DOJ awards $17.7M to Leidos for litigation support, with 97% of contract value potentially going to subcontractors
Contract Overview
Contract Amount: $17,748,932 ($17.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Justice
Start Date: 2021-06-01
End Date: 2026-05-31
Contract Duration: 1,825 days
Daily Burn Rate: $9.7K/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 $17.7 million to LEIDOS, INC. for work described as: MEGA5 LITIGATION SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in legal services for the Department of Justice. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. A high potential subcontracting rate indicates a reliance on external expertise and potential for small business involvement. 4. The Time and Materials pricing model introduces cost uncertainty, requiring robust oversight. 5. The contract duration of five years allows for sustained support but also extends potential cost exposure. 6. The specific legal services provided are categorized under 'All Other Legal Services', indicating a broad scope.
Value Assessment
Rating: fair
The contract value of $17.7 million over five years for litigation support services is substantial. Benchmarking this against similar large-scale legal support contracts within federal agencies is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while common, can lead to cost overruns if not managed tightly. The high potential subcontracting percentage (97%) suggests that the prime contractor may be leveraging specialized firms, which could be cost-effective if those firms are efficient, but also introduces layers of cost and management.
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 a bid. While the number of bidders is not specified, this method generally fosters a competitive environment, which should theoretically lead to better pricing and service offerings for the government. The open nature of the competition suggests that the Department of Justice sought to maximize its options and secure the best value available in the market for these legal support services.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing achieved through an open bidding process. This approach aims to prevent inflated costs and ensure that government funds are used efficiently for essential legal support.
Public Impact
The Department of Justice benefits from specialized litigation support services, aiding in the execution of its legal mandates. The services delivered likely encompass a range of legal assistance, research, and administrative support crucial for ongoing cases. The geographic impact is primarily national, supporting federal legal operations across various jurisdictions. Workforce implications may include direct employment by the prime contractor and significant indirect employment through subcontractors, potentially involving legal professionals and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials pricing model carries inherent risk of cost escalation if not closely monitored and controlled.
- A high subcontracting rate of 97% could lead to reduced direct oversight of the actual work performed and potential for cost creep through multiple profit margins.
- The broad 'All Other Legal Services' category might obscure specific cost drivers and make performance evaluation more complex.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process that likely yielded competitive pricing.
- The five-year contract duration provides stability and allows for the development of a strong working relationship and institutional knowledge.
- The prime contractor, Leidos, Inc., is a large and established company with significant experience in government contracting, potentially bringing efficiency and reliability.
Sector Analysis
The legal services sector within federal contracting is diverse, encompassing a wide range of support functions from administrative to highly specialized legal expertise. This contract falls under professional services, specifically legal services (NAICS 541199). Federal spending in this area supports various agencies' missions, including litigation, regulatory compliance, and advisory roles. Benchmarks for such contracts vary widely based on the specific services, duration, and complexity, but large-scale support contracts like this represent a significant portion of agency operational budgets.
Small Business Impact
Although this contract does not have a small business set-aside designation (SB=false), the subcontracting plan is critical. With a potential of 97% of the contract value flowing down to subcontractors, there is a significant opportunity for small businesses to participate. The effectiveness of this contract in supporting the small business ecosystem will depend on the prime contractor's commitment to identifying and engaging qualified small business subcontractors and ensuring fair subcontracting practices.
Oversight & Accountability
Oversight for this Time and Materials contract will likely be managed through the Department of Justice's contracting officers and program managers. Key accountability measures will involve regular reviews of timesheets, invoices, and work performed against contract requirements. Transparency is facilitated by the contract's public award notice, but detailed performance metrics and cost breakdowns may be less accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Justice Litigation Support Contracts
- Federal Legal Services Procurement
- Time and Materials Contracts
- Large Prime Contractor Support Services
Risk Flags
- Potential for cost overruns due to T&M pricing
- High subcontracting rate requires diligent oversight
- Broad service category may lack specificity for performance tracking
Tags
legal-services, litigation-support, department-of-justice, leidos-inc, time-and-materials, full-and-open-competition, delivery-order, professional-services, subcontracting, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $17.7 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 $17.7 million.
