GSA's $110M DMDC DCHRMS Task Order to Leidos, Inc. for IT Services Faces Scrutiny
Contract Overview
Contract Amount: $110,088,056 ($110.1M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2020-09-15
End Date: 2025-09-14
Contract Duration: 1,825 days
Daily Burn Rate: $60.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: DMDC DCHRMS TASK ORDER
Place of Performance
Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955
Plain-Language Summary
General Services Administration obligated $110.1 million to LEIDOS, INC. for work described as: DMDC DCHRMS TASK ORDER Key points: 1. The contract awarded to Leidos, Inc. represents a significant investment in IT services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The Time and Materials pricing structure warrants close monitoring for cost overruns. 4. The 'Other Computer Related Services' NAICS code is broad, requiring specific performance metrics. 5. The contract duration of five years allows for substantial project development and execution.
Value Assessment
Rating: fair
The Time and Materials (T&M) pricing model can lead to higher costs if not managed effectively. Benchmarking against similar T&M contracts for 'Other Computer Related Services' is crucial to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the T&M structure means the final price is dependent on actual labor hours and rates, which can fluctuate.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value. However, the T&M pricing model introduces risk of cost escalation, potentially impacting overall taxpayer value.
Public Impact
Impacts federal personnel data management and HR systems. Supports the Defense Manpower Data Center (DMDC) operations. Potential for long-term IT infrastructure reliance on a single vendor. Affects the efficiency and accuracy of critical HR functions for military and civilian personnel.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Time and Materials pricing model
- Broad NAICS code
- Long contract duration
Positive Signals
- Full and open competition
- Experienced contractor (Leidos)
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. IT services spending by the government is substantial, and benchmarks for similar task orders can vary widely based on scope and complexity.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business. There is no indication of small business participation in this specific task order, which could be an area for improvement in future solicitations.
Oversight & Accountability
Oversight will be critical to manage the Time and Materials aspect of this contract, ensuring that labor hours and rates are reasonable and necessary for the work performed. The General Services Administration (GSA) should provide clear performance metrics and regular reviews.
Related Government Programs
- Other Computer Related Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Broad NAICS code may obscure specific service details and performance.
- Long contract duration could lead to vendor lock-in or outdated technology.
- Lack of explicit small business participation noted.
Tags
other-computer-related-services, general-services-administration, ca, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $110.1 million to LEIDOS, INC.. DMDC DCHRMS TASK ORDER
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 $110.1 million.
What is the period of performance?
Start: 2020-09-15. End: 2025-09-14.
What specific IT services are included under the broad 'Other Computer Related Services' NAICS code, and how will their performance be measured to ensure value for money?
The specific IT services should be clearly defined in the task order's Statement of Work (SOW). Performance metrics should include measurable outcomes related to system uptime, data accuracy, processing speed, and user satisfaction. Regular performance reviews by the GSA contracting officer's representative (COR) are essential to track progress against these metrics and ensure the contractor is delivering the expected value.
Given the Time and Materials pricing, what mechanisms are in place to mitigate the risk of cost overruns and ensure the government is not overpaying for labor?
Mitigation strategies include establishing ceiling prices for labor categories, requiring detailed timesheets and justifications for hours worked, and conducting regular audits of labor charges. The COR must diligently review all invoices against the SOW and performance reports. Implementing a fixed-price component for specific deliverables within the T&M framework can also help control costs.
How does this contract contribute to the overall effectiveness of the DMDC's mission, and what are the potential risks to mission effectiveness if performance is suboptimal?
This contract is crucial for maintaining and enhancing the IT systems that support the DMDC's mission of providing accurate and timely personnel data. Suboptimal performance could lead to delays in reporting, data inaccuracies, security vulnerabilities, and reduced operational efficiency, potentially impacting military readiness, personnel management, and benefits administration.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ID03200021
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST, 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: $111,874,671
Exercised Options: $111,800,524
Current Obligation: $110,088,056
Actual Outlays: $-6,696
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $656,760
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS03Q17DSA0013
IDV Type: BPA
Timeline
Start Date: 2020-09-15
Current End Date: 2025-09-14
Potential End Date: 2025-09-14 00:00:00
Last Modified: 2026-02-10
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)