Leidos awarded $138M ITSSC Task Order for infrastructure services by the Social Security Administration
Contract Overview
Contract Amount: $137,963,523 ($138.0M)
Contractor: Leidos, Inc.
Awarding Agency: Social Security Administration
Start Date: 2022-06-30
End Date: 2025-09-28
Contract Duration: 1,186 days
Daily Burn Rate: $116.3K/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 INFRASTRUCTURE
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235
State: Maryland Government Spending
Plain-Language Summary
Social Security Administration obligated $138.0 million to LEIDOS, INC. for work described as: ITSSC TASK ORDER FOR INFRASTRUCTURE Key points: 1. The contract value represents a significant investment in IT infrastructure modernization. 2. Competition dynamics for this large task order are crucial for ensuring taxpayer value. 3. Performance risk indicators will be monitored closely given the duration and scope. 4. This contract positions Leidos as a key provider for SSA's IT needs. 5. The firm-fixed-price structure aims to control costs and manage contractor performance. 6. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of computer-related services.
Value Assessment
Rating: good
The contract value of $138 million over approximately three years suggests a substantial investment. Benchmarking this against similar large-scale IT infrastructure task orders is challenging without more specific service details. However, the firm-fixed-price nature of the award indicates an expectation of cost control. The price per day is approximately $115,500, which needs to be evaluated against the specific deliverables and service levels outlined in the task order.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The fact that it is a delivery order under an existing contract (ITSSC) suggests a structured procurement process. The number of bidders is not specified, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, maximizing the value of federal spending.
Public Impact
The Social Security Administration (SSA) benefits through enhanced IT infrastructure, supporting its mission-critical operations. Services delivered likely include network management, hardware/software support, and system integration to maintain and upgrade SSA's IT backbone. The geographic impact is primarily focused on SSA facilities, likely nationwide, where its IT infrastructure is deployed. Workforce implications may include the need for specialized IT personnel by the contractor, potentially creating or sustaining jobs in the IT sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not managed tightly within the task order's defined parameters.
- Dependency on a single contractor for critical IT infrastructure could pose a risk if performance falters.
- Ensuring continued innovation and adaptation to evolving IT landscapes throughout the contract duration.
Positive Signals
- Firm-fixed-price contract type helps to lock in costs and incentivize contractor efficiency.
- Awarded under a broader IT Services Small Business (ITSSC) contract vehicle, suggesting pre-qualification of capabilities.
- Long-term nature of the task order allows for sustained focus on infrastructure improvement and stability.
Sector Analysis
This contract falls within the Information Technology services sector, specifically focusing on IT infrastructure. The IT services market is highly competitive and dynamic, with significant government spending allocated to maintaining and modernizing federal IT systems. Comparable spending benchmarks for large-scale IT infrastructure task orders can vary widely based on scope, duration, and specific services, but a $138 million award over three years indicates a substantial commitment to this area.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract, it may offer subcontracting opportunities for small businesses, depending on the prime contractor's subcontracting plan and the specific nature of the work. The absence of a small business set-aside suggests the competition was geared towards larger, more capable prime contractors for this specific task order.
Oversight & Accountability
Oversight for this contract would typically be managed by the Social Security Administration's contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, performance standards, and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- ITSSC Contract Vehicle
- Federal Civilian IT Modernization Initiatives
- Social Security Administration IT Modernization Efforts
- Information Technology Infrastructure Services
Risk Flags
- Potential for vendor lock-in
- Cybersecurity vulnerabilities
- Integration complexity with legacy systems
- Performance degradation impacting user services
Tags
it-services, infrastructure, social-security-administration, leidos-inc, firm-fixed-price, full-and-open-competition, delivery-order, maryland, large-contract, it-infrastructure-modernization, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $138.0 million to LEIDOS, INC.. ITSSC TASK ORDER FOR INFRASTRUCTURE
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 $138.0 million.
What is the period of performance?
Start: 2022-06-30. End: 2025-09-28.
What is the historical spending pattern for IT infrastructure services by the Social Security Administration?
