VA Awards $574.5M for Computer Systems Design Services to Leidos SMS Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $574,499,876 ($574.5M)

Contractor: Leidos SMS Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-02-22

End Date: 2018-08-01

Contract Duration: 2,352 days

Daily Burn Rate: $244.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DCAT4 TASK ORDER AWARDED

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78759

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $574.5 million to LEIDOS SMS INC for work described as: DCAT4 TASK ORDER AWARDED Key points: 1. Significant contract value of $574.5M over 6 years. 2. Awarded under full and open competition, suggesting market availability. 3. Leidos SMS Inc. is a large, established government contractor. 4. Services fall under IT, a critical sector for government operations.

Value Assessment

Rating: good

The contract value of $574.5M over approximately 6 years suggests a substantial investment. Benchmarking against similar large-scale IT service contracts would be necessary for a precise pricing assessment, but the duration and scope indicate a significant, potentially competitive, pricing structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the agency to select the best value offering from the market.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing and best services available.

Public Impact

Veterans will benefit from improved IT systems supporting their healthcare and benefits. The contract supports critical IT infrastructure for the Department of Veterans Affairs. Leidos SMS Inc. will likely expand its workforce to meet contract demands. This award represents a significant portion of the VA's IT services budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (6 years).
Awarded as a delivery order, not a prime contract.
No specific small business set-aside mentioned.

Positive Signals

Awarded under full and open competition.
Leidos SMS Inc. is a reputable contractor.
Supports critical VA IT infrastructure.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, with benchmarks varying widely based on complexity, duration, and specific services required.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). There is no indication of small business subcontracting goals or participation within the provided details.

Oversight & Accountability

The award was made by the Department of Veterans Affairs, suggesting internal agency oversight. The use of full and open competition implies a structured procurement process designed to ensure accountability and value.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration may lead to vendor lock-in.
Time and Materials pricing can be less predictable than fixed-price.
Lack of small business participation noted.
Specific services and performance metrics are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $574.5 million to LEIDOS SMS INC. DCAT4 TASK ORDER AWARDED

Who is the contractor on this award?

The obligated recipient is LEIDOS SMS INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $574.5 million.

What is the period of performance?

Start: 2012-02-22. End: 2018-08-01.

What specific computer systems design services are included in this task order, and how do they align with the VA's strategic IT goals?

The provided data categorizes this as 'Computer Systems Design Services' (NAICS 541512) but lacks specifics on the exact services. Understanding the scope, such as network design, software development, or system integration, is crucial to assess its alignment with the VA's IT modernization efforts and long-term strategic objectives for improving veteran services.

Given the $574.5M value and 6-year duration, what are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure effective service delivery and contractor performance

Effective oversight requires clearly defined KPIs and SLAs tied to the contract's objectives. For a contract of this magnitude and duration, these metrics should cover aspects like system uptime, response times, security compliance, and project completion rates. Regular performance reviews against these benchmarks are essential to ensure the VA receives the intended value and that Leidos SMS Inc. meets its contractual obligations.

How does the pricing structure (Time and Materials) compare to other potential contract types for similar IT system design services, and what are the associated cost control mechanisms?

Time and Materials (T&M) contracts offer flexibility but can pose cost control challenges. For IT system design, fixed-price or cost-plus-incentive-fee contracts might offer more predictable spending. The VA's ability to manage costs under this T&M award depends on robust oversight, clear task definitions, and effective negotiation of labor rates and material markups to prevent cost overruns.

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

Offers Received: 9

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: ONE NORTHERN CONCOURSE, SYRACUSE, NY, 13212

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $598,065,556

Exercised Options: $574,499,876

Current Obligation: $574,499,876

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1000

IDV Type: IDC

Timeline