DOJ's $559M ESA V Managed Services Contract Awarded to Leidos, Inc. for ATF and FCS

Contract Overview

Contract Amount: $558,900,011 ($558.9M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Justice

Start Date: 2020-05-01

End Date: 2027-04-30

Contract Duration: 2,555 days

Daily Burn Rate: $218.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ESA V MANAGED SERVICES (ATF AND FCS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20226

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $558.9 million to LEIDOS, INC. for work described as: ESA V MANAGED SERVICES (ATF AND FCS) Key points: 1. Contract value exceeds $558 million over its potential lifespan. 2. Leidos, Inc. is the sole awardee, raising questions about competition. 3. The contract covers essential IT services for ATF and FCS operations. 4. Risk assessment needed for long-term managed services dependency.

Value Assessment

Rating: fair

The contract's total value is substantial, but specific pricing details and benchmarks against similar managed services contracts are not provided in the data. Further analysis is required to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, Leidos, Inc. is the sole awardee, which warrants further investigation into the discovery of price and the extent of competition achieved.

Taxpayer Impact: Taxpayer funds are being utilized for extensive managed IT services, necessitating robust oversight to ensure cost-effectiveness and value.

Public Impact

Ensures critical IT infrastructure and services for law enforcement agencies. Potential for long-term reliance on a single vendor for essential functions. Impacts operational efficiency and data security for ATF and FCS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole awardee raises competition concerns.
  • Long contract duration (2020-2027) may limit flexibility.
  • Lack of detailed performance metrics in provided data.

Positive Signals

  • Awarded under full and open competition.
  • Firm Fixed Price contract type can provide cost predictability.
  • Managed services can lead to operational efficiencies.

Sector Analysis

This contract falls under Computer Systems Design Services, a significant sector within the IT industry. Spending benchmarks for similar managed IT services contracts are crucial for evaluating the value of this award.

Small Business Impact

The data indicates this contract was not set aside for small businesses and Leidos, Inc. is a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

Oversight will be critical to ensure Leidos, Inc. meets performance requirements and that the contract remains cost-effective throughout its duration. The Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division is responsible for oversight.

Related Government Programs

  • Computer Systems Design Services
  • Department of Justice Contracting
  • Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division Programs

Risk Flags

  • Sole awardee raises concerns about competitive pricing.
  • Long-term duration may lead to vendor lock-in.
  • Potential for scope creep and cost overruns if not managed tightly.
  • Dependence on a single vendor for critical IT functions.
  • Lack of detailed performance metrics in the provided data.

Tags

computer-systems-design-services, department-of-justice, dc, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $558.9 million to LEIDOS, INC.. ESA V MANAGED SERVICES (ATF AND FCS)

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $558.9 million.

What is the period of performance?

Start: 2020-05-01. End: 2027-04-30.

What is the specific breakdown of services provided under this managed services contract, and how do they align with the core missions of ATF and FCS?

The provided data identifies the contract as 'ESA V MANAGED SERVICES (ATF AND FCS)' under NAICS code 541512 (Computer Systems Design Services). While the specific service breakdown isn't detailed, it likely encompasses IT infrastructure management, network support, cybersecurity, and potentially application support critical for the operational needs of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Air Marshal Service.

Given Leidos, Inc. is the sole awardee, what measures were in place during the full and open competition to ensure robust price discovery and prevent potential price inflation over the contract's life

Although awarded under full and open competition, the sole awardee status necessitates scrutiny. Agencies typically employ techniques like detailed cost analyses, market research, and negotiation strategies to ensure fair and reasonable pricing. The contract's firm-fixed-price structure also aims to cap costs, but ongoing monitoring of market rates and contractor performance is essential to mitigate inflation risks.

How will the effectiveness of the managed services provided by Leidos, Inc. be measured and evaluated to ensure optimal performance and value for taxpayer money?

Effectiveness is typically measured through Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) defined within the contract. These metrics would likely cover aspects like system uptime, response times for support, security incident resolution, and overall user satisfaction. Regular performance reviews and reporting by the government contracting officer are standard procedures to ensure the contractor meets agreed-upon standards.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15A00019Q00000057

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1750 PRESIDENTS ST FL 4, 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: $846,733,438

Exercised Options: $770,954,422

Current Obligation: $558,900,011

Actual Outlays: $232,312,736

Subaward Activity

Number of Subawards: 415

Total Subaward Amount: $149,441,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0008

IDV Type: GWAC

Timeline

Start Date: 2020-05-01

Current End Date: 2027-04-30

Potential End Date: 2029-04-30 00:00:00

Last Modified: 2026-04-06

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