Leidos Inc. contract for administrative management consulting services awarded by the Department of the Air Force for over $26.5 million
Contract Overview
Contract Amount: $26,538,242 ($26.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-03-30
End Date: 2014-11-30
Contract Duration: 975 days
Daily Burn Rate: $27.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LABOR
Place of Performance
Location: HAMPTON, YORK County, VIRGINIA, 23665
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.5 million to LEIDOS, INC. for work described as: LABOR Key points: 1. The contract value of over $26.5 million for administrative management consulting services indicates a significant investment in specialized expertise. 2. Competition dynamics for this contract are assessed based on the number of bids received and the contract type. 3. Risk indicators will be evaluated based on contractor performance history and the complexity of the services provided. 4. Performance context is established by comparing this award to similar contracts for management consulting within the federal government. 5. The sector positioning of this contract falls within administrative and general management consulting, a common area for federal outsourcing. 6. The contract's duration of 975 days suggests a medium-term engagement for the services rendered.
Value Assessment
Rating: fair
The contract was awarded at a firm fixed price, which can offer cost certainty but may not always reflect the lowest possible price if competition is limited. Benchmarking against similar administrative management consulting contracts is necessary to determine if the price of $26.5 million represents good value for the services rendered over the contract's duration. Without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this requirement. While full and open competition is generally preferred, the number of bidders can influence price discovery and the ultimate value achieved.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider range of innovative solutions.
Public Impact
The Department of the Air Force is the primary beneficiary, receiving administrative management and general management consulting services. These services are likely aimed at improving operational efficiency, strategic planning, or program management within the Air Force. The geographic impact is primarily within the Department of the Air Force's operational areas, though the specific locations are not detailed. Workforce implications could include support for existing government personnel or the integration of contractor expertise into Air Force operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the contract's deliverables are not clearly defined.
- Ensuring the contractor's proposed solutions align with long-term Air Force strategic goals.
- Monitoring contractor performance to ensure adherence to the firm fixed-price agreement.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Firm fixed-price contract type provides cost predictability for the government.
- The contractor, Leidos, Inc., is a large and established entity with significant federal contracting experience.
Sector Analysis
The administrative management and general management consulting services sector is a significant component of the federal contracting landscape. Agencies frequently procure these services to enhance efficiency, implement new strategies, and manage complex programs. Spending in this sector can range from niche expertise to broad organizational transformation. Comparable spending benchmarks would involve analyzing other large-scale consulting contracts awarded to major federal contractors for similar management services.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors on other projects.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract terms and performance expectations. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.
Related Government Programs
- Management and Financial Consulting, Acquisition and Commercialization Services
- Professional, Scientific, and Technical Services
- Defense-wide Administrative Support Services
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Risk of contractor not meeting performance expectations within the fixed price.
- Ensuring alignment of consulting recommendations with long-term Air Force strategic goals.
Tags
administrative-management-consulting, management-consulting, department-of-defense, air-force, firm-fixed-price, full-and-open-competition, leidos-inc, professional-services, federal-contract, virginia, administrative-management-and-general-management-consulting-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.5 million to LEIDOS, INC.. LABOR
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 $26.5 million.
What is the period of performance?
Start: 2012-03-30. End: 2014-11-30.
What is Leidos, Inc.'s track record with the Department of Defense and specifically the Air Force?
Leidos, Inc. has a substantial track record of contracting with the Department of Defense (DoD) and its various branches, including the Air Force. As a major federal contractor, Leidos has been awarded numerous contracts across a wide spectrum of services, including IT, engineering, logistics, and professional services. Their history with the Air Force likely encompasses a variety of support functions, ranging from complex system integration to administrative and management consulting. A detailed review of past performance evaluations and contract histories would provide a more granular understanding of their reliability, quality of service, and adherence to contractual obligations within the Air Force context. This specific contract, valued at over $26.5 million, suggests a level of trust and proven capability in delivering administrative management consulting services.
How does the value of this contract compare to other administrative management consulting contracts awarded by the Air Force?
The $26.5 million value of this contract for administrative management and general management consulting services is a significant figure, placing it in the mid-to-large tier for such procurements. To benchmark its value, one would compare it against similar contracts awarded by the Air Force or other DoD components for comparable services over similar durations. Factors such as the specific scope of work, the level of expertise required, and the number of bidders influence pricing. If this contract was awarded under full and open competition with multiple bids, its price is more likely to be competitive. However, without detailed comparative data on the scope and deliverables of other contracts, it is difficult to definitively state whether this represents exceptional value or is on the higher end for similar services.
What are the primary risks associated with a firm fixed-price contract of this magnitude for consulting services?
The primary risks associated with a firm fixed-price (FFP) contract of this magnitude for consulting services revolve around scope definition and potential for contractor underperformance or overpricing. For the government, the risk is that the fixed price may not reflect the true cost if the scope is poorly defined, leading to the contractor either overcharging for minimal work or being unable to deliver the full intended value within the fixed price. Conversely, the contractor bears the risk of cost overruns if their estimates are inaccurate or if unforeseen complexities arise. For consulting services, ensuring the quality and impact of the delivered advice is crucial, and an FFP structure can sometimes incentivize contractors to deliver the minimum required rather than optimal solutions. Robust oversight and clear performance metrics are essential to mitigate these risks.
What is the typical duration for administrative management consulting contracts within the federal government?
The duration for administrative management consulting contracts within the federal government can vary significantly based on the scope and objectives of the engagement. Contracts can range from short-term, project-specific assignments lasting a few months to longer-term, strategic support initiatives that extend over several years. A contract duration of 975 days, as seen here (approximately 2.67 years), is relatively common for engagements that require sustained effort in areas like organizational improvement, strategic planning implementation, or ongoing program management support. Shorter durations might be used for specific analyses or recommendations, while longer periods are often necessary for implementation and change management processes.
How does the North American Industry Classification System (NAICS) code 541611 inform our understanding of this contract?
The North American Industry Classification System (NAICS) code 541611, 'Management Consulting Services,' is crucial for understanding the nature of this contract. This code specifically covers establishments primarily engaged in providing advice and assistance to businesses and other organizations on (1) management issues, such as administrative and financial organization; (2) marketing objectives and policies; (3) human resource policies; (4) planning and operational problems; (5) quality assurance programs; etc. For this Department of the Air Force contract, it signifies that the services procured are focused on improving the management and operational effectiveness of the organization, rather than providing IT solutions, engineering, or direct operational support. It helps categorize the contract within the broader federal procurement landscape and allows for comparisons with other contracts under the same classification.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA703711R0008
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DRIVE, ROOM #8031, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,448,559
Exercised Options: $34,448,559
Current Obligation: $26,538,242
Subaward Activity
Number of Subawards: 58
Total Subaward Amount: $2,633,287
Parent Contract
Parent Award PIID: GS23F8006H
IDV Type: FSS
Timeline
Start Date: 2012-03-30
Current End Date: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2014-11-13
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