Leidos Inc. awarded $30.5M contract for administrative management consulting services by the Department of the Army
Contract Overview
Contract Amount: $30,563,303 ($30.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-04-14
End Date: 2010-08-31
Contract Duration: 1,600 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Other
Place of Performance
Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $30.6 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded to a large, established firm with significant federal contracting experience. 2. The contract type (Labor Hours) suggests a focus on personnel services rather than fixed deliverables. 3. Awarded under full and open competition, indicating a broad market solicitation. 4. The contract duration of 1600 days (approx. 4.4 years) suggests a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541611 points to general management consulting. 6. The contract was awarded by the Department of the Army, a major component of the Department of Defense.
Value Assessment
Rating: fair
The contract value of $30.5 million over approximately 4.4 years averages to about $6.9 million annually. Without specific performance metrics or deliverables, it's challenging to definitively assess value for money. However, given the nature of administrative management consulting, the pricing would typically be benchmarked against industry standards for similar services. The absence of detailed performance data makes a precise comparison difficult, but the award to a large, experienced contractor suggests a potentially competitive, though not necessarily the lowest, price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the limited number of bidders could indicate specific requirements or market conditions that narrowed the field.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open solicitation, even with a limited number of bids. This process aims to ensure that the government receives services at a reasonable cost by allowing multiple companies to vie for the contract.
Public Impact
The Department of the Army benefits from administrative management and general management consulting services, likely to improve operational efficiency and strategic planning. These services are expected to support various administrative functions within the Army, potentially impacting personnel, resource allocation, and organizational structure. The geographic impact is likely concentrated within the Army's operational areas, though the specific locations are not detailed. Workforce implications could include the engagement of specialized consultants who augment or advise existing Army personnel on management practices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term consulting contracts if not tightly managed.
- Reliance on external consultants may not foster long-term internal capability development.
- The specific impact and effectiveness of consulting services can be difficult to quantify.
Positive Signals
- Awarded through full and open competition, suggesting a robust process.
- Contractor (Leidos, Inc.) is a large, experienced federal contractor with a track record.
- The contract duration indicates a sustained need and potential for stable support.
Sector Analysis
The administrative management and general management consulting services sector is a significant part of the professional services industry supporting government operations. This contract falls within the broader professional, scientific, and technical services category. Spending in this area often fluctuates with government priorities and budget cycles. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar consulting services across various agencies, looking at contract values, durations, and the types of services provided.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests no specific small business subcontracting goals were mandated for this award. This means the prime contractor, Leidos, Inc., has the discretion regarding subcontracting, and there is no explicit requirement to engage small businesses for this particular contract, potentially limiting opportunities for the small business ecosystem in this instance.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is facilitated by the contract award being publicly available through federal procurement databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.
Related Government Programs
- Department of Defense Management Consulting Services
- Army Administrative Support Contracts
- Federal Management and Consulting Services
- Professional Services Contracts
Risk Flags
- Potential for cost overruns due to Labor Hours contract type.
- Limited number of bidders despite Full and Open Competition.
- Lack of specific performance metrics makes value assessment difficult.
- No explicit small business subcontracting requirements.
Tags
defense, department-of-the-army, leidos-inc, administrative-management-consulting, general-management-consulting, labor-hours, full-and-open-competition, professional-services, management-support, federal-contracting, large-business, us-government
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.6 million to LEIDOS, INC.. See the official description on USAspending.
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 Army).
What is the total obligated amount?
The obligated amount is $30.6 million.
What is the period of performance?
Start: 2006-04-14. End: 2010-08-31.
What is Leidos, Inc.'s track record with the Department of Defense and specifically the Department of the Army?
