GSA awards $275M IT support contract to Leidos, Inc. for DHS, spanning over 7 years
Contract Overview
Contract Amount: $275,467,203 ($275.5M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2023-09-11
End Date: 2030-12-31
Contract Duration: 2,668 days
Daily Burn Rate: $103.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: HOMELAND ENTERPRISE INFORMATION TECHNOLOGY SECURE SERVICES AND SUPPORT (HEITS) TASK ORDER (47QFCA23F0039) AWARD FROM TASK ORDER REQUEST (47QFCA23R0021) IN SUPPORT OF THE DHS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407
Plain-Language Summary
General Services Administration obligated $275.5 million to LEIDOS, INC. for work described as: HOMELAND ENTERPRISE INFORMATION TECHNOLOGY SECURE SERVICES AND SUPPORT (HEITS) TASK ORDER (47QFCA23F0039) AWARD FROM TASK ORDER REQUEST (47QFCA23R0021) IN SUPPORT OF THE DHS. Key points: 1. Contract value represents a significant investment in IT infrastructure and support for the Department of Homeland Security. 2. The full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The cost-plus award fee structure incentivizes contractor performance while allowing for cost flexibility. 4. The contract duration of over 7 years indicates a long-term need for these critical IT services. 5. The primary service category is Computer Systems Design Services, a vital component of federal IT operations. 6. The contract is not set aside for small businesses, suggesting large-scale requirements.
Value Assessment
Rating: good
The contract's value of $275.5 million over approximately 7.5 years averages to about $36.7 million annually. Benchmarking this against similar large-scale IT support contracts for federal agencies, this figure appears within a reasonable range, considering the scope and criticality of services for DHS. The cost-plus award fee (CPAF) structure allows for reimbursement of costs plus a fee that is based on performance, which can be effective for complex projects where outcomes are not fully predictable but requires careful oversight to manage costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders, but the designation implies a competitive process was utilized. Full and open competition is generally expected to foster price discovery and ensure the government receives the best value by leveraging market forces.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation, leading to more efficient use of public funds for essential services.
Public Impact
The Department of Homeland Security (DHS) is the primary beneficiary, receiving essential IT support services. Services include computer systems design, integration, and support, crucial for DHS's operational effectiveness. The contract's impact is primarily national, supporting federal IT infrastructure across the agency. The contract supports a significant IT services workforce, likely including specialized technical roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee contracts can sometimes lead to cost overruns if not managed diligently.
- Long-term contracts may reduce flexibility to adapt to rapidly changing technology landscapes.
- The absence of small business set-aside may limit opportunities for smaller, specialized IT firms.
Positive Signals
- Full and open competition suggests a healthy market and potential for competitive pricing.
- The award to a known entity like Leidos, Inc. may indicate a track record of successful performance.
- The long duration suggests a stable and predictable IT support environment for DHS.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer systems design and related support services. The federal IT services market is substantial, with agencies across the government relying heavily on contractors for system development, maintenance, and operational support. Comparable spending benchmarks for large-scale IT support contracts often run into hundreds of millions of dollars, reflecting the complexity and scale of federal IT needs. This contract with GSA for DHS aligns with broader government trends of consolidating IT services and leveraging large, experienced providers.
Small Business Impact
This contract was not awarded as a small business set-aside, indicating that the requirement was likely too large or complex to be exclusively fulfilled by small businesses, or that the competition was open to all. While there are no direct subcontracting requirements specified in the provided data, large prime contractors like Leidos often engage small businesses for specialized services. The absence of a set-aside means that opportunities for direct prime contracting for small businesses in this specific award are limited, though they may still participate as subcontractors.
Oversight & Accountability
The General Services Administration (GSA) oversees this contract, which is a significant oversight body for federal procurement. The contract type, Cost Plus Award Fee (CPAF), necessitates robust oversight to ensure costs are reasonable and the award fee is justified by performance. Performance metrics and reporting requirements, typical for CPAF contracts, will be key accountability measures. Transparency is generally maintained through contract databases like FPDS, and the Inspector General for DHS and GSA would have jurisdiction for audits and investigations.
Related Government Programs
- DHS IT Modernization Programs
- GSA IT Schedule 70 (now IT-70)
- Federal Civilian IT Services Contracts
- Department of Homeland Security Enterprise IT Support
Risk Flags
- Cost Overruns Risk
- Performance Measurement Clarity
- Technology Obsolescence
- Vendor Lock-in Potential
Tags
it-services, computer-systems-design, dhs, gsa, delivery-order, cost-plus-award-fee, full-and-open-competition, large-contract, enterprise-it, district-of-columbia, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $275.5 million to LEIDOS, INC.. HOMELAND ENTERPRISE INFORMATION TECHNOLOGY SECURE SERVICES AND SUPPORT (HEITS) TASK ORDER (47QFCA23F0039) AWARD FROM TASK ORDER REQUEST (47QFCA23R0021) IN SUPPORT OF THE DHS.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $275.5 million.
What is the period of performance?
Start: 2023-09-11. End: 2030-12-31.
What is Leidos, Inc.'s track record with similar large-scale federal IT support contracts, particularly for agencies like DHS?
Leidos, Inc. is a major government contractor with extensive experience in IT services, systems integration, and support across various federal agencies, including defense and civilian departments. They have a history of managing large, complex contracts similar to the HEITS task order. For DHS specifically, Leidos has been involved in various IT modernization, cybersecurity, and operational support initiatives. Their track record generally indicates a capacity to handle significant budgets and long-term engagements, though like any large contractor, specific contract performance can vary. Reviewing past performance evaluations and contract awards would provide a more granular understanding of their success rates and any challenges encountered on prior DHS or similar contracts.
How does the annual cost of this contract compare to other large federal IT support contracts awarded in recent years?
This contract, valued at approximately $275.5 million over roughly 7.5 years, translates to an average annual cost of about $36.7 million. When compared to other large federal IT support contracts, this figure appears to be within the expected range for comprehensive enterprise-level support for a major agency like DHS. For instance, similar contracts for IT infrastructure management, systems integration, and sustainment for agencies such as the Department of Defense or the IRS can range from tens to hundreds of millions of dollars annually. The specific services, scope, and duration are key differentiators. The CPAF structure also means the final cost could fluctuate based on performance, making direct comparisons to fixed-price contracts less straightforward.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?
The primary risks associated with a CPAF contract of this magnitude include potential cost overruns and challenges in objectively measuring performance to determine the award fee. While CPAF aims to incentivize performance, if the criteria for the award fee are not clearly defined, measurable, and rigorously assessed, it can lead to contractors receiving higher fees than warranted, or conversely, disincentivize performance if criteria are too stringent or unclear. For the government, effective oversight is crucial to ensure that costs are reasonable and allocable, and that the award fee accurately reflects the contractor's contribution to achieving program goals. Without strong program management and clear performance metrics, there's a risk of paying more than necessary for the services rendered.
What is the expected impact of this contract on the Department of Homeland Security's IT capabilities and operational efficiency?
This contract is expected to significantly enhance the Department of Homeland Security's IT capabilities by providing essential systems design, integration, and support services. By outsourcing these functions to a specialized contractor like Leidos, DHS can focus its internal resources on its core mission objectives. The long-term nature of the contract suggests a commitment to modernizing and stabilizing DHS's IT infrastructure, which is critical for national security and emergency response operations. Improved IT capabilities can lead to greater operational efficiency, better data management, enhanced cybersecurity posture, and more seamless inter-agency communication, ultimately supporting DHS's ability to protect the nation.
How has federal spending on computer systems design services (NAICS 541512) evolved, and where does this contract fit within that trend?
Federal spending on computer systems design services (NAICS 541512) has been a consistently large and growing segment of the federal IT budget for many years, driven by the increasing reliance on technology across all government functions. Agencies continuously seek to modernize legacy systems, implement new digital services, and enhance cybersecurity. This $275 million contract awarded to Leidos for DHS IT support fits squarely within this trend, representing a significant investment in maintaining and advancing critical IT infrastructure. It reflects the ongoing demand for specialized IT expertise to manage complex systems, and aligns with the government's strategy to leverage large, experienced contractors for large-scale IT requirements, often through broad IT vehicles like GSA Schedules.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 47QFCA23R0021
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $983,732,586
Exercised Options: $838,754,238
Current Obligation: $275,467,203
Subaward Activity
Number of Subawards: 250
Total Subaward Amount: $305,477,764
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0008
IDV Type: GWAC
Timeline
Start Date: 2023-09-11
Current End Date: 2030-12-31
Potential End Date: 2030-12-31 00:00:00
Last Modified: 2026-04-02
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