Leidos Awarded $593.5M for SSA Software Engineering Support

Contract Overview

Contract Amount: $593,517,491 ($593.5M)

Contractor: Leidos, Inc.

Awarding Agency: Social Security Administration

Start Date: 2018-07-13

End Date: 2022-09-28

Contract Duration: 1,538 days

Daily Burn Rate: $385.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CONTRACTOR TO PROVIDE DEVELOPMENT&DATABASE SUPPORT TO AGENCY'S OFFICE OF SOFTWARE ENGINEERING

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $593.5 million to LEIDOS, INC. for work described as: CONTRACTOR TO PROVIDE DEVELOPMENT&DATABASE SUPPORT TO AGENCY'S OFFICE OF SOFTWARE ENGINEERING Key points: 1. Significant contract value for IT development and database support. 2. Leidos, Inc. is a major government contractor, indicating established capabilities. 3. Potential risk associated with long-term IT support contracts. 4. Spending falls within the broad IT services sector.

Value Assessment

Rating: good

The contract value of $593.5M over approximately 4 years suggests a substantial investment in IT support. Benchmarking against similar large-scale IT development and database support contracts would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market prices.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.

Public Impact

Ensures continued operation and development of critical software for the Social Security Administration. Supports agency's ability to manage and process essential public services. Potential for job creation within the IT sector through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long-term IT support can lead to vendor lock-in.
  • Scope creep is a common risk in development contracts.
  • Reliance on a single contractor for critical systems.

Positive Signals

  • Awarded through full and open competition.
  • Contractor has a history of government service.
  • Supports essential government functions.

Sector Analysis

This contract falls under the Information Technology sector, specifically focusing on software development and database support. Spending benchmarks for similar IT services contracts with federal agencies can vary widely based on scope and complexity.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct small business participation evident from this specific award, though subcontracting opportunities may exist.

Oversight & Accountability

The contract was awarded by the Social Security Administration, implying oversight from their contracting and program management offices. Further oversight details would require examination of specific contract clauses and performance reviews.

Related Government Programs

  • Other Computer Related Services
  • Social Security Administration Contracting
  • Social Security Administration Programs

Risk Flags

  • Long-term dependency on a single vendor.
  • Potential for cost overruns if scope is not managed.
  • Risk of outdated technology if not actively managed.
  • Cybersecurity vulnerabilities associated with extensive IT support.

Tags

other-computer-related-services, social-security-administration, md, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $593.5 million to LEIDOS, INC.. CONTRACTOR TO PROVIDE DEVELOPMENT&DATABASE SUPPORT TO AGENCY'S OFFICE OF SOFTWARE ENGINEERING

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $593.5 million.

What is the period of performance?

Start: 2018-07-13. End: 2022-09-28.

What is the projected cost per year for this contract, and how does it compare to industry averages for similar IT development and database support services?

The total contract value is $593.5M over approximately 4 years, averaging around $148.4M per year. Comparing this to industry averages requires detailed analysis of specific services rendered, labor rates, and the complexity of the SSA's systems. Without granular data on labor categories and hours, a precise benchmark is difficult, but this annual figure represents a significant investment.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being monitored to mitigate risks associated with long-term IT support?

Key performance indicators (KPIs) are crucial for monitoring contractor performance in long-term IT support. While not detailed in the provided data, typical KPIs would include system uptime, response times for issue resolution, successful software deployments, and adherence to security protocols. The SSA's Office of Software Engineering would likely have a robust performance management plan in place to track these metrics and address any deviations.

How does the scope of 'Other Computer Related Services' (NAICS 541519) for this contract align with the agency's strategic IT goals and ensure effective use of taxpayer funds?

The broad NAICS code 541519 encompasses a wide range of IT services. For this contract to align with strategic goals and ensure effective fund use, the 'Development & Database Support' must directly contribute to the SSA's modernization efforts, operational efficiency, or enhanced service delivery. Clear articulation of how these services support specific agency objectives and regular performance reviews are essential for accountability.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 28321318R00000042

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $594,011,056

Exercised Options: $594,011,056

Current Obligation: $593,517,491

Actual Outlays: $485,318,419

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $37,160,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001760016

IDV Type: IDC

Timeline

Start Date: 2018-07-13

Current End Date: 2022-09-28

Potential End Date: 2022-09-28 00:00:00

Last Modified: 2022-08-22

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