DoD's $21.4M wired telecom contract to Leidos, Inc. shows limited competition and time-and-materials pricing
Contract Overview
Contract Amount: $21,409,143 ($21.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-02-08
End Date: 2013-02-09
Contract Duration: 1,462 days
Daily Burn Rate: $14.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: DSC CIRCUIT IMPLEMENTATION PLAN. RENEWAL OF TASK ORDER 0008.
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $21.4 million to LEIDOS, INC. for work described as: DSC CIRCUIT IMPLEMENTATION PLAN. RENEWAL OF TASK ORDER 0008. Key points: 1. The contract's value of $21.4 million over four years suggests a significant investment in telecommunications infrastructure. 2. The use of Time and Materials pricing raises concerns about cost control and potential for cost overruns. 3. With only two bidders, the competition level may not have driven the most favorable pricing for taxpayers. 4. The contract's duration of 1462 days indicates a long-term need for these wired telecommunications services. 5. The renewal of Task Order 0008 suggests a continued reliance on Leidos, Inc. for these services. 6. The 'IL' status code might indicate a specific type of service or location, warranting further investigation.
Value Assessment
Rating: fair
The total value of $21.4 million for a four-year period averages to approximately $5.35 million per year. Without specific benchmarks for similar wired telecommunications implementation plans, it's difficult to definitively assess value for money. However, the use of Time and Materials (T&M) pricing, rather than a fixed-price contract, often leads to higher costs as it reimburses the contractor for actual labor and material expenses plus a profit margin, potentially increasing the overall expenditure compared to a well-defined fixed-price contract. The limited competition further suggests that pricing may not have been aggressively driven down.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with two bids received. While 'full and open' implies a broad solicitation, the low number of bidders (two) suggests that the market for this specific service or the requirements of the solicitation may have limited the number of interested parties. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions.
Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the full potential of market competition to secure the lowest possible price. This could mean a higher overall cost for the services rendered.
Public Impact
The Department of Defense benefits from the implementation and renewal of this task order, ensuring continued wired telecommunications capabilities. The services delivered are critical for maintaining robust and reliable communication networks within the DoD. The contract's 'IL' status code suggests a potential geographic focus in Illinois, impacting local infrastructure and potentially workforce. The workforce implications include employment opportunities for telecommunications technicians and support staff involved in the implementation and maintenance of wired networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns and lacks the cost certainty of fixed-price contracts.
- Limited competition (2 bidders) may have resulted in a higher price than could have been achieved with more robust competition.
- The renewal of a task order suggests a long-term dependency, potentially limiting future opportunities for other vendors or innovative solutions.
Positive Signals
- Awarded under 'full and open competition', indicating an effort to solicit broadly.
- The contract has been in place since 2009, suggesting a sustained need and potentially a proven track record of service delivery.
- The renewal of Task Order 0008 implies that the services provided by Leidos, Inc. have met the DoD's requirements.
Sector Analysis
The wired telecommunications carriers industry (NAICS 517110) is a mature sector focused on providing voice and data communication services over physical lines. This contract falls within the broader telecommunications infrastructure segment, which is essential for government operations. Spending in this sector is often characterized by long-term contracts for network maintenance, upgrades, and new installations. Comparable spending benchmarks are difficult to ascertain without more specific details on the scope of 'DSC CIRCUIT IMPLEMENTATION PLAN', but large government contracts in this area can range from millions to billions of dollars depending on the scale and complexity.
Small Business Impact
This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this award. The primary contractor, Leidos, Inc., is a large business, and any subcontracting would be at their discretion, potentially offering opportunities to small businesses if Leidos chooses to engage them for specific services or components.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, specifically within the Defense Information Systems Agency (DISA). As a renewal of a task order, existing oversight mechanisms are likely in place. Transparency is generally maintained through contract databases like FPDS, which provide award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Information Systems Agency (DISA) Contracts
- Wired Telecommunications Services
- Department of Defense IT Infrastructure
- Task Order Renewals
Risk Flags
- Time and Materials Pricing
- Limited Competition
- Long-Term Contract
Tags
department-of-defense, defense-information-systems-agency, wired-telecommunications-carriers, time-and-materials, full-and-open-competition, large-contract, information-technology, network-infrastructure, illinois, contract-renewal
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to LEIDOS, INC.. DSC CIRCUIT IMPLEMENTATION PLAN. RENEWAL OF TASK ORDER 0008.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $21.4 million.
