Leidos, Inc. awarded $18.1M for engineering services to the Department of the Navy
Contract Overview
Contract Amount: $18,105,118 ($18.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-30
End Date: 2011-03-30
Contract Duration: 2,007 days
Daily Burn Rate: $9.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: PROGRAM MANAGEMENT, TECHNICAL, ENGINEERING AND ADMIN SUPPORT
Place of Performance
Location: INDIAN HEAD, CHARLES County, MARYLAND, 20640
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $18.1 million to LEIDOS, INC. for work described as: PROGRAM MANAGEMENT, TECHNICAL, ENGINEERING AND ADMIN SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 3. The contract duration spans over 5 years, indicating a long-term need for these services. 4. The primary contractor, Leidos, Inc., is a large, established entity in the federal contracting space. 5. The engineering services provided fall under NAICS code 541330, a common category for defense support. 6. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: fair
Benchmarking the value of this specific $18.1 million contract is challenging without knowing the scope of services and the specific engineering disciplines required. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, carries inherent risks of cost overruns if not managed diligently. Comparing it to similar engineering support contracts for the Department of the Navy would provide a clearer picture of whether the pricing structure and overall award represent good value for the taxpayer. The fixed fee component offers some predictability, but the cost reimbursement aspect requires robust oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was a delivery order suggests it was likely competed as part of a broader IDIQ contract. The number of bidders for this specific delivery order is not provided, but the 'full and open' designation generally implies a robust competitive environment, which is favorable for price discovery and achieving competitive pricing.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple companies to offer their best terms. This approach helps ensure that the government is not overpaying for the required engineering services.
Public Impact
The Department of the Navy benefits from specialized engineering and technical support, crucial for its operations and maintenance. Services likely include program management, technical expertise, and administrative support, contributing to the Navy's mission readiness. The contract's performance is likely concentrated in Maryland, given the 'MD' state code, impacting the local economy and workforce. The workforce implications include employment opportunities for engineers, technical specialists, and administrative staff within Leidos and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost escalations if not closely monitored.
- Lack of specific details on the scope of engineering services makes it difficult to assess true value for money.
- The contract duration of over 5 years necessitates ongoing performance monitoring to ensure continued relevance and effectiveness.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Leidos, Inc. is an established contractor with a significant presence in the federal market, suggesting experience.
- The contract supports critical Department of the Navy operations, aligning with national defense objectives.
Sector Analysis
The engineering services sector for the federal government is substantial, encompassing a wide range of support functions for defense, infrastructure, and research. Companies like Leidos are key players, providing specialized expertise that government agencies often cannot maintain in-house. This contract fits within the broader category of professional, scientific, and technical services, which represents a significant portion of federal procurement spending. Benchmarks for similar engineering support contracts would typically consider factors like the specific technical domains, security requirements, and the level of program management involved.
Small Business Impact
This contract does not appear to have a small business set-aside designation (ss: false, sb: false). Therefore, the primary award went to a large business, Leidos, Inc. While there are no direct set-aside benefits for small businesses on this specific contract, large prime contractors are often required to meet subcontracting goals with small businesses. The extent to which Leidos will utilize small business subcontractors for specialized engineering or administrative tasks will determine the indirect impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management officials. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor incurred costs against the fixed fee. Transparency is generally maintained through contract reporting mechanisms within federal procurement systems. The specific Inspector General jurisdiction would be that of the Department of Defense.
Related Government Programs
- Department of Defense Engineering Services
- Naval Sea Systems Command (NAVSEA) Support Contracts
- Program Management Support Services
- Technical and Engineering Consulting Services
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Limited information on specific scope makes value assessment challenging.
- Long contract duration necessitates ongoing performance monitoring.
Tags
engineering-services, program-management, technical-support, administrative-support, department-of-defense, department-of-the-navy, cost-plus-fixed-fee, full-and-open-competition, delivery-order, leidos-inc, maryland, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.1 million to LEIDOS, INC.. PROGRAM MANAGEMENT, TECHNICAL, ENGINEERING AND ADMIN SUPPORT
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 Navy).
