Leidos Inc. awarded $16M contract by Department of Energy for IT services
Contract Overview
Contract Amount: $15,958,535 ($16.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Energy
Start Date: 2006-07-01
End Date: 2010-12-31
Contract Duration: 1,644 days
Daily Burn Rate: $9.7K/day
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: A CONTRACT AWARDED UNDER THE GSA GWAC PROGRAM.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Energy obligated $16.0 million to LEIDOS, INC. for work described as: A CONTRACT AWARDED UNDER THE GSA GWAC PROGRAM. Key points: 1. Contract awarded under GSA GWAC program, indicating a streamlined procurement process. 2. Time and Materials contract type may pose cost control challenges if not managed closely. 3. The contract duration of over 4 years suggests a significant, ongoing need for services. 4. Awarded to a large, established contractor, Leidos, Inc., known for its extensive government contracting experience. 5. The contract was awarded to a single vendor, raising questions about competition and potential price optimization. 6. The geographic location of the award is Washington D.C., a hub for federal agencies.
Value Assessment
Rating: fair
The total award amount of $15.96 million over approximately 4.5 years averages to about $3.5 million annually. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not carefully monitored for scope creep and efficiency. Comparing this to similar IT service contracts within the Department of Energy or other federal agencies would require detailed analysis of the specific services rendered and the labor categories involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under the GSA GWAC program, which typically facilitates streamlined procurement. However, the data indicates a sole-source award, meaning only one vendor was considered. This approach is often used when a specific capability is required from a particular vendor, or in situations where full and open competition is not feasible or advantageous. The lack of multiple bidders means there was no direct price competition to drive down costs, potentially leading to a higher price than if multiple vendors had vied for the contract.
Taxpayer Impact: A sole-source award limits the opportunity for taxpayers to benefit from competitive pricing. Without a competitive bidding process, the government may not achieve the lowest possible cost for the services rendered.
Public Impact
The Department of Energy benefits from the IT services provided under this contract, likely supporting its operational and administrative functions. The contract supports IT infrastructure and services, crucial for the agency's mission-critical operations. The primary beneficiary is the Department of Energy, ensuring continuity of its IT support. The workforce implications are primarily for Leidos, Inc., which will staff the contract with its employees, potentially including individuals based in the Washington D.C. area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The sole-source nature of the award limits competitive pressure, potentially impacting cost-effectiveness for taxpayers.
- Time and Materials contract type requires diligent oversight to prevent cost overruns and ensure efficient service delivery.
- The contract's duration suggests a long-term reliance on a single vendor, which could reduce flexibility in adopting new technologies or service providers.
Positive Signals
- Awarded under a GSA GWAC program, suggesting adherence to established procurement best practices and potentially faster award timelines.
- The contractor, Leidos, Inc., is a large and experienced federal contractor with a significant track record, implying a lower risk of performance failure.
- The contract duration indicates a stable, long-term need for these IT services, providing continuity for the Department of Energy.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, a broad category encompassing a wide range of services from software development to infrastructure management. The federal IT services market is substantial, with agencies consistently investing in technology to support their missions. Contracts awarded under GSA GWACs are common for IT services, reflecting the government's strategy to leverage established contract vehicles for efficient procurement. Benchmarking this contract's value would require comparing its specific service scope and pricing against other IT service contracts within the federal government, particularly those managed by the Department of Energy or other large civilian agencies.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the award was made to Leidos, Inc., a large prime contractor. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan for this contract is not detailed here. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited. The impact on the small business ecosystem would depend on whether Leidos actively engages small businesses as subcontractors.
Oversight & Accountability
Contracts awarded under GSA GWACs generally benefit from established oversight mechanisms inherent in the GSA's program management. The Department of Energy, as the contracting agency, is responsible for the day-to-day oversight of contract performance, ensuring that services are delivered according to the terms and conditions. Transparency is facilitated through contract award databases like FPDS. Accountability rests with both the contracting officer at the Department of Energy and the contractor, Leidos, Inc. Inspector General jurisdiction would typically fall under the Department of Energy's IG for any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- GSA IT Schedule 70 (now IT Professional Services)
- Department of Energy IT Services Contracts
- Federal Civilian Agency IT Support Contracts
- Large Prime Contractor IT Services Awards
Risk Flags
- Sole-source award limits price competition.
