DoD's Air Force awards $46.3M IT contract to Leidos for 5-year O&M support
Contract Overview
Contract Amount: $46,342,991 ($46.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-02-01
End Date: 2024-09-02
Contract Duration: 214 days
Daily Burn Rate: $216.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: PKA/WARNER/JONES/AFNCR-IT CONSOLIDATED CONTRACT, TO34 YEAR 5 O&M SUPPORT
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $46.3 million to LEIDOS, INC. for work described as: PKA/WARNER/JONES/AFNCR-IT CONSOLIDATED CONTRACT, TO34 YEAR 5 O&M SUPPORT Key points: 1. Contract value represents a significant investment in maintaining critical IT infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight. 4. The contract duration of 214 days (year 5) indicates ongoing operational support needs. 5. Focus on Computer Facilities Management Services highlights the importance of reliable IT operations. 6. Leidos, Inc. is a major defense contractor with extensive IT service experience.
Value Assessment
Rating: good
The contract value of $46.3 million for a 5-year O&M support phase appears reasonable given the scope of IT infrastructure management for a major military branch. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that pricing is likely competitive, especially under a full and open competition. The Cost Plus Award Fee (CPAF) structure, while common for complex services, necessitates diligent monitoring to ensure costs remain within acceptable parameters and that award fees are justified by exceptional 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. 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 Air Force's decision to use full and open competition suggests confidence in the market's ability to provide qualified vendors for these essential IT services.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process. It ensures that the government is not limited to a single provider, thereby driving down prices and encouraging innovation.
Public Impact
The Department of the Air Force benefits from sustained and reliable IT operations and maintenance. Military personnel and support staff will have access to functional and secure computer facilities. The contract supports IT infrastructure across various Air Force installations, potentially nationwide. The contract likely supports a workforce of IT professionals, including those employed by Leidos and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) contracts can lead to cost overruns if not managed rigorously.
- The duration of the contract (year 5) implies a long-term reliance on this specific vendor.
- Lack of specific bidder numbers makes it difficult to fully assess the intensity of competition.
- The scope of 'Computer Facilities Management Services' is broad and requires clear performance metrics.
Positive Signals
- Awarded under full and open competition, suggesting a competitive market.
- Leidos, Inc. has a strong track record in large-scale IT service contracts.
- The contract aims to ensure the continuity of critical IT operations for the Air Force.
- The CPAF structure provides incentives for high performance and cost efficiency.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer facilities management. The market for IT services to the federal government is substantial, with agencies like the Department of Defense being major consumers. This contract represents a portion of the broader spending on IT operations and maintenance, which is crucial for maintaining the functionality and security of government systems. Comparable spending benchmarks for similar IT support contracts often range in the tens to hundreds of millions of dollars annually, depending on the scope and duration.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale IT services contract awarded to a major prime contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime. The absence of small business set-aside provisions means that the direct economic impact on the small business IT ecosystem from this specific award is minimal, though the prime contractor may engage small businesses for specialized support.
Oversight & Accountability
Oversight for this Cost Plus Award Fee (CPAF) contract is likely managed by the Department of the Air Force's contracting and program management offices. Accountability measures are built into the CPAF structure through performance metrics and award fee evaluations. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- DoD IT Modernization Programs
- Air Force Network Operations
- Federal Cloud Computing Strategy
- IT Services for Defense Agencies
- Computer Systems Design Services
Risk Flags
- Cost Overrun Potential (CPAF)
- Performance Measurement Clarity
- Vendor Lock-in Risk
- Scope Creep
Tags
it-services, computer-facilities-management, department-of-defense, air-force, delivery-order, full-and-open-competition, cost-plus-award-fee, operations-and-maintenance, leidos-inc, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.3 million to LEIDOS, INC.. PKA/WARNER/JONES/AFNCR-IT CONSOLIDATED CONTRACT, TO34 YEAR 5 O&M SUPPORT
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 $46.3 million.
What is the period of performance?
Start: 2024-02-01. End: 2024-09-02.
What is Leidos, Inc.'s track record with similar large-scale IT support contracts for the Department of Defense?
Leidos, Inc. has a substantial and well-documented track record of performing large-scale IT support and services contracts for the Department of Defense and other federal agencies. They are a prime contractor on numerous complex programs involving network operations, cybersecurity, systems integration, and facility management. Their experience includes managing significant budgets and workforces to deliver critical IT infrastructure support. Past performance evaluations and contract awards indicate a capacity to handle the demands of contracts like this one, often involving multi-year durations and extensive service level agreements. However, like any large contractor, specific contract performance can vary, and detailed reviews of past performance on similar CPAF contracts would be necessary for a comprehensive assessment.
How does the $46.3 million value compare to previous years of support for this specific contract or similar Air Force IT O&M efforts?
Without historical data for this specific contract's prior years or direct comparisons to other Air Force IT O&M efforts, a precise year-over-year or cross-program value comparison is challenging. However, the $46.3 million figure represents the total estimated cost for the fifth year of a multi-year support effort. Annual IT operations and maintenance spending for major military branches can fluctuate based on modernization needs, infrastructure upgrades, and evolving threat landscapes. This amount suggests a significant, ongoing commitment to maintaining established computer facilities. To provide a more robust comparison, data on the contract's previous phases or similar consolidated IT support contracts within the Air Force would be required.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT facilities management?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT facilities management revolve around cost control and performance measurement. For the government, the risk is that costs could escalate beyond initial projections, as the contractor is reimbursed for allowable costs plus a fee that includes a base amount and an award amount tied to performance. If performance metrics are not clearly defined, measurable, and rigorously monitored, the government may end up paying higher fees than warranted. Conversely, the contractor bears the risk of not achieving the performance targets necessary to earn the full award fee. Effective oversight, clear performance standards, and objective evaluation criteria are crucial to mitigate these risks and ensure value for money.
How effective are Computer Facilities Management Services contracts in ensuring the operational readiness of Air Force IT systems?
Contracts for Computer Facilities Management Services (CFMS) are generally considered essential for ensuring the operational readiness of Air Force IT systems. These services typically encompass the maintenance, monitoring, and support of hardware, software, and network infrastructure, which are the backbone of military communications and operations. By outsourcing these functions to specialized contractors like Leidos, the Air Force can leverage expertise and resources to maintain high uptime, security, and performance levels. The effectiveness hinges on the contract's scope, the contractor's performance, and the government's oversight. When well-executed, CFMS contracts contribute directly to mission accomplishment by ensuring that IT systems are available and reliable when needed.
What is the typical duration and funding cycle for IT Operations and Maintenance (O&M) contracts within the Department of Defense?
IT Operations and Maintenance (O&M) contracts within the Department of Defense often have multi-year durations, frequently structured with an initial base period and multiple option periods, or as indefinite-delivery/indefinite-quantity (IDIQ) vehicles with task orders. The total contract period can extend several years, but annual funding is typically appropriated on a fiscal year basis. This means that while a contract may be awarded for, say, five years, its continuation beyond the current fiscal year is contingent upon the availability of appropriated funds. The duration of this specific contract's year 5 support (214 days) suggests it is part of a larger, multi-year effort, reflecting the DoD's need for sustained IT support rather than short-term solutions.
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
Solicitation ID: FA701419R0002
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: $58,157,108
Exercised Options: $58,157,108
Current Obligation: $46,342,991
Actual Outlays: $19,400,269
Subaward Activity
Number of Subawards: 85
Total Subaward Amount: $44,885,709
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: 2024-02-01
Current End Date: 2024-09-02
Potential End Date: 2024-09-02 00:00:00
Last Modified: 2025-12-29
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