Leidos Inc. awarded $26.4M contract for NASA's NEST MS ELA and Office 365 upgrade
Contract Overview
Contract Amount: $26,350,642 ($26.4M)
Contractor: Leidos, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-11-01
End Date: 2022-10-31
Contract Duration: 1,095 days
Daily Burn Rate: $24.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NEST MS ELA AND OFFICE 365 UPGRADE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $26.4 million to LEIDOS, INC. for work described as: NEST MS ELA AND OFFICE 365 UPGRADE Key points: 1. Contract value represents a significant investment in modernizing NASA's essential communication and collaboration tools. 2. The firm-fixed-price structure aims to control costs and provide predictable spending for the agency. 3. A full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 4. The contract duration of three years allows for phased implementation and ongoing support. 5. This upgrade is critical for maintaining operational efficiency and security of NASA's digital infrastructure. 6. The Computer Systems Design Services NAICS code indicates a focus on technical expertise and system integration.
Value Assessment
Rating: good
The contract value of $26.4 million for a three-year upgrade of Microsoft Exchange, Local Area, and Office 365 services appears reasonable given the scope and the provider's expertise. Benchmarking against similar large-scale IT modernization contracts for federal agencies suggests that pricing is within expected ranges, especially considering the complexity of integrating and upgrading core productivity suites. The firm-fixed-price nature of the award provides cost certainty for NASA, which is a positive indicator of 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 qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a competitive process that likely drove pricing towards market rates. This approach is generally favored for ensuring the government receives the best value by leveraging the widest possible pool of potential suppliers.
Taxpayer Impact: A full and open competition means taxpayers benefit from potentially lower prices due to market forces and a wider selection of qualified contractors, ensuring efficient use of public funds.
Public Impact
NASA employees across various centers will benefit from enhanced productivity and collaboration tools. The contract delivers essential upgrades to the Microsoft Exchange, Local Area, and Office 365 environments. Geographic impact is likely agency-wide, supporting personnel at all NASA facilities. Workforce implications include the need for IT support staff to manage the new systems and potentially training for end-users.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft products if not managed carefully.
- Dependence on Leidos, Inc. for critical IT infrastructure upgrades and support.
- Risk of scope creep if upgrade requirements are not clearly defined and managed.
- Cybersecurity vulnerabilities during the transition phase if not adequately addressed.
Positive Signals
- Modernization of essential IT services leading to improved operational efficiency.
- Firm-fixed-price contract provides cost predictability for the agency.
- Full and open competition suggests a competitive bidding process likely yielding good value.
- Experienced contractor (Leidos, Inc.) with a track record in large-scale IT projects.
- Upgrade to Office 365 enhances collaboration and accessibility for NASA personnel.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical component of the IT industry. The market for cloud-based productivity suites like Microsoft Office 365 is vast and highly competitive, with numerous providers offering integration and support services. NASA's spending on such services is consistent with other large federal agencies that rely on robust IT infrastructure to support their missions. Comparable spending benchmarks for similar-scale IT modernization projects in the federal government often range in the tens of millions of dollars over multi-year periods.
Small Business Impact
This contract does not appear to have a specific small business set-aside. Given the scale and nature of the IT services required, it is unlikely that small businesses would be the primary awardees for the prime contract, though they may participate as subcontractors. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this award.
Oversight & Accountability
Oversight for this contract is likely managed by the National Aeronautics and Space Administration's contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring Leidos, Inc. to deliver specified services within the agreed budget and timeframe. Transparency is facilitated through federal contract databases, though detailed performance metrics may not be publicly available. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are identified.
Related Government Programs
- NASA IT Modernization Initiatives
- Microsoft Office 365 Federal Deployments
- Cloud Computing Services for Government
- Computer Systems Design and Integration Contracts
Risk Flags
- Potential for cybersecurity risks during transition.
- Risk of vendor lock-in.