What is the period of performance?
Start: 2009-02-08. End: 2013-02-09.
What specific 'DSC CIRCUIT IMPLEMENTATION PLAN' services are covered under Task Order 0008, and how has the scope evolved since its initial award in 2009?
The provided data does not detail the specific services encompassed by the 'DSC CIRCUIT IMPLEMENTATION PLAN' under Task Order 0008. This plan likely refers to the deployment, configuration, and maintenance of specific data communication circuits or network infrastructure. Given the contract's renewal and its duration since 2009, the scope may have evolved to include upgrades, expansions, or integration with newer technologies. To understand the evolution, one would need to review the original task order, subsequent modifications, and renewal documentation. This would clarify whether the services have remained consistent or adapted to changing technological landscapes and DoD requirements, impacting the overall value and necessity of the contract.
How does the Time and Materials (T&M) pricing structure for this contract compare to industry standards for similar wired telecommunications projects, and what are the associated risks?
Time and Materials (T&M) pricing reimburses the contractor for the actual cost of labor and materials, plus a fixed fee or percentage for profit. For wired telecommunications projects, T&M can be advantageous when the scope of work is not well-defined or is expected to change frequently. However, it carries significant risks for the government, primarily the potential for cost overruns, as the contractor is incentivized to bill more hours or use more expensive materials. Compared to fixed-price contracts, T&M offers less cost certainty. Industry standards often favor fixed-price contracts for projects with clearly defined scopes to ensure better cost control. The risk with this contract is that the $21.4 million could escalate if not carefully managed and monitored by the agency.
What was the rationale for awarding this contract under 'full and open competition' yet only receiving two bids, and does this suggest a lack of market interest or specialized requirements?
Awarding under 'full and open competition' signifies that the solicitation was made available to all responsible sources. Receiving only two bids suggests several possibilities. Firstly, the specific technical requirements or security clearances needed for the 'DSC CIRCUIT IMPLEMENTATION PLAN' might limit the pool of qualified contractors. Secondly, the geographic location or the specific type of wired telecommunications services required could be niche, attracting fewer bidders. Thirdly, the contract's value or duration might not have been sufficiently attractive to a broader range of companies. It could also indicate that Leidos, Inc. has a strong incumbent advantage or specialized expertise that deters other potential bidders. Further analysis of the solicitation documents and market research conducted by the agency would clarify the precise reasons.
Given the contract's duration from 2009 to 2013, what was the historical spending pattern for this specific task order, and how does it compare to the total obligated amount?
The provided data indicates the contract was awarded on 2009-02-08 and expired on 2013-02-09, spanning a duration of 1462 days (approximately 4 years). The total obligated amount is $21,409,143.48. Without access to the detailed funding history or annual spending reports for this specific task order, it's impossible to provide a precise historical spending pattern (e.g., how much was spent each year). However, we can infer that the spending was intended to reach the full obligated amount over the contract's life. If the spending was linear, it would average roughly $5.35 million per year. Deviations from this average could indicate periods of higher or lower activity, potentially linked to specific implementation phases or changes in agency needs. Analyzing annual spending would reveal if the contract was fully utilized or if there were significant underruns.
What is the track record of Leidos, Inc. with the Department of Defense, particularly in providing wired telecommunications services, and have there been any performance issues or significant contract
Leidos, Inc. is a major government contractor with a substantial history of serving the Department of Defense (DoD) across various sectors, including IT, logistics, and engineering. Their track record with the DoD is extensive, encompassing numerous large and complex contracts. Regarding wired telecommunications services specifically, Leidos has been involved in significant network infrastructure projects. While the provided data shows this contract was renewed, indicating satisfactory performance at least for the renewal decision, a comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any documented disputes, or contract terminations associated with Leidos's telecommunications work for the DoD. Generally, large contractors like Leidos have a mixed record, with most contracts performing adequately but occasional issues arising due to the scale and complexity of government projects.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DRIVE,, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,159,492
Exercised Options: $21,409,143
Current Obligation: $21,409,143
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DCA20002D5001
IDV Type: IDC
Timeline
Start Date: 2009-02-08
Current End Date: 2013-02-09
Potential End Date: 2013-04-08 00:00:00
Last Modified: 2015-12-23
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)