Air Force Awards $113M IT Services Contract to Leidos, Inc. for Facilities Management
Contract Overview
Contract Amount: $113,226,213 ($113.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-01
End Date: 2025-08-31
Contract Duration: 364 days
Daily Burn Rate: $311.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: IT
Official Description: AFNCR-ITS SERVICES - FOLLOW ON - FA7014424D0007
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $113.2 million to LEIDOS, INC. for work described as: AFNCR-ITS SERVICES - FOLLOW ON - FA7014424D0007 Key points: 1. The contract is a follow-on to existing services, indicating a need for continuity. 2. Leidos, Inc. is a major defense contractor, suggesting significant competition in this space. 3. The award value of $113M warrants scrutiny for cost-effectiveness and value for money. 4. IT services, specifically computer facilities management, are critical for operational support.
Value Assessment
Rating: good
The contract value of $113M for a one-year period suggests a substantial investment. Benchmarking against similar IT facilities management contracts would be necessary to fully assess pricing, but the amount indicates a significant scale of services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. This method allows multiple vendors to bid, theoretically leading to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT infrastructure support. The competitive award process aims to ensure these funds are spent efficiently.
Public Impact
Ensures continued operation of critical Air Force IT infrastructure. Supports military readiness and operational effectiveness through reliable technology services. Potential for job creation within the IT services sector.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized.
- Follow-on contract indicates proven service delivery.
- Awarded to a reputable, large defense contractor.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. Spending in this area is crucial for government operations, and benchmarks vary widely based on the scope and complexity of services required.
Small Business Impact
The contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. This suggests larger, established contractors are likely performing the bulk of the work.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The competitive nature of the award and the follow-on aspect suggest existing performance metrics are likely being monitored.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns if scope creep occurs.
- Reliance on a single large contractor for critical IT functions.
- Need for continuous monitoring to ensure service quality and value.
- Cybersecurity risks associated with managing sensitive government data.
Tags
computer-facilities-management-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $113.2 million to LEIDOS, INC.. AFNCR-ITS SERVICES - FOLLOW ON - FA7014424D0007
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 $113.2 million.
What is the period of performance?
Start: 2024-09-01. End: 2025-08-31.
What specific IT facilities management services are included in this $113M contract, and how do they align with current Air Force needs?
The contract likely encompasses a broad range of services including network management, server maintenance, data center operations, cybersecurity support, and end-user support for IT infrastructure. These services are fundamental to maintaining the Air Force's technological capabilities and ensuring seamless operations across various command structures.
What were the key performance indicators (KPIs) from the previous contract, and how will they be measured for this follow-on award?
Key performance indicators would typically include system uptime, response times for technical support, security incident resolution rates, and adherence to service level agreements (SLAs). For this follow-on contract, the Air Force will likely continue to track these metrics rigorously, potentially with updated targets reflecting evolving operational requirements and technological advancements.
How does the pricing structure of this contract compare to industry benchmarks for similar IT facilities management services provided to large government agencies?
Without specific pricing details, a direct comparison is difficult. However, given the full and open competition and the scale of the award, the pricing is expected to be competitive. Benchmarking would involve analyzing the cost per managed asset, per user, or per service hour against similar contracts awarded to large system integrators in the defense sector.
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 NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST FL 10, 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: $119,913,642
Exercised Options: $119,913,642
Current Obligation: $113,226,213
Subaward Activity
Number of Subawards: 101
Total Subaward Amount: $79,368,200
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA701424D0007
IDV Type: IDC
Timeline
Start Date: 2024-09-01
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-12-03
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