Leidos Inc. awarded $83.2M for Air Force IT services, with a 1337-day duration
Contract Overview
Contract Amount: $83,202,043 ($83.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-02-01
End Date: 2025-09-30
Contract Duration: 1,337 days
Daily Burn Rate: $62.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: AFDW/PKA HYSKA - RODRIGUEZ - AFNCR IT - TASK ORDER 16
Place of Performance
Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $83.2 million to LEIDOS, INC. for work described as: AFDW/PKA HYSKA - RODRIGUEZ - AFNCR IT - TASK ORDER 16 Key points: 1. Contract value of $83.2 million over approximately 3.7 years suggests a significant investment in IT infrastructure. 2. The 'FULL AND OPEN COMPETITION' indicates a broad market solicitation, potentially leading to competitive pricing. 3. The 'COST PLUS AWARD FEE' contract type introduces performance incentives but requires careful monitoring to manage costs. 4. The contract's focus on 'Computer Facilities Management Services' aligns with critical IT operational needs. 5. The duration of 1337 days (approx. 3.7 years) provides stability for long-term IT support. 6. The award to a single contractor, Leidos, Inc., warrants examination of market concentration for these services.
Value Assessment
Rating: good
The contract value of $83.2 million for Computer Facilities Management Services over 1337 days appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Award Fee structure allows for flexibility and incentivizes performance, but requires diligent oversight to ensure costs remain within acceptable parameters and do not escalate beyond the anticipated value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors were invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition is a positive indicator for price discovery and market responsiveness.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the services rendered, potentially reducing overall expenditure compared to non-competitive awards.
Public Impact
The primary beneficiaries are the Department of the Air Force, receiving essential IT facilities management services. Services delivered include the maintenance and operation of computer facilities, crucial for Air Force operations. The geographic impact is likely concentrated within the Air Force installations where these IT facilities are located. Workforce implications may include the direct employment of IT professionals by Leidos, Inc., and potential indirect impacts on government IT personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can lead to cost overruns if not managed rigorously.
- Lack of specific bidder numbers makes it difficult to fully assess the intensity of competition.
- The long duration could pose risks if technology or requirements change significantly.
Positive Signals
- Full and open competition suggests a robust market engagement.
- The contract's duration provides continuity for critical IT services.
- Performance incentives in the contract type can drive higher quality service delivery.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer facilities management. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems. This contract represents a portion of the Department of the Air Force's broader IT spending, aimed at ensuring the operational readiness and efficiency of its digital infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by federal agencies for similar services.
Small Business Impact
The contract was awarded under 'FULL AND OPEN COMPETITION' and the data indicates 'sb': false, suggesting no specific small business set-aside was applied to this particular award. This means that large businesses were eligible and likely participated in the bidding process. There is no explicit information on subcontracting plans for small businesses, which would typically be detailed in the contract's terms and conditions. The impact on the small business ecosystem is neutral in this instance, as it was not specifically targeted for small business participation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded within the Cost Plus Award Fee structure, which links contractor payment to performance metrics. Transparency is generally maintained through contract award databases, though specific performance details and cost breakdowns may be subject to proprietary restrictions. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Air Force Network Operations
- DoD IT Infrastructure Modernization Programs
- Federal Enterprise IT Contracts
- Cloud Computing Services Contracts
- Cybersecurity Support Services
Risk Flags
- Cost Plus Award Fee (CPAF) contract type requires diligent oversight to manage costs.
- Long contract duration (1337 days) may increase risk of technological obsolescence or market shifts.
- Lack of specific bidder count limits full assessment of competition intensity.
Tags
it-services, computer-facilities-management, department-of-defense, department-of-the-air-force, delivery-order, full-and-open-competition, cost-plus-award-fee, leidos-inc, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.2 million to LEIDOS, INC.. AFDW/PKA HYSKA - RODRIGUEZ - AFNCR IT - TASK ORDER 16
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 $83.2 million.
What is the period of performance?
Start: 2022-02-01. End: 2025-09-30.
