Leidos Inc. awarded $41.8M for NOAA facilities support, operations, and engineering services

Contract Overview

Contract Amount: $41,841,567 ($41.8M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Commerce

Start Date: 2009-07-01

End Date: 2013-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $28.7K/day

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROVIDE PROGRAM MANAGEMENT SUPPORT; OPERATIONS MGT, ENGINEERING SUPPORT; DART O&M AND ENGINEERING; WEATHER O&M AND ENGINEERING; TAO O&M AND ENGINEERING

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Commerce obligated $41.8 million to LEIDOS, INC. for work described as: PROVIDE PROGRAM MANAGEMENT SUPPORT; OPERATIONS MGT, ENGINEERING SUPPORT; DART O&M AND ENGINEERING; WEATHER O&M AND ENGINEERING; TAO O&M AND ENGINEERING Key points: 1. Contract focuses on essential operational and engineering support for critical NOAA facilities. 2. Services include maintenance and engineering for DART, weather, and TAO systems. 3. The contract spans over four years, indicating a need for sustained support. 4. Leidos, Inc. is the sole awardee, raising questions about competition. 5. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not managed carefully. 6. Geographic focus on Mississippi suggests specific facility needs in that region.

Value Assessment

Rating: fair

The total award of $41.8 million over four years for facilities support and engineering services appears to be within a reasonable range for complex government operations. However, without specific benchmarks for similar NOAA facilities or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, carries inherent risks of cost escalation if not rigorously monitored. Benchmarking against industry standards for facilities management and specialized engineering support would be necessary for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances necessitate rapid procurement. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a fully competed scenario. The rationale for this sole-source award would need to be thoroughly documented to ensure it was justified.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for these essential services.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits from sustained operational and engineering support for its critical facilities. Services ensure the continued functioning of DART, weather, and TAO systems, vital for environmental monitoring and forecasting. The contract's geographic focus on Mississippi implies benefits for facilities and operations within that state. The contract supports a workforce involved in specialized facilities management and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a broad range of services including maintenance, repair, and operational support for government and commercial facilities. The market for these services is substantial, with significant government spending allocated annually. This specific contract supports NOAA's specialized needs, which often require unique engineering and operational expertise beyond standard facility management, positioning it within a niche but critical segment of the broader facilities services industry.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal based on this information. Further investigation into the prime contractor's subcontracting plan would be necessary to determine any indirect benefits or opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce and NOAA's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain within reasonable bounds and that services meet required standards. The effectiveness of oversight depends on the diligence of government personnel in tracking expenditures, verifying performance, and managing contract modifications. Transparency would be enhanced through regular reporting requirements and potential audits.

Related Government Programs

Risk Flags

Tags

facilities-support, operations-management, engineering-support, department-of-commerce, noaa, leidos-inc, sole-source, cost-plus-fixed-fee, mississippi, weather-systems, tsunami-warning-systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $41.8 million to LEIDOS, INC.. PROVIDE PROGRAM MANAGEMENT SUPPORT; OPERATIONS MGT, ENGINEERING SUPPORT; DART O&M AND ENGINEERING; WEATHER O&M AND ENGINEERING; TAO O&M AND ENGINEERING

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $41.8 million.

What is the period of performance?

Start: 2009-07-01. End: 2013-06-30.

What is the historical spending trend for similar facilities support and engineering services at NOAA?

Analyzing historical spending for NOAA's facilities support and engineering services requires access to detailed budget and contract databases. Generally, agencies like NOAA, responsible for critical infrastructure and scientific operations, exhibit consistent or increasing spending in these areas due to the aging of facilities, the need for advanced technological support, and the ongoing maintenance of complex systems. For instance, spending on operations and maintenance (O&M) for scientific facilities can fluctuate based on major upgrade cycles or new system deployments. Without specific historical data for this contract's scope, it's difficult to pinpoint exact trends, but the nature of NOAA's mission suggests a sustained and potentially growing requirement for such services over time, often in the tens to hundreds of millions of dollars annually across various contracts.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities support?

A direct per-unit cost comparison is challenging without granular data on the specific services provided (e.g., cost per square foot maintained, cost per engineering hour, cost per system serviced). Facilities support and specialized engineering services for government entities, especially those involving critical scientific infrastructure like NOAA's, often command higher prices than standard commercial services due to stringent security, compliance, and operational requirements. The Cost Plus Fixed Fee (CPFF) structure also complicates direct benchmarking, as the 'fixed fee' is only one component. To assess value, one would need to compare the total cost against the scope of work and the complexity of the systems supported, potentially benchmarking against other sole-source or limited-competition contracts for similar specialized government facilities.

What are the key performance indicators (KPIs) used to measure the success of Leidos, Inc. under this contract?

Key Performance Indicators (KPIs) for a contract like this, focused on Program Management Support, Operations Management, and Engineering Support for NOAA facilities, would typically include metrics related to system uptime and reliability, response times for maintenance requests, successful completion of scheduled preventative maintenance, adherence to safety protocols, and timely execution of engineering projects. For instance, KPIs might track the percentage of critical systems (like DART, weather, TAO) that remain operational above a certain threshold (e.g., 99.9%), the average time to resolve reported issues, and the completion rate of planned maintenance activities within specified windows. The effectiveness of Leidos's performance would be evaluated against these pre-defined metrics, often tied to incentive fees or penalties within the CPFF structure.

What is the track record of Leidos, Inc. in managing similar large-scale government facilities support contracts?

Leidos, Inc. has a substantial track record in managing large-scale government contracts across various sectors, including IT, defense, and civilian agencies. They frequently handle complex operations, maintenance, and engineering support services for federal entities. Their experience often involves managing critical infrastructure, ensuring system availability, and providing specialized technical expertise. While specific performance details for every contract are not publicly available, Leidos is generally recognized as a major government contractor capable of undertaking significant programs. Assessing their performance on this specific NOAA contract would involve reviewing past performance evaluations, any contract disputes, and their overall reputation within the federal contracting community for reliability and quality of service.

What are the potential risks associated with the sole-source nature of this award for NOAA's operational continuity?

The primary risk associated with a sole-source award for NOAA's operational continuity is the lack of competitive pressure, which can lead to complacency and potentially higher costs or reduced service quality over time. If Leidos, Inc. were to face financial difficulties, operational challenges, or decide to exit the contract prematurely, NOAA would have limited immediate alternatives due to the absence of pre-vetted competitors. This could disrupt critical services like weather forecasting or tsunami warnings. Furthermore, without competition, there's less incentive for the contractor to innovate or proactively seek efficiencies, potentially impacting long-term cost-effectiveness and the modernization of supported systems.

How does this contract align with NOAA's broader mission objectives and strategic priorities?

This contract directly aligns with NOAA's core mission of understanding and predicting changes in climate, weather, oceans, and coasts, and sharing that knowledge as public service. The provision of Program Management Support, Operations Management, and Engineering Support for critical systems like DART (Disaster and Tsunami Warning System), weather, and TAO (Tropical Atmosphere Ocean array) is fundamental to maintaining the infrastructure necessary for data collection, analysis, and dissemination. Ensuring the reliable operation of these systems is crucial for public safety, economic security, and scientific advancement, directly supporting NOAA's strategic priorities in areas such as climate resilience, weather readiness, and ocean exploration.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,841,567

Exercised Options: $41,841,567

Current Obligation: $41,841,567

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOCQA133005CQ1035

IDV Type: IDC

Timeline

Start Date: 2009-07-01

Current End Date: 2013-06-30

Potential End Date: 2013-06-30 00:00:00

Last Modified: 2023-08-16

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