Leidos awarded $55.9M for Air Vehicle Planning System software, with 3 bidders in full and open competition
Contract Overview
Contract Amount: $55,867,731 ($55.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-08-01
End Date: 2027-07-31
Contract Duration: 2,190 days
Daily Burn Rate: $25.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: AGILE SOFTWARE DEVELOPMENT SERVICES FOR THE AIR VEHICLE PLANNING SYSTEM 6 (APS 6) SOFTWARE APPLICATION
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $55.9 million to LEIDOS, INC. for work described as: AGILE SOFTWARE DEVELOPMENT SERVICES FOR THE AIR VEHICLE PLANNING SYSTEM 6 (APS 6) SOFTWARE APPLICATION Key points: 1. Contract value appears reasonable given the duration and scope of software development services. 2. Full and open competition suggests a healthy market for these services. 3. The contract's duration and delivery order structure indicate potential for evolving requirements. 4. Performance context is tied to the critical Air Vehicle Planning System. 5. This contract falls within the broader IT services sector, specifically computer systems design. 6. The use of Time and Materials pricing warrants close monitoring for cost control.
Value Assessment
Rating: good
The contract value of approximately $55.9 million over five years for Agile Software Development Services for the Air Vehicle Planning System (APS 6) appears to be within a reasonable range for complex IT development. Benchmarking against similar large-scale software development contracts for defense systems suggests that this pricing is competitive, especially considering the specialized nature of the work. The Time and Materials (T&M) pricing structure, while common for agile development, necessitates diligent oversight to ensure cost efficiency and prevent scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were allowed to bid. With three bidders participating, the competition level suggests a reasonably active market for these specialized IT services. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. It ensures that the government is not unduly constrained by a lack of vendor options.
Public Impact
The primary beneficiaries are the Department of the Air Force, which will receive enhanced capabilities for its Air Vehicle Planning System. The services delivered will support the development and maintenance of critical software for aviation planning and operations. The geographic impact is primarily within the United States, supporting Air Force operations. Workforce implications include skilled IT professionals, software developers, and systems engineers employed by Leidos and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to cost overruns if not closely managed.
- The long contract duration (5 years) increases the risk of requirements evolving beyond the initial scope.
- Dependence on a single contractor for a critical system like APS 6 could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- The contractor, Leidos, Inc., is a large and experienced provider of IT services to the government.
- The contract supports a critical defense system, suggesting a high level of attention to performance and quality.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer systems design and integration. The market for defense IT services is substantial, driven by the need for advanced technological solutions to support military operations. Comparable spending benchmarks for similar software development and systems integration contracts within the Department of Defense often range in the tens to hundreds of millions of dollars, depending on complexity and duration. This contract's value aligns with the typical investment in maintaining and upgrading mission-critical software applications.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor, Leidos, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The lack of a small business set-aside means that opportunities for small businesses to participate in this contract are dependent on Leidos's subcontracting strategy, which could limit their direct involvement.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Air Force, likely through contracting officers and program managers. Accountability measures are typically embedded in the contract terms, including performance metrics, delivery schedules, and quality standards. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General's office within the Department of Defense may conduct audits or investigations as deemed necessary.
Related Government Programs
- Defense IT Modernization Programs
- Air Force Software Development Contracts
- Mission Planning Systems
- Agile Development Services
- Computer Systems Design Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Risk of scope creep over the 5-year contract duration.
- Dependence on a single contractor for a critical system.
Tags
it-services, software-development, department-of-defense, air-force, full-and-open-competition, time-and-materials, agile-development, defense-it, computer-systems-design, virginia, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.9 million to LEIDOS, INC.. AGILE SOFTWARE DEVELOPMENT SERVICES FOR THE AIR VEHICLE PLANNING SYSTEM 6 (APS 6) SOFTWARE APPLICATION
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 $55.9 million.
What is the period of performance?
Start: 2021-08-01. End: 2027-07-31.
What is Leidos, Inc.'s track record with similar Department of Defense software development contracts?
Leidos, Inc. has a significant track record of performing IT services and software development for the Department of Defense. They are a large government contractor with extensive experience in complex systems integration, cybersecurity, and software engineering across various military branches. Historically, Leidos has been awarded numerous contracts for developing, maintaining, and upgrading mission-critical systems, including those related to command and control, intelligence, and logistics. Their performance on past contracts, while generally positive, has also seen scrutiny typical for large-scale government projects, with reviews often focusing on cost management, schedule adherence, and technical execution. Specific performance data for APS 6 would be detailed in performance reports, but their overall profile suggests a capable, albeit large, contractor.
How does the $55.9 million contract value compare to other Air Vehicle Planning System (APS) contracts?
Without specific historical data on prior APS versions or comparable systems, a direct comparison is challenging. However, the $55.9 million value over approximately five years for a full software development lifecycle (agile development, maintenance, and sustainment) for a critical defense system like APS 6 is within the expected range for such endeavors. Large-scale software development for military applications often involves significant investment due to complexity, security requirements, and the need for high reliability. If previous APS versions were developed under similar conditions, this value could represent a continuation or modernization effort. The duration and scope (agile development) suggest a focus on iterative improvements and adaptation, which can influence overall cost compared to a fixed-scope, waterfall development.
What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?
The primary risk associated with the Time and Materials (T&M) pricing structure for this contract is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the cost of materials. This can incentivize longer project durations or less efficient work if not rigorously managed. For the government, this means that the total cost is not fixed upfront and can escalate if the project takes longer than anticipated or if resource utilization is not optimized. Effective oversight, detailed tracking of labor hours and materials, and clear performance expectations are crucial to mitigate these risks and ensure value for money.
How effective is the 'full and open competition' approach likely to be in ensuring value for taxpayers on this contract?
The 'full and open competition' approach is generally considered the most effective method for ensuring value for taxpayers in government contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment where multiple companies vie for the contract. This competition typically drives down prices, encourages innovation, and leads to better quality services as contractors strive to offer the most compelling value proposition. In this case, with three bidders, there was a reasonable level of competition, which should have helped the Department of the Air Force secure a competitive price. The success in achieving value also depends on the clarity of the solicitation requirements and the effectiveness of the evaluation process.
What are the potential implications of the 5-year contract duration on system modernization and technological relevance?
A five-year contract duration for software development, especially using agile methodologies, allows for continuous adaptation and modernization throughout the contract period. This is generally positive for maintaining technological relevance in rapidly evolving fields like IT. Agile development inherently supports iterative updates and incorporation of new technologies. However, a long duration also means that the initial requirements and technology choices might become outdated if not managed proactively. The government must ensure that contract mechanisms are in place to pivot or incorporate emerging technologies and that the contractor is incentivized to deliver forward-looking solutions rather than just maintaining the status quo. Regular reviews and potential contract modifications would be key to leveraging the duration effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA873021R8504
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, 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: $85,151,650
Exercised Options: $79,176,546
Current Obligation: $55,867,731
Subaward Activity
Number of Subawards: 42
Total Subaward Amount: $8,555,959
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0008
IDV Type: GWAC
Timeline
Start Date: 2021-08-01
Current End Date: 2027-07-31
Potential End Date: 2027-07-31 00:00:00
Last Modified: 2026-03-06
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