What is the historical spending pattern for Computer Facilities Management Services by the Department of the Air Force?
Analyzing historical spending for Computer Facilities Management Services by the Department of the Air Force requires access to detailed federal procurement data over several fiscal years. Typically, agencies like the Air Force allocate substantial budgets to IT infrastructure and operations, including facilities management. Spending patterns can fluctuate based on modernization initiatives, infrastructure upgrades, and evolving technological requirements. For instance, a period of significant hardware refresh or data center consolidation might show increased spending, while a shift towards cloud services could alter the nature and volume of facilities management contracts. Without specific historical data for this contract's predecessors or comparable efforts, it's difficult to provide precise figures, but it's reasonable to assume consistent, significant investment in maintaining robust IT facilities to support military operations and administrative functions.
How does the awarded amount compare to similar IT facilities management contracts within the DoD?
Comparing the $83.2 million award to similar IT facilities management contracts within the DoD requires identifying contracts with comparable scope, duration, and service requirements. Large-scale IT support contracts for facilities management can range widely in value depending on the number of sites supported, the complexity of the infrastructure, and the specific services included (e.g., hardware maintenance, network operations, data center management). Contracts of this magnitude, spanning over three years, are typical for major commands or significant operational bases. Benchmarking against other 'Computer Facilities Management Services' contracts awarded by agencies like the Army or Navy, or even other Air Force commands, would reveal if this price point is within the expected range for the level of service and duration provided. The 'FULL AND OPEN COMPETITION' and 'COST PLUS AWARD FEE' elements also influence comparisons, as different contract types and competition levels affect pricing.
What are the key performance indicators (KPIs) likely used in this Cost Plus Award Fee contract?
In a Cost Plus Award Fee (CPAF) contract for IT facilities management, Key Performance Indicators (KPIs) are crucial for determining the award fee. Likely KPIs would focus on service availability and uptime (e.g., network availability, server uptime), response times for incident resolution (e.g., mean time to repair - MTTR), system performance metrics (e.g., latency, throughput), adherence to security protocols and compliance standards, and successful completion of scheduled maintenance. Additionally, KPIs might include user satisfaction surveys, efficiency in resource utilization (e.g., power, cooling in data centers), and timely implementation of upgrades or patches. The contractor, Leidos, Inc., would be evaluated against these predefined metrics, with higher performance leading to a greater award fee, incentivizing them to exceed minimum contract requirements.
What is Leidos, Inc.'s track record with similar IT services contracts for the Department of Defense?
Leidos, Inc. has a substantial track record of providing IT services to the Department of Defense and other federal agencies. They are a major defense contractor with extensive experience in areas such as enterprise IT, cybersecurity, cloud migration, and systems integration. Examining their past performance on similar contracts, particularly those involving large-scale IT infrastructure management, network operations, and facilities support for military branches, would provide insight into their capabilities and reliability. Publicly available contract databases and past performance reviews (if accessible) can indicate their success in meeting performance requirements, managing costs, and delivering on complex IT projects. Their significant presence in the federal IT contracting space suggests a generally strong capability, though specific contract performance can vary.
What are the potential risks associated with a 1337-day duration for an IT facilities management contract?
A 1337-day (approximately 3.7 years) duration for an IT facilities management contract presents several potential risks. Technological obsolescence is a primary concern; IT infrastructure and best practices evolve rapidly, and a long-term contract might lock the government into outdated systems or processes if not managed adaptively. Market shifts are another risk; new technologies or service models could emerge that offer better value or capabilities than what is currently contracted. Furthermore, contractor performance can degrade over time, or the contractor's business strategy might change, impacting their commitment to the contract. To mitigate these risks, the contract likely includes provisions for technical refresh, change management processes, and performance reviews to ensure the services remain relevant and effective throughout its term.
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: $84,449,307
Exercised Options: $84,449,307
Current Obligation: $83,202,043
Actual Outlays: $30,484,609
Subaward Activity
Number of Subawards: 269
Total Subaward Amount: $150,999,227
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: 2022-02-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-01-23
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