DoD's $26.4M intelligence operations support contract awarded to Leidos, Inc. with 3 bidders
Contract Overview
Contract Amount: $26,432,490 ($26.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-17
End Date: 2025-08-16
Contract Duration: 517 days
Daily Burn Rate: $51.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CRYPTOLOGIC TRAINING-INTELLIGENCE OPERATIONS SUPPORT (CTIOS)
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78243
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $26.4 million to LEIDOS, INC. for work described as: CRYPTOLOGIC TRAINING-INTELLIGENCE OPERATIONS SUPPORT (CTIOS) Key points: 1. Contract value of $26.4M over 517 days suggests a significant investment in intelligence operations. 2. Awarded via full and open competition, indicating a broad market search for qualified vendors. 3. The firm-fixed-price contract type shifts performance risk to the contractor, Leidos, Inc. 4. This contract supports intelligence operations, a critical function for national security. 5. The duration of 517 days allows for sustained support and project continuity. 6. The contractor, Leidos, Inc., is a major player in government contracting, suggesting established capabilities.
Value Assessment
Rating: good
The contract's value of $26.4M over approximately 1.4 years for intelligence operations support appears reasonable given the specialized nature of the services. Benchmarking against similar intelligence support contracts is challenging due to data sensitivity, but the per-diem cost is within expected ranges for high-skill technical support. The firm-fixed-price structure provides cost certainty for the government, assuming Leidos can manage its expenses effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with three bidders participating. This level of competition is moderate and suggests that while multiple companies were aware of and interested in the requirement, the market for such specialized intelligence support may be somewhat concentrated. The presence of three bidders is generally positive for price discovery and ensures the government receives proposals from a reasonable pool of qualified entities.
Taxpayer Impact: A competitive process, even with three bidders, helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging innovation from the competing firms.
Public Impact
This contract directly benefits the Department of Defense by providing essential intelligence operations support. The services delivered are critical for national security and informed decision-making. The geographic impact is likely focused on areas relevant to intelligence operations, potentially global. Workforce implications include the employment of skilled personnel in intelligence analysis and support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for contractor lock-in if specialized knowledge becomes highly proprietary.
- Dependence on a single contractor for critical intelligence functions could pose a risk if performance falters.
Positive Signals
- Leidos, Inc. has a strong track record in government contracting, indicating reliability.
- Firm-fixed-price contract aligns incentives for efficient performance and cost control.
- Full and open competition suggests a robust search for the best value.
Sector Analysis
This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on intelligence operations support. The market for such services is characterized by high barriers to entry due to security clearances, specialized expertise, and the need for proven performance. Comparable spending benchmarks are difficult to ascertain due to the classified nature of many intelligence contracts, but this award represents a significant investment in maintaining critical intelligence capabilities.
Small Business Impact
This contract was not set aside for small businesses and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, with opportunities primarily flowing to the prime contractor, Leidos, Inc., and potentially larger subcontractors.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes contractor performance. Transparency may be limited due to the sensitive nature of intelligence operations, but standard contract reporting and performance reviews should be in place.
Related Government Programs
- Intelligence, Surveillance, and Reconnaissance (ISR) Support Services
- Information Technology Support Services
- Defense Intelligence Agency Contracts
- National Reconnaissance Office Support
Risk Flags
- Contract performance risk
- Security risk
- Contractor dependency risk
Tags
department-of-defense, department-of-the-air-force, intelligence-operations, it-services, professional-services, full-and-open-competition, firm-fixed-price, definitive-contract, leidos-inc, texas, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.4 million to LEIDOS, INC.. CRYPTOLOGIC TRAINING-INTELLIGENCE OPERATIONS SUPPORT (CTIOS)
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 $26.4 million.
What is the period of performance?
Start: 2024-03-17. End: 2025-08-16.
What is Leidos, Inc.'s track record with similar intelligence support contracts within the Department of Defense?
Leidos, Inc. has a substantial history of performing complex IT and intelligence support services for various U.S. government agencies, including the Department of Defense. They have been awarded numerous contracts for areas such as cybersecurity, data analytics, systems engineering, and mission support for intelligence communities. Their experience often involves handling sensitive information and operating in high-security environments. While specific details of past intelligence operations support contracts are often classified, their consistent presence and significant contract awards in related fields suggest a strong capability and a generally positive performance record. Reviewing publicly available contract databases and agency performance reports would provide further insights into their past performance metrics and client satisfaction levels for comparable work.
How does the value of this contract compare to other intelligence operations support contracts awarded by the DoD?
Direct comparison of this $26.4 million contract to other intelligence operations support contracts is challenging due to the classified nature of much of the work and the wide variability in contract scope and duration. However, for a contract spanning approximately 1.4 years (517 days) and involving specialized intelligence support, this value appears to be within a reasonable range for significant, high-skill services. Contracts for similar specialized support can range from a few million to hundreds of millions of dollars, depending on the complexity, duration, and specific deliverables. The firm-fixed-price nature also suggests a defined scope, which can influence overall cost compared to cost-plus contracts for more exploratory or research-oriented intelligence tasks.
What are the primary risks associated with this specific contract award?
The primary risks associated with this contract include potential performance issues if Leidos, Inc. struggles to meet the highly specialized requirements of intelligence operations support, despite their general capabilities. Given the sensitive nature of the work, security breaches or data mishandling by contractor personnel would pose significant national security risks. Another risk is the potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen complexities, although this risk is primarily borne by the contractor. Dependence on a single contractor for critical functions can also be a risk if performance degrades or if the contractor faces financial instability. Finally, the concentration of such a contract within a single large firm might limit opportunities for smaller, innovative companies in the long run.
How effective is the firm-fixed-price contract type in ensuring value for money in intelligence support services?
The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and understood, as is often the case for established intelligence support functions. FFP shifts the risk of cost overruns to the contractor, incentivizing them to manage resources efficiently and control expenses to maximize profit. This provides the government with cost certainty. For intelligence support services, where technical requirements can be clearly articulated, FFP encourages the contractor to deliver the specified services at the agreed-upon price. However, if the scope is poorly defined or unforeseen technical challenges arise, the contractor may cut corners to maintain profitability, potentially impacting quality, or seek change orders, which can increase costs. Therefore, effective upfront scope definition and robust oversight are crucial for FFP to deliver optimal value.
What are the historical spending patterns for intelligence operations support within the Department of the Air Force?
Historical spending patterns for intelligence operations support within the Department of the Air Force (DAF) are substantial and have generally trended upwards, reflecting the increasing importance of intelligence in modern warfare and national security. The DAF consistently invests heavily in intelligence, surveillance, and reconnaissance (ISR) capabilities, which include operational support. Spending in this area encompasses a wide range of services, from data analysis and processing to technical support for intelligence systems and personnel. While specific figures for 'intelligence operations support' as a distinct category can be difficult to isolate from broader intelligence budgets, the overall trend indicates a sustained and significant commitment. Factors influencing spending include evolving threats, technological advancements, and policy directives emphasizing intelligence gathering and analysis.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: FA703723SC001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
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: $26,432,490
Exercised Options: $26,432,490
Current Obligation: $26,432,490
Actual Outlays: $1,568,735
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $4,244,066
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-03-17
Current End Date: 2025-08-16
Potential End Date: 2025-08-16 00:00:00
Last Modified: 2025-04-29
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