DoD's $13.3M Hardware/Software Purchase via Full and Open Competition Awarded to Leidos
Contract Overview
Contract Amount: $13,297,027 ($13.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-14
End Date: 2009-04-30
Contract Duration: 412 days
Daily Burn Rate: $32.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: MATERIALS PURCHASES - HARDWARE AND SOFTWARE.
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96818
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $13.3 million to LEIDOS, INC. for work described as: MATERIALS PURCHASES - HARDWARE AND SOFTWARE. Key points: 1. Significant spending on computer systems design services. 2. Leidos, Inc. secured the contract. 3. Full and open competition was utilized. 4. Contract awarded by the Department of the Air Force. 5. Time and Materials pricing structure.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, combined with a duration of 412 days, presents a risk for cost overruns. Without fixed price components, it's difficult to benchmark against similar contracts without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. However, the Time and Materials (T&M) pricing model can limit the effectiveness of competitive bidding in controlling final costs, especially for services.
Taxpayer Impact: While competition was broad, the T&M structure could lead to higher than anticipated costs for taxpayers if not closely managed and monitored.
Public Impact
Taxpayers funded a substantial IT hardware and software purchase. The contract supported the Department of the Air Force's operational needs. Leidos, Inc. benefited from this significant government contract. The use of T&M pricing raises questions about cost efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of small business participation
- Long contract duration without fixed price elements
Positive Signals
- Full and open competition utilized
- Awarded to a known entity (Leidos)
Sector Analysis
This contract falls under IT services, specifically computer systems design. The $13.3 million value is moderate for a federal IT contract of this nature, but the T&M structure warrants scrutiny.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract, as the 'sb' field is false. This represents a missed opportunity for small business participation in federal contracting.
Oversight & Accountability
The contract's duration and T&M pricing necessitate strong oversight from the Department of the Air Force to ensure costs remain reasonable and deliverables meet requirements. Tracking hours and materials is crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Lack of small business participation.
- Long contract duration without fixed price elements.
- Insufficient detail on cost breakdown (hardware vs. software).
Tags
computer-systems-design-services, department-of-defense, hi, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.3 million to LEIDOS, INC.. MATERIALS PURCHASES - HARDWARE AND SOFTWARE.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $13.3 million.
What is the period of performance?
Start: 2008-03-14. End: 2009-04-30.
What was the specific breakdown of hardware versus software costs within the $13.3 million total?
The provided data does not specify the exact allocation between hardware and software purchases. The total contract value encompasses both, but a detailed breakdown would require access to the contract's line item details or financial reports. Understanding this split is key to assessing value for money.
How effectively did the full and open competition mitigate cost risks associated with the Time and Materials pricing model?
While full and open competition aims for the best value, the Time and Materials (T&M) model inherently carries cost risk. The competition likely secured a competitive hourly rate, but the total cost depends on the hours expended and materials used. Effective oversight and clear task orders are critical to controlling costs under T&M.
What were the key performance indicators (KPIs) used to measure the effectiveness of the computer systems design services provided?
The available data does not detail the specific KPIs for this contract. Effectiveness would typically be measured against project milestones, system performance benchmarks, user satisfaction, and adherence to technical specifications. The Department of the Air Force's quality assurance surveillance plan would outline these metrics.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA521504R0007
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,297,027
Exercised Options: $13,297,027
Current Obligation: $13,297,027
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA521507D0005
IDV Type: IDC
Timeline
Start Date: 2008-03-14
Current End Date: 2009-04-30
Potential End Date: 2009-04-30 00:00:00
Last Modified: 2011-01-26
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