FAA's $665M ATOP Contract with Leidos Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $664,944,604 ($664.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Transportation
Start Date: 2001-06-18
End Date: 2033-07-31
Contract Duration: 11,731 days
Daily Burn Rate: $56.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: ADVANCED TECHNOLOGIES AND OCEANIC PROCEDURES (ATOP)
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20847
State: Maryland Government Spending
Plain-Language Summary
Department of Transportation obligated $664.9 million to LEIDOS, INC. for work described as: ADVANCED TECHNOLOGIES AND OCEANIC PROCEDURES (ATOP) Key points: 1. The contract's significant value raises questions about cost-effectiveness over its long duration. 2. Leidos, Inc. is the sole awardee, prompting an examination of the competition process. 3. Potential risks include vendor lock-in and the long-term impact of a Time and Materials contract. 4. The IT sector, specifically 'Other Computer Related Services', is the primary focus.
Value Assessment
Rating: questionable
The $665 million total value over 12 years, using a Time and Materials pricing structure, warrants close review. Benchmarking against similar IT service contracts is crucial to determine if the pricing reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, the contract's long duration and Time and Materials basis may limit price discovery and potentially inflate costs over time. The specific award mechanism (Delivery Order) needs further context.
Taxpayer Impact: The extended duration and pricing model could lead to higher taxpayer costs if not rigorously managed and benchmarked against market rates.
Public Impact
Taxpayers may be overpaying due to the Time and Materials contract structure over a 12-year period. The long-term reliance on a single vendor, Leidos, Inc., could stifle innovation and reduce future cost-saving opportunities. The FAA's ability to adapt to evolving technological needs within this fixed contract framework is a concern.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (12+ years)
- Time and Materials pricing
- Sole awardee (Leidos, Inc.)
- Lack of specific PWS details
Positive Signals
- Awarded under Full and Open Competition
- Established vendor with proven capabilities
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government, with benchmarks varying widely based on service type and complexity.
Small Business Impact
The data indicates this contract did not involve small business participation (ss: false, sb: false). This suggests a missed opportunity to leverage small business innovation and support economic diversity within the federal contracting landscape.
Oversight & Accountability
Oversight will be critical to manage the Time and Materials contract effectively, ensuring that costs remain reasonable and that the FAA receives value for its investment. Regular performance reviews and cost audits are essential.
Related Government Programs
- Other Computer Related Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Risk of vendor lock-in over the long contract duration.
- Limited visibility into specific performance metrics and cost controls.
- Lack of small business participation.
- Potential for technology obsolescence over 12 years.
Tags
other-computer-related-services, department-of-transportation, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $664.9 million to LEIDOS, INC.. ADVANCED TECHNOLOGIES AND OCEANIC PROCEDURES (ATOP)
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $664.9 million.
What is the period of performance?
Start: 2001-06-18. End: 2033-07-31.
What specific performance metrics and cost controls are in place to ensure value for money with this long-term Time and Materials contract?
The provided data lacks details on specific performance metrics and cost controls. Effective oversight would require the FAA to implement rigorous tracking of labor hours, material costs, and deliverable quality against defined milestones. Regular audits and competitive benchmarking are essential to validate that the Time and Materials approach is not leading to excessive costs over the contract's extended duration.
How does the FAA ensure fair pricing and prevent cost overruns given the Time and Materials contract type and the long duration?
Time and Materials contracts inherently carry a higher risk of cost overruns due to their flexible nature. The FAA must employ robust oversight mechanisms, including detailed tracking of all labor and material costs, regular audits, and comparison against industry benchmarks. Establishing clear ceilings and requiring justification for all expenditures are critical to mitigating risks and ensuring fair pricing over the contract's lifespan.
What is the FAA's strategy for ensuring the ATOP system remains technologically relevant and secure throughout the contract's 12-year term?
Maintaining technological relevance over a 12-year period requires proactive management. The FAA should have a clear roadmap for technology refresh and upgrades, potentially through contract modifications or future competitions. Ensuring robust cybersecurity measures are continuously updated to counter evolving threats is paramount. The contract's flexibility should allow for incorporating new technologies, but this requires diligent oversight and strategic planning from the FAA.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: TIME AND MATERIALS (Y)
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: $1,585,494,975
Exercised Options: $851,294,711
Current Obligation: $664,944,604
Actual Outlays: $185,366,085
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFA0101CA0065
IDV Type: IDC
Timeline
Start Date: 2001-06-18
Current End Date: 2033-07-31
Potential End Date: 2033-07-31 00:00:00
Last Modified: 2026-04-08
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