DOT's FAA awards $127M contract for Enterprise Information Display System to Leidos, Inc
Contract Overview
Contract Amount: $127,046,742 ($127.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Transportation
Start Date: 2020-08-17
End Date: 2025-12-31
Contract Duration: 1,962 days
Daily Burn Rate: $64.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ENTERPRISE INFORMATION DISPLAY SYSTEM (E-IDS)
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879
State: Maryland Government Spending
Plain-Language Summary
Department of Transportation obligated $127.0 million to LEIDOS, INC. for work described as: ENTERPRISE INFORMATION DISPLAY SYSTEM (E-IDS) Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Leidos, Inc. is the sole awardee, raising questions about potential single-source reliance. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Performance period spans over 5 years, indicating a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 518210 points to a focus on data processing and hosting services. 6. The contract's value is substantial, requiring close monitoring for efficiency and effectiveness.
Value Assessment
Rating: fair
The contract value of $127 million over approximately 5 years for computing infrastructure and data processing services appears to be within a reasonable range for enterprise-level systems. However, without specific benchmarks for the Enterprise Information Display System (E-IDS) or comparable contracts for similar functionalities, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can escalate beyond initial estimates, impacting the overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a moderate level of competition for this requirement. While full and open competition is generally preferred, the fact that only three bids were received might suggest specific technical requirements or market concentration that limited broader participation.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. However, the limited number of bidders in this instance warrants attention to ensure that the pricing reflects true market value and not an outcome of limited choices.
Public Impact
The Federal Aviation Administration (FAA) benefits from an updated and potentially more efficient information display system. Air traffic controllers and other aviation personnel will likely receive improved real-time information critical for flight operations and safety. The contract supports jobs within the IT and data processing sectors, primarily in Maryland where the contractor is located. Enhanced information systems can contribute to the overall safety and efficiency of the National Airspace System.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize profit.
- Limited number of bidders (3) may indicate a lack of robust competition, potentially leading to higher prices.
- Long contract duration (over 5 years) increases the risk of scope creep and cost escalation if not managed effectively.
- Reliance on a single awardee for a critical system like E-IDS could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, which generally promotes competitive pricing.
- The contract aims to provide essential information display capabilities for the FAA.
- The contractor, Leidos, Inc., is a large and established company with experience in government contracting.
- The contract has a defined performance period, allowing for structured oversight and evaluation.
Sector Analysis
The IT services sector, specifically focusing on data processing, web hosting, and related services (NAICS 518210), is a significant area of federal spending. This contract fits within the broader category of IT infrastructure and support services essential for government operations. Comparable spending benchmarks for similar enterprise information systems can vary widely based on scope and complexity, but a contract of this magnitude suggests a critical and large-scale system deployment or sustainment.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Leidos, Inc. is a large prime contractor. There is no explicit information provided regarding subcontracting plans for small businesses. Without this information, it is difficult to assess the direct impact on the small business ecosystem, though large prime contracts often include subcontracting goals that can benefit small businesses.
Oversight & Accountability
Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency may be enhanced through regular reporting requirements stipulated in the contract. Inspector General jurisdiction would typically apply to investigations of fraud, waste, or abuse related to this contract.
Related Government Programs
- FAA IT Modernization Programs
- Air Traffic Control Systems Modernization
- Federal Civilian IT Infrastructure
- Data Analytics and Visualization Services
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost escalation risks.
- Limited number of bidders (3) may indicate potential for reduced price competition.
- Long contract duration requires sustained oversight to prevent scope creep and cost overruns.
- Sole awardee status for a critical system necessitates close performance monitoring.
Tags
it-services, data-processing, web-hosting, department-of-transportation, federal-aviation-administration, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, large-contract, enterprise-system, maryland, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $127.0 million to LEIDOS, INC.. ENTERPRISE INFORMATION DISPLAY SYSTEM (E-IDS)
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $127.0 million.
What is the period of performance?
Start: 2020-08-17. End: 2025-12-31.
What is the historical spending pattern for the Enterprise Information Display System (E-IDS) prior to this award?
Historical spending data for the E-IDS prior to this award is not directly provided in the given data. However, the duration of the previous contract (dur: 1962, likely representing months) suggests a long-standing requirement for this system. If 1962 represents months, it would be over 163 years, which is highly improbable and likely a data anomaly or misinterpretation of the field. Assuming 'dur' represents a different unit or is an error, a comprehensive analysis would require accessing historical contract databases to trace previous awards, spending levels, and contractor performance related to E-IDS to understand trends and identify any significant shifts in cost or scope.
How does the per-unit cost of this contract compare to similar enterprise information display systems in the federal government?
A direct per-unit cost comparison is challenging without a clearly defined 'unit' for the Enterprise Information Display System (E-IDS) and access to detailed cost breakdowns. The contract is for a comprehensive system, likely encompassing software, hardware, integration, and support services. Benchmarking would require identifying contracts with similar functionalities and scale, then normalizing costs based on user base, data volume, or specific system modules. Given the CPFF structure, the final cost is variable, making upfront per-unit cost analysis less definitive than for fixed-price contracts. Further analysis would involve examining the contractor's proposed labor rates and overhead allocations against government estimates or industry standards.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?
The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for an Enterprise Information Display System, KPIs would focus on system availability (uptime), data accuracy, response times for information retrieval, and user satisfaction. SLAs would define the acceptable thresholds for these metrics and outline remedies or penalties for non-performance. A thorough review of the contract's Statement of Work (SOW) and Performance Work Statement (PWS) would be necessary to identify these critical performance measures and understand how Leidos, Inc.'s performance will be evaluated and managed by the FAA.
What is Leidos, Inc.'s track record with the FAA and similar large-scale IT infrastructure contracts?
Leidos, Inc. is a major government contractor with a significant presence across various federal agencies, including the Department of Transportation and its sub-agency, the FAA. While specific contract details are not provided here, Leidos has a history of performing large-scale IT, systems engineering, and integration services. Their track record with the FAA would involve reviewing past performance evaluations, any past performance issues or disputes, and their success in delivering complex IT solutions. A deeper dive into federal procurement databases would reveal the scope and success of their previous engagements with the FAA and other agencies for comparable services.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this system?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This structure can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total cost. For the government, this means the total contract price can escalate significantly if costs are not meticulously controlled and audited. Effective oversight, detailed cost accounting, and robust negotiation of allowable costs are crucial to mitigate these risks and ensure the government receives good value. The FAA will need strong program management to monitor expenditures closely.
How does the geographic concentration of this contract (Maryland) impact potential competition or service delivery?
The contract's performance location is listed as Maryland (ST: MD, SN: MARYLAND). For a large IT services contract like the E-IDS, this typically indicates where the primary work will be performed or where the contractor's relevant facilities are located. While Leidos, Inc. is headquartered elsewhere, having a significant operational presence in Maryland could leverage existing infrastructure and workforce. For competition, it might favor bidders with a strong presence or established operations in that region. For service delivery, it suggests that on-site support or integration activities might be concentrated there, though modern IT contracts often allow for distributed or remote workforces.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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: 693KA7-18-R-00003
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1710 SAIC DR, MCLEAN, 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: $297,591,945
Exercised Options: $127,046,742
Current Obligation: $127,046,742
Actual Outlays: $122,009,937
Subaward Activity
Number of Subawards: 106
Total Subaward Amount: $34,194,983
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-17
Current End Date: 2025-12-31
Potential End Date: 2034-12-31 00:00:00
Last Modified: 2025-07-21
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