Leidos Inc. awarded $82.4M for Air Force IT services, continuing existing contract
Contract Overview
Contract Amount: $82,374,351 ($82.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-02-01
End Date: 2022-01-31
Contract Duration: 364 days
Daily Burn Rate: $226.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: PKA-HYSKA-CARLILE-CONTINUE SERVICES UNDER AFNCR ITS CONSOLIDATED IDIQ CONTRACT #FA7014-19-D-A005.
Place of Performance
Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $82.4 million to LEIDOS, INC. for work described as: PKA-HYSKA-CARLILE-CONTINUE SERVICES UNDER AFNCR ITS CONSOLIDATED IDIQ CONTRACT #FA7014-19-D-A005. Key points: 1. Contract value represents a significant investment in IT infrastructure management. 2. The award is a continuation of services, suggesting a stable, ongoing need. 3. Competition dynamics indicate a mature market for these specialized IT services. 4. Performance context is crucial given the critical nature of Air Force IT systems. 5. Sector positioning places this contract within the broader defense IT services market. 6. The cost-plus award fee structure incentivizes performance but requires careful oversight.
Value Assessment
Rating: good
The contract value of $82.4 million over one year for Computer Facilities Management Services appears reasonable given the scope and criticality for the Department of the Air Force. Benchmarking against similar large-scale IT service contracts within the Department of Defense suggests this pricing is within expected ranges for consolidated IDIQ task orders. The Cost Plus Award Fee (CPAF) structure allows for flexibility and performance incentives, which can be a value-driver if managed effectively, though it also necessitates robust oversight to ensure costs remain controlled and justified.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that multiple bidders had the opportunity to compete for the work. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible value by allowing all qualified vendors to participate, fostering a competitive environment that can drive down costs.
Public Impact
The primary beneficiaries are the Department of the Air Force and its personnel, who rely on stable and efficient IT infrastructure. Services delivered include computer facilities management, crucial for maintaining operational readiness. The geographic impact is centered in Maryland, where the contractor is located and likely where services are primarily rendered or managed. Workforce implications include the potential for skilled IT professionals to be employed or retained by Leidos to fulfill this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee contracts can lead to cost overruns if not meticulously managed and audited.
- The continuation of services under an existing IDIQ may limit opportunities for new market entrants.
- Dependence on a single large contractor for critical IT infrastructure can pose a risk if performance degrades.
Positive Signals
- Awarding to an incumbent contractor often signifies successful past performance and continuity of essential services.
- Full and open competition suggests a robust process that likely yielded a qualified and competitive offer.
- The contract's duration and value indicate a significant and ongoing need, suggesting strategic alignment with Air Force objectives.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on Computer Facilities Management Services. This is a critical sub-sector for defense agencies, encompassing the maintenance, operation, and support of complex IT infrastructure. The market for defense IT services is large and highly competitive, with significant spending allocated to ensuring technological superiority and operational effectiveness. Comparable spending benchmarks in this area often involve multi-year, multi-billion dollar contracts for enterprise-wide IT support.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, Leidos, Inc., the primary impact on small businesses would likely be through subcontracting opportunities. The extent of small business subcontracting will depend on Leidos's subcontracting plan and the specific requirements of the task order. Without explicit set-aside provisions, direct awards to small businesses are unlikely for the prime contract.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a Cost Plus Award Fee (CPAF) contract, rigorous financial oversight and performance monitoring are essential to ensure costs are reasonable and award fees are justified. Transparency is typically managed through contract reporting mechanisms and potential audits by the Defense Contract Audit Agency (DCAA) or the Inspector General (IG) if specific concerns arise. The contract's structure necessitates active management to ensure accountability.
Related Government Programs
- Air Force Network Operations and Security Center (AFNOSC) Services
- Defense Information Systems Agency (DISA) IT Support Contracts
- Enterprise IT Services for Military Branches
- Cloud Computing Services for DoD
- Cybersecurity Services for Federal Agencies
Risk Flags
- Cost-plus award fee structure requires diligent oversight to manage costs.
- Potential for vendor lock-in if competition is not maintained for future requirements.
- Dependence on a single contractor for critical IT infrastructure.
