DoD's $137M Wired Telecom Contract Awarded to Leidos, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $137,124,645 ($137.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-08-01
End Date: 2021-03-31
Contract Duration: 973 days
Daily Burn Rate: $140.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: ANDREWS AFB, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $137.1 million to LEIDOS, INC. for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $137M for wired telecommunications services. 2. Leidos, Inc. secured the award through full and open competition. 3. Potential risks include vendor lock-in and the complexity of managing large-scale telecom infrastructure. 4. The IT sector, specifically telecommunications, is a critical area for government operations.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar large-scale telecommunications contracts is essential to confirm pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for essential services.
Public Impact
Ensures critical wired telecommunications infrastructure for the Department of Defense. Supports military operations and communication capabilities. Impacts the IT and telecommunications industry through a substantial government contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) can lead to cost overruns if not managed tightly.
- Reliance on a single vendor for critical infrastructure.
- Potential for scope creep in long-term telecommunications projects.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Long contract duration suggests a stable and reliable service provider.
- Supports a vital government function (DoD communications).
Sector Analysis
This contract falls within the IT sector, specifically wired telecommunications carriers. Spending in this area is crucial for maintaining government operational capabilities and national security. Benchmarks for similar large-scale telecom contracts vary widely based on scope and technology.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, Leidos, Inc., is a large corporation, suggesting that subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.
Oversight & Accountability
The Department of Defense's contracting oversight mechanisms are crucial for managing CPFF contracts. Regular audits and performance reviews are necessary to ensure cost control and adherence to contract terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration.
- Critical infrastructure reliance.
- Lack of specific performance metrics in award data.
Tags
wired-telecommunications-carriers, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $137.1 million to LEIDOS, INC.. IGF::OT::IGF
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 $137.1 million.
What is the period of performance?
Start: 2018-08-01. End: 2021-03-31.
What is the estimated total cost of ownership over the contract's lifespan, considering potential cost increases?
The total obligated amount is $137,124,645.33. However, with a Cost Plus Fixed Fee (CPFF) contract, the final cost can fluctuate based on actual expenses incurred by the contractor, plus a fixed fee. Without detailed cost breakdowns and projections, estimating the total cost of ownership is challenging. Robust oversight is needed to manage potential cost escalations.
What are the key performance indicators (KPIs) used to measure the effectiveness of these wired telecommunications services?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Effective oversight would require clearly defined KPIs related to network uptime, latency, bandwidth, security compliance, and response times for service disruptions. These metrics are essential for ensuring the Department of Defense receives reliable and high-quality telecommunications services.
How does the pricing of this contract compare to industry benchmarks for similar large-scale telecommunications services?
Direct comparison to industry benchmarks is difficult without specific details on the services provided, technology used, and geographic scope. However, the use of full and open competition suggests that the pricing was likely competitive at the time of award. Ongoing monitoring of performance and cost against evolving market rates is advisable.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 700 N FREDERICK AVE STE 110, 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: $154,266,987
Exercised Options: $154,266,987
Current Obligation: $137,124,645
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA873215D0043
IDV Type: IDC
Timeline
Start Date: 2018-08-01
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2021-01-28
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