Leidos Inc. awarded $11M for IT Security Support Services by Treasury's Financial Management Service
Contract Overview
Contract Amount: $10,981,650 ($11.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2002-09-15
End Date: 2007-01-15
Contract Duration: 1,583 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT SECURITY SUPPORT SERVICES
Place of Performance
Location: HYATTSVILLE, PRINCE GEORGE'S County, MARYLAND, 20782
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $11.0 million to LEIDOS, INC. for work described as: IT SECURITY SUPPORT SERVICES Key points: 1. Contract awarded under firm-fixed-price terms, indicating predictable costs for the government. 2. The contract duration of 1583 days suggests a need for sustained support. 3. Awarded by the Department of the Treasury, indicating a focus on financial system security. 4. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 5. The contract was awarded under full and open competition, suggesting a robust bidding process.
Value Assessment
Rating: good
The contract value of approximately $11 million over roughly 4.3 years represents a moderate investment in IT security support. Benchmarking against similar large-scale IT security contracts would provide a clearer picture of value for money. However, the firm-fixed-price structure generally aids in cost control. Without specific performance metrics or comparison data, a definitive value assessment is challenging, but the competitive award suggests a reasonable price was likely achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a degree of competition, though the exact number of interested parties and the nature of their proposals would offer more insight. A competitive process like this typically drives down prices and encourages innovation as contractors vie for the award.
Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely resulted in a more cost-effective solution for essential IT security services. The government secured services through a process designed to yield the best value.
Public Impact
Federal financial systems and sensitive data are protected through enhanced IT security measures. The Department of the Treasury's Financial Management Service benefits from specialized technical expertise. The contract supports IT infrastructure and cybersecurity operations within the federal government. Workforce implications may include the need for skilled cybersecurity professionals to fulfill the contract's requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specialized knowledge is developed solely by the contractor.
- Reliance on a single vendor for critical security functions could pose a risk if performance degrades.
Positive Signals
- Award through full and open competition suggests a fair and competitive pricing environment.
- Firm-fixed-price contract provides cost certainty for the government.
- Long contract duration indicates a stable and ongoing need for these services.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on cybersecurity. The market for IT security support services is substantial and growing, driven by increasing cyber threats and the digitization of government operations. Comparable spending benchmarks for similar IT security support contracts within federal agencies can range from millions to hundreds of millions of dollars, depending on the scope and duration. This contract appears to be a mid-tier award within this sector.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not the primary focus of this award. There is no explicit information on subcontracting plans for small businesses. The absence of a small business set-aside suggests larger, established firms were expected to compete and perform the work, potentially limiting direct opportunities for smaller players in this specific contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Treasury's Financial Management Service. Accountability measures are inherent in the firm-fixed-price structure, which ties payment to deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Information Security Management Act (FISMA) Compliance
- Department of the Treasury Cybersecurity Initiatives
- IT Infrastructure Modernization Programs
- Financial Sector Cybersecurity Standards
Risk Flags
- Potential for cost overruns if scope is not clearly defined.
- Risk of inadequate service delivery if contractor prioritizes profit over quality.
- Dependency on contractor expertise could create knowledge gaps internally.
Tags
it-security, it-consulting, department-of-the-treasury, financial-management-service, firm-fixed-price, full-and-open-competition, mid-size-contract, cybersecurity, technical-services, federal-contract, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $11.0 million to LEIDOS, INC.. IT SECURITY SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Financial Management Service).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2002-09-15. End: 2007-01-15.
What was the specific nature of the IT security support services provided under this contract?
The contract, identified by NAICS code 541690 (Other Scientific and Technical Consulting Services), was for IT Security Support Services. While the specific deliverables are not detailed in the provided data, such services typically encompass a range of activities including vulnerability assessments, penetration testing, security policy development and implementation, incident response planning and execution, security awareness training, and the management of security technologies. Given the awarding agency (Department of the Treasury) and its Financial Management Service, the services likely focused on protecting sensitive financial data and critical IT infrastructure supporting financial operations.
How does the awarded amount of $10,981,649.57 compare to similar IT security support contracts awarded by the federal government?
The $10.98 million award for IT Security Support Services is a moderate-sized contract within the federal IT landscape. Larger, multi-year cybersecurity contracts can easily reach hundreds of millions or even billions of dollars, especially those involving extensive system integration, large-scale managed security services, or comprehensive cyber defense solutions across multiple agencies. Smaller, more focused contracts might be in the hundreds of thousands or low millions. This contract's value suggests a significant but not massive scope, likely covering specialized support or a defined set of security functions for a specific bureau or system within the Treasury.
What are the key risks associated with a firm-fixed-price contract for IT security support services?
While firm-fixed-price (FFP) contracts offer cost certainty, risks can arise. For IT security, a primary risk is that the contractor might cut corners on quality or scope to maximize profit if the fixed price is too low or if oversight is insufficient. This could lead to inadequate security measures. Conversely, if the price was set too high, the government might overpay for the services. Another risk is scope creep; if the government requires additional services beyond the original scope, managing changes and associated costs under an FFP contract can become complex and contentious, potentially leading to disputes or requiring contract modifications.
What does the contract's duration (1583 days) imply about the nature of the IT security needs?
A duration of 1583 days, approximately 4.3 years, indicates that the IT security needs addressed by this contract are considered long-term and require sustained effort rather than a short-term project. This suggests the services are integral to the ongoing operations and security posture of the Financial Management Service. Such durations are common for services like continuous monitoring, managed security services, regular vulnerability management, and the maintenance of security protocols and systems, implying a stable requirement for specialized expertise.
How might the 'Other Scientific and Technical Consulting Services' NAICS code (541690) influence the type of IT security support provided?
The NAICS code 541690, 'Other Scientific and Technical Consulting Services,' is broad and suggests that the IT security support likely involved specialized advice, analysis, and technical expertise rather than the direct provision of hardware or off-the-shelf software. This could include areas like developing advanced security strategies, conducting complex risk assessments, advising on emerging threats, providing expert consultation on security architecture, or assisting with compliance and regulatory matters. It implies a focus on intellectual capital and specialized knowledge applied to security challenges.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,981,650
Exercised Options: $10,981,650
Current Obligation: $10,981,650
Parent Contract
Parent Award PIID: GS00T99SJA0703
IDV Type: IDC
Timeline
Start Date: 2002-09-15
Current End Date: 2007-01-15
Potential End Date: 2007-01-15 00:00:00
Last Modified: 2008-09-10
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