Leidos awarded $1.06B ITSSC Task Order for Systems by SSA, with a 2026 completion

Contract Overview

Contract Amount: $1,062,905,628 ($1.1B)

Contractor: Leidos, Inc.

Awarding Agency: Social Security Administration

Start Date: 2022-06-30

End Date: 2026-09-28

Contract Duration: 1,551 days

Daily Burn Rate: $685.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ITSSC TASK ORDER FOR SYSTEMS

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $1.06 billion to LEIDOS, INC. for work described as: ITSSC TASK ORDER FOR SYSTEMS Key points: 1. The contract value represents a significant investment in IT systems support for the Social Security Administration. 2. Competition dynamics for this large task order are crucial for ensuring taxpayer value. 3. Performance risk indicators will be monitored closely given the extensive duration and scope. 4. The contract's fixed-price nature aims to control costs, but requires careful scope management. 5. This award positions Leidos as a key IT service provider for a major federal agency.

Value Assessment

Rating: good

The $1.06 billion award over approximately 4 years suggests a substantial but potentially competitive price point for comprehensive IT systems support. Benchmarking against similar large-scale IT service contracts for federal agencies is necessary for a definitive value assessment. The firm-fixed-price structure indicates an expectation of cost control, but the ultimate value will depend on the efficiency of service delivery and the accuracy of the initial cost estimations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. The presence of two bids suggests a moderately competitive environment for this significant task order. While not a large number of bidders, full and open competition generally provides a baseline for price discovery and encourages offerors to present competitive terms.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it creates pressure on contractors to offer competitive pricing and efficient service delivery to win the award.

Public Impact

Beneficiaries include Social Security Administration staff who will receive enhanced IT systems and support. Services delivered encompass a broad range of IT systems support, crucial for the agency's operations. The geographic impact is primarily within Maryland, where the contractor's operations are based. Workforce implications include potential job creation or allocation for IT professionals supporting this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the broad nature of IT systems support.
Reliance on a single large contractor for critical IT infrastructure could pose a risk.
Ensuring consistent service quality across the contract duration will be a challenge.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Awarded under full and open competition, suggesting a competitive bidding process.
Long-term nature of the contract allows for stable IT system development and support.

Sector Analysis

This contract falls within the Information Technology services sector, specifically focusing on computer-related services. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their systems. This task order represents a significant portion of spending within this sub-sector for the Social Security Administration, likely involving complex system integration, maintenance, and support services.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor, Leidos, is a large corporation. There is no explicit information on subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem is likely minimal unless Leidos actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the Social Security Administration's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services. Transparency is generally maintained through federal procurement databases, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

IT Professional Services
Cloud Computing Services
Software Development
IT Infrastructure Support
Enterprise Resource Planning Systems

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of service degradation if contractor resources are mismanaged.
Dependency on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $1.06 billion to LEIDOS, INC.. ITSSC TASK ORDER FOR SYSTEMS

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 $1.06 billion.

What is the period of performance?

Start: 2022-06-30. End: 2026-09-28.

What is Leidos's track record with the Social Security Administration and similar federal agencies for large IT contracts?

Leidos has a substantial history of contracting with federal agencies, including the Social Security Administration (SSA). They have been awarded numerous contracts for IT services, systems integration, and support across various departments. For the SSA specifically, Leidos has previously held contracts related to IT modernization, data management, and operational support. Their performance on these contracts, while generally viewed as satisfactory given their continued awards, would require a detailed review of past performance evaluations and any associated contract disputes or challenges. Benchmarking their success on this $1.06 billion task order against their historical performance on similar-sized and scoped contracts with the SSA and other agencies like the Department of Defense or Health and Human Services would provide a clearer picture of their capabilities and reliability in managing such extensive IT endeavors.

How does the $1.06 billion value of this task order compare to historical IT spending by the SSA?

The $1.06 billion value of this ITSSC Task Order for Systems represents a significant investment by the Social Security Administration (SSA) over its approximately four-year duration. To contextualize this, one would need to analyze the SSA's historical IT budgets and spending patterns. Typically, agencies of the SSA's size and mission complexity allocate substantial portions of their budgets to IT to maintain critical systems, develop new functionalities, and ensure cybersecurity. If this single task order constitutes a large percentage of the SSA's annual IT expenditure, it suggests a consolidation of IT services or a major systems overhaul. Conversely, if the SSA's overall IT spending is in the multi-billion dollar range annually, this task order might represent a standard, albeit large, component of their IT strategy. Examining trends in SSA's IT spending over the past 5-10 years would reveal whether this award signifies an increase, decrease, or stable level of investment in IT systems support.

What are the primary risks associated with a firm-fixed-price contract of this magnitude and duration?

A firm-fixed-price (FFP) contract of this magnitude ($1.06 billion) and duration (approx. 4 years) carries inherent risks for both the government and the contractor. For the government, the primary risk is that the contractor may cut corners on quality or service to maximize profit, especially if the initial price was set too low or if unforeseen technical challenges arise. There's also the risk of contractor underperformance or default, which could lead to significant disruptions in critical IT systems. For the contractor (Leidos), the risk lies in underestimating the true cost of performance. If costs escalate beyond projections due to scope creep, technical difficulties, or market fluctuations in labor or materials, Leidos could incur substantial losses. Effective management of scope, rigorous performance monitoring, and clear communication channels are crucial to mitigate these risks and ensure the government receives the intended value.

What does the 'Other Computer Related Services' NAICS code (541519) imply about the scope of this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT activities not specifically covered by more specialized codes. For this $1.06 billion task order awarded to Leidos by the SSA, it implies that the contract's scope is likely comprehensive and may include services such as IT consulting, systems integration, custom software development, IT support and troubleshooting, data processing services, and potentially IT project management. The 'other' designation suggests flexibility, allowing the SSA to procure a diverse set of IT needs under a single contract vehicle. This broad scope necessitates careful definition of deliverables and performance standards within the task order to ensure clarity and prevent disputes regarding the services expected from Leidos.

How does the competition level (2 bidders) impact price discovery and potential value for taxpayers?

Having two bidders for a large federal contract, while indicating some level of competition, is on the lower end of what is typically considered robust competition. In a market with numerous potential bidders, a higher number of proposals generally leads to more aggressive pricing and a greater likelihood of the government securing the best possible value. With only two bidders, there is a reduced incentive for each to drastically undercut the other, potentially leading to a higher-than-optimal price for taxpayers. However, the fact that it was awarded under 'full and open competition' suggests that the process was designed to attract as many qualified bidders as possible. The specific pricing strategies and the relative strengths of the two proposals would ultimately determine the value realized. If the two bidders were highly capable and the SSA effectively negotiated, good value could still be achieved, but the potential for greater savings might have existed with more participants.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 28321322Q00000125

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $1,204,191,613

Exercised Options: $1,062,905,628

Current Obligation: $1,062,905,628

Actual Outlays: $896,477,257

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $145,470,427

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001760016

IDV Type: IDC

Timeline