Leidos awarded $21.4M for Agile software development, with a 5-year performance period
Contract Overview
Contract Amount: $21,377,585 ($21.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-09
End Date: 2027-11-09
Contract Duration: 1,918 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: MISSION PLANNING AND ANALYSIS COMMON SERVICES (MPACS2) AGILE SOFTWARE DEVELOPMENT SERVICES - INITIAL BASE TASK ORDER AWARD
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $21.4 million to LEIDOS, INC. for work described as: MISSION PLANNING AND ANALYSIS COMMON SERVICES (MPACS2) AGILE SOFTWARE DEVELOPMENT SERVICES - INITIAL BASE TASK ORDER AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. Performance period extends over 5 years, indicating a long-term need for these services. 4. The award is a delivery order under a larger contract vehicle. 5. The contractor, Leidos, Inc., is a major player in the federal IT services market. 6. The specific NAICS code (541512) points to computer systems design services.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing structure warrants careful monitoring to ensure value for money. While T&M can offer flexibility, it lacks the cost certainty of fixed-price contracts. Benchmarking the per-hour rates against similar government contracts for Agile software development would be crucial to assess pricing reasonableness. Without specific rate data or comparison points, it's difficult to definitively assess value, but the T&M nature introduces a moderate risk to cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the number of bidders for this particular order is not exceptionally high, which could slightly temper the competitive pressure on pricing.
Taxpayer Impact: A full and open competition, even with a moderate number of bidders, generally benefits taxpayers by fostering a more competitive environment that can lead to better pricing and service offerings compared to sole-source or limited competition awards.
Public Impact
The Department of the Air Force benefits from enhanced mission planning and analysis capabilities through agile software development. This contract supports the delivery of common services related to mission planning and analysis. The services are likely to impact personnel involved in defense mission planning and analysis within the Air Force. The contract duration suggests a sustained need for these software development services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure can lead to cost overruns if not closely managed and monitored.
- The long performance period (over 5 years) increases the potential for cost escalation and scope creep if not actively managed.
- Dependence on a single contractor for critical software development services could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, which typically promotes competitive pricing and wider contractor availability.
- The contractor, Leidos, Inc., is an established entity with significant experience in federal IT services.
- Agile development methodologies are generally associated with increased flexibility and responsiveness to changing requirements.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government is a major consumer of these services, particularly for developing and maintaining complex software systems that support critical missions. Spending in this sector is driven by the need for modernization, cybersecurity, and the implementation of advanced technologies. Comparable spending benchmarks would typically involve analyzing other large IT service contracts awarded by the Department of Defense or other agencies for similar software development and systems integration work.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The primary contractor, Leidos, Inc., is a large business. While large businesses may engage small business subcontractors on their own initiative, this contract does not contain a specific small business set-aside requirement.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a delivery order under a larger contract vehicle, the underlying contract likely has established oversight mechanisms. Transparency is facilitated by public contract award data, but detailed performance monitoring and accountability measures are typically managed internally by the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Defense-wide IT Services
- Agile Software Development Contracts
- Computer Systems Design Services
- Mission Planning Systems
- Department of the Air Force IT Procurement
Risk Flags
- Time and Materials Pricing
- Long Performance Period
- Moderate Competition Level
Tags
it, defense, department-of-defense, department-of-the-air-force, delivery-order, large-business, full-and-open-competition, time-and-materials, computer-systems-design-services, software-development, mission-planning, agile
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to LEIDOS, INC.. MISSION PLANNING AND ANALYSIS COMMON SERVICES (MPACS2) AGILE SOFTWARE DEVELOPMENT SERVICES - INITIAL BASE TASK ORDER AWARD
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 $21.4 million.
What is the period of performance?
Start: 2022-08-09. End: 2027-11-09.
What is Leidos, Inc.'s track record with the Department of Defense for similar IT services?
Leidos, Inc. has a substantial track record with the Department of Defense (DoD) and other federal agencies, frequently securing large contracts for IT services, systems integration, and software development. Their portfolio includes work on complex defense systems, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and enterprise IT solutions. Analyzing their past performance on similar Agile software development contracts, particularly those involving mission-critical systems, would provide insight into their capability to deliver on this MPACS2 contract. Past performance evaluations and any reported issues or successes on prior DoD contracts would be key indicators of their reliability and effectiveness in this domain.
How does the Time and Materials (T&M) pricing compare to fixed-price or other contract types for similar Agile software development services?
Time and Materials (T&M) contracts are generally considered riskier from a cost perspective for the government compared to fixed-price contracts when procuring services like Agile software development. Fixed-price contracts offer greater cost certainty, as the price is set regardless of the effort expended. T&M contracts, however, reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While T&M can provide flexibility for evolving requirements, it places a greater burden on the government to closely monitor labor hours, control scope, and ensure efficient performance to prevent cost overruns. For Agile development, where requirements can change, T&M might be chosen for flexibility, but it necessitates robust government oversight to achieve value for money compared to well-defined fixed-price contracts.
What are the potential risks associated with the 5-year performance period for this contract?
A 5-year performance period for an Agile software development contract presents several potential risks. Firstly, the extended duration increases the likelihood of scope creep if requirements are not meticulously managed and controlled throughout the contract lifecycle. Secondly, technology evolves rapidly; a 5-year-old software development approach or architecture might become outdated, requiring significant rework or modernization efforts not initially accounted for. Thirdly, long-term T&M contracts can lead to escalating labor costs if rates are not capped or reviewed periodically. Finally, maintaining consistent performance and contractor engagement over such an extended period requires sustained government oversight and proactive contract management to ensure objectives remain aligned and performance standards are met.
What is the typical spending range for similar 'Computer Systems Design Services' contracts within the Department of Defense?
Spending on 'Computer Systems Design Services' (NAICS 541512) within the Department of Defense (DoD) can vary significantly, ranging from small task orders to multi-billion dollar programs. Contracts of this nature often support critical defense systems, cybersecurity initiatives, and enterprise IT infrastructure. The $21.4 million award for MPACS2 falls into the mid-tier range for a single delivery order, especially considering its 5-year performance period. Larger, more comprehensive system development or integration programs within the DoD can easily reach hundreds of millions or even billions of dollars over their lifecycles. Benchmarking requires comparing this award against other delivery orders or prime contracts for similar services, considering factors like duration, scope complexity, and the specific defense mission supported.
How does the 'full and open competition' with 3 bidders impact price discovery and potential savings for taxpayers?
A 'full and open competition' is designed to maximize price discovery by allowing all eligible sources to compete. However, the number of bidders directly influences the intensity of that competition. With 3 bidders, there is a moderate level of competition. While this is better than a sole-source or limited competition scenario, it may not yield the most aggressive pricing possible. If there were 5, 10, or more bidders, the competitive pressure would likely be higher, potentially driving prices down further and increasing the likelihood of significant savings for taxpayers. The optimal number of bidders for maximum price discovery can vary, but 3 suggests that while competition exists, there might be room for even greater cost efficiencies with a larger pool of interested and capable contractors.
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: FA873022R8509
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: $21,377,585
Exercised Options: $21,377,585
Current Obligation: $21,377,585
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: 47QTCK18D0008
IDV Type: GWAC
Timeline
Start Date: 2022-08-09
Current End Date: 2027-11-09
Potential End Date: 2027-11-09 00:00:00
Last Modified: 2026-01-13
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