Tags
it-services, computer-facilities-management, department-of-defense, department-of-the-air-force, leidos-inc, cost-plus-award-fee, full-and-open-competition, delivery-order, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.4 million to LEIDOS, INC.. PKA-HYSKA-CARLILE-CONTINUE SERVICES UNDER AFNCR ITS CONSOLIDATED IDIQ CONTRACT #FA7014-19-D-A005.
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 $82.4 million.
What is the period of performance?
Start: 2021-02-01. End: 2022-01-31.
What is the historical spending trend for Computer Facilities Management Services within the Department of the Air Force?
Historical spending on Computer Facilities Management Services (CFMS) by the Department of the Air Force has been substantial and generally increasing over the past decade, driven by the growing reliance on complex IT systems for all aspects of military operations. While specific figures for CFMS can vary based on how the category is defined and aggregated, overall IT spending by the Air Force consistently ranks among the highest within the DoD. This trend reflects the continuous need to modernize infrastructure, enhance cybersecurity, and support advanced technologies like cloud computing and artificial intelligence. The award to Leidos for $82.4 million in FY2021 is indicative of the ongoing investment required to maintain and operate these critical systems, aligning with broader federal IT modernization initiatives and defense spending priorities.
How does Leidos, Inc.'s performance on similar contracts compare to industry benchmarks?
Leidos, Inc. is a major defense contractor with a significant track record in IT services. Benchmarking their performance requires access to detailed contract performance data, which is often proprietary or not publicly available in a granular format. However, as a large, established company, Leidos generally operates within the expected performance parameters for major IT service providers to the federal government. Their ability to win and continue contracts like this one suggests a history of satisfactory performance. Publicly available contract award data and past performance reviews, where accessible, would be necessary for a precise comparison. Factors such as on-time delivery, adherence to budget, technical execution, and customer satisfaction are key metrics used in performance evaluations.
What are the primary risks associated with this specific Cost Plus Award Fee (CPAF) contract structure?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract structure, like the one awarded to Leidos, stem from the potential for cost growth and the subjective nature of the award fee. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fee that consists of a fixed base amount and an award amount determined by the government based on performance against stated criteria. The risk for the government is that contractors may incur higher costs than anticipated, especially if oversight is not rigorous, as the profit margin is tied to performance rather than cost control. The award fee component, while incentivizing performance, can also be subjective, leading to potential disputes or dissatisfaction if performance evaluations are not clearly defined and consistently applied. Effective risk mitigation requires robust government oversight, clear performance metrics, and diligent auditing of costs.
What is the strategic importance of Computer Facilities Management Services for the Department of the Air Force?
Computer Facilities Management Services (CFMS) are of paramount strategic importance to the Department of the Air Force (DAF). These services are the bedrock upon which all modern Air Force operations are built, from mission planning and execution to logistics, personnel management, and intelligence gathering. Reliable and secure IT infrastructure ensures command and control capabilities, enables rapid information dissemination, and supports advanced technological systems like aircraft avionics, satellite communications, and cyber warfare platforms. Any disruption or degradation in CFMS can have immediate and severe consequences for operational readiness, national security, and the safety of personnel. Therefore, consistent investment and effective management of these services are critical strategic imperatives for the DAF.
How does the consolidation of IT services under IDIQ contracts impact overall spending efficiency for the Air Force?
The consolidation of IT services under Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, such as the one referenced, is generally intended to improve overall spending efficiency for the Air Force. IDIQs allow agencies to establish pre-negotiated terms and conditions with multiple vendors, streamlining the procurement process for future task orders. This consolidation can lead to reduced administrative burden, faster delivery times, and potentially better pricing through volume discounts or established labor rates. By consolidating requirements, the Air Force can also achieve greater standardization and better manage its IT portfolio. However, the efficiency gains are contingent on effective contract management, ensuring that the chosen vendors consistently provide value and that the scope of services remains aligned with evolving technological needs and strategic objectives.
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 › IT AND TELECOM - END USER
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: $471,795,548
Exercised Options: $318,237,958
Current Obligation: $82,374,351
Actual Outlays: $35,206,168
Subaward Activity
Number of Subawards: 189
Total Subaward Amount: $39,910,155
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: 2021-02-01
Current End Date: 2022-01-31
Potential End Date: 2022-01-31 00:00:00
Last Modified: 2025-04-26
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