What is the total obligated amount?
The obligated amount is $18.1 million.
What is the period of performance?
Start: 2005-09-30. End: 2011-03-30.
What is the specific nature of the engineering services provided under this contract?
The data provided indicates the contract is for 'PROGRAM MANAGEMENT, TECHNICAL, ENGINEERING AND ADMIN SUPPORT' under NAICS code 541330 (Engineering Services). While the broad categories are listed, the precise technical engineering disciplines, project scopes, and administrative functions are not detailed in the provided data. These services likely encompass a range of activities supporting the Department of the Navy's acquisition, development, or sustainment programs. Examples could include systems engineering, naval architecture, project planning, risk management, and logistical support. A deeper dive into the contract's statement of work (SOW) would be necessary to ascertain the specific technical deliverables and expertise required.
How does the $18.1 million award compare to similar engineering support contracts for the Department of the Navy?
Comparing this $18.1 million award requires context regarding the contract's duration and scope. The contract spans from September 30, 2005, to March 30, 2011, a period of approximately 5.5 years. This averages to roughly $3.3 million per year. The Department of the Navy procures a vast array of engineering services, ranging from highly specialized R&D to broad program management support. Without knowing the specific technical requirements and deliverables of this Leidos contract, a direct comparison is difficult. However, for long-term, comprehensive program management and engineering support, $3.3 million annually could be considered moderate, especially when compared to large-scale platform development contracts. Further analysis would involve benchmarking against contracts with similar NAICS codes and service descriptions awarded within the same timeframe.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here?
The Cost Plus Fixed Fee (CPFF) contract type presents several potential risks. Primarily, the government agrees to pay the contractor's actual allowable costs plus a predetermined fixed fee. This means the contractor has less incentive to control costs compared to fixed-price contracts, as their profit (the fixed fee) is guaranteed regardless of the final cost. The main risk for the government is cost overrun; if the contractor's actual costs exceed initial estimates, the total expenditure will be higher than anticipated. Effective oversight, detailed cost tracking, and robust auditing are essential to mitigate these risks. The fixed fee itself can also be a point of negotiation, and ensuring it adequately compensates the contractor for the effort without being excessive is crucial for value.
What is Leidos, Inc.'s track record with the Department of the Navy for similar services?
Leidos, Inc. (and its predecessor entities) has a substantial and long-standing track record of providing a wide array of services, including program management, technical, engineering, and administrative support, to the Department of the Navy and the broader Department of Defense. They are a major federal contractor known for their capabilities in complex systems integration, IT, and defense support. Given their size and market position, it is highly probable that they have been awarded numerous contracts, including delivery orders under IDIQ vehicles, for services similar to those described. Their extensive experience suggests a familiarity with Navy requirements and processes, which can be both a positive (efficiency) and a potential risk (complacency or lack of fresh perspectives) depending on contract management.
How does the competition level ('full-and-open') typically influence pricing for engineering services?
Awarding contracts under 'full-and-open' competition generally has a positive impact on pricing for taxpayers. This approach maximizes the pool of potential bidders, encouraging a wider range of companies to submit proposals. Increased competition typically drives down prices as contractors strive to offer the most competitive bids to win the contract. It also fosters innovation and efficiency as companies seek to differentiate themselves not only on price but also on the quality and value of their proposed solutions. For engineering services, where technical expertise and approach can vary significantly, full and open competition allows the government to solicit diverse solutions and select the best overall value, which often includes a favorable price point.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002405R3297
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 103 PAUL MELLON COURT STE, WALDORF, MD, 20602
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $32,409,977
Exercised Options: $32,409,977
Current Obligation: $18,105,118
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4013
IDV Type: IDC
Timeline
Start Date: 2005-09-30
Current End Date: 2011-03-30
Potential End Date: 2011-03-30 00:00:00
Last Modified: 2023-08-08
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