Leidos, Inc. awarded $141.38M Army engineering services contract by GSA

Contract Overview

Contract Amount: $141,380,932 ($141.4M)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2023-04-01

End Date: 2026-03-31

Contract Duration: 1,095 days

Daily Burn Rate: $129.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TO8 OY1 STANDING ARMY

Place of Performance

Location: HICKAM AFB, HONOLULU County, HAWAII, 96853

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $141.4 million to LEIDOS, INC. for work described as: TO8 OY1 STANDING ARMY Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. Services are for engineering, with a primary NAICS code of 541330. 4. The contract has a duration of 1095 days, spanning three years. 5. The contract is firm-fixed-price, which shifts cost risk to the contractor. 6. No small business set-aside was indicated for this specific award.

Value Assessment

Rating: good

Benchmarking the value of this specific delivery order is challenging without knowing the scope of the underlying IDIQ contract and the specific services rendered. However, the firm-fixed-price structure is generally favorable for the government as it caps costs. The total award amount of over $141 million for three years of engineering services suggests a significant scope of work. Further analysis would require comparing the per-unit costs or labor rates to similar engineering contracts awarded by the Army or other federal agencies.

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 specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of a delivery order under an IDIQ suggests that the initial competition occurred when the IDIQ was awarded, and this delivery order was then competed or awarded based on pre-established terms.

Taxpayer Impact: Full and open competition is the preferred method for government contracting as it maximizes opportunities for businesses and typically results in the best value for taxpayers by encouraging competitive pricing.

Public Impact

The U.S. Army is the primary beneficiary, receiving essential engineering services. These services are critical for supporting military operations and infrastructure. The contract is geographically focused on Hawaii (SN: HAWAII). The contract supports the defense industrial base and potentially a specialized engineering workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific details on the number of bidders limits the assessment of competitive intensity.
  • The underlying IDIQ contract's competition level is not detailed here, impacting the full picture of market engagement.
  • Potential for cost overruns if the scope of work expands beyond initial estimates, despite the FFP structure.

Positive Signals

  • Firm-fixed-price contract type transfers cost risk to the contractor.
  • Awarded under full and open competition, suggesting a robust bidding process.
  • Long-term nature of the contract (3 years) provides stability for service delivery.

Sector Analysis

Engineering services, particularly those supporting defense, represent a significant segment of the federal contracting market. The NAICS code 541330 (Engineering Services) encompasses a broad range of activities, from civil and mechanical to electrical and aerospace engineering. Federal spending in this sector is driven by national security needs, infrastructure projects, and research and development. This contract fits within the broader category of defense-related engineering support, where large, established firms like Leidos often compete for substantial awards.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (SB: false). This suggests that the primary award went to a large business. There is no information provided regarding subcontracting plans or goals for small businesses within this specific delivery order. Without this information, it is difficult to assess the direct impact on the small business ecosystem for this particular contract, though large prime contractors are often encouraged or required to subcontract with small businesses on larger federal awards.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) and the U.S. Army contracting officers. As a delivery order under an IDIQ, the underlying contract vehicle likely has established oversight mechanisms. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

  • Army Engineering Services Contracts
  • GSA Federal Acquisition Service Contracts
  • Defense Engineering Support IDIQs
  • Engineering Services for Military Installations
  • Large Prime Contractor Awards

Risk Flags

  • Potential for scope creep if not managed tightly.
  • Logistical challenges associated with performance in Hawaii.
  • Reliance on specific technical expertise which may be in high demand.

Tags

engineering-services, defense, army, gsa, full-and-open-competition, firm-fixed-price, delivery-order, leidos-inc, hawaii, large-contract

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $141.4 million to LEIDOS, INC.. TO8 OY1 STANDING ARMY

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 $141.4 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-03-31.

What is the historical spending pattern for engineering services under the specific IDIQ vehicle this delivery order falls under?

To provide a comprehensive answer, we would need the specific IDIQ contract number. However, generally, historical spending patterns under large IDIQ vehicles for engineering services can vary significantly based on agency needs, program priorities, and the overall defense budget. For a contract like this, awarded by GSA to support the Army, historical data might show consistent demand for engineering expertise in areas such as infrastructure design, modernization, environmental compliance, and operational support. Analyzing past delivery orders under the same IDIQ would reveal trends in award values, task orders issued, and the types of engineering disciplines most frequently procured. This context helps in understanding if the current $141.38 million award represents a typical or an exceptional level of spending for this particular vehicle.

How does the awarded amount compare to other similar engineering services contracts awarded to Leidos, Inc. by the federal government?

Leidos, Inc. is a major federal contractor, frequently awarded large contracts across various sectors, including defense and engineering. The $141.38 million award for engineering services over three years is substantial but falls within the range of large-scale contracts typically awarded to companies of Leidos's size and expertise. To provide a precise comparison, one would need to analyze Leidos's contract portfolio, looking at other engineering services contracts with similar scope, duration, and agency (e.g., Army, Navy, Air Force). For instance, contracts for base operations support, facility design, or specialized technical engineering could be comparable. Without direct access to a comparative database filtered for Leidos's engineering contracts, it's reasonable to infer that this award is significant but not an outlier given Leidos's market position.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are typically detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not provided in the summary data. However, for engineering services contracts, common KPIs often relate to project timelines, adherence to design specifications, quality of deliverables (e.g., accuracy of blueprints, reports), cost control within approved budgets (even under FFP, managing scope is key), safety compliance during any on-site work, and responsiveness to task orders. SLAs might address response times for technical queries, turnaround times for design reviews, or availability of key personnel. The firm-fixed-price nature implies that meeting these performance standards is crucial for the contractor to achieve profitability.

What is the risk profile of Leidos, Inc. as a contractor for this type of service?

Leidos, Inc. generally carries a low to moderate risk profile as a federal contractor, given its extensive experience, established infrastructure, and history of performance across numerous large government contracts. For engineering services, risks can include technical challenges, schedule delays, cost overruns (though mitigated by FFP), and personnel availability. Leidos's size and resources typically enable them to manage these risks effectively. Past performance data, available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would provide a more granular view of their specific risk factors related to quality, schedule, cost, and management. However, as a major defense contractor, they are accustomed to operating in complex environments.

How does the geographic focus on Hawaii impact the contract's execution and potential costs?

A geographic focus on Hawaii introduces specific logistical and operational considerations that can impact contract execution and costs. Hawaii's island location means increased costs for shipping materials, equipment, and personnel to and from the mainland. Travel expenses for non-local staff can be significantly higher. Furthermore, local labor rates may differ from mainland averages. Environmental regulations and permitting processes in Hawaii can also be unique and potentially more stringent, requiring specialized knowledge. The presence of a large military infrastructure in Hawaii also means a potentially competitive labor market for skilled engineers. The contractor must factor these elements into their pricing and project planning to ensure successful and cost-effective delivery.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47QFPA23Q0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

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: $141,380,932

Exercised Options: $141,380,932

Current Obligation: $141,380,932

Actual Outlays: $-24

Subaward Activity

Number of Subawards: 203

Total Subaward Amount: $85,552,315

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFPA22D0003

IDV Type: IDC

Timeline

Start Date: 2023-04-01

Current End Date: 2026-03-31

Potential End Date: 2027-03-31 00:00:00

Last Modified: 2026-02-18

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