GSA awards $543.6M contract to Leidos for Computer Systems Design Services, lasting 2373 days
Contract Overview
Contract Amount: $543,645,833 ($543.6M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2017-08-31
End Date: 2024-02-29
Contract Duration: 2,373 days
Daily Burn Rate: $229.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IGF::OT::IGF SENS3 AWARD
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407
Plain-Language Summary
General Services Administration obligated $543.6 million to LEIDOS, INC. for work described as: IGF::OT::IGF SENS3 AWARD Key points: 1. Leidos, Inc. secured a significant contract valued at over $543 million. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The primary risk appears to be the cost-plus award fee structure, which can lead to cost overruns. 4. The sector is Information Technology, specifically Computer Systems Design Services.
Value Assessment
Rating: fair
The contract's cost-plus award fee structure makes direct pricing assessment difficult without detailed performance metrics. Benchmarking against similar large-scale IT service contracts is necessary to evaluate value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method generally promotes price discovery and competitive pricing. The delivery order structure suggests it's part of a larger indefinite-delivery contract.
Taxpayer Impact: Taxpayer funds are utilized for IT services, with the effectiveness of competition and cost controls determining the ultimate value for money.
Public Impact
Citizens benefit from potentially improved government IT infrastructure and services. The contract supports a major IT services provider, impacting the tech industry. Transparency in contract execution is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee structure can incentivize higher costs.
- Long contract duration (2373 days) may reduce flexibility.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded through full and open competition.
- Significant contract value indicates a critical need for services.
- Delivery order structure allows for phased service delivery.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies, with benchmarks varying widely based on service scope and complexity.
Small Business Impact
The contract data does not indicate any specific set-asides or participation goals for small businesses. This suggests that large prime contractors are likely performing the majority of the work.
Oversight & Accountability
Oversight is critical for cost-plus award fee contracts to ensure performance targets are met and costs are reasonable. The General Services Administration's Federal Acquisition Service is responsible for managing this contract.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Cost-plus award fee structure
- Long contract duration
- Potential for scope creep
- Lack of specific performance metrics in provided data
Tags
computer-systems-design-services, general-services-administration, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $543.6 million to LEIDOS, INC.. IGF::OT::IGF SENS3 AWARD
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $543.6 million.
What is the period of performance?
Start: 2017-08-31. End: 2024-02-29.
How effectively will the cost-plus award fee structure incentivize Leidos to control costs while meeting performance objectives?
The effectiveness hinges on clearly defined performance metrics and award fee criteria. Without robust oversight and well-structured incentives, cost-plus contracts can lead to increased expenditures. Regular reviews and audits by GSA are essential to ensure value for taxpayer money and prevent unnecessary cost escalation.
What are the primary risks associated with a 2373-day contract duration for computer systems design services?
A long duration increases the risk of technological obsolescence and changing requirements. It can also limit the government's ability to adapt to new solutions or vendors. However, it can also provide stability and allow for complex, long-term projects to be completed effectively.
How does the $543.6 million award compare to typical spending for similar computer systems design services contracts?
This award represents a substantial investment, likely for a large-scale, complex project. Benchmarking requires comparing the specific services, duration, and complexity against other large federal IT contracts. Without more detail, it's difficult to definitively state if it's high or low, but the value suggests a significant undertaking.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $729,598,429
Exercised Options: $729,597,929
Current Obligation: $543,645,833
Actual Outlays: $-1,710,977
Subaward Activity
Number of Subawards: 1090
Total Subaward Amount: $187,447,294
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0039
IDV Type: GWAC
Timeline
Start Date: 2017-08-31
Current End Date: 2024-02-29
Potential End Date: 2024-02-29 00:00:00
Last Modified: 2026-04-09
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)