GSA's $40.8M TENA contract to Leidos, Inc. for engineering services shows a 6-year duration

Contract Overview

Contract Amount: $40,801,179 ($40.8M)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2017-09-23

End Date: 2023-03-22

Contract Duration: 2,006 days

Daily Burn Rate: $20.3K/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 TEST AND TRAINING ENABLING ARCHITECTURE TENA ENTERPRISE DEVELOPMENT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $40.8 million to LEIDOS, INC. for work described as: IGF::OT::IGF TEST AND TRAINING ENABLING ARCHITECTURE TENA ENTERPRISE DEVELOPMENT Key points: 1. The contract's value of $40.8 million over six years suggests a moderate annual spend. 2. Competition dynamics for this contract were full and open, indicating a potentially competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can introduce cost escalation risks if not managed closely. 4. Performance context is linked to engineering services for the TENA Enterprise Development program. 5. Sector positioning is within engineering services, a critical component of government IT and defense infrastructure. 6. The duration of 2006 days (approx. 5.5 years) aligns with the stated end date, suggesting project continuity.

Value Assessment

Rating: fair

Benchmarking the value of this $40.8 million contract requires more granular data on the specific engineering services provided. However, the average annual spend is approximately $6.8 million. Without comparable contract data for similar TENA development efforts, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not robust.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through a wider pool of potential offerors, leading to more cost-effective procurement outcomes.

Public Impact

The primary beneficiaries are likely government agencies utilizing the Test and Training Enabling Architecture (TENA) for their testing and training needs. Services delivered include engineering support for the development and maintenance of the TENA enterprise. The geographic impact is likely national, supporting federal testing and training infrastructure across various locations. Workforce implications include employment for engineers and technical staff involved in software development, integration, and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type may lead to cost overruns if not closely monitored.
  • Lack of specific performance metrics makes it difficult to assess the effectiveness of the engineering services.
  • The long duration of the contract could indicate potential for scope creep or evolving requirements.

Positive Signals

  • Awarded under full and open competition, suggesting a competitive process.
  • The contract duration of over five years indicates a stable and ongoing need for these services.
  • The contractor, Leidos, Inc., is a large, established entity with significant government contracting experience.

Sector Analysis

The engineering services sector is a broad category encompassing design, development, and technical support. This contract falls within the IT and defense-related engineering services market, which is substantial. Government spending in this area is driven by the need for complex systems development and maintenance. Comparable spending benchmarks would typically be found within large-scale IT development and integration contracts for federal agencies.

Small Business Impact

The 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. However, as a large prime contract awarded to Leidos, Inc., there may be opportunities for small businesses to participate as subcontractors, depending on Leidos's subcontracting plan and the specific needs of the TENA program.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) through its contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

  • Test and Training Enabling Architecture (TENA)
  • Engineering Services Contracts
  • IT Development Contracts
  • Defense Systems Engineering
  • General Services Administration IT Procurement

Risk Flags

  • Cost Plus Fixed Fee contract type carries inherent cost escalation risk.
  • Limited public information on specific performance metrics makes value assessment difficult.
  • Potential for scope creep given the multi-year duration of the contract.

Tags

engineering-services, general-services-administration, leidos-inc, test-and-training-enabling-architecture, full-and-open-competition, cost-plus-fixed-fee, delivery-order, it-services, defense-support, federal-acquisition-service, virginia

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $40.8 million to LEIDOS, INC.. IGF::OT::IGF TEST AND TRAINING ENABLING ARCHITECTURE TENA ENTERPRISE DEVELOPMENT

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 $40.8 million.

What is the period of performance?

Start: 2017-09-23. End: 2023-03-22.

What is the specific nature of the engineering services provided under this contract?

The contract data identifies the service as 'Engineering Services' (nd: Engineering Services) for the 'IGF::OT::IGF TEST AND TRAINING ENABLING ARCHITECTURE TENA ENTERPRISE DEVELOPMENT' (d). This suggests that Leidos, Inc. is providing technical expertise for the design, development, integration, and potentially maintenance of the TENA platform. TENA is a widely used framework for distributed simulation and training, enabling interoperability between different simulation systems. The engineering services likely encompass software development, system integration, testing, and technical support to ensure the TENA enterprise functions effectively for its users.

How does the $40.8 million contract value compare to similar engineering services contracts for large federal IT programs?

A direct comparison of the $40.8 million value is challenging without knowing the specific scope and duration of comparable contracts. However, for large-scale federal IT programs requiring specialized engineering support over several years, this value appears moderate. Many complex system development contracts can reach hundreds of millions or even billions of dollars. The annual average spend of approximately $6.8 million suggests a focused effort rather than a massive program overhaul. To provide a more precise benchmark, one would need to analyze contracts with similar service descriptions (e.g., simulation development, enterprise architecture engineering) and agency types (e.g., DoD, GSA).

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost is not. If the contractor's costs exceed initial estimates, the government pays the higher costs. This can occur due to unforeseen technical challenges, scope creep, or inefficient performance. For the government, effective oversight and robust cost control mechanisms are crucial to mitigate these risks and ensure the project stays within budget expectations. The fixed fee provides some incentive for the contractor to control costs, but the primary burden of cost escalation lies with the government.

What is the historical spending pattern for the Test and Training Enabling Architecture (TENA) program?

The provided data indicates this specific contract (awarded 2017-09-23, ending 2023-03-22) has a duration of 2006 days, totaling $40.8 million. The 'dur' field shows '20340', which is likely a typo or an internal code, not a year. Without access to historical contract data for TENA from other agencies or previous contracts with the same agency, a comprehensive historical spending pattern cannot be determined. However, the existence of this contract suggests a sustained investment in TENA. Further analysis would require querying contract databases for all awards related to TENA across different fiscal years and agencies.

How does Leidos, Inc.'s track record influence the assessment of this contract's performance?

Leidos, Inc. is a major government contractor with extensive experience in IT, engineering, and defense sectors. Their track record generally includes the successful execution of large, complex projects. For this specific TENA contract, their established capabilities in engineering services and enterprise development likely contributed to their selection. While a strong track record suggests a higher probability of successful performance, it does not eliminate risks. Contract performance is also influenced by specific project management, resource allocation, and the evolving requirements of the TENA program itself. A review of Leidos's past performance ratings on similar contracts would provide a more nuanced view.

What are the implications of the 'Federal Acquisition Service' (SA) for this contract?

The 'Federal Acquisition Service' (SA) is a part of the General Services Administration (GSA) responsible for providing a wide range of products and services to federal agencies. When a contract is managed through FAS, it often means that GSA is leveraging its procurement expertise and existing contract vehicles to acquire services on behalf of other agencies. This can lead to efficiencies and cost savings through bulk purchasing and standardized acquisition processes. For this TENA contract, it implies that GSA is facilitating the procurement of engineering services, likely for use by multiple federal entities that rely on TENA for their testing and training needs.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: ID11160062

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1750 PRESIDENTS ST FL 4, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $76,299,098

Exercised Options: $68,418,893

Current Obligation: $40,801,179

Actual Outlays: $-2,986

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $2,327,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU122

IDV Type: IDC

Timeline

Start Date: 2017-09-23

Current End Date: 2023-03-22

Potential End Date: 2023-03-22 00:00:00

Last Modified: 2025-04-03

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