VA Awards $204M for Computer Systems Design Services to Leidos SMS Inc

Contract Overview

Contract Amount: $204,469,054 ($204.5M)

Contractor: Leidos SMS Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-12-10

End Date: 2020-08-27

Contract Duration: 1,722 days

Daily Burn Rate: $118.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF NEW TO AWARD FOR ICMHS

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $204.5 million to LEIDOS SMS INC for work described as: IGF::OT::IGF NEW TO AWARD FOR ICMHS Key points: 1. Leidos SMS Inc. secured a significant contract valued at over $204 million. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is 1722 days, indicating a long-term engagement. 4. The primary sector appears to be IT services, specifically computer systems design. 5. The award was made by the Department of Veterans Affairs.

Value Assessment

Rating: good

The contract's value of $204M over approximately 4.7 years suggests a substantial but potentially reasonable price for complex computer systems design services. Benchmarking against similar large-scale IT contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method typically fosters competitive pricing. The multiple delivery orders (7) suggest a structured approach to tasking and potentially phased pricing, allowing for price discovery over the contract's life.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.

Public Impact

Veterans will benefit from improved IT systems supporting healthcare and administrative functions. The contract supports critical infrastructure for the Department of Veterans Affairs. The award signifies a major IT services engagement within the federal government. Leidos SMS Inc. will be a key provider of IT solutions for the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs over the long contract duration.
Dependence on a single contractor for critical IT systems.
Need for robust performance monitoring to ensure service delivery meets expectations.

Positive Signals

Awarded through full and open competition, indicating market responsiveness.
Firm Fixed Price contract type can provide cost certainty.
Long-term engagement allows for continuity of essential services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. Federal spending in this area is substantial, supporting agency operations, modernization, and cybersecurity efforts. Benchmarks for similar large-scale IT design contracts are typically in the hundreds of millions to billions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not direct recipients of this prime contract, though they may participate as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The multiple delivery orders and firm fixed price structure provide some level of accountability, but ongoing monitoring of performance and adherence to scope will be crucial.

Related Government Programs

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

Risk Flags

Long contract duration increases risk of technological obsolescence.
Potential for contractor lock-in due to specialized system design.
Need for strong contract management to prevent scope creep.
No small business participation noted in prime award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $204.5 million to LEIDOS SMS INC. IGF::OT::IGF NEW TO AWARD FOR ICMHS

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 $204.5 million.

What is the period of performance?

Start: 2015-12-10. End: 2020-08-27.

What specific computer systems are being designed or improved under this contract, and how do they directly enhance veteran services?

The contract focuses on computer systems design services for the Department of Veterans Affairs (VA). While the specific systems are not detailed, they likely support the VA's mission-critical functions, such as electronic health records, patient scheduling, administrative systems, or data management. Improvements in these areas are intended to streamline operations, enhance data accuracy, and ultimately improve the delivery of healthcare and benefits to veterans.

Given the $204M value and 4.7-year duration, what are the primary risks associated with this contract's execution and long-term effectiveness?

Key risks include potential scope creep, leading to cost overruns despite the firm fixed price structure if not managed tightly. Technological obsolescence is another risk, as systems designed today might need significant updates within the contract's lifespan. Furthermore, over-reliance on a single vendor, Leidos SMS Inc., could pose a risk if performance issues arise or if the vendor's capabilities do not keep pace with evolving VA needs.

How does the firm fixed price (FFP) contract type impact the government's ability to ensure value for money throughout the contract's lifecycle?

The Firm Fixed Price (FFP) contract type is generally advantageous for the government in ensuring value for money, as it shifts most of the cost risk to the contractor. Leidos SMS Inc. is obligated to complete the work for the agreed-upon price, incentivizing efficient performance. However, the government must still ensure the initial price was fair and reasonable and diligently manage the contract to prevent scope changes that could inflate costs or reduce the overall value proposition.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

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: $289,900,500

Exercised Options: $204,469,054

Current Obligation: $204,469,054

Actual Outlays: $159,252

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $71,113,322

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1000

IDV Type: IDC

Timeline