- Time and Materials contract type requires close oversight to manage costs.
- Lack of specific performance metrics in provided data hinders value assessment.
Tags
it-services, department-of-energy, gsa-gwac, time-and-materials, sole-source, leidos-inc, washington-dc, it-support, large-contractor, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $16.0 million to LEIDOS, INC.. A CONTRACT AWARDED UNDER THE GSA GWAC PROGRAM.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $16.0 million.
What is the period of performance?
Start: 2006-07-01. End: 2010-12-31.
What specific IT services were provided under this contract?
The provided data does not specify the exact IT services rendered under this contract. However, given the contractor (Leidos, Inc.) and the awarding agency (Department of Energy), it likely encompassed a range of IT support functions. These could include IT infrastructure management, network support, cybersecurity services, software development or maintenance, help desk support, or IT consulting. The Time and Materials (T&M) contract type suggests that the services were likely labor-intensive and potentially involved evolving requirements where the exact scope or effort could not be precisely defined at the outset. Further details would be available in the contract's statement of work (SOW).
How does the $15.96 million award compare to typical IT spending by the Department of Energy?
The $15.96 million award represents a moderate investment for a federal agency like the Department of Energy (DOE), which typically has substantial IT budgets. For context, the DOE's overall IT spending can range in the hundreds of millions or even billions of dollars annually, depending on the fiscal year and specific initiatives. This particular contract, awarded in 2006 and ending in 2010, would have been a component of the DOE's IT expenditure during that period. To assess its significance, one would need to compare it against the DOE's IT budget for those specific years and understand its role within the agency's broader IT strategy. It is unlikely to represent a major portion of the total DOE IT budget but could be significant for a specific program or office.
What are the risks associated with a Time and Materials (T&M) contract of this duration?
Time and Materials (T&M) contracts, especially those with a long duration like this 4.5-year award, carry inherent risks. The primary risk is cost escalation, as the contractor is reimbursed for direct labor hours at specified rates and for the actual cost of materials. If not managed diligently, scope creep, inefficient labor utilization, or inflated material costs can significantly increase the total contract value beyond initial estimates. For the government, this necessitates robust oversight, including detailed monitoring of labor hours, verification of work performed, and strict adherence to the defined ceiling price. The long duration amplifies these risks, as any inefficiencies or cost overruns can compound over an extended period, potentially leading to a less favorable value for taxpayers compared to fixed-price contracts where cost risk is primarily borne by the contractor.
What is the significance of this contract being awarded under the GSA GWAC program?
Awarding this contract under a GSA Government-Wide Acquisition Contract (GWAC) signifies that the Department of Energy utilized an existing, pre-competed contract vehicle managed by the General Services Administration (GSA). GWACs are designed to streamline the procurement process for IT services, offering agencies access to a wide range of pre-vetted vendors and services. This approach can reduce administrative burden, shorten procurement timelines, and ensure compliance with federal IT acquisition regulations. For the government, it represents an efficient way to acquire necessary IT support. For the contractor, it means competing for task orders against other pre-qualified vendors on the GWAC, although in this specific instance, it was a sole-source award under the GWAC.
What does the sole-source award imply about the contractor's unique qualifications or the market landscape?
A sole-source award, even under a GWAC, implies that the Department of Energy determined that only Leidos, Inc. could meet the specific requirements of this contract. This could be due to several reasons: the contractor may possess unique intellectual property, specialized expertise, or proprietary technology essential for the task; there might have been a critical need for continuity with an incumbent provider; or the requirement may have been so narrowly defined that only one vendor could realistically fulfill it. Alternatively, sole-source awards can sometimes arise from inadequate market research or a failure to identify potential competitors. In this case, it means that the government did not leverage competitive pricing dynamics, potentially resulting in a higher cost than if multiple vendors had bid.
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,300,064
Exercised Options: $18,300,064
Current Obligation: $15,958,535
Parent Contract
Parent Award PIID: GS09K99BHD0010
IDV Type: GWAC
Timeline
Start Date: 2006-07-01
Current End Date: 2010-12-31
Potential End Date: 2015-03-26 00:00:00
Last Modified: 2015-03-27
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