Leidos Inc. awarded $58.75M contract for professional, scientific, and technical services by the Department of Defense
Contract Overview
Contract Amount: $58,750,018 ($58.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-18
End Date: 2014-04-20
Contract Duration: 2,771 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $58.8 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 3. With a duration of 2771 days, this represents a significant long-term commitment from the agency. 4. The contract was awarded by the Defense Contract Management Agency, indicating a focus on oversight and support. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 6. The contract's value of $58.75 million over its term suggests substantial service delivery.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to the broad NAICS code and the Cost Plus Award Fee structure, which can lead to variable costs. Without specific performance metrics or comparable contract data, it's difficult to definitively assess value for money. The significant duration and total award amount indicate a substantial investment, but the cost-effectiveness hinges on the achieved award fees and the efficiency of service delivery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, certain sources were initially excluded. This suggests a potentially complex procurement process. The presence of 6 bidders (no) implies a reasonable level of competition, which should theoretically contribute to price discovery and a more competitive outcome for the government.
Taxpayer Impact: The open competition, despite initial exclusions, likely provided the government with a range of offers, potentially leading to a more favorable price than a sole-source award. However, the specifics of the exclusion could impact the ultimate cost savings.
Public Impact
The Department of Defense benefits from a broad range of professional, scientific, and technical services essential for its operations. This contract supports the Defense Contract Management Agency's mission to ensure contractor performance and compliance. The services delivered likely contribute to national security objectives by supporting various defense-related functions. The geographic impact is primarily within the United States, supporting defense operations and oversight. The contract may have implications for a specialized workforce in scientific, technical, and professional fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to costs exceeding initial estimates if award criteria are not tightly managed.
- The broad nature of 'All Other Professional, Scientific, and Technical Services' makes it difficult to precisely define and track the scope of work, potentially leading to scope creep.
- The exclusion of sources in the competition, even if justified, warrants scrutiny to ensure fairness and optimal market participation.
Positive Signals
- Awarded through full and open competition, indicating a structured and competitive procurement process.
- The contract has a defined start and end date, providing a clear timeframe for service delivery.
- The presence of multiple bidders (6) suggests a healthy level of market interest and potential for competitive pricing.
Sector Analysis
The professional, scientific, and technical services sector is a significant component of government contracting, encompassing a wide array of specialized expertise. This contract falls under NAICS code 541990, which is a catch-all for services not classified elsewhere, indicating a diverse range of potential support functions. The market for such services is large and competitive, with many firms offering specialized capabilities to government agencies. Comparable spending benchmarks would depend heavily on the specific services rendered within this broad category.
Small Business Impact
The provided data indicates that 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 provision. The prime contractor, Leidos, Inc., is a large business, and any subcontracting opportunities would be at their discretion, not mandated by a small business set-aside.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contractor performance and ensuring compliance with contract terms. As a Cost Plus Award Fee contract, performance metrics and award fee determinations are key oversight mechanisms. Transparency would be enhanced by public reporting of performance against these metrics and the justification for awarded fees. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Contract Management Services
- Professional and Technical Services
- Scientific Support Services
- Government Contracting Oversight
- Cost Plus Award Fee Contracts
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Risk of scope creep in broad service category.
- Long contract duration may lead to outdated services or changing requirements.
- Effectiveness of performance monitoring over extended period.
- Justification for exclusion of sources in competition needs review.
Tags
department-of-defense, defense-contract-management-agency, professional-scientific-technical-services, cost-plus-award-fee, definitive-contract, full-and-open-competition, leidos-inc, long-term-contract, virginia, naics-541990, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.8 million to LEIDOS, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $58.8 million.
What is the period of performance?
Start: 2006-09-18. End: 2014-04-20.
What specific types of professional, scientific, and technical services were provided under this contract?
The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can encompass a wide range of activities, including but not limited to research and development support, engineering consulting, environmental services, management consulting, and specialized technical assistance. Without further details in the contract award notice, the precise nature of the services remains unspecified. However, given the awarding agency (Defense Contract Management Agency), the services likely relate to supporting the agency's mission of overseeing defense contracts, ensuring contractor performance, and providing technical expertise related to defense acquisition programs.
How does the Cost Plus Award Fee (CPAF) structure impact the total cost and value for money compared to other contract types?
The Cost Plus Award Fee (CPAF) structure allows the contractor to recover allowable costs plus a base fee, plus an award fee that is determined by the government based on performance against pre-defined criteria. This structure incentivizes high performance but introduces variability in the total cost. Compared to a firm-fixed-price contract, CPAF can lead to higher total costs if the contractor achieves high award fees. However, it can be advantageous when the scope of work is not precisely defined or when exceptional performance is desired. Assessing value for money requires a thorough evaluation of whether the achieved performance justified the total cost, including the award fee component, relative to alternative contract types and potential outcomes.
What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation?
This designation indicates that the procurement was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, 'after exclusion of sources' suggests that certain potential offerors were excluded from the competition, likely due to specific reasons outlined in the Federal Acquisition Regulation (FAR), such as national security concerns, past performance issues, or specific statutory requirements. While the competition was open to the remaining eligible sources, the exclusion of some could potentially limit the breadth of competition and may warrant further investigation into the justification for such exclusions to ensure maximum value for taxpayers.
What is the historical spending pattern for NAICS code 541990 by the Department of Defense?
The Department of Defense (DoD) is a significant spender within the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category. Historical data shows consistent and substantial investment in these services across various branches and agencies. Spending in this category often fluctuates based on strategic priorities, research initiatives, and operational support needs. While specific annual figures for the DoD within this NAICS code are not provided here, it is generally understood to be a multi-billion dollar annual expenditure area, reflecting the broad range of specialized support the DoD procures to maintain its technological edge and operational readiness.
What are the potential risks associated with a contract of this duration (2771 days)?
A contract duration of 2771 days (approximately 7.6 years) presents several potential risks. Firstly, the longer the contract, the greater the potential for scope creep or changes in requirements that may not be adequately captured in the initial award, potentially leading to cost overruns. Secondly, market conditions, technological advancements, and agency priorities can shift significantly over such a long period, potentially making the contracted services less relevant or efficient by the end of the term. Thirdly, maintaining consistent oversight and performance management over an extended period requires sustained effort and resources from the contracting agency. Finally, there's a risk of contractor complacency or a decline in service quality if performance incentives are not robustly managed throughout the contract's life.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: BASIC RESEARCH
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-09-18
Current End Date: 2014-04-20
Potential End Date: 2014-04-20 00:00:00
Last Modified: 2016-07-19
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