Leidos awarded $5.8M contract for Microsoft 365 support to Nuclear Regulatory Commission
Contract Overview
Contract Amount: $5,802,789 ($5.8M)
Contractor: Leidos, Inc.
Awarding Agency: Nuclear Regulatory Commission
Start Date: 2021-09-30
End Date: 2026-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: IT
Official Description: MICROSOFT 365 POWER PLATFORM AND CLOUD SERVICES SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20555
Plain-Language Summary
Nuclear Regulatory Commission obligated $5.8 million to LEIDOS, INC. for work described as: MICROSOFT 365 POWER PLATFORM AND CLOUD SERVICES SUPPORT Key points: 1. Contract provides essential cloud services and platform support for critical government functions. 2. Competition was full and open, suggesting a robust market for these services. 3. The contract duration of five years allows for sustained support and potential for long-term value. 4. Performance is tied to labor hours, indicating flexibility in resource allocation. 5. The award falls within the custom computer programming services NAICS code. 6. This contract supports the Nuclear Regulatory Commission's operational needs.
Value Assessment
Rating: good
The contract value of $5.8 million over five years appears reasonable for comprehensive Microsoft 365 and cloud services support. Benchmarking against similar government contracts for IT support services indicates that this pricing is within expected ranges, especially considering the specialized nature of cloud platform management and the need for reliable, secure solutions. The labor hour pricing model allows for adjustments based on actual work performed, which can be cost-effective if managed efficiently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process typically fosters competitive pricing and encourages vendors to offer their best value propositions. The presence of four bidders suggests a healthy level of interest and capability within the market for these types of IT services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government receives competitive pricing for its IT needs.
Public Impact
The Nuclear Regulatory Commission benefits from enhanced productivity and operational efficiency through reliable Microsoft 365 and cloud services. Essential IT infrastructure and support are maintained, ensuring continuity of government operations. The contract supports the agency's mission to regulate the civilian use of nuclear materials. Workforce productivity is likely enhanced by access to modern collaboration and productivity tools. The primary geographic impact is within the District of Columbia, where the NRC is headquartered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if labor hours are not managed effectively.
- Dependence on a single vendor for critical cloud infrastructure support.
- Risk of vendor lock-in if future requirements are heavily tied to this specific platform.
Positive Signals
- Award to a reputable contractor with demonstrated experience in IT services.
- Full and open competition ensures market-driven pricing and value.
- Long-term contract duration allows for stable support and planning.
- Labor hour contract type offers flexibility to scale services as needed.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on cloud computing and software platform support. The market for Microsoft 365 and related cloud services is substantial and growing, with numerous government and commercial entities relying on these platforms. Comparable spending benchmarks for IT support services to federal agencies often range from millions to tens of millions of dollars annually, depending on the scope and complexity. This contract's value is moderate within this context.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor, Leidos, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the competition was geared towards larger, more established IT service providers capable of handling comprehensive cloud support.
Oversight & Accountability
Oversight for this contract is primarily managed by the Nuclear Regulatory Commission's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements tied to labor hours. Transparency is facilitated through contract award databases and public reporting mechanisms. The Inspector General's office for the NRC would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Microsoft 365 Licensing and Support
- Cloud Computing Services
- IT Professional Services
- Custom Computer Programming Services
- Federal Civilian Agency IT Contracts
Risk Flags
- Labor Hour Pricing Model Oversight
- Vendor Lock-in Risk
- Service Level Agreement Compliance
Tags
it-services, cloud-computing, microsoft-365, nuclear-regulatory-commission, leidos-inc, full-and-open-competition, labor-hours, custom-computer-programming, district-of-columbia, contract-award, it-support
Frequently Asked Questions
What is this federal contract paying for?
Nuclear Regulatory Commission awarded $5.8 million to LEIDOS, INC.. MICROSOFT 365 POWER PLATFORM AND CLOUD SERVICES SUPPORT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).
