Leidos Engineering LLC awarded $12.5M contract for architectural services by the Department of Defense

Contract Overview

Contract Amount: $12,497,810 ($12.5M)

Contractor: Leidos Engineering LLC

Awarding Agency: Department of Defense

Start Date: 2002-02-22

End Date: 2011-01-31

Contract Duration: 3,265 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 26

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $12.5 million to LEIDOS ENGINEERING LLC for work described as: Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract duration of 3265 days (over 9 years) suggests a long-term need for architectural services. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. The North American Industry Classification System (NAICS) code 541310 points to a specialized architectural services market. 5. The contract was awarded to a single entity, Leidos Engineering LLC, with no indication of small business participation. 6. The contract's significant duration and value warrant close monitoring for performance and cost control.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable project data. The total award amount of $12.5 million over more than nine years averages to approximately $1.3 million per year. This figure needs to be assessed against the scope and complexity of the architectural services provided. Without more granular details on the services rendered and their market rates, it's difficult to definitively assess value for money. However, the long duration suggests a sustained need, which could imply a reasonable price if the services are critical and consistently delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method suggests that while the competition was intended to be open, certain sources may have been excluded for specific reasons, potentially limiting the pool of bidders. The number of bids received (26) indicates a reasonable level of interest, but the 'exclusion of sources' clause warrants further investigation to understand its impact on the overall competitiveness and potential price discovery.

Taxpayer Impact: The exclusion of sources, even with 26 bidders, could mean that taxpayers did not benefit from the widest possible competition, potentially leading to a less optimal price than if all qualified sources were allowed to bid.

Public Impact

The Department of Defense benefits from specialized architectural services to support its infrastructure and facilities. The contract facilitates the design and planning of military installations and related structures. The geographic impact is likely concentrated within areas where the Department of Defense operates or plans to develop facilities. The workforce implications include employment for architects, engineers, and support staff within Leidos Engineering LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the 'exclusion of sources' could hide potential anti-competitive practices.
The long contract duration increases the risk of cost overruns or scope creep if not managed effectively.
No indication of small business participation or subcontracting goals raises concerns about equitable distribution of federal dollars.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
A significant number of bidders (26) suggests a competitive process, despite the exclusion clause.
The specialized nature of the services indicates a focus on critical defense infrastructure needs.

Sector Analysis

This contract falls within the Architectural Services sector, a subset of the broader Engineering Services industry. The market for architectural services supporting government agencies, particularly defense, is substantial, driven by ongoing infrastructure development, modernization, and maintenance. Comparable spending benchmarks would typically be found in other large-scale government architectural contracts, often awarded through competitive bidding processes. The long-term nature of this award suggests it addresses a significant and ongoing requirement for the Department of Defense.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to Leidos Engineering LLC, a large corporation, suggests that small businesses were either not primary bidders or were not specifically targeted for this procurement. This raises questions about opportunities for small business participation, either as prime contractors or subcontractors, and their potential contribution to the federal small business contracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Accountability measures would be tied to the firm-fixed-price terms and performance milestones. Transparency is dependent on the public availability of contract details and performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Facilities Engineering
Architectural and Engineering Services Contracts
Military Construction Projects
Government Infrastructure Development

Risk Flags

Potential for limited competition due to source exclusion.
Long contract duration increases risk of cost and scope management issues.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to LEIDOS ENGINEERING LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is LEIDOS ENGINEERING LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2002-02-22. End: 2011-01-31.

What specific architectural services are being provided under this contract, and what are the key deliverables?

The contract specifies 'Architectural Services' under NAICS code 541310. While the exact deliverables are not detailed in the provided data, typical services under such a contract for the Department of Defense would include architectural design, planning, feasibility studies, site analysis, preparation of construction documents, and potentially construction administration for military facilities, bases, and related infrastructure. The long duration (over 9 years) suggests a comprehensive and ongoing role in supporting various projects rather than a single, discrete design task. Specific deliverables would be outlined in the contract's statement of work, which is not publicly available in this dataset.

How does the $12.5 million award compare to typical spending on architectural services by the Department of Defense?

Comparing the $12.5 million award to typical Department of Defense (DoD) spending on architectural services requires context regarding the scope and duration. Over its 3265-day (approximately 9-year) lifespan, this contract represents an average annual expenditure of roughly $1.3 million. The DoD procures a vast array of architectural and engineering services, with individual contract values varying significantly based on project size, complexity, and location. While $12.5 million is a substantial sum, it may be within the typical range for long-term, comprehensive architectural support for significant infrastructure needs within the DoD. Broader analysis would involve examining the DoD's overall A&E spending portfolio and the distribution of contract values.

What are the potential risks associated with a contract of this duration (over 9 years)?

Contracts spanning over nine years present several potential risks. Firstly, there's the risk of cost escalation if the firm-fixed-price structure doesn't adequately account for inflation or unforeseen market changes over such an extended period, although the risk is primarily on the contractor. Secondly, scope creep is a significant concern; the requirements may evolve, leading to changes that increase costs or extend timelines beyond initial projections if not managed rigorously. Thirdly, contractor performance can degrade over time, or key personnel may leave, impacting the quality and timeliness of services. Finally, technological advancements or changes in regulatory requirements could render initial designs obsolete or necessitate costly revisions. Robust oversight and clear change management processes are crucial to mitigate these risks.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method imply about the competition level?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies a nuanced approach to competition. It suggests that the agency initially intended to conduct a fully open competition but subsequently excluded certain potential sources based on specific criteria or justifications. While 26 bids were received, indicating a degree of market interest, the exclusion means the competition was not as broad as a standard 'full and open' competition. The reasons for exclusion are critical; if they were based on legitimate technical qualifications or security requirements, the competition might still be robust among qualified entities. However, if the exclusions were arbitrary or poorly justified, it could limit price discovery and potentially lead to higher costs for the government.

What is the track record of Leidos Engineering LLC in securing and performing large federal contracts?

Leidos Engineering LLC, as part of the larger Leidos Holdings, Inc., has a substantial track record in securing and performing large federal contracts across various sectors, including defense, intelligence, and civil infrastructure. They are known for providing a wide range of engineering, IT, and scientific services. While specific performance metrics for this particular contract are not detailed here, Leidos generally has experience managing complex, long-term projects for government agencies. Their history suggests they possess the capacity and expertise to handle significant architectural and engineering requirements. However, as with any large contractor, performance can vary across individual contracts, and a detailed review of past performance ratings and any contract disputes would provide a more complete picture.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 26

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 9400 N BROADWAY, OKLAHOMA CITY, OK, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline