Leidos Inc. awarded $88.45M for Wired Telecommunications Carriers services by the Department of the Army

Contract Overview

Contract Amount: $88,450,432 ($88.5M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-03-22

End Date: 2014-09-29

Contract Duration: 556 days

Daily Burn Rate: $159.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CORE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $88.5 million to LEIDOS, INC. for work described as: CORE SERVICES Key points: 1. Contract value of $88.45M for telecommunications services. 2. Awarded to a single large business contractor, Leidos, Inc. 3. Contract duration of 556 days. 4. Services provided under a Firm Fixed Price contract type. 5. Full and open competition was utilized for this award. 6. Geographic location of service delivery is Washington D.C.

Value Assessment

Rating: fair

The contract value of $88.45M for wired telecommunications services over approximately 1.5 years appears to be within a reasonable range for large-scale government telecommunications infrastructure projects. However, without specific details on the scope of services (e.g., bandwidth, number of lines, equipment provided), a precise value-for-money assessment is challenging. Benchmarking against similar contracts for comparable services and quantities would be necessary for a more definitive evaluation of pricing and value.

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 bids. The fact that it was competed suggests a deliberate effort to solicit multiple proposals and identify the most advantageous offer for the government. The number of bidders is not specified, but the competition type implies a potentially robust bidding process, which generally aids in price discovery and achieving competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service offerings compared to sole-source or limited competition awards.

Public Impact

The Department of the Army benefits from enhanced wired telecommunications infrastructure. Services likely support critical communication networks for military operations and personnel. The geographic impact is concentrated in Washington D.C., supporting federal operations in the capital. The contract supports the workforce of Leidos, Inc. and potentially its subcontractors in the telecommunications sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics makes it difficult to assess service quality and effectiveness.
  • Limited information on the exact scope of 'Wired Telecommunications Carriers' services provided.
  • No data on small business participation or subcontracting opportunities.

Positive Signals

  • Awarded through full and open competition, suggesting a competitive bidding process.
  • Firm Fixed Price contract type provides cost certainty for the government.
  • Contract awarded to a known entity, Leidos, Inc., which may indicate a level of established capability.

Sector Analysis

The Wired Telecommunications Carriers sector (NAICS 517110) encompasses establishments primarily engaged in operating and/or providing access to telecommunications infrastructure, such as wireline networks. This contract falls within the broader IT and telecommunications services market for the federal government, a significant area of federal spending. Comparable spending benchmarks would involve analyzing other large-scale telecommunications infrastructure contracts awarded by various federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The impact on the small business ecosystem would depend on whether the prime contractor, Leidos, Inc., voluntarily engages small businesses as subcontractors, which is not detailed in this award information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the contract terms, including performance requirements and payment schedules. Transparency is facilitated by contract award databases, though detailed performance reports and specific oversight activities are often not publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

  • Department of Defense Telecommunications Services
  • Federal Network Infrastructure Contracts
  • Wired Network Services
  • Information Technology Services Contracts

Risk Flags

  • Potential for scope creep if 'Wired Telecommunications Carriers' services were not precisely defined.
  • Reliance on a single large contractor may limit flexibility.
  • Lack of public performance data makes independent assessment difficult.

Tags

it-telecommunications, defense, department-of-the-army, wired-telecommunications-carriers, full-and-open-competition, firm-fixed-price, large-business, delivery-order, district-of-columbia, washington-dc

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.5 million to LEIDOS, INC.. CORE SERVICES

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $88.5 million.

What is the period of performance?

Start: 2013-03-22. End: 2014-09-29.

What specific types of wired telecommunications services were included in this $88.45M contract?

The provided data classifies this contract under NAICS code 517110, 'Wired Telecommunications Carriers.' This typically includes services such as providing access to the public switched telephone network, local and long-distance voice and data communications services over wired infrastructure, and potentially the installation and maintenance of associated equipment. However, the exact scope—whether it involved upgrading existing infrastructure, providing new circuits, managing data networks, or a combination thereof—is not detailed. Further analysis of the contract's Statement of Work (SOW) would be required to ascertain the precise services rendered, such as the number and type of circuits, bandwidth provisioning, and any associated hardware or maintenance agreements.

