DOJ awards $16M for litigation support, with Leidos Inc. securing the contract
Contract Overview
Contract Amount: $15,975,528 ($16.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Justice
Start Date: 2020-12-01
End Date: 2026-05-31
Contract Duration: 2,007 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: MEGA5 LITIGATION SUPPORT SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $16.0 million to LEIDOS, INC. for work described as: MEGA5 LITIGATION SUPPORT SERVICES Key points: 1. Value for money appears fair given the duration and scope of services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with potential for cost overruns in time and materials contracts. 4. Performance context is within legal services, a critical function for the Department of Justice. 5. Sector positioning is within professional services, specifically legal support. 6. The contract duration of nearly 6 years indicates a long-term need for these services.
Value Assessment
Rating: fair
The total award of $15.98 million over a period of approximately 5.5 years suggests an average annual spend of around $2.9 million. Benchmarking this against similar large-scale litigation support contracts is challenging without more granular data on the specific services provided. However, the time and materials pricing structure introduces inherent risk for cost control, as actual expenditures depend on labor hours and rates. Without specific performance metrics or comparison data, assessing the precise value for money is difficult, but the duration implies a significant and ongoing need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which should theoretically lead to more favorable pricing for the government. The use of full and open competition is the government's preferred method for ensuring the best possible value is obtained.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing achieved through a broad solicitation process, which aims to prevent inflated costs and ensure efficient use of public funds.
Public Impact
The Department of Justice benefits from essential litigation support services, enabling its legal operations. Legal professionals and support staff within the DOJ will be directly impacted by the services rendered. The geographic impact is national, supporting the DOJ's nationwide legal responsibilities. The contract supports the legal services sector, potentially involving paralegals, legal researchers, and administrative staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and materials contract type can lead to cost overruns if not closely managed.
- The long duration of the contract may not adapt well to evolving legal technology or needs.
- Lack of specific bidder count makes it difficult to fully assess the competitive intensity.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- The contract duration indicates a stable, long-term requirement, allowing for efficient service delivery.
- Leidos Inc. is a large, established government contractor with experience in various support services.
Sector Analysis
The legal services sector within government contracting is substantial, encompassing a wide range of support functions from administrative tasks to complex litigation assistance. This contract falls under professional services, specifically legal support, which is a critical component of the Department of Justice's mission. Comparable spending benchmarks for large-scale litigation support services can vary significantly based on the complexity and volume of cases, but multi-million dollar awards over several years are common for federal agencies with extensive legal operations.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business subcontracting) field is also false. This suggests that small businesses are unlikely to be directly involved as prime contractors or through mandatory subcontracting requirements on this specific award, potentially limiting opportunities for the small business ecosystem in this particular instance.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Department of Justice Litigation Support
- Federal Legal Services Contracts
- Professional Services Contracts
- Time and Materials Contracts
- Large Contract Awards
Risk Flags
- Potential for cost overruns due to Time and Materials pricing
- Risk of service quality degradation over long contract duration
- Potential for outdated technology or methodologies if contract is not updated
Tags
professional-services, legal-services, department-of-justice, delivery-order, time-and-materials, full-and-open-competition, leidos-inc, virginia, large-contract, litigation-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $16.0 million to LEIDOS, INC.. MEGA5 LITIGATION SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $16.0 million.
What is the period of performance?
Start: 2020-12-01. End: 2026-05-31.
What is the historical spending pattern for litigation support services at the Department of Justice?
Historical spending on litigation support at the Department of Justice (DOJ) is substantial, reflecting the agency's vast legal responsibilities. While specific figures for 'litigation support' as a distinct category can be difficult to isolate without detailed analysis of various contract types and service descriptions, the DOJ consistently awards significant sums for legal services, research, document management, and expert witness support. The $15.98 million awarded to Leidos Inc. for this specific delivery order is indicative of the scale of such needs. Over the years, the DOJ has utilized a mix of contract vehicles, including full and open competition and task orders against indefinite-delivery/indefinite-quantity (IDIQ) contracts, to procure these essential services. Trends often show an increasing reliance on technology for e-discovery and case management, influencing the types of support required and associated costs. Analyzing past spending would involve examining awards across various DOJ components and legal divisions to understand the evolution of requirements and contractor performance.
How does the pricing structure of this Time and Materials (T&M) contract compare to fixed-price contracts for similar services?
Time and Materials (T&M) contracts, like the one awarded to Leidos Inc., obligate the government to pay the contractor for direct labor hours at specified fixed hourly rates, plus the actual cost of materials. This structure offers flexibility, especially when the scope of work is not clearly defined or is expected to change. However, it carries a higher risk of cost overruns for the government, as the final price is not capped upfront. In contrast, fixed-price contracts establish a set price for a well-defined scope of work. While they offer greater cost certainty for the government, they require a very clear statement of work and can be less adaptable to unforeseen changes. For litigation support, T&M can be advantageous for unpredictable research or discovery tasks, but fixed-price might be better for standardized services like document review if volumes are predictable. The government's ability to manage costs on this T&M contract hinges on robust oversight, detailed tracking of labor hours, and negotiation of favorable hourly rates.
What is Leidos Inc.'s track record with the Department of Justice and similar federal agencies?
Leidos Inc. has a significant track record as a large government contractor, holding numerous contracts across various federal agencies, including the Department of Justice (DOJ). Their portfolio often includes IT services, logistics, engineering, and professional support. Within the DOJ, Leidos has likely provided a range of services, potentially including administrative support, cybersecurity, and mission-specific technical assistance. Their experience with federal agencies generally suggests familiarity with government procurement regulations, reporting requirements, and performance expectations. However, a detailed assessment of their specific performance on past DOJ contracts, including any past performance issues or commendations, would require a deeper dive into contract databases and performance evaluations. Given their size and breadth of services, they are a common awardee for large, complex federal contracts.
What are the potential risks associated with a nearly six-year contract for litigation support?
A contract duration of nearly six years for litigation support presents several potential risks. Firstly, the legal landscape and technological tools used in litigation evolve rapidly. A long-term contract might not adequately incorporate the latest advancements in e-discovery, data analytics, or case management software, potentially leading to inefficiencies or the need for costly modifications. Secondly, the defined scope of work or specific requirements might become outdated over such a long period, necessitating contract modifications that could impact cost and schedule. Thirdly, there's a risk of contractor complacency or a decline in service quality over an extended period if performance management is not rigorous. Finally, market conditions and pricing for labor and materials can fluctuate significantly over six years, potentially making the initial pricing less competitive or leading to cost increases if not structured with appropriate escalation clauses.
How does the 'Offices, Boards and Divisions' (OBD) designation impact the nature of the litigation support services required?
The designation 'Offices, Boards and Divisions' (OBD) within the Department of Justice (DOJ) indicates that the litigation support services are likely intended for a broad range of internal operational units rather than a single, highly specialized legal division like the Civil Rights Division or the Environmental and Natural Resources Division. OBD encompasses various administrative, policy, and management functions, as well as potentially supporting multiple litigating divisions. This suggests the contract may cover a diverse set of legal support needs, potentially including administrative case management, document processing, research assistance for policy-related litigation, and support for internal investigations or administrative proceedings. The breadth implies the contractor must be adaptable and possess a wide range of capabilities to serve different components within the DOJ, rather than focusing on a niche legal area.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $23,991,894
Exercised Options: $18,447,300
Current Obligation: $15,975,528
Actual Outlays: $14,317,246
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15JPSS20D00000372
IDV Type: IDC
Timeline
Start Date: 2020-12-01
Current End Date: 2026-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2025-09-22
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