Leidos Inc. awarded $49.2M contract for computer systems design services by GSA

Contract Overview

Contract Amount: $49,228,003 ($49.2M)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2013-12-01

End Date: 2014-09-29

Contract Duration: 302 days

Daily Burn Rate: $163.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $49.2 million to LEIDOS, INC. for work described as: IGF::OT::IGF Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of 302 days indicates a focused, short-term project. 4. The 'Cost Plus Fixed Fee' pricing structure warrants scrutiny for cost control. 5. This contract falls within the broader IT services sector, a key area for federal spending. 6. Performance context is limited without specific deliverables or performance metrics.

Value Assessment

Rating: fair

The contract value of $49.2 million for computer systems design services is substantial. Benchmarking this against similar contracts requires detailed analysis of the specific services rendered, scope, and duration. The 'Cost Plus Fixed Fee' (CPFF) pricing structure, while common, can sometimes lead to cost overruns if not managed tightly. Without specific performance data or comparison to industry benchmarks for similar IT design services, a definitive value-for-money assessment is challenging. However, the fixed fee component aims to provide some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust competitive environment. The number of bidders is not specified, but full and open competition generally leads to a wider pool of potential offerors, which can drive down prices and improve service quality. The agency's decision to use this procurement method implies confidence in achieving best value through market forces.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically fosters a more competitive pricing environment, potentially leading to lower overall costs for government services. It also ensures that the government has access to a broad range of innovative solutions from the market.

Public Impact

The primary beneficiaries are likely federal agencies requiring computer systems design and integration support. Services delivered include the design and development of computer systems, crucial for modernizing government IT infrastructure. The geographic impact is likely concentrated within the operational areas of the contracting agency, primarily GSA. Workforce implications may include employment opportunities for IT professionals, system designers, and project managers within Leidos and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize contractors to increase costs to maximize their fee if not carefully monitored.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The contract duration is relatively short (302 days), which might indicate a project with a defined scope or potential for follow-on work, introducing uncertainty.

Positive Signals

Awarded under 'Full and Open Competition,' suggesting a competitive process that should yield fair pricing.
Leidos is a large, established government contractor with a significant track record in IT services, implying experience and capability.
The contract is for computer systems design services, a critical function for maintaining and upgrading federal IT infrastructure.

Sector Analysis

The IT services sector is a significant component of federal spending, encompassing a wide range of activities from software development to systems integration and cybersecurity. This contract for computer systems design services fits within the broader category of IT consulting and professional services. The federal government is a major consumer of these services, constantly seeking to modernize its aging IT infrastructure and improve operational efficiency. Spending in this sector is driven by the need for advanced technological solutions to support government missions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, Leidos, Inc., is a large business. While there are no direct set-aside benefits for small businesses on this prime contract, large federal contracts often involve subcontracting opportunities. However, without specific subcontracting plans or goals mentioned, the extent of small business participation remains unclear. The focus on a large prime contractor may limit direct opportunities for small businesses unless they are part of Leidos's supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA is responsible for ensuring contract compliance, monitoring performance, and managing payments. The 'Cost Plus Fixed Fee' structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract databases and reporting requirements, though specific performance details may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Computer Systems Integration
IT Consulting Services
Software Development Services
Cloud Computing Services
IT Infrastructure Modernization

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to prevent cost overruns.
Limited public information on specific performance metrics makes assessing effectiveness challenging.
Contract duration is relatively short, potentially indicating a project with defined deliverables or a need for follow-on work.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $49.2 million to LEIDOS, INC.. IGF::OT::IGF

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 $49.2 million.

What is the period of performance?

Start: 2013-12-01. End: 2014-09-29.

What is Leidos, Inc.'s track record with the General Services Administration and similar IT service contracts?

Leidos, Inc. has a substantial track record as a prime contractor for the U.S. government, including numerous contracts with the General Services Administration (GSA) and other federal agencies. They specialize in a wide array of IT services, including systems design, integration, cybersecurity, and data analytics. Their history with GSA likely involves managing complex IT projects and delivering solutions across various domains. Analyzing their past performance on similar 'Cost Plus Fixed Fee' contracts would provide insight into their ability to manage costs and deliver within scope. Publicly available contract databases often show extensive award histories, indicating significant experience and a deep understanding of federal procurement processes. However, specific performance ratings or past issues would require deeper investigation into contract close-out reports or IG audits, if available.

How does the $49.2 million contract value compare to similar computer systems design services contracts awarded by GSA in the same period?

Comparing the $49.2 million contract value requires context regarding the specific scope, duration, and complexity of the computer systems design services. Contracts awarded by GSA for similar services in the 2013-2014 timeframe (based on the award date) would serve as the most relevant benchmark. If this contract was for a large-scale system overhaul or the design of a new enterprise-wide IT architecture, the value might be considered standard or even moderate. Conversely, if it was for a more localized or specialized system design, it could be on the higher end. Without knowing the exact deliverables, number of users impacted, or the specific technologies involved, a precise comparison is difficult. However, given the 'Full and Open Competition' and the nature of IT services, this value suggests a significant project requiring substantial resources and expertise.

What are the primary risks associated with a 'Cost Plus Fixed Fee' (CPFF) contract for computer systems design?

The primary risk with a 'Cost Plus Fixed Fee' (CPFF) contract, like this one, is the potential for cost overruns. While the 'fixed fee' provides the contractor with a predetermined profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the government pays the higher amount, up to the contract ceiling. This can incentivize less cost-conscious behavior from the contractor if oversight is weak. For computer systems design, risks include scope creep, unforeseen technical challenges, and integration issues, all of which can drive up costs. Effective risk mitigation requires rigorous government oversight of contractor expenditures, clear definition of allowable costs, and strong project management to control scope and schedule.

How effective is 'Full and Open Competition' in ensuring value for money for IT services contracts of this magnitude?

Full and Open Competition is generally considered the most effective method for ensuring value for money in IT services contracts, especially for those of significant magnitude like this $49.2 million award. By allowing all responsible sources to compete, it maximizes the potential for receiving the best technical solutions at the most competitive prices. This broad competition drives innovation and encourages contractors to offer their most efficient and cost-effective approaches. The process typically involves detailed evaluation criteria, allowing the government to select not just the lowest price, but the best overall value, considering technical merit, past performance, and price. While it requires more upfront effort in solicitation and evaluation, the long-term benefits in terms of cost savings and quality are substantial for taxpayers.

What are the historical spending patterns for computer systems design services by the General Services Administration?

Historical spending patterns for computer systems design services by the General Services Administration (GSA) typically show a consistent and significant investment in IT modernization and support. GSA, as a central procurement agency, often awards large contracts in this area to support its own operations and those of other federal agencies through its various IT schedules and acquisition programs. Spending in this category has generally trended upwards over the years, reflecting the increasing reliance on technology across the federal government. Factors influencing these patterns include evolving technological landscapes (e.g., cloud adoption, cybersecurity needs), agency-specific modernization initiatives, and budget allocations. The $49.2 million award in late 2013 falls within a period of ongoing federal IT modernization efforts, suggesting it aligns with broader spending trends aimed at improving government IT infrastructure and capabilities.

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

Solicitation ID: ID04130195

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $155,899,075

Exercised Options: $147,512,443

Current Obligation: $49,228,003

Actual Outlays: $70,246

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0039

IDV Type: GWAC

Timeline