DOT's FAA awards $32.8M contract for CARTS Maintenance & Sustainment to Leidos, Inc
Contract Overview
Contract Amount: $32,864,914 ($32.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Transportation
Start Date: 2013-03-28
End Date: 2018-03-31
Contract Duration: 1,829 days
Daily Burn Rate: $18.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CARTS MAINTENANCE&SUSTAINMENT IGF::CL::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $32.9 million to LEIDOS, INC. for work described as: CARTS MAINTENANCE&SUSTAINMENT IGF::CL::IGF Key points: 1. Leidos, Inc. secured a significant contract for critical maintenance and sustainment services. 2. The contract was not competed, raising questions about potential price discovery. 3. Engineering services represent a substantial portion of federal spending, with benchmarks varying by sub-sector. 4. The lack of competition could pose a risk to achieving optimal value for taxpayer dollars.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $32.8M price reflects fair market value compared to similar engineering services contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitively bid contract.
Taxpayer Impact: The lack of competition for this $32.8M contract means taxpayers may not be receiving the best possible price for these essential engineering services.
Public Impact
Essential maintenance and sustainment services for the FAA's systems are being provided. Taxpayers are funding a significant contract for engineering services. The absence of competition could impact the overall efficiency and cost-effectiveness of these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration (5 years)
Positive Signals
- Awarded to a known entity (Leidos, Inc.)
- Supports critical FAA operations
Sector Analysis
This contract falls under Engineering Services (NAICS 541330). Spending in this sector is substantial, covering a wide range of technical and design services for government projects. Benchmarks are highly dependent on the specific engineering discipline and project scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the awardee is Leidos, Inc., a large corporation. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The 'NOT COMPETED' status suggests limited transparency in the procurement process. Further oversight would be needed to ensure the justification for a sole-source award was robust and that the pricing is reasonable.
Related Government Programs
- Engineering Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Sole-source award lacks transparency
- Potential for inflated costs due to lack of competition
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk
- Long contract duration may not reflect current market conditions
- No clear indication of small business participation
Tags
engineering-services, department-of-transportation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $32.9 million to LEIDOS, INC.. CARTS MAINTENANCE&SUSTAINMENT IGF::CL::IGF
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 $32.9 million.
What is the period of performance?
Start: 2013-03-28. End: 2018-03-31.
What was the justification for not competing this contract, and were alternative solutions considered?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Without this justification, it's impossible to assess if alternative solutions were explored or if this was the most appropriate procurement strategy for the FAA's needs.
How does the Cost Plus Fixed Fee structure impact cost control and potential for overruns in this specific contract?
The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost can fluctuate. This structure can incentivize cost control, but if not closely monitored by the FAA, it carries a risk of cost overruns, especially over a 5-year period, as the government bears the risk of higher-than-expected costs.
What specific CARTS maintenance and sustainment activities are covered, and how critical are they to FAA operations?
The specific activities covered under CARTS (likely referring to a specific system or program) maintenance and sustainment are not detailed. However, given the substantial award amount and the agency (FAA), these services are presumed to be critical for the ongoing operation and reliability of essential aviation infrastructure or systems managed by the Federal Aviation Administration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,965,569
Exercised Options: $32,864,914
Current Obligation: $32,864,914
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-03-28
Current End Date: 2018-03-31
Potential End Date: 2018-03-31 00:00:00
Last Modified: 2024-04-05
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