Leidos Inc. awarded $4.9M for 30-day GPS SE&I extension by Department of the Air Force
Contract Overview
Contract Amount: $51,332,527 ($51.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-05-07
End Date: 2013-03-07
Contract Duration: 304 days
Daily Burn Rate: $168.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 30 DAY GPS SE&I EXTENSION ($4.9M)
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $51.3 million to LEIDOS, INC. for work described as: 30 DAY GPS SE&I EXTENSION ($4.9M) Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. The contract duration of 304 days for a 30-day extension suggests potential scope creep or planning issues. 3. Engineering services are critical for GPS, but the value for money needs further scrutiny given the limited competition. 4. The firm-fixed-price contract type aims to control costs, but the lack of competition may inflate the price. 5. This contract falls under engineering services, a sector with significant government spending and potential for cost overruns. 6. The award to Leidos, Inc. indicates a reliance on established contractors for specialized defense services.
Value Assessment
Rating: questionable
The contract value of $4.9M for a 30-day extension, spanning 304 days, warrants scrutiny. Without competitive bidding, it's difficult to benchmark the pricing against market rates or similar contracts. The extended duration for a short-term need suggests potential inefficiencies or a lack of precise initial planning, which could inflate the effective hourly or daily rate. Further analysis of the specific services rendered during this extension period is needed to determine if the cost aligns with industry standards for similar engineering support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one vendor can provide the required services, often due to proprietary technology, urgent needs, or lack of market availability. The absence of competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to a higher price than if multiple vendors had vied for the contract.
Taxpayer Impact: Sole-source awards limit taxpayer value by removing the downward pressure on pricing that competition provides. This can result in higher overall spending for essential services.
Public Impact
The primary beneficiaries are the Department of the Air Force and the personnel relying on the GPS system. Services delivered include essential engineering and support for the Global Positioning System (GPS). The geographic impact is national, ensuring the continued functionality of a critical defense and civilian infrastructure. Workforce implications include the utilization of specialized engineering talent, likely employed by Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- The extended duration for a short-term need raises concerns about efficiency and planning.
- Sole-source awards can limit transparency and accountability in spending.
Positive Signals
- Award to an established contractor like Leidos, Inc. suggests reliability and expertise.
- Firm-fixed-price contract type provides cost certainty for the government.
- Engineering services are crucial for maintaining critical infrastructure like GPS.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and services. The U.S. government is a major consumer of these services, particularly for defense and infrastructure projects. The market for GPS engineering services is specialized, often dominated by a few key contractors with the necessary security clearances and technical expertise. Benchmarking spending in this area is challenging due to the unique nature of defense contracts and the proprietary aspects of the technologies involved.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the available data. The award to a large prime contractor like Leidos, Inc. typically means that the bulk of the work is performed in-house or by other large subcontractors. This limits the direct economic benefit to the small business ecosystem for this specific award.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- GPS Modernization Programs
- Defense Satellite Communications
- Aerospace Engineering Services
- Department of Defense IT Services
Risk Flags
- Sole-source award
- Potential for cost overruns
- Lack of competitive bidding
- Discrepancy in stated vs. actual duration
Tags
defense, department-of-the-air-force, engineering-services, gps, leidos-inc, definitive-contract, sole-source, firm-fixed-price, virginia, systems-engineering-and-integration
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.3 million to LEIDOS, INC.. 30 DAY GPS SE&I EXTENSION ($4.9M)
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 $51.3 million.
What is the period of performance?
Start: 2012-05-07. End: 2013-03-07.
What specific engineering services were provided during this 30-day extension period?
The provided data indicates a '30 DAY GPS SE&I EXTENSION' valued at $4.9 million. SE&I typically stands for Systems Engineering and Integration. These services are crucial for the complex development, maintenance, and operational support of systems like GPS. This could include activities such as requirements analysis, system design, interface management, risk management, verification and validation, and overall program management to ensure the seamless operation and evolution of the GPS constellation and its ground systems. The extension suggests that ongoing critical support was required beyond the original contract scope or timeline, necessitating continued expert engineering input.
How does the $4.9 million cost for a 30-day extension compare to typical GPS SE&I contract values?
Without specific details on the scope of work for this particular 30-day extension, a direct comparison is challenging. However, $4.9 million for 30 days of specialized engineering services for a critical system like GPS suggests a high daily rate, potentially exceeding $160,000 per day. This figure needs to be contextualized against the complexity of GPS SE&I, the level of expertise required, and the contractor's overhead. If this rate is significantly higher than comparable contracts for similar support levels, it could indicate a potential value concern, especially given the sole-source nature of the award.
What are the risks associated with awarding a 30-day extension on a sole-source basis?
The primary risk of a sole-source award for an extension is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to be efficient. Taxpayers may end up paying more than necessary. Additionally, sole-source awards can sometimes mask underlying issues with contract planning or performance, where an extension is needed because the original scope was not adequately defined or executed. This can also limit opportunities for innovative solutions that might have been brought forward by other potential bidders. Transparency is also reduced, making it harder to assess the true value received.
What is Leidos, Inc.'s track record with GPS or similar defense engineering contracts?
Leidos, Inc. is a major government contractor with extensive experience in defense, intelligence, and aviation sectors, including significant work on satellite systems and command and control. They have a well-established history of performing complex engineering, integration, and support services for various government agencies, including the Department of Defense and NASA. Their portfolio often includes large-scale, mission-critical programs. While specific details on their GPS SE&I work prior to this extension would require deeper research into contract databases, their general profile suggests they possess the technical capabilities and security clearances necessary for such demanding projects.
How does the contract duration of 304 days for a '30 DAY' extension impact the perceived value?
The discrepancy between the stated '30 DAY' purpose and the actual contract duration of 304 days is a significant point of concern regarding value and planning. This suggests that the '30 DAY' might refer to an initial urgent need or a specific milestone, but the overall support required extended far beyond that. Alternatively, it could indicate poor initial planning, scope creep, or a prolonged period of necessary support that was not foreseen. This extended duration, coupled with the sole-source award, raises questions about the efficiency of the spending and whether the government received the best possible value over the entire 304-day period.
What are the implications of this contract being a 'DEFINITIVE CONTRACT' awarded under 'NOT COMPETED'?
A 'Definitive Contract' is a fixed-price contract that specifies the exact quantity of supplies or services and the agreed-upon price. Awarding it under 'NOT COMPETED' signifies a sole-source procurement. This means the contract was awarded without seeking bids from multiple sources. While definitive contracts provide price certainty, the lack of competition means the government did not leverage market forces to potentially secure a lower price. This procurement approach is typically justified by specific circumstances, such as urgency, unique capabilities, or follow-on work to a previous sole-source award, but it inherently carries a higher risk of overpayment compared to competitively awarded contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,571,671
Exercised Options: $51,332,527
Current Obligation: $51,332,527
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,014,563
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-05-07
Current End Date: 2013-03-07
Potential End Date: 2013-03-07 00:00:00
Last Modified: 2021-11-03
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