What is the total obligated amount?
The obligated amount is $5.8 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-09-29.
What is Leidos, Inc.'s track record with the federal government, particularly in providing IT support and cloud services?
Leidos, Inc. is a major government contractor with a significant history of providing a wide range of IT services to various federal agencies. They have extensive experience in areas such as cloud computing, cybersecurity, enterprise IT, and mission-critical systems support. Their track record includes numerous large-scale contracts for IT modernization, infrastructure management, and software development. For instance, Leidos has held contracts with agencies like the Department of Defense, NASA, and the Department of Veterans Affairs, often involving complex IT solutions. Their experience with Microsoft platforms and cloud services is well-documented through previous awards and ongoing engagements, positioning them as a capable provider for the NRC's needs.
How does the $5.8 million contract value compare to similar federal contracts for Microsoft 365 and cloud support?
The $5.8 million contract value over five years, averaging approximately $1.16 million per year, is considered moderate for federal IT support contracts of this nature. Similar contracts for comprehensive Microsoft 365 and cloud services support to agencies of the Nuclear Regulatory Commission's size and complexity can range from several hundred thousand dollars to several million dollars annually. Factors influencing cost include the scope of services (e.g., platform management, user support, security, integration), the number of users, and the specific cloud environment. Given the full and open competition and the duration, this award appears to be competitively priced within the market for specialized IT services.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential cost overruns due to the labor-hour pricing model if not managed diligently, vendor lock-in with Microsoft technologies, and the potential for service disruptions if not adequately supported. Mitigation strategies involve robust contract oversight by the NRC, including regular performance reviews and detailed tracking of labor hours. The contract's defined scope and service level agreements (SLAs) help manage expectations and performance. Furthermore, the government's ability to re-compete the contract at its expiration provides leverage against long-term vendor lock-in. Leidos's established expertise also mitigates risks related to service delivery quality.
How effective is the labor hour pricing model for ensuring value for money in this context?
The labor hour pricing model offers flexibility, allowing the NRC to scale support up or down based on actual needs, which can be cost-effective if managed properly. It ensures that the government pays for the time and effort expended by the contractor. However, it also introduces a risk of cost escalation if contractor efficiency is low or if the scope of work expands without proper controls. To ensure value for money, the NRC must implement strong oversight, monitor labor hours closely against deliverables, and establish clear performance metrics. Regular reviews and audits of contractor timekeeping and task completion are crucial for effective value realization.
What are the historical spending patterns for Microsoft 365 and cloud services support at the Nuclear Regulatory Commission?
Analyzing historical spending patterns for Microsoft 365 and cloud services at the NRC would require access to detailed procurement data beyond this single award. However, it is common for federal agencies to increasingly rely on cloud-based solutions like Microsoft 365 for productivity and collaboration. Spending in this area typically grows as agencies migrate more services to the cloud and expand user access. Previous contracts likely focused on foundational IT infrastructure, software licenses, and potentially earlier versions of collaboration tools. This current contract signifies a continued investment and likely an expansion of cloud service utilization by the NRC.
What is the significance of this contract being awarded under 'Full and Open Competition'?
Awarding the contract under 'Full and Open Competition' signifies that the solicitation was made available to all responsible sources, and any responsible source was permitted to submit a bid. This is the preferred method of government contracting as it maximizes competition, which generally leads to better pricing, higher quality services, and innovative solutions. The fact that four bidders participated indicates a competitive marketplace for these services. This approach ensures that the government is not unduly restricting competition and is leveraging the broadest possible range of industry capabilities to meet its needs, ultimately benefiting taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 31310021Q0029
Offers Received: 4
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 9737 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,742,461
Exercised Options: $8,742,461
Current Obligation: $5,802,789
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $2,153,319
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NRCHQ1017A0007
IDV Type: BPA
Timeline
Start Date: 2021-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2026-04-01
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