DoD awards $74.3M engineering services contract to Leidos, Inc. under full and open competition
Contract Overview
Contract Amount: $74,310,587 ($74.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-03-19
End Date: 2018-12-31
Contract Duration: 2,478 days
Daily Burn Rate: $30.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF NEW TASK ORDER S3
Place of Performance
Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053
Plain-Language Summary
Department of Defense obligated $74.3 million to LEIDOS, INC. for work described as: IGF::OT::IGF NEW TASK ORDER S3 Key points: 1. Contract awarded to Leidos, Inc. for engineering services. 2. Significant value of $74.3 million over its period of performance. 3. Procured via full and open competition, suggesting market availability. 4. The contract spans nearly 7 years, indicating a long-term need. 5. The North American Industry Classification System (NAICS) code is 541330 (Engineering Services).
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The awarded amount of $74.3M is a ceiling, and actual spending depends on performance and costs incurred.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes competitive pricing and allows the government to select the best value.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure competitive pricing and best value.
Public Impact
Supports critical defense engineering services, impacting national security. Leidos, Inc. is a major defense contractor, indicating industry concentration. Long contract duration suggests sustained government reliance on these services. Potential for innovation and efficiency gains through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long performance period (nearly 7 years) may not reflect current market conditions.
- No specific small business set-aside mentioned.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Significant contract value indicates substantial service provision.
- Clear NAICS code for engineering services.
Sector Analysis
This contract falls under the Engineering Services sector, a critical component of the defense industry. Spending in this sector is often driven by complex project requirements and technological advancements, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
The provided data does not indicate any specific small business set-asides or participation goals for this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), suggesting established oversight mechanisms. However, the CPFF structure necessitates diligent monitoring to control costs and ensure performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific small business participation details.
- Potential for cost overruns without stringent oversight.
Tags
engineering-services, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.3 million to LEIDOS, INC.. IGF::OT::IGF NEW TASK ORDER S3
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $74.3 million.
What is the period of performance?
Start: 2012-03-19. End: 2018-12-31.
What was the final obligated amount versus the ceiling amount?
The provided data shows an award amount of $74,310,587.32, which is likely the ceiling or obligated amount at the time of award. Without further data on actual expenditures, it's impossible to determine the final obligated amount versus the ceiling. CPFF contracts require close monitoring to ensure costs remain within projections and the fixed fee is justified by performance.
How did the awarded price compare to other engineering service contracts of similar scope?
Benchmarking this contract's price requires access to a database of similar engineering service contracts awarded by the DoD or other federal agencies. Factors like contract duration, specific services rendered (e.g., design, testing, analysis), and geographic location would need to be considered for a fair comparison. Without this comparative data, assessing price reasonableness is difficult.
What specific engineering services were rendered under this contract?
The NAICS code 541330 indicates 'Engineering Services,' which is broad. Specific services could range from architectural and engineering design to systems engineering, technical support, and program management. Understanding the precise nature of the services is crucial for evaluating the contract's effectiveness and value for money.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $79,959,137
Exercised Options: $74,959,290
Current Obligation: $74,310,587
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: 2012-03-19
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2022-09-02
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