Leidos Inc. awarded $61.5M for NCR IT services, with a significant portion for facilities management
Contract Overview
Contract Amount: $61,550,258 ($61.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-04
End Date: 2024-12-11
Contract Duration: 1,925 days
Daily Burn Rate: $32.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: AFNCR ITS SERVICES IN THE NATIONAL CAPITAL REGION
Place of Performance
Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $61.6 million to LEIDOS, INC. for work described as: AFNCR ITS SERVICES IN THE NATIONAL CAPITAL REGION Key points: 1. Contract value represents a substantial investment in maintaining critical IT infrastructure. 2. The full and open competition suggests a competitive bidding process was utilized. 3. The cost-plus award fee structure incentivizes performance but requires careful oversight. 4. This contract supports essential IT operations within the National Capital Region. 5. The duration of the contract indicates a long-term need for these services. 6. The specific NAICS code points to a focus on computer facilities management.
Value Assessment
Rating: good
The contract's value of $61.5M for IT facilities management services over approximately five years appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts for federal agencies in the National Capital Region suggests this pricing is within expected ranges. The cost-plus award fee (CPAF) structure, while common for complex services, necessitates diligent monitoring to ensure costs remain controlled and that award fees are justified by performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that the agency sought the best value available in the market for these critical IT facilities management services.
Taxpayer Impact: Taxpayers benefit from the potential for cost savings and improved service quality that can arise from a robust competitive process. Full and open competition increases the likelihood that the government secures a fair market price.
Public Impact
The Department of the Air Force benefits from reliable IT facilities management, ensuring operational continuity. Essential IT services are delivered to support national defense and government operations in the NCR. The geographic impact is concentrated in Maryland, supporting federal operations within the National Capital Region. Workforce implications include the potential for employment opportunities for IT professionals and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely managed.
- Dependence on a single large contractor for critical IT infrastructure could pose a risk.
- Ensuring consistent performance and service quality throughout the contract's duration requires robust oversight.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market was leveraged.
- The contract duration indicates a stable, long-term requirement being met.
- The focus on IT facilities management addresses a core operational need for the agency.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the Department of Defense's broader IT spending, aimed at ensuring the operational readiness and efficiency of its National Capital Region infrastructure. Comparable spending benchmarks for similar facilities management contracts often range in the tens to hundreds of millions of dollars, depending on the scope and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is likely that Leidos, Inc. may engage small businesses as subcontractors to fulfill specific aspects of the requirement. However, without explicit subcontracting plans or goals detailed in the award data, the direct impact on the small business ecosystem is not fully discernible from this information alone.
Oversight & Accountability
The contract utilizes a Cost Plus Award Fee (CPAF) structure, which inherently requires strong government oversight to manage costs and evaluate performance against defined criteria. The Department of the Air Force is responsible for administering this contract, likely through contracting officers and technical representatives who monitor deliverables, expenditures, and contractor performance. Transparency is generally facilitated through contract award databases, but detailed performance reports and cost breakdowns may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- IT Operations and Support Services
- Information Technology Infrastructure Management
- Federal IT Modernization Programs
- Department of Defense IT Contracts
- National Capital Region Federal Services
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Risk of technological obsolescence over the contract's long duration.
- Dependence on a single contractor for critical infrastructure.
Tags
it-services, facilities-management, department-of-defense, air-force, national-capital-region, cost-plus-award-fee, full-and-open-competition, large-contract, information-technology, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.6 million to LEIDOS, INC.. AFNCR ITS SERVICES IN THE NATIONAL CAPITAL REGION
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 $61.6 million.
What is the period of performance?
Start: 2019-09-04. End: 2024-12-11.
What is the historical spending trend for IT facilities management services by the Department of the Air Force in the National Capital Region?
Analyzing historical spending trends for IT facilities management in the NCR by the Air Force requires access to detailed historical contract data. Without specific historical databases, it's difficult to provide precise figures. However, federal agencies, particularly within the Department of Defense, have consistently allocated significant budgets towards maintaining robust IT infrastructure. Spending in this area is often driven by factors such as aging systems requiring upgrades, the need for enhanced cybersecurity, and the expansion of digital services. Contracts like this one, awarded through full and open competition, suggest a sustained requirement and potentially a competitive market for these services over time. Fluctuations in spending can be influenced by budget appropriations, strategic shifts in IT modernization priorities, and the consolidation or expansion of agency operations within the NCR.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar IT facilities management contracts?
Determining a precise per-unit cost comparison is challenging without detailed breakdowns of the services provided and their associated costs within the $61.5 million award. The contract type, Cost Plus Award Fee (CPAF), means that the final cost can vary based on performance and incurred expenses, making direct per-unit benchmarking difficult. However, the overall contract value, spread over its duration, suggests a significant investment. Industry benchmarks for IT facilities management can vary widely based on the specific services (e.g., data center operations, network management, cybersecurity support, help desk services), geographic location, and the complexity of the environment. Generally, large-scale federal contracts aim to achieve competitive pricing through open competition, but the CPAF structure requires careful management to ensure value for money is realized and costs do not exceed reasonable market rates.
What are the key performance indicators (KPIs) used to evaluate Leidos, Inc.'s performance under this contract, and what are the potential award fee implications?
The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided award data. However, under a Cost Plus Award Fee (CPAF) contract, KPIs typically revolve around service availability, system uptime, response times for issue resolution, cybersecurity compliance, project completion milestones, and overall customer satisfaction. The 'award fee' component means that Leidos, Inc. can earn additional profit above a base fee if they meet or exceed pre-defined performance targets. Conversely, failure to meet these targets could result in reduced or no award fee. The government's contracting officer and technical team are responsible for objectively evaluating performance against these KPIs to determine the amount of award fee earned, ensuring that the contractor is incentivized to deliver high-quality services efficiently.
What is Leidos, Inc.'s track record with similar large-scale IT facilities management contracts for the Department of Defense or other federal agencies?
Leidos, Inc. has a significant track record of performing large-scale IT services and facilities management contracts for the Department of Defense (DoD) and other federal agencies. They are a major government contractor known for providing a wide range of IT solutions, including infrastructure management, cybersecurity, cloud services, and enterprise IT support. Their experience often includes managing complex, mission-critical systems similar to those required for IT facilities management in the National Capital Region. Past performance evaluations, typically part of the federal procurement process, would have been considered during the award of this contract. While specific details of past performance are often proprietary, Leidos's continued success in securing large federal contracts suggests a generally positive history in delivering on similar requirements.
What are the potential risks associated with the long duration (1925 days) of this contract, and what mitigation strategies are in place?
The long duration of this contract (approximately 5.25 years) presents several potential risks. These include the possibility of technological obsolescence, where the contracted services or systems become outdated before the contract ends; cost escalation, where inflation or unforeseen expenses increase the overall cost beyond initial projections; and vendor lock-in, making it difficult for the government to switch providers or adopt new technologies. Mitigation strategies typically involve robust contract management, including regular reviews of technological advancements and market conditions. The CPAF structure itself can help manage costs by linking them to performance. Furthermore, contract clauses may allow for modifications or termination for convenience if circumstances change significantly, providing flexibility for the government to adapt to evolving needs or technological shifts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR, 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: $239,032,065
Exercised Options: $239,032,065
Current Obligation: $61,550,258
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $3,080,783
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA701419DA005
IDV Type: IDC
Timeline
Start Date: 2019-09-04
Current End Date: 2024-12-11
Potential End Date: 2024-12-11 00:00:00
Last Modified: 2024-12-10
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