Leidos SMS Inc. awarded $161.38M for VBA document conversion, highlighting IT services for Veterans Affairs

Contract Overview

Contract Amount: $161,375,781 ($161.4M)

Contractor: Leidos SMS Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-07-25

End Date: 2016-03-22

Contract Duration: 1,336 days

Daily Burn Rate: $120.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 107

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VBA DOCUMENT CONVERSION SERVICES T4 TASK ORDER PSC CODE- D311

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $161.4 million to LEIDOS SMS INC for work described as: VBA DOCUMENT CONVERSION SERVICES T4 TASK ORDER PSC CODE- D311 Key points: 1. Contract value represents a significant investment in IT modernization for the VA. 2. The firm fixed-price structure aims to control costs and ensure predictable spending. 3. Competition dynamics for this task order will be assessed to understand pricing efficiency. 4. Performance period spans over three years, indicating a substantial, ongoing need. 5. This contract falls within the broader category of computer systems design services. 6. The geographic focus is primarily within Virginia, impacting local IT infrastructure.

Value Assessment

Rating: good

The contract's value of $161.38 million over its duration suggests a substantial investment in document conversion services. Benchmarking against similar IT service contracts within the federal government is crucial to assess if this pricing is competitive. The firm fixed-price nature provides cost certainty, but requires careful monitoring of scope creep to ensure value for money. Without specific comparable contract data, a definitive value assessment is challenging, but the scale indicates a significant operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 107 bids suggests a robust competitive environment, which typically drives down prices and encourages innovation. A high number of bidders generally signifies strong market interest and a healthy ecosystem of capable contractors for this type of service.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in more favorable pricing and better service terms than a sole-source or limited competition award.

Public Impact

Veterans Affairs (VA) benefits through improved efficiency in managing and accessing veteran documents. The contract delivers essential computer systems design and document conversion services. The primary geographic impact is within Virginia, supporting federal IT operations. This contract supports the IT workforce involved in digital transformation and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope is not tightly managed under the firm fixed-price contract.
Dependence on a single contractor (Leidos SMS Inc.) for a critical function could pose a risk if performance falters.
Ensuring data security and privacy during the extensive document conversion process is paramount.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
The firm fixed-price contract provides cost predictability for the VA.
The substantial value suggests a recognized and critical need for these services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and document management. The federal IT services market is vast, with significant spending allocated to modernization, cloud migration, and data management. This contract represents a portion of the VA's investment in digitizing its operations, aligning with broader government initiatives to improve efficiency and service delivery through technology. Comparable spending benchmarks would involve analyzing other large-scale IT service contracts awarded by agencies like the VA, DoD, or GSA.

Small Business Impact

While this contract was awarded under full and open competition and Leidos SMS Inc. is a large business, there is no explicit indication of a small business set-aside. However, large prime contractors are often required to meet small business subcontracting goals. The impact on the small business ecosystem would depend on whether Leidos SMS Inc. actively engages small businesses as subcontractors for specialized services within this task order.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

VBA Claims Processing Modernization
Federal Records Management
IT Modernization Initiatives
Digital Transformation Services
Department of Veterans Affairs IT Contracts

Risk Flags

Potential for scope creep impacting budget
Dependence on contractor performance
Data security and privacy risks
Long-term contract viability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $161.4 million to LEIDOS SMS INC. VBA DOCUMENT CONVERSION SERVICES T4 TASK ORDER PSC CODE- D311

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 $161.4 million.

What is the period of performance?

Start: 2012-07-25. End: 2016-03-22.

What is the historical spending trend for VBA document conversion services by the Department of Veterans Affairs?

Analyzing historical spending on VBA document conversion services requires examining contract data over several fiscal years. While this specific task order is for $161.38 million, understanding the VA's broader investment in this area provides context. Trends might show an increasing reliance on digital document management, driven by legislative mandates or a strategic push towards paperless operations. Fluctuations in spending could also be linked to specific modernization projects or changes in veteran caseloads. Without access to a comprehensive historical database for this specific service category, a precise trend analysis is difficult, but the current award suggests a sustained and significant commitment to digitizing veteran records.

How does the pricing of this Leidos SMS Inc. contract compare to similar IT services contracts awarded by the VA or other federal agencies?

Benchmarking the pricing of this $161.38 million contract requires comparing its per-unit costs or overall value against similar IT services contracts, particularly those involving large-scale document conversion or systems integration. Factors such as the complexity of documents, required turnaround times, security protocols, and the specific technologies employed significantly influence pricing. Given the firm fixed-price nature, the VA likely sought competitive bids to ensure value. A detailed comparison would involve analyzing the scope of work, contract duration, and the number of bidders for comparable contracts. Without direct access to proprietary pricing data or a comprehensive database of similar federal IT contracts, a precise comparison is challenging, but the scale of this award suggests it aligns with major federal IT investments.

What are the key performance indicators (KPIs) used to measure the success of this VBA document conversion contract?

Key performance indicators (KPIs) for a contract like this typically focus on efficiency, accuracy, timeliness, and security. For VBA document conversion, KPIs might include the volume of documents processed per day/week/month, the accuracy rate of data extraction and conversion, adherence to delivery schedules, and the number of security incidents or data breaches (ideally zero). Compliance with VA data handling policies and successful integration of converted documents into the VA's systems would also be critical. The firm fixed-price structure implies that meeting these KPIs is directly tied to contractor payment and overall contract success, ensuring accountability for Leidos SMS Inc.

What is Leidos SMS Inc.'s track record with the Department of Veterans Affairs and similar federal contracts?

Leidos SMS Inc. has a significant track record with the Department of Veterans Affairs, as evidenced by this substantial contract. Evaluating their performance history involves reviewing past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or challenges. Companies like Leidos often have extensive experience in providing IT services, systems integration, and support to various federal agencies, including the VA. Their ability to secure large, complex contracts suggests a history of successful performance, though a deeper dive into specific past performance metrics and client feedback would provide a more comprehensive assessment.

What are the potential risks associated with relying on a single contractor for such a critical function as VBA document conversion?

Relying on a single contractor, even one with a strong track record like Leidos SMS Inc., for a critical function like VBA document conversion presents several potential risks. These include vendor lock-in, where switching contractors becomes difficult and costly; performance degradation over time if incentives weaken; potential for price increases upon contract renewal; and the risk of service disruption if the contractor faces financial instability, legal issues, or operational failures. Mitigating these risks involves robust contract management, continuous performance monitoring, clear exit strategies, and potentially fostering a competitive environment for future contract renewals or task orders.

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: 107

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

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: $191,307,287

Exercised Options: $161,562,708

Current Obligation: $161,375,781

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1000

IDV Type: IDC

Timeline