DoD's $68M C2IMERA II contract to Leidos for emergency response app, awarded via full and open competition
Contract Overview
Contract Amount: $68,250,227 ($68.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-11-20
End Date: 2026-09-24
Contract Duration: 1,039 days
Daily Burn Rate: $65.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: COMMAND AND CONTROL INCIDENT MANAGEMENT EMERGENCY RESPONSE APPLICATION (C2IMERA) II
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $68.3 million to LEIDOS, INC. for work described as: COMMAND AND CONTROL INCIDENT MANAGEMENT EMERGENCY RESPONSE APPLICATION (C2IMERA) II Key points: 1. Value for money assessed against comparable IT service contracts. 2. Competition dynamics indicate a potentially competitive award, but detailed analysis is needed. 3. Risk indicators include the Time and Materials pricing structure, which can lead to cost overruns. 4. Performance context is tied to the Air Force's need for incident management software. 5. Sector positioning within IT services, specifically custom software development and integration.
Value Assessment
Rating: fair
The contract's value of $68.25 million over approximately 3.5 years for a custom application suggests a moderate per-year spend. Benchmarking against similar custom software development contracts for government agencies is crucial. The Time and Materials (T&M) pricing model, while offering flexibility, carries inherent risks of cost escalation if not closely managed, potentially impacting overall value for money. Further analysis of the contractor's historical performance on similar projects would provide better insight into value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 5 bids suggests a reasonable level of competition for this requirement. A competitive process generally aids in price discovery and can lead to more favorable pricing for the government, although the specific pricing structure (T&M) warrants careful monitoring.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages a wider range of vendors to bid, potentially driving down costs and improving the quality of services offered.
Public Impact
The Department of the Air Force will benefit from an enhanced Command and Control Incident Management Emergency Response Application. Services delivered include the development, integration, and sustainment of critical emergency response software. Geographic impact is likely nationwide, supporting Air Force installations and personnel. Workforce implications may involve IT specialists, developers, and project managers within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to unpredictable costs and potential overruns if not managed diligently.
- The duration of the contract (over 3 years) requires ongoing performance monitoring to ensure continued value.
- Dependence on a single contractor for critical incident management software could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process.
- The contract addresses a critical need for emergency response and incident management capabilities.
- The contractor, Leidos, Inc., is a large, established entity with significant government contracting experience.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on custom software development, system integration, and IT support services. The market for government IT services is substantial, with agencies increasingly relying on specialized software for operational efficiency and mission-critical functions like emergency response. Comparable spending benchmarks would involve analyzing other large-scale custom software development contracts awarded by the DoD and other federal agencies for similar functionalities.
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 for small businesses stemming from a set-aside. However, the prime contractor, Leidos, may engage small businesses for subcontracting opportunities as part of their overall project execution, though this is not mandated by the contract terms provided.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement (PWS) and delivery schedules. Transparency is generally facilitated through contract award databases, but detailed operational oversight and Inspector General (IG) jurisdiction would depend on the specific terms and any subsequent audits or investigations.
Related Government Programs
- DoD IT Modernization Programs
- Emergency Management Systems
- Command and Control Systems
- Air Force Software Development Contracts
- Leidos Government Contracts
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Contract duration requires sustained oversight.
- Dependence on contractor performance for critical function.
Tags
dod, department-of-defense, air-force, it-services, custom-software-development, emergency-response, command-and-control, incident-management, full-and-open-competition, time-and-materials, leidos-inc, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.3 million to LEIDOS, INC.. COMMAND AND CONTROL INCIDENT MANAGEMENT EMERGENCY RESPONSE APPLICATION (C2IMERA) II
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 $68.3 million.
What is the period of performance?
Start: 2023-11-20. End: 2026-09-24.
What is Leidos's track record with similar large-scale IT development and integration contracts for the Department of Defense?
Leidos, Inc. has a substantial track record of performing large-scale IT development and integration contracts for the Department of Defense and other federal agencies. They are known for handling complex systems, including command and control, intelligence, and logistics systems. Analyzing their past performance on contracts with similar scope, complexity, and pricing structures would be essential to fully assess their capability and reliability for the C2IMERA II project. Specific metrics like on-time delivery, budget adherence, and customer satisfaction from previous relevant contracts would provide valuable context for this current award.
How does the $68.25 million contract value compare to similar custom emergency response application development contracts within the federal government?
The $68.25 million contract value for the C2IMERA II application, spanning approximately 3.5 years, represents a significant investment. To benchmark this value, one would compare it against other federal contracts for developing and sustaining custom emergency response, incident management, or command and control software. Factors such as the number of users supported, the complexity of features, integration requirements with existing systems, and the specific agency awarding the contract would influence comparability. Without access to a detailed breakdown of the scope of work and specific deliverables for C2IMERA II, a precise comparison is difficult, but the overall dollar amount suggests a substantial, mission-critical system.
What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract, and how are they mitigated?
The primary risk of a Time and Materials (T&M) pricing structure is the potential for cost overruns, as the government pays for the actual labor hours and materials used, rather than a fixed price. This can lead to unpredictable expenditures if project scope creeps or if labor hours are not efficiently managed. Mitigation strategies typically involve establishing strong oversight, setting Not-to-Exceed (NTE) limits within the contract, defining clear labor categories and rates, and implementing rigorous monitoring of hours and expenses. The government's program management team must actively manage the contractor's performance and resource allocation to control costs effectively.
How effective is the C2IMERA II application expected to be in improving DoD's emergency response capabilities, based on its predecessor or similar systems?
The effectiveness of the C2IMERA II application is expected to be an improvement over its predecessor, C2IMERA, by providing enhanced capabilities for incident management and emergency response within the Department of Defense. While specific performance metrics for C2IMERA II are not detailed here, such systems typically aim to improve situational awareness, facilitate communication among response teams, streamline resource allocation, and support decision-making during crises. The success of the application will depend on its user-friendliness, reliability, integration with other DoD systems, and the quality of training and support provided. Its effectiveness will ultimately be measured by its ability to expedite response times and improve outcomes during emergencies.
What are the historical spending patterns for Command and Control Incident Management applications within the Department of Defense?
Historical spending patterns for Command and Control Incident Management applications within the Department of Defense have generally shown a consistent and often increasing trend, driven by the need for modernized, integrated systems to manage complex operational environments and emergencies. Agencies like the Air Force frequently invest in such technologies to enhance situational awareness and response coordination. Spending can fluctuate based on specific program lifecycles, technological advancements, and evolving threat landscapes. Analyzing past budgets allocated to similar systems, including sustainment and upgrade costs, would reveal trends in investment and highlight the strategic importance placed on these capabilities.
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: FA873023RB018
Offers Received: 5
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: $161,267,012
Exercised Options: $78,351,102
Current Obligation: $68,250,227
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $9,833,463
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 47QTCK18D0008
IDV Type: GWAC
Timeline
Start Date: 2023-11-20
Current End Date: 2026-09-24
Potential End Date: 2026-09-24 00:00:00
Last Modified: 2026-01-15
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