Leidos, Inc. is a major federal contractor with a substantial history of awards across various government agencies, including the Department of Defense (DoD) and its components like the Department of the Army. Their portfolio typically includes IT services, systems integration, engineering, and professional services. Analyzing their past performance with the Army would involve reviewing contract histories for similar service types, looking at award values, contract durations, and any reported performance issues or commendations. Leidos generally has a strong presence and significant revenue derived from DoD contracts, indicating a well-established relationship and capability to meet complex requirements.
How does the $30.5 million value compare to similar administrative management consulting contracts awarded by the DoD?
The $30.5 million value for this 1600-day (approx. 4.4 years) contract, averaging around $6.9 million annually, is a substantial but not extraordinary figure for large-scale federal consulting engagements. To benchmark effectively, one would compare it against other 'Administrative Management and General Management Consulting Services' (NAICS 541611) contracts awarded by the DoD or other large agencies. Factors like contract duration, scope of services, and the specific agency's needs influence these values. Contracts for strategic planning, organizational restructuring, or large-scale process improvement can easily reach tens of millions of dollars over their lifecycle. Without more granular data on the specific services rendered, a precise comparison is difficult, but it aligns with the upper range for significant, long-term consulting support.
What are the primary risks associated with this type of 'Labor Hours' contract for administrative consulting?
Contracts awarded on a 'Labor Hours' basis, like this one, carry inherent risks primarily related to cost control and performance oversight. The main risk is the potential for cost overruns if the hours required exceed initial estimates or if labor rates are not managed effectively. Unlike fixed-price contracts, the government pays for the time spent by the contractor's personnel, making it crucial to have robust mechanisms for tracking hours and ensuring productivity. Another risk is ensuring the quality and effectiveness of the services delivered, as the focus is on the effort expended rather than specific, pre-defined outcomes. Effective oversight is paramount to mitigate these risks and ensure value for taxpayer money.
What does the 'FULL AND OPEN COMPETITION' designation imply for the effectiveness of this contract?
The 'FULL AND OPEN COMPETITION' designation signifies that the contract was solicited broadly, allowing any responsible business to submit a proposal. This approach is generally intended to foster a competitive environment, driving innovation, quality, and potentially lower prices by allowing the government to select from the widest possible pool of qualified vendors. For this contract, it implies that the Department of the Army sought the best available solution through a transparent bidding process. While only two bids were received, the open competition framework provides a baseline assurance that the selection was not arbitrarily limited, contributing to the perceived fairness and potential effectiveness of the award.
How does the contract's duration (1600 days) impact its overall value and risk profile?
A contract duration of 1600 days (approximately 4.4 years) suggests a long-term, strategic need for the administrative management consulting services. From a value perspective, a longer duration can allow for deeper integration of the contractor's expertise into the agency's operations, potentially leading to more significant and sustainable improvements. It can also provide cost savings through reduced procurement frequency and transition costs. However, longer durations also increase the risk profile. The longer the contract, the greater the potential for misalignment with evolving agency needs, technological changes, or shifts in strategic priorities. It also extends the period during which cost overruns or performance issues could occur, necessitating continuous oversight.
What is the significance of the NAICS code 541611 (Administrative Management and General Management Consulting Services) in understanding this contract?
The NAICS code 541611 is crucial as it precisely defines the nature of the services procured: administrative management and general management consulting. This code encompasses a wide range of advisory services aimed at improving organizational efficiency, strategic planning, business processes, and overall management. Understanding this classification helps contextualize the contract's purpose, allowing for comparisons with other contracts under the same code across different agencies and industries. It indicates that the Department of the Army is seeking external expertise to analyze and advise on its management practices, rather than procuring tangible goods or highly specialized technical services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 22 ENTERPRISE PKWY, SUITE 200, HAMPTON, VA, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,447,514
Exercised Options: $1,447,514
Current Obligation: $30,563,303
Parent Contract
Parent Award PIID: DABK0103D0007
IDV Type: IDC
Timeline
Start Date: 2006-04-14
Current End Date: 2010-08-31
Potential End Date: 2010-08-31 00:00:00
Last Modified: 2014-01-10
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