Leidos Awarded $23.7M for Computer Systems Design Services by Department of the Army
Contract Overview
Contract Amount: $23,757,068 ($23.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-11-22
End Date: 2015-09-16
Contract Duration: 663 days
Daily Burn Rate: $35.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF DB PRODUCTION - POPULATION OF THE MDB - 3X BASE RATE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $23.8 million to LEIDOS, INC. for work described as: IGF::OT::IGF DB PRODUCTION - POPULATION OF THE MDB - 3X BASE RATE Key points: 1. The contract value is $23.7 million, awarded to Leidos, Inc. 2. The award was made under full and open competition. 3. The contract falls under Computer Systems Design Services. 4. The period of performance is 663 days.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $23.7 million for 663 days of service needs further benchmarking against similar contracts for Computer Systems Design Services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure might still allow for costs to exceed initial expectations.
Taxpayer Impact: Full and open competition generally aims for the best value for taxpayers. The specific cost-effectiveness of this CPFF contract requires further scrutiny.
Public Impact
Supports the Department of the Army's IT infrastructure and operations. Contract awarded to a large, established defense contractor (Leidos). Services provided are critical for maintaining complex computer systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific performance metrics or benchmarks provided.
Positive Signals
- Awarded through full and open competition.
- Contract supports a critical government agency.
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies, with benchmarks varying based on complexity and duration.
Small Business Impact
The data indicates the award went to Leidos, Inc., a large business. There is no indication of small business participation in this specific award based on the provided data.
Oversight & Accountability
Oversight would typically involve regular reporting from Leidos to the Department of the Army on costs, progress, and adherence to the fixed fee. The Inspector General's office may also conduct audits.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Ambiguity in the '3X BASE RATE' notation requires clarification.
- Lack of specific performance metrics in the provided data.
- No indication of small business subcontracting opportunities.
Tags
computer-systems-design-services, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.8 million to LEIDOS, INC.. IGF::OT::IGF DB PRODUCTION - POPULATION OF THE MDB - 3X BASE RATE
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.8 million.
What is the period of performance?
Start: 2013-11-22. End: 2015-09-16.
What is the typical profit margin for Cost Plus Fixed Fee contracts in Computer Systems Design Services?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in Computer Systems Design Services can vary significantly based on contract complexity, risk, and market conditions. Generally, the fixed fee is negotiated as a percentage of the estimated cost, often ranging from 5% to 15%. However, agencies aim to negotiate fair fees that incentivize contractor performance while ensuring value for taxpayer money. Specific benchmarks would require detailed market research for comparable services.
How does the '3X BASE RATE' notation impact the cost assessment?
The '3X BASE RATE' notation is unclear without further context. It could refer to a multiplier applied to a base labor rate, a specific service level, or a component of the overall cost structure. Understanding its precise meaning is crucial for accurately assessing whether the $23.7 million award represents fair value. Without clarification, it introduces ambiguity into the cost analysis.
What are the key performance indicators (KPIs) for this contract to ensure effectiveness?
Key performance indicators for this Computer Systems Design Services contract would likely include system uptime, response times for technical support, successful implementation of system upgrades or changes, adherence to security protocols, and user satisfaction. Defining and tracking these KPIs is essential for the Department of the Army to measure the contractor's effectiveness and ensure the services meet operational requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W900KK11R0002
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,604,503
Exercised Options: $23,767,771
Current Obligation: $23,757,068
Subaward Activity
Number of Subawards: 94
Total Subaward Amount: $21,860,894
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK11D0006
IDV Type: IDC
Timeline
Start Date: 2013-11-22
Current End Date: 2015-09-16
Potential End Date: 2015-09-16 00:00:00
Last Modified: 2016-10-26
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