Leidos Inc. awarded $19M contract for administrative management and general management consulting services by the Department of the Army
Contract Overview
Contract Amount: $19,078,457 ($19.1M)
Contractor: Leidos Inc
Awarding Agency: Department of Defense
Start Date: 2011-09-01
End Date: 2016-07-31
Contract Duration: 1,795 days
Daily Burn Rate: $10.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TIME AND MATERIALS (T&M) T&M SERVICES
Place of Performance
Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $19.1 million to LEIDOS INC for work described as: TIME AND MATERIALS (T&M) T&M SERVICES Key points: 1. Contract awarded on a Time and Materials basis, which can pose cost risks if not managed closely. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (nearly 5 years) indicates a significant, ongoing need for these services. 4. The contract falls under Administrative Management and General Management Consulting Services, a broad category. 5. The award was a Delivery Order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The contract was not set aside for small businesses, nor did it involve small business subcontracting.
Value Assessment
Rating: fair
The contract's value of approximately $19 million over nearly five years for consulting services requires careful benchmarking. Without specific deliverables or performance metrics, assessing value-for-money is challenging. Time and Materials contracts, by nature, can lead to cost overruns if not tightly controlled, making direct comparison to fixed-price contracts difficult. Further analysis would require understanding the specific services rendered and their impact on Army operations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the 'full and open' designation implies a market capable of supporting multiple interested parties.
Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs and ensuring the government receives services at market-reflective prices.
Public Impact
The primary beneficiary is the Department of the Army, receiving management consulting support. Services delivered likely include strategic planning, organizational efficiency improvements, and administrative process optimization. The geographic impact is centered in Georgia, where the contract was administered. Workforce implications could involve the deployment of specialized consulting expertise to support Army initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost uncertainty and potential overruns if not closely monitored.
- Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the services rendered.
- The broad nature of 'Administrative Management and General Management Consulting Services' could mask inefficiencies or a lack of focused strategic impact.
Positive Signals
- Awarded under 'full and open competition,' suggesting a competitive process that should yield reasonable pricing.
- The contract duration of nearly five years indicates a sustained need and potential for long-term strategic support.
- The contractor, Leidos Inc., is a large, established company with significant experience in government contracting, suggesting a degree of reliability.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is crucial for government agencies seeking to improve operational efficiency, strategic planning, and administrative functions. The market for these services is large and competitive, with numerous firms offering specialized expertise. Benchmarking this contract's value would require comparing it to similar consulting engagements within the defense sector, considering the scope of work and the contractor's expertise.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does the data indicate any specific subcontracting requirements for small businesses. This suggests that the primary contractor, Leidos Inc., likely performed the majority of the work internally or through larger, established partners, potentially limiting direct opportunities for small businesses within this specific award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Management and Consulting Services
- Department of Defense Administrative Support Contracts
- Army Professional Services Contracts
- Time and Materials Consulting Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Lack of specific performance metrics makes value assessment difficult.
- Broad service category may obscure specific impacts or efficiencies.
Tags
department-of-defense, department-of-the-army, administrative-management-consulting, general-management-consulting, time-and-materials, full-and-open-competition, delivery-order, leidos-inc, georgia, professional-services, management-consulting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.1 million to LEIDOS INC. TIME AND MATERIALS (T&M) T&M SERVICES
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 $19.1 million.
What is the period of performance?
Start: 2011-09-01. End: 2016-07-31.
What specific management and administrative consulting services did Leidos Inc. provide to the Department of the Army under this contract?
The provided data categorizes this contract under 'Administrative Management and General Management Consulting Services' (NAICS 541611). While the specific tasks are not detailed, typical services within this category for a military branch like the Army could include strategic planning, organizational analysis, process improvement initiatives, policy development, resource management consulting, and support for administrative functions. These services aim to enhance operational efficiency, streamline workflows, and support decision-making at various command levels. The Time and Materials (T&M) pricing structure suggests that the scope might have been flexible or evolved over the contract's duration, allowing for adjustments based on emerging needs or unforeseen challenges encountered during the consulting engagement.
How does the approximate $19 million total award value compare to similar consulting contracts awarded by the Department of the Army?
The total award value of approximately $19 million over nearly five years (1795 days) translates to an average annual value of roughly $3.8 million. This figure falls within a moderate range for large-scale consulting contracts within the Department of Defense. Many high-level strategic or specialized technical consulting contracts can reach tens or even hundreds of millions of dollars. However, comparing solely on total value can be misleading without considering the scope, duration, and specific deliverables. Contracts for broad administrative support might have different value profiles than highly specialized technical or R&D consulting. Benchmarking would ideally involve comparing this contract to other NAICS 541611 contracts awarded by the Army with similar durations and objectives.
What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?
The primary risk with Time and Materials (T&M) contracts, like the one awarded to Leidos Inc., is cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to cost uncertainty for the government, as the total expenditure is not predetermined. If the contractor's labor hours or material costs exceed initial estimates, the government pays the actual incurred costs. Effective risk mitigation requires robust government oversight, including detailed tracking of labor hours, verification of work performed, and strict management of material expenditures to prevent scope creep and ensure efficient service delivery.
What does the 'full and open competition' award status imply about the contractor selection process and potential pricing?
The 'full and open competition' status signifies that the Department of the Army solicited proposals from all eligible and responsible sources, providing a fair opportunity for any interested company to compete. This process typically involves advertising the requirement publicly, allowing multiple vendors to submit bids. Such a competitive environment generally leads to better price discovery, as vendors are incentivized to offer competitive rates to win the contract. It also suggests that the market had sufficient capacity and interest to support multiple bidders, potentially resulting in a more favorable outcome for the government in terms of both cost and quality compared to sole-source or limited competition awards.
What is the significance of this contract being a 'Delivery Order' (awarded under an IDIQ vehicle)?
This contract being a 'Delivery Order' indicates that it was issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQ contracts establish terms and conditions for future orders but do not guarantee a specific quantity or dollar amount. Delivery Orders specify the actual goods or services to be procured, along with quantities, delivery dates, and prices. This approach allows agencies to procure a range of services efficiently over time without needing to conduct a full competitive procurement for each individual task. For Leidos Inc., it means they were selected through a prior competition for the IDIQ vehicle, and this Delivery Order represents a specific tasking under those established terms.
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
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,078,918
Exercised Options: $19,078,918
Current Obligation: $19,078,457
Subaward Activity
Number of Subawards: 137
Total Subaward Amount: $8,890,321
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9124711D0010
IDV Type: IDC
Timeline
Start Date: 2011-09-01
Current End Date: 2016-07-31
Potential End Date: 2016-07-31 00:00:00
Last Modified: 2020-09-28
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