Leidos Inc. contract for professional services awarded by the Air Force for $19.7M
Contract Overview
Contract Amount: $19,734,659 ($19.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-04-01
End Date: 2012-01-15
Contract Duration: 289 days
Daily Burn Rate: $68.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABOR
Place of Performance
Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $19.7 million to LEIDOS, INC. for work described as: LABOR Key points: 1. Contract awarded to a single large business, raising questions about competition. 2. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 3. A short duration of 289 days suggests a specific, potentially time-bound need. 4. The professional, scientific, and technical services sector is broad, making direct comparisons difficult without more detail. 5. Awarded by the Department of the Air Force, indicating a defense-related need. 6. The contract was not competed, suggesting potential limitations in market research or specific requirements.
Value Assessment
Rating: questionable
The contract's value of $19.7 million for a 289-day period for 'All Other Professional, Scientific, and Technical Services' appears high without further context. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, often carries a higher risk of cost escalation compared to fixed-price contracts. Benchmarking is difficult due to the broad NAICS code and lack of specific service details. The absence of competition further complicates value assessment, as there's no market-driven price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, or there's an urgent need that precludes a competitive process. The lack of competition limits the government's ability to secure the best possible price and service through market forces.
Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the most cost-effective solution, as competitive pressures that drive down prices were absent.
Public Impact
The primary beneficiary is the contractor, Leidos, Inc., which receives significant revenue. The services delivered are broadly categorized as professional, scientific, and technical, likely supporting Air Force operations. The geographic impact is centered in Florida, where the contract was performed. Workforce implications include employment opportunities for individuals with specialized skills required by Leidos.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- CPFF contract type increases risk of cost overruns.
- Broad service category makes it difficult to assess specific performance metrics.
- Sole-source award raises concerns about market research and potential vendor lock-in.
Positive Signals
- Leidos is a large, established government contractor with a track record.
- The contract was awarded by a major federal agency (Department of Defense).
- The contract duration, though short, implies a defined scope of work.
Sector Analysis
The professional, scientific, and technical services sector is a significant part of the federal contracting landscape, encompassing a wide array of specialized support. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a catch-all category. Federal spending in this sector is substantial, but the diversity of services makes direct spending benchmarks challenging without more granular data on the specific tasks performed.
Small Business Impact
This contract was awarded to Leidos, Inc., a large business, and there is no indication of small business set-asides or subcontracting requirements. The absence of small business participation in this specific award means no direct benefit to the small business ecosystem through this contract.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust oversight to monitor costs and ensure the fixed fee is earned appropriately. Transparency is limited due to the sole-source nature and lack of public detail on performance metrics.
Related Government Programs
- Department of Defense Professional Services Contracts
- Air Force Technical Support Contracts
- Cost-Plus-Fixed-Fee Contracts
Risk Flags
- Sole-source award
- Cost-plus contract type
- Broad NAICS code lacks specificity
Tags
defense, department-of-defense, air-force, professional-scientific-technical-services, cost-plus-fixed-fee, sole-source, large-business, florida, definitive-contract, all-other-professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.7 million to LEIDOS, INC.. LABOR
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $19.7 million.
What is the period of performance?
Start: 2011-04-01. End: 2012-01-15.
What specific services were provided under this contract?
The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category that can include a wide range of activities such as research and development, testing, consulting, and other specialized technical support. Without more specific contract line item numbers (CLINs) or a detailed statement of work (SOW), it is impossible to determine the exact nature of the services provided. This lack of specificity hinders a thorough analysis of the contract's purpose and value.
How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this contract?
The CPFF contract type means the contractor (Leidos) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is not. This structure incentivizes the contractor to control costs to maximize their profit margin (as the fee is a fixed percentage of the estimated cost). However, it also places a significant burden on the government to meticulously monitor and audit costs to prevent overruns and ensure only legitimate expenses are reimbursed. Without strong government oversight, CPFF contracts can be susceptible to cost escalation.
What are the risks associated with awarding a contract on a sole-source basis?
Sole-source awards bypass the competitive process, which is the government's primary tool for ensuring fair and reasonable pricing and maximizing value. Risks include potentially paying a higher price than if the contract were competed, receiving less innovative solutions, and limiting opportunities for other capable vendors, including small businesses. It can also create a perception of favoritism or a lack of due diligence in exploring market capabilities. Agencies typically justify sole-source awards based on unique capabilities, urgent needs, or lack of market availability, but these justifications require rigorous scrutiny.
What is the typical performance period for contracts in the 'All Other Professional, Scientific, and Technical Services' category?
The performance period for contracts under NAICS 541990 can vary dramatically due to the broad nature of the category. Some services might be short-term, project-based needs lasting only a few months, while others could be long-term research or support functions spanning several years, often with options for extension. This specific contract had a duration of 289 days, which is relatively short, suggesting a focused task or a phase of a larger effort. Without knowing the specific services, it's hard to definitively say if this duration is typical.
How does the $19.7 million award value compare to similar contracts in the federal market?
Comparing the $19.7 million award value is challenging without knowing the specific services rendered under NAICS 541990. This NAICS code encompasses a vast array of services. A $19.7 million contract for a 289-day period could be considered substantial for highly specialized R&D or critical technical support, but potentially high for more routine professional services. Benchmarking requires detailed comparison with contracts for identical or very similar services, performed over comparable durations, and ideally, those awarded through a competitive process to establish a market-based price point.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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. (UEI: 611641312)
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,734,659
Exercised Options: $19,734,659
Current Obligation: $19,734,659
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $1,955,139
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-04-01
Current End Date: 2012-01-15
Potential End Date: 2012-01-15 00:00:00
Last Modified: 2016-11-21
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