VA Awards $30.2M for E&E Support to Leidos SMS Inc., a 5-year contract for computer systems design

Contract Overview

Contract Amount: $30,216,195 ($30.2M)

Contractor: Leidos SMS Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-05-16

End Date: 2018-08-11

Contract Duration: 817 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF SERVICES FOR ADMINISTRATIVE AND SHAREPOINT SUPPORT SERVICES SOFTWARE ENHANCEMENTS AND OPERATIONS AND MAINTENANCE FOR ALL ENROLLMENT&ELIGIBILITY (E&E) PROJECTS/PROGRAMS SUPPORTING THE ENTIRE EHBD PROGRAM AND THE E&E PORTION OF PURCHASED CARE.

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $30.2 million to LEIDOS SMS INC for work described as: IGF::OT::IGF SERVICES FOR ADMINISTRATIVE AND SHAREPOINT SUPPORT SERVICES SOFTWARE ENHANCEMENTS AND OPERATIONS AND MAINTENANCE FOR ALL ENROLLMENT&ELIGIBILITY (E&E) PROJECTS/PROGRAMS SUPPORTING THE ENTIRE EHBD PROGRAM AND THE E&E PORTION OF PURCHASED CARE. Key points: 1. Contract awarded to Leidos SMS Inc. for administrative and SharePoint support services. 2. Focus on enrollment and eligibility projects for the EHBD program and Purchased Care. 3. Contract duration is 817 days, ending August 11, 2018. 4. NAICS code 541512 indicates Computer Systems Design Services. 5. The award value is $30,216,194.92.

Value Assessment

Rating: good

The contract value of $30.2 million over approximately 2.7 years appears reasonable for specialized IT support services. Benchmarking against similar IT support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

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

Public Impact

Ensures continuity of critical enrollment and eligibility systems for veterans. Supports the EHBD program, impacting healthcare access for beneficiaries. Maintains essential IT infrastructure for the Department of Veterans Affairs. Potential for improved service delivery through enhanced software and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short, potentially leading to follow-on contract costs.
Reliance on a single vendor for critical E&E systems.
Potential for scope creep in administrative and SharePoint support.

Positive Signals

Awarded through full and open competition.
Supports critical VA programs for veteran healthcare.
Clear definition of services for administrative and SharePoint support.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar IT support services within the federal government would be relevant for a deeper analysis.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there is no direct analysis of small business participation in this specific award.

Oversight & Accountability

The Department of Veterans Affairs awarded this contract. Oversight would involve monitoring performance, adherence to contract terms, and ensuring the services meet the stated requirements for E&E projects.

Related Government Programs

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

Risk Flags

Contract awarded to a single vendor.
Potential for vendor lock-in.
Reliance on IT services for critical veteran programs.
Short contract duration may lead to follow-on costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $30.2 million to LEIDOS SMS INC. IGF::OT::IGF SERVICES FOR ADMINISTRATIVE AND SHAREPOINT SUPPORT SERVICES SOFTWARE ENHANCEMENTS AND OPERATIONS AND MAINTENANCE FOR ALL ENROLLMENT&ELIGIBILITY (E&E) PROJECTS/PROGRAMS SUPPORTING THE ENTIRE EHBD PROGRAM AND THE E&E PORTION OF PURCHASED CARE.

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 $30.2 million.

What is the period of performance?

Start: 2016-05-16. End: 2018-08-11.

What is the specific impact of these administrative and SharePoint services on the efficiency of the EHBD program and Purchased Care?

These services are crucial for maintaining the operational integrity of the EHBD program and the E&E components of Purchased Care. Efficient administrative support and functional SharePoint platforms streamline data management, user access, and communication, directly impacting the speed and accuracy of enrollment and eligibility determinations for veterans. This, in turn, facilitates timely access to healthcare services.

What are the risks associated with relying on Leidos SMS Inc. for these critical E&E IT functions?

Key risks include vendor lock-in, potential disruptions if the vendor faces financial or operational challenges, and the possibility of knowledge transfer issues upon contract expiration. Over-reliance could also limit the VA's flexibility in adopting new technologies or service providers if performance issues arise or if more cost-effective solutions become available.

How effectively does this contract contribute to the VA's overall mission of providing healthcare to veterans?

This contract is highly effective in supporting the VA's mission by ensuring the smooth operation of essential IT systems that underpin veteran healthcare access. By maintaining and enhancing enrollment and eligibility processes, it directly facilitates veterans' ability to receive the care they are entitled to, thereby playing a vital role in the VA's core function.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

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: $33,301,475

Exercised Options: $30,216,195

Current Obligation: $30,216,195

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $847,599

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1000

IDV Type: IDC

Timeline