Leidos Inc. awarded $58.8M for Ground Station Branch software support by the Department of the Army
Contract Overview
Contract Amount: $58,846,622 ($58.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-06-18
End Date: 2014-09-17
Contract Duration: 1,552 days
Daily Burn Rate: $37.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TASK ORDER FOR GROUND STATION BRANCH (GSB) SOFTWARE SUPPORT
Place of Performance
Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053
Plain-Language Summary
Department of Defense obligated $58.8 million to LEIDOS, INC. for work described as: TASK ORDER FOR GROUND STATION BRANCH (GSB) SOFTWARE SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Task order for software support indicates a need for ongoing technical maintenance and development. 3. The contract duration of 1552 days (approx. 4.25 years) suggests a long-term requirement. 4. Awarded as a delivery order under a larger contract, implying it's part of a broader acquisition strategy. 5. The 'Engineering Services' NAICS code points to specialized technical expertise being procured. 6. Time and Materials pricing structure may lead to cost overruns if not closely managed.
Value Assessment
Rating: fair
Benchmarking the value of this specific task order is challenging without more context on the scope of work and comparable software support contracts. The total value of $58.8 million over approximately 4.25 years averages to about $13.8 million annually. This figure needs to be compared against industry standards for similar software support services for ground station systems to determine if it represents good value for money. The Time and Materials (T&M) pricing model, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not meticulously managed and monitored for efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition,' indicating that all eligible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which is intended to drive down prices and improve the quality of services offered. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.
Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of innovative solutions.
Public Impact
The Department of the Army benefits from continued operational support for its Ground Station Branch software. Ensures the functionality and maintenance of critical software systems used in ground station operations. The contract supports technical roles within the IT and engineering sectors, potentially in New Jersey where the contractor is located. Contributes to the overall readiness and effectiveness of military communication and surveillance capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost uncertainty and potential overruns if not rigorously managed.
- Lack of specific details on performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
- The broad 'Engineering Services' category might obscure the specific nature of the software support, potentially limiting detailed performance analysis.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- The contract addresses a clear operational need for software support, indicating strategic alignment.
- Leidos, Inc. is a large, established government contractor with a significant presence in defense and IT services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to IT and software support for defense applications. The market for defense IT and software maintenance is substantial, driven by the continuous need to update and sustain complex systems. Comparable spending benchmarks would involve analyzing other contracts for similar software support services for military ground systems or communication infrastructure, considering factors like system complexity and criticality.
Small Business Impact
The data indicates this contract was awarded to Leidos, Inc., a large business. There is no explicit information regarding small business set-asides or subcontracting plans associated with this specific task order. Therefore, the direct impact on small businesses is unclear, and it's unknown if opportunities were provided through subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Information Technology Support Contracts
- Ground Systems Software Maintenance
- Army Command and Control Systems Support
- Engineering Services for Defense Applications
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific performance metrics in summary data.
- Scope of 'Engineering Services' is broad, potentially obscuring specific software support details.
Tags
it, defense, department-of-the-army, software-support, engineering-services, time-and-materials, full-and-open-competition, delivery-order, new-jersey, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.8 million to LEIDOS, INC.. TASK ORDER FOR GROUND STATION BRANCH (GSB) SOFTWARE SUPPORT
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 $58.8 million.
What is the period of performance?
Start: 2010-06-18. End: 2014-09-17.
What is the specific nature of the software supported under this task order, and what are its critical functions for the Ground Station Branch?
The provided data does not specify the exact software systems supported. However, given the 'Ground Station Branch (GSB)' designation within the Department of Defense, it likely pertains to software managing satellite ground terminals, communication relays, data processing, or command and control systems essential for receiving, processing, and disseminating information from various platforms. These systems are critical for intelligence gathering, surveillance, reconnaissance, and operational command. Understanding the specific software would allow for a more precise assessment of its criticality and the associated risks of failure or performance degradation.
How does the $58.8 million total value compare to historical spending on similar software support contracts for ground station systems within the Army or DoD?
Without access to historical spending data for comparable contracts, a direct comparison is difficult. However, $58.8 million over approximately 4.25 years ($13.8 million annually) represents a significant investment. To assess value, this figure should be benchmarked against contracts for similar complexity and scope, considering factors like the number of users, system uptime requirements, and the criticality of the supported functions. If similar systems have been supported for less, or if this contract covers a substantially larger or more complex scope, the value proposition changes. The Time and Materials (T&M) nature of the contract also introduces variability, making direct comparisons to fixed-price contracts less straightforward.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is Leidos, Inc.'s performance being measured?
The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this task order. Typically, such contracts would include metrics related to software availability, response times for issue resolution, patch deployment schedules, system update completion, and adherence to security protocols. Performance measurement would likely involve regular reporting by Leidos, Inc., potentially reviewed by government personnel, with penalties or incentives tied to meeting or exceeding these defined metrics. The absence of this information in the summary data limits a thorough assessment of performance risk and contractor accountability.
What is Leidos, Inc.'s track record with the Department of the Army and specifically with software support contracts of this nature?
Leidos, Inc. is a major government contractor with extensive experience supporting the Department of Defense, including the Department of the Army, across a wide range of IT, engineering, and technical services. They have a substantial portfolio of contracts involving software development, maintenance, and sustainment. While this specific task order's details are limited, Leidos's general track record suggests they possess the organizational capacity and technical expertise to handle complex software support requirements. A deeper dive into their past performance ratings on similar Army contracts would provide more specific insights into their reliability and effectiveness in this domain.
What are the potential risks associated with a Time and Materials (T&M) contract for critical software support, and what mitigation strategies are in place?
The primary risk with a T&M contract is cost escalation, as the government pays for the actual labor hours and materials used, plus a fee. Without strict oversight, this can lead to costs exceeding initial estimates. For critical software support, this could mean unexpected budget shortfalls or reduced scope if funding is capped. Mitigation strategies typically include establishing strong oversight mechanisms, detailed monitoring of labor hours and material usage, setting 'not-to-exceed' (NTE) limits, and defining clear deliverables and milestones. The government contracting officer and technical team play a crucial role in managing the T&M aspects to ensure cost-effectiveness and prevent scope creep.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 3000 LINCOLN DR E, MARLTON, NJ, 08053
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $109,673,973
Exercised Options: $59,197,058
Current Obligation: $58,846,622
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DE405
IDV Type: IDC
Timeline
Start Date: 2010-06-18
Current End Date: 2014-09-17
Potential End Date: 2014-09-17 00:00:00
Last Modified: 2022-09-02
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