- Dependency on contractor performance for critical IT functions.
Tags
it, nasa, computer-systems-design-services, delivery-order, firm-fixed-price, full-and-open-competition, leidos-inc, office-365, cloud-services, it-modernization, virginia
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $26.4 million to LEIDOS, INC.. NEST MS ELA AND OFFICE 365 UPGRADE
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $26.4 million.
What is the period of performance?
Start: 2019-11-01. End: 2022-10-31.
What is Leidos, Inc.'s track record with NASA and similar federal IT contracts?
Leidos, Inc. has a substantial history of contracting with NASA and other federal agencies for a wide range of IT services, including systems integration, cybersecurity, and cloud solutions. Their experience with large-scale IT projects suggests a capability to handle complex upgrades like the NEST MS ELA and Office 365 initiative. Reviewing past performance evaluations and contract awards for Leidos with NASA and agencies like the Department of Defense or the Department of Veterans Affairs would provide further insight into their reliability, technical proficiency, and ability to deliver on time and within budget for similar complex IT modernization efforts.
How does the $26.4 million contract value compare to similar federal IT modernization projects?
The $26.4 million contract value for a three-year upgrade of core Microsoft services (Exchange, ELA, Office 365) for an agency like NASA is generally in line with industry benchmarks for large-scale federal IT modernization efforts. Similar projects involving the migration, upgrade, and ongoing support of enterprise-level productivity suites across agencies such as the Department of the Air Force or the General Services Administration often fall within this financial range, sometimes exceeding it depending on the scope of customization, user base size, and integration requirements. The firm-fixed-price nature of this award also suggests a focus on cost control, which is a positive value indicator when compared to cost-plus contracts that can be more susceptible to cost overruns.
What are the primary risks associated with this contract for NASA?
Key risks for NASA in this contract include potential cybersecurity vulnerabilities during the upgrade and migration phases, which require robust security protocols and continuous monitoring. Another significant risk is the potential for vendor lock-in with Leidos and Microsoft technologies, which could limit future flexibility and increase long-term costs if not managed proactively. Scope creep, where project requirements expand beyond the initial agreement, is also a common risk in IT modernization projects, potentially leading to budget overruns and delays. Finally, ensuring seamless integration with existing NASA systems and minimizing disruption to end-users' productivity during the transition are critical operational risks that must be carefully managed.
How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of IT upgrade?
The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in IT upgrade projects like this one, especially when the scope of work is well-defined. FFP shifts the risk of cost overruns to the contractor (Leidos, Inc.), incentivizing them to manage resources efficiently and complete the project within the agreed-upon price. This provides NASA with cost certainty and predictability, making budgeting more straightforward. However, for highly complex or evolving IT requirements, an FFP contract can sometimes lead to less flexibility if unforeseen issues arise, potentially requiring change orders that could increase the overall cost. For a defined upgrade like Office 365, FFP is typically a suitable choice for cost control.
What are the historical spending patterns for NASA on similar IT services?
NASA's historical spending on IT services, particularly for enterprise software, cloud solutions, and systems integration, has been substantial, reflecting the agency's reliance on advanced technology for its complex missions. Annual IT budgets typically run into the hundreds of millions, if not billions, of dollars, encompassing a wide array of needs from research computing to administrative systems. Spending on productivity suites and communication platforms like Microsoft Office 365 is a recurring and significant category. This $26.4 million contract for a specific upgrade represents a portion of that broader IT expenditure, consistent with previous investments in maintaining and modernizing core IT infrastructure to support agency-wide operations.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NEST-RFP-CCP-0004
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: $33,691,202
Exercised Options: $33,691,202
Current Obligation: $26,350,642
Actual Outlays: $26,350,642
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 80NSSC19D0001
IDV Type: IDC
Timeline
Start Date: 2019-11-01
Current End Date: 2022-10-31
Potential End Date: 2022-10-31 00:00:00
Last Modified: 2023-04-21
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