How does the $88.45M contract value compare to similar telecommunications contracts awarded by the Department of Defense?

Benchmarking this $88.45M contract requires comparing it to similar wired telecommunications services contracts awarded by the Department of Defense (DoD) or other federal agencies over a comparable timeframe. Given the contract duration of approximately 556 days (about 1.5 years), the annual value is roughly $59M. Large-scale telecommunications infrastructure and services contracts within the DoD can range from tens of millions to billions of dollars, depending on the scope, duration, and technological requirements. For instance, contracts for enterprise-wide network modernization or global communication systems would be significantly larger. This $88.45M award appears to be a substantial, but not exceptionally large, contract for specific wired telecommunications needs within a defined geographic area or for a particular set of services, likely falling within the mid-to-upper range for focused telecommunications projects.

What are the key performance indicators (KPIs) or 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, government contracts for telecommunications services include detailed SLAs related to network uptime, latency, bandwidth availability, repair response times, and service restoration times. These metrics are crucial for ensuring the reliability and performance of the communication infrastructure. Without access to the contract's Statement of Work (SOW) or Performance Work Statement (PWS), it is impossible to detail the specific KPIs and SLAs. These would have been negotiated to ensure the contractor, Leidos, Inc., met the Department of the Army's operational requirements and to provide a basis for performance evaluation and potential remedies for non-performance.

What is the track record of Leidos, Inc. in delivering similar wired telecommunications services to the federal government?

Leidos, Inc. has a significant track record as a major government contractor, including extensive experience in information technology, telecommunications, and engineering services for various federal agencies, including the Department of Defense. While this specific contract was awarded in 2013 and completed in 2014, Leidos has consistently secured large contracts in related areas. Their portfolio often includes complex network infrastructure, cybersecurity, and enterprise IT solutions. Publicly available contract databases and company reports would provide more granular details on their past performance, including the size and scope of previous telecommunications awards, customer satisfaction ratings, and any past performance issues or commendations. Their established presence suggests a capacity to handle substantial government telecommunications requirements.

Were there any significant cost overruns or changes to the contract's original value during its performance period?

The provided data does not indicate any modifications, change orders, or cost overruns associated with this contract. The award amount is listed as $88,450,432.24, and the contract period spans from March 22, 2013, to September 29, 2014. Without access to contract modification history (e.g., SF30 forms), it's impossible to definitively state whether the final cost deviated from the initial award value. However, the absence of readily available modification data in summary award databases often suggests that the contract was performed largely as initially awarded, or that any modifications were minor and did not substantially alter the overall value or scope. For a definitive answer, a review of the contract's official file would be necessary.

How does the use of a Firm Fixed Price (FFP) contract type impact risk and cost certainty for this telecommunications award?

The use of a Firm Fixed Price (FFP) contract type for this $88.45M wired telecommunications services award provides a high degree of cost certainty for the Department of the Army. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This places the risk of cost overruns squarely on the contractor, Leidos, Inc. For the government, this means the total cost is known upfront, simplifying budgeting and financial management. However, it also means that the contractor must accurately estimate all costs, including labor, materials, and overhead, to ensure profitability. If the contractor underestimates costs, their profit margin will decrease. Conversely, if they manage costs effectively, they can achieve a higher profit. This contract type is generally preferred when the scope of work is well-defined and the risks are manageable.

Industry Classification

NAICS: InformationWired and Wireless Telecommunications (except Satellite)Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 13530 DULLES TECHNOLOGY DR STE 200, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $88,528,583

Exercised Options: $88,528,583

Current Obligation: $88,450,432

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0017

IDV Type: IDC

Timeline

Start Date: 2013-03-22

Current End Date: 2014-09-29

Potential End Date: 2014-09-29 00:00:00

Last Modified: 2022-04-08

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