Analyzing historical spending patterns for IT infrastructure services by the Social Security Administration (SSA) requires access to detailed procurement data over multiple fiscal years. Generally, federal agencies like the SSA allocate significant portions of their budgets to IT infrastructure to support their operations, which often involve large databases, complex networks, and user support for millions of beneficiaries and employees. Spending can fluctuate based on modernization needs, system upgrades, cybersecurity enhancements, and the lifecycle of existing hardware and software. For instance, major system overhauls or transitions to cloud-based infrastructure can lead to spikes in spending. Without specific historical data for SSA's IT infrastructure, it's difficult to provide precise figures, but it is reasonable to assume consistent, substantial investment in this area given the critical nature of SSA's services.
How does the awarded price compare to similar IT infrastructure task orders for other federal agencies?
Comparing the awarded price of $138 million for this ITSSC task order to similar contracts across federal agencies requires a detailed analysis of scope, duration, service levels, and the specific IT infrastructure components involved. Large-scale IT infrastructure task orders, especially those involving network modernization, data center operations, or cloud migration, can range from tens to hundreds of millions of dollars. The Social Security Administration's contract, awarded under a firm-fixed-price structure over approximately three years, suggests a defined scope and budget. Benchmarking would involve identifying contracts with comparable objectives, such as upgrading core network systems, enhancing cybersecurity posture, or deploying new end-user computing environments. Factors like geographic distribution of services, required security clearances, and the complexity of legacy systems integration also influence pricing, making direct comparisons challenging without granular data.
What are the key performance indicators (KPIs) expected for this contract?
Key Performance Indicators (KPIs) for an IT infrastructure task order like this typically focus on service availability, system performance, response times, and successful implementation of upgrades or changes. For example, KPIs might include network uptime percentages (e.g., 99.99%), system response times for critical applications, the number of successful security patches deployed within a defined timeframe, and the successful completion rate of infrastructure projects on schedule and within budget. The firm-fixed-price nature of the contract implies that meeting these KPIs is directly tied to the contractor's payment and overall performance evaluation. The Social Security Administration would define these specific metrics in the Performance Work Statement (PWS) of the task order, ensuring that the contractor delivers reliable, secure, and efficient IT infrastructure services.
What is Leidos' track record with the Social Security Administration and similar federal IT contracts?
Leidos, Inc. has a significant track record of performing IT services for various federal agencies, including the Social Security Administration (SSA). They have been involved in numerous large-scale IT contracts, encompassing areas such as enterprise IT, cybersecurity, cloud services, and data analytics. For the SSA specifically, Leidos has previously been awarded contracts related to IT support and modernization. Their broader federal experience includes work with agencies like the Department of Defense, Department of Veterans Affairs, and Health and Human Services. This extensive experience suggests a familiarity with government procurement processes, security requirements, and the complexities of large-scale IT deployments. Evaluating their specific performance on past SSA contracts and similar large federal IT infrastructure task orders would provide further insight into their capabilities and reliability.
What are the potential risks associated with this contract, and how are they being mitigated?
Potential risks associated with this $138 million IT infrastructure task order include technical challenges in integrating new systems with legacy infrastructure, cybersecurity threats, potential cost overruns if not managed strictly under the firm-fixed-price model, and performance issues impacting critical SSA operations. Mitigation strategies typically involve robust project management, clearly defined scope and deliverables in the Performance Work Statement (PWS), stringent cybersecurity protocols, regular performance reviews, and contingency planning. The full and open competition process itself can mitigate risks by selecting a contractor with a proven track record and competitive pricing. Furthermore, the contract's duration allows for phased implementation and testing, reducing the risk of large-scale failures.
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: 28321322Q00000160
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: $177,403,040
Exercised Options: $137,963,523
Current Obligation: $137,963,523
Actual Outlays: $132,937,605
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $40,457,239
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SS001760016
IDV Type: IDC
Timeline
Start Date: 2022-06-30
Current End Date: 2025-09-28
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-05-30
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