VA Awards $28M CT-HCPS Task Order to Leidos SMS Inc. for Computer Systems Design Services

Contract Overview

Contract Amount: $28,018,309 ($28.0M)

Contractor: Leidos SMS Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-04-13

End Date: 2015-04-12

Contract Duration: 1,094 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CT-HEALTHCARE PROCESSING SYSTEM (HCPS) TASK ORDER AWARD.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78714

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.0 million to LEIDOS SMS INC for work described as: CT-HEALTHCARE PROCESSING SYSTEM (HCPS) TASK ORDER AWARD. Key points: 1. Leidos SMS Inc. secured a significant $28 million contract for healthcare processing system support. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. The contract duration is approximately three years, ending in April 2015. 4. This spending falls within the IT services sector, specifically computer systems design.

Value Assessment

Rating: fair

The contract was awarded as a Time and Materials type, which can lead to cost overruns if not managed carefully. The awarded amount is $28,018,308.83.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Time and Materials pricing structure may limit the predictability of the final cost.

Taxpayer Impact: Taxpayer funds are being utilized for IT services to support the VA's healthcare processing system, aiming for improved efficiency and effectiveness.

Public Impact

Veterans may experience improved healthcare processing and services due to system upgrades. The contract supports a critical function within the Department of Veterans Affairs. The use of a large IT services contractor impacts the broader federal IT landscape.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty.
Contract duration of nearly three years requires ongoing monitoring.

Positive Signals

Awarded under full and open competition.
Supports a critical healthcare function for veterans.

Sector Analysis

This contract falls under the IT services sector, specifically computer systems design. Spending benchmarks for similar contracts can vary widely based on complexity and duration, but $28 million over three years for a healthcare processing system is a substantial investment.

Small Business Impact

The contract was awarded to Leidos SMS Inc., a large business. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The task order award mechanism implies a degree of oversight within a larger contract vehicle.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detail on small business participation.
Contract duration requires sustained oversight.
Scope of work and specific performance metrics not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.0 million to LEIDOS SMS INC. CT-HEALTHCARE PROCESSING SYSTEM (HCPS) TASK ORDER AWARD.

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 $28.0 million.

What is the period of performance?

Start: 2012-04-13. End: 2015-04-12.

What was the specific scope of work for the CT-HCPS system and how did it align with VA's strategic healthcare goals?

The provided data does not detail the specific scope of work for the CT-HCPS system. However, it is a computer systems design services contract awarded by the Department of Veterans Affairs, implying it supports the operational or developmental needs of the VA's healthcare processing infrastructure. Understanding the precise functionalities and objectives would be crucial to assessing its alignment with broader VA healthcare strategic goals.

Were there any performance issues or cost overruns associated with this Time and Materials contract during its execution?

The provided data does not include information on the performance or cost history of this specific contract. Time and Materials contracts inherently carry a risk of cost escalation if not closely managed and monitored. Further investigation into contract performance reports and financial data would be necessary to determine if any issues arose during its three-year duration.

How did the competitive bidding process for this full and open competition ensure the best value for taxpayer dollars?

A full and open competition generally ensures best value by allowing all qualified vendors to bid, fostering a competitive environment that drives down prices and encourages innovation. The specific details of the bidding process, including the evaluation criteria and the number of bids received, would provide a clearer picture of how effectively this competition translated into optimal value for the taxpayer on this $28 million award.

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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

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: $28,018,309

Exercised Options: $28,018,309

Current Obligation: $28,018,309

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1000

IDV Type: IDC

Timeline