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
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 Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP 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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