are elevated costs and reduced innovation. Without competition, the government may pay a premium because the contractor faces no pressure to offer the lowest price. Furthermore, the lack of competing vendors can stifle innovation, as the incumbent contractor may have less incentive to proactively introduce cost-saving technologies or process improvements. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future. Finally, performance issues can be harder to address decisively, as the government's options for remedy are more limited than in a competitive scenario.
How effective is a firm-fixed-price contract in controlling costs when awarded on a sole-source basis?
A firm-fixed-price (FFP) contract is designed to provide cost certainty by fixing the price regardless of the contractor's actual costs. This is generally beneficial for the government. However, when awarded on a sole-source basis, the effectiveness of FFP in controlling costs is significantly diminished. The 'firm' price is set without the benefit of competitive bidding, meaning it might be higher than it would be in a competitive environment. While the government knows the total cost upfront, it lacks assurance that this cost represents the best possible value. The contractor still has an incentive to perform efficiently to maximize profit, but the absence of competition removes the primary mechanism for driving down the price.
What is the historical spending pattern for student administration and scheduling system support at FLETC?
Analyzing the historical spending patterns for student administration and scheduling system support at the Federal Law Enforcement Training Center (FLETC) would require access to historical contract data beyond this single award. This $20.5 million contract, awarded in 2011 and ending in 2016, represents a specific period. To understand historical trends, one would need to examine previous contracts for similar services, their values, durations, and whether they were competed or sole-sourced. This would reveal if spending has increased or decreased, if the nature of the services has evolved, and if there's a pattern of sole-source awards for this function, which could indicate systemic issues with competition or market dynamics.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HSFLGL-11-R-00060
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
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: $20,553,792
Exercised Options: $20,532,185
Current Obligation: $20,532,185
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $1,403,068
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-30
Current End Date: 2016-09-28
Potential End Date: 2017-08-27 00:00:00
Last Modified: 2017-07-28
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