DoD's $215.6M Computer Systems Design Contract Awarded to Leidos, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $215,606,022 ($215.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-04-18
End Date: 2017-10-31
Contract Duration: 4,579 days
Daily Burn Rate: $47.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: SEIC
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $215.6 million to LEIDOS, INC. for work described as: SEIC Key points: 1. Significant contract value of over $215 million awarded to a single large business. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Contract duration spans over 12 years, indicating long-term service provision. 4. The sector is IT services, specifically computer systems design, a critical area for defense operations.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee (CPAF) structure allows for performance-based incentives. While CPAF can lead to higher costs than fixed-price contracts, it's often used for complex services where scope is difficult to define upfront, potentially driving better technical outcomes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair value for the services rendered, though the CPAF structure warrants ongoing monitoring for cost efficiency.
Public Impact
Ensures continued IT support for critical Department of the Air Force systems. Supports advanced computer systems design, crucial for maintaining technological superiority. Potential for innovation and improved system performance through award fee incentives. Long-term nature of the contract provides stability for both the agency and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to cost overruns if not managed tightly.
- Long contract duration (over 12 years) may reduce flexibility to adopt newer technologies.
- No small business participation noted, potentially missing opportunities for smaller innovative firms.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Contract is for essential computer systems design services.
- Performance incentives are built into the contract structure.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. Spending in this area is substantial across government agencies, with benchmarks varying widely based on complexity and duration. The DoD's IT spending is consistently among the highest government expenditures.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). This suggests that the scale and complexity of the computer systems design services required were likely beyond the capacity of most small businesses, or that the competition structure favored larger, established firms.
Oversight & Accountability
The contract's long duration and CPAF structure necessitate robust oversight from the Department of the Air Force to ensure cost control and effective performance. Regular reviews of award fee determinations and contractor performance are crucial for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost creep due to CPAF structure.
- Lack of small business participation.
- Long contract duration may limit adoption of emerging technologies.
- Contract performance data and award fee justifications require scrutiny.
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $215.6 million to LEIDOS, INC.. SEIC
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 $215.6 million.
What is the period of performance?
Start: 2005-04-18. End: 2017-10-31.
What was the average per-unit cost for the services provided under this contract, and how does it compare to industry benchmarks for similar computer systems design projects?
The provided data does not include specific per-unit cost breakdowns, making a direct comparison to industry benchmarks challenging. However, the total award value of $215.6 million over approximately 4579 days (roughly 12.5 years) suggests an average annual spend of around $17.2 million. Without detailed service descriptions, it's difficult to ascertain if this aligns with typical costs for complex defense IT systems design.
Given the Cost Plus Award Fee (CPAF) structure, what mechanisms were in place to mitigate the risk of cost overruns and ensure the government received optimal value?
The CPAF structure inherently carries a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fee that can be adjusted based on performance. Mitigation likely involved clearly defined performance objectives and metrics tied to the award fee, stringent cost accounting standards, and active program management oversight by the Department of the Air Force to scrutinize costs and contractor performance.
How effectively did the 'full and open competition' process ensure that the chosen contractor, Leidos, Inc., offered the most innovative and cost-effective solutions for the Department of the Air Forc
Full and open competition generally promotes cost-effectiveness by allowing multiple vendors to bid. However, its effectiveness in driving innovation depends on the specific evaluation criteria used. If the evaluation heavily favored technical approach and past performance alongside price, Leidos may have been selected for offering the best overall value. The long duration and CPAF structure suggest a focus on sustained capability rather than just initial low cost.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $224,678,212
Exercised Options: $224,678,212
Current Obligation: $215,606,022
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-04-18
Current End Date: 2017-10-31
Potential End Date: 2017-10-31 00:00:00
Last Modified: 2023-09-28
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