What is the period of performance?
Start: 2021-06-01. End: 2026-05-31.
What is the typical cost structure for 'All Other Legal Services' contracts of this magnitude within the federal government?
The cost structure for 'All Other Legal Services' contracts can vary significantly, but typically includes direct labor (attorneys, paralegals, support staff), indirect costs (overhead, benefits), materials, travel, and profit. For a Time and Materials (T&M) contract like this one, direct labor rates and the hours worked are the primary cost drivers. Federal agencies often negotiate ceilings on these rates and hours to control costs. Benchmarking requires comparing specific labor categories, experience levels, and geographic locations against government-wide schedules (like GSA) or historical data for similar services. Without detailed breakdowns of Leidos's proposed rates and estimated hours, a precise comparison is difficult, but agencies aim for rates that are fair and reasonable compared to commercial equivalents and other federal contracts.
How does the 97% subcontracting rate impact the government's ability to manage risk and ensure quality?
A 97% subcontracting rate presents both opportunities and challenges for government oversight. On the positive side, it allows the prime contractor to leverage specialized expertise that might not be available in-house, potentially leading to higher quality service delivery. However, it also introduces additional layers of management and oversight complexity for the government. The prime contractor remains ultimately responsible for the performance of its subcontractors, but the government must ensure the prime has robust processes for selecting, managing, and monitoring its subcontractors. This includes verifying subcontractor qualifications, ensuring fair pricing down the chain, and having clear lines of communication. Agencies often require detailed subcontracting plans and regular reporting to maintain visibility and manage risks associated with such a high subcontracting percentage.
What are the potential risks associated with the Time and Materials (T&M) contract type for this litigation support service?
The primary risk with a Time and Materials (T&M) contract is the potential for cost growth, as the government pays for the actual time and materials expended by the contractor, plus a fixed fee or percentage for profit. If not carefully managed, contractors may be incentivized to extend timelines or use more resources than strictly necessary. For litigation support, this could mean longer research periods, more extensive document review, or increased billable hours for tasks that could potentially be completed more efficiently. Effective risk mitigation requires the government to establish clear performance standards, closely monitor labor hours and resource utilization, conduct regular audits of invoices, and set firm not-to-exceed (NTE) limits on contract value and specific task orders to prevent uncontrolled cost escalation.
What is Leidos, Inc.'s track record with similar federal litigation support contracts?
Leidos, Inc. is a large, well-established government contractor with extensive experience across various sectors, including professional services and IT support for federal agencies. While specific details on their past performance solely in 'All Other Legal Services' litigation support at this scale require deeper analysis of contract databases (like FPDS-NG), Leidos has a broad portfolio of contracts involving complex project management, technical services, and administrative support for agencies like the Department of Defense, NASA, and Health and Human Services. Their track record generally indicates a capacity to manage large, complex contracts. However, performance can vary by specific contract, program team, and agency relationship. A review of past performance evaluations and any reported disputes or contract terminations would provide a more granular assessment.
How does this contract's value compare to overall federal spending on legal services?
The $17.7 million awarded to Leidos represents a specific contract for litigation support within the Department of Justice. Overall federal spending on legal services is considerably higher and spans multiple agencies and functions, including in-house counsel, regulatory enforcement, and various forms of external support. For context, the U.S. government spends billions annually on legal services, encompassing salaries for federal attorneys, contracts with private law firms for specialized litigation, investigative support, and compliance services. This particular contract is a significant award for a single task order but is a component within a much larger ecosystem of federal legal spending. Comparing it requires understanding the specific niche of litigation support versus broader legal counsel or regulatory functions.
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: $26,659,964
Exercised Options: $19,039,816
Current Obligation: $17,748,932
Actual Outlays: $15,165,818
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15JPSS20D00000372
IDV Type: IDC
Timeline
Start Date: 2021-06-01
Current End Date: 2026-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2025-05-23
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