DoD's $23M DISN Transition Support Services contract awarded to Leidos, Inc. shows potential value concerns
Contract Overview
Contract Amount: $23,059,051 ($23.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-02-08
End Date: 2013-04-08
Contract Duration: 1,520 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: DISN TRANSITION SUPPORT SERVICES
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to LEIDOS, INC. for work described as: DISN TRANSITION SUPPORT SERVICES Key points: 1. Contract value of $23.06M over 4 years suggests a moderate investment in telecommunications support. 2. Awarded via full and open competition, indicating a broad market search for qualified vendors. 3. The use of Time and Materials pricing raises potential for cost overruns if not closely managed. 4. Leidos, Inc. is a large, established government contractor with a significant presence in IT and defense. 5. The contract's focus on wired telecommunications carriers aligns with essential defense infrastructure needs. 6. Limited data on performance metrics makes a definitive value-for-money assessment challenging. 7. The contract duration of 1520 days (approx. 4 years) is typical for complex IT support services.
Value Assessment
Rating: fair
The total award of $23.06 million over approximately four years for DISN Transition Support Services appears within a reasonable range for large-scale telecommunications infrastructure support. However, the absence of detailed performance metrics and the Time and Materials pricing structure prevent a robust value-for-money assessment. Benchmarking against similar transition support contracts is difficult without more specific service details, but the overall spend is substantial for the period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors were likely solicited and had the opportunity to bid. The presence of two bids indicates a degree of competition, but the specifics of the bidding process and the nature of the proposals are not detailed. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, the ultimate benefit depends on the effectiveness of the competition and the pricing negotiated.
Public Impact
The Department of Defense benefits from enhanced and supported wired telecommunications infrastructure. Services delivered likely include network transition, migration, and support for critical defense communication systems. The geographic impact is likely nationwide, supporting DoD installations and operations across various locations. Workforce implications may involve specialized telecommunications technicians and project managers employed by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to uncontrolled cost growth if not meticulously monitored and managed.
- Lack of detailed performance metrics makes it difficult to assess contractor efficiency and effectiveness.
- The contract's duration, while standard, necessitates ongoing vigilance to ensure continued value.
- Transition support can be complex, and unforeseen challenges might arise, impacting timelines and costs.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Leidos, Inc. is a reputable contractor with extensive experience in government IT and telecommunications.
- The contract addresses a critical need for reliable defense communication infrastructure.
- The contract duration allows for sustained support during potentially lengthy transition periods.
Sector Analysis
This contract falls within the IT and Telecommunications sector, specifically focusing on wired telecommunications carriers. The market for such services is substantial, driven by government and commercial demand for robust network infrastructure. Comparable spending benchmarks would typically involve other large-scale network modernization and transition projects within the federal government, often running into tens or hundreds of millions of dollars.
Small Business Impact
There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The prime contractor, Leidos, Inc., is a large entity, and the nature of the services may not lend itself to extensive small business participation unless specifically structured for it.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) and the Department of Defense's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible.
Related Government Programs
- Defense Information Systems Network (DISN)
- Telecommunications Infrastructure Modernization
- Network Transition Services
- Wired Network Support Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited number of bidders may indicate reduced competitive pressure.
- Lack of detailed performance metrics hinders value assessment.
Tags
dod, defense-information-systems-agency, leidos-inc, wired-telecommunications-carriers, full-and-open-competition, delivery-order, time-and-materials, it-support, network-transition, illinois
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to LEIDOS, INC.. DISN TRANSITION SUPPORT SERVICES
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 $23.1 million.
What is the period of performance?
Start: 2009-02-08. End: 2013-04-08.
What specific transition activities were covered under this contract, and how did they contribute to the DISN's operational goals?
The contract, 'DISN TRANSITION SUPPORT SERVICES,' likely encompassed a range of activities critical to the evolution and modernization of the Defense Information Systems Network (DISN). These could include the migration of legacy systems to newer platforms, the decommissioning of outdated network components, the integration of new technologies, and the overall management of network infrastructure changes. The primary goal would be to ensure seamless transitions that maintain or enhance the security, reliability, and performance of DoD communications. Without specific deliverables outlined in the award data, it's inferred that these services directly supported the DISN's mission of providing secure voice, video, and data services to the warfighter and national decision-makers.
How does the Time and Materials (T&M) pricing structure for this contract compare to industry best practices for similar IT support services?
Time and Materials (T&M) pricing is often used when the scope of work is not clearly defined or is expected to change significantly. While it offers flexibility, it carries a higher risk of cost overruns for the government compared to fixed-price contracts. For IT support services, especially those involving complex transitions, T&M can be justified if detailed requirements are difficult to ascertain upfront. However, best practices generally favor more defined contract types like Firm-Fixed-Price (FFP) or Cost-Plus-Fixed-Fee (CPFF) when scope is predictable, as they provide better cost control. The government's ability to manage and oversee T&M contracts effectively, through rigorous monitoring of labor hours and material costs, is crucial to mitigate risks and ensure value.
What was the competitive landscape for this 'DISN TRANSITION SUPPORT SERVICES' contract, and what does the number of bids suggest about market interest?
This contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that the solicitation was broadly advertised, allowing any responsible source to submit an offer. The data shows that two bids were received. While any competition is preferable to a sole-source award, receiving only two bids might suggest several possibilities: the market for highly specialized DISN transition support is limited, the requirements were very specific and only a few contractors could meet them, or the solicitation terms may not have been attractive enough to draw a larger pool of bidders. A limited number of bids can sometimes result in less aggressive pricing compared to scenarios with numerous competing offers.
Can we assess the value for money provided by Leidos, Inc. on this contract, given the available data?
Assessing the precise value for money on this contract is challenging with the provided data. The total award of $23.06 million over approximately four years represents a significant investment. Leidos, Inc. is a large, experienced contractor, which can be a positive indicator of capability. However, the use of Time and Materials pricing introduces inherent cost uncertainty. Without specific performance metrics, quality assessments, or comparisons to similar, well-defined contracts, it's difficult to definitively state whether the government received optimal value. The value is likely tied to the successful execution of complex transition tasks, but the cost-effectiveness remains partially opaque.
What are the potential risks associated with a four-year contract for wired telecommunications support services?
Potential risks for a four-year contract in wired telecommunications support include technological obsolescence, where the supported infrastructure or transition methods become outdated before the contract ends. There's also the risk of vendor lock-in, where the government becomes heavily reliant on a single provider, potentially limiting future flexibility or negotiation power. Cost escalation is a significant risk, particularly with T&M contracts, if not managed tightly. Furthermore, changes in DoD requirements or budget priorities over the four-year period could necessitate contract modifications, introducing complexity and potential delays. Ensuring the contractor maintains adequate staffing levels and expertise throughout the period is also a consideration.
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: $23,059,051
Exercised Options: $23,059,051
Current Obligation: $23,059,051
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: 2013-04-08
Potential End Date: 2013-04-08 00:00:00
Last Modified: 2016-12-12
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