Leidos awarded $32.18M for IT and operations support to ensure worldwide system availability

Contract Overview

Contract Amount: $32,183,232 ($32.2M)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2005-01-25

End Date: 2006-09-04

Contract Duration: 587 days

Daily Burn Rate: $54.8K/day

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THIS TASK ORDER IS TO PROVIDE IT SUPPORT & OPERATIONS SUPPORT SERVICES NECESSARY TO ENSURE OPERATIONAL AVAILABILITY OF MSC'S IT SYSTEMS WORLDWIDE.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $32.2 million to LEIDOS, INC. for work described as: THIS TASK ORDER IS TO PROVIDE IT SUPPORT & OPERATIONS SUPPORT SERVICES NECESSARY TO ENSURE OPERATIONAL AVAILABILITY OF MSC'S IT SYSTEMS WORLDWIDE. Key points: 1. Contract provides essential IT and operations support for critical systems. 2. Focus on ensuring operational availability across global networks. 3. Task order issued under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. Contract type is Cost Plus Award Fee (CPAF), incentivizing performance. 5. Duration of 587 days indicates a medium-term operational support requirement. 6. Geographic scope is worldwide, highlighting the global reach of supported systems.

Value Assessment

Rating: good

The contract's Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, potentially driving value. Benchmarking against similar IT support contracts would provide a clearer picture of cost-effectiveness. The raw dollar amount of $32.18 million over approximately 1.6 years suggests a significant investment in maintaining critical IT infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this specific task order is not detailed in the provided data. Task orders under IDIQ contracts can vary in their competitive nature, ranging from full and open competition to directed awards. Understanding the competition dynamics is crucial for assessing price discovery and potential cost savings.

Taxpayer Impact: The level of competition directly impacts taxpayer value; robust competition typically leads to lower prices and better service offerings.

Public Impact

Benefits the General Services Administration (GSA) by ensuring the operational availability of its IT systems. Delivers IT support and operations services essential for global system functionality. Geographic impact is worldwide, supporting GSA's international operations. Workforce implications include the need for skilled IT professionals to maintain and operate complex systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of detailed competition information for this task order.
  • Cost Plus Award Fee (CPAF) contracts can sometimes lead to higher costs if not managed tightly.
  • Potential for scope creep in IT support contracts if requirements are not clearly defined and managed.

Positive Signals

  • Contract aims to ensure critical IT system availability, a key performance indicator.
  • CPAF structure incentivizes contractor performance and potentially better outcomes.
  • Leidos, Inc. is a large, established government contractor with significant IT experience.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services market. The federal government is a major consumer of these services, relying on them to maintain everything from administrative systems to national security infrastructure. Spending in this area is consistently high, reflecting the ongoing need for IT modernization and operational support.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. As a task order under a potentially larger IDIQ, the small business participation might be addressed at the IDIQ level or vary per task order. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the General Services Administration (GSA). The CPAF structure implies performance metrics that would be monitored to determine award fees. Transparency would depend on GSA's reporting practices for task orders issued under its IDIQ vehicles.

Related Government Programs

  • IT Operations and Maintenance
  • IT Support Services
  • Cloud Computing Services
  • Cybersecurity Services
  • Network Infrastructure Management

Risk Flags

  • Potential for cost overruns due to CPAF structure.
  • Risk of service disruption in global operations.
  • Cybersecurity vulnerabilities in a worldwide IT environment.
  • Dependence on a single contractor for critical IT infrastructure.

Tags

it-services, computer-systems-design, operations-support, it-support, cost-plus-award-fee, general-services-administration, leidos-inc, worldwide, task-order, federal-acquisition-service

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $32.2 million to LEIDOS, INC.. THIS TASK ORDER IS TO PROVIDE IT SUPPORT & OPERATIONS SUPPORT SERVICES NECESSARY TO ENSURE OPERATIONAL AVAILABILITY OF MSC'S IT SYSTEMS WORLDWIDE.

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 $32.2 million.

What is the period of performance?

Start: 2005-01-25. End: 2006-09-04.

What is the historical spending pattern for IT support and operations services by the General Services Administration?

The General Services Administration (GSA) consistently spends significant amounts on IT support and operations services. While specific historical data for this exact task order is limited to its $32.18 million value over 587 days, GSA's overall IT budget is substantial, encompassing a wide range of services including system design, maintenance, network operations, and cybersecurity. Analyzing GSA's broader IT spending trends reveals a continuous demand for these services, driven by the need to modernize legacy systems, adopt new technologies, and ensure the secure and reliable operation of government IT infrastructure. Trends often show an increasing allocation towards cloud services, data analytics, and cybersecurity solutions, reflecting evolving technological landscapes and government priorities. Understanding these broader patterns helps contextualize the investment made in this specific task order.

How does the Cost Plus Award Fee (CPAF) contract type typically influence contractor performance and cost for IT services?

Cost Plus Award Fee (CPAF) contracts are designed to incentivize contractor performance by linking a portion of the fee to the achievement of specific performance objectives. In the context of IT support and operations, these objectives could include system uptime, response times, security compliance, and project milestones. The contractor is reimbursed for allowable costs and receives a base fee, plus an award fee determined by the government based on performance evaluations. This structure aims to encourage contractors to go beyond minimum requirements and deliver exceptional value. However, CPAF contracts can also lead to higher overall costs compared to fixed-price contracts if the award fee criteria are not well-defined or if the government's evaluation process is subjective. Effective management and clear performance metrics are crucial to ensure that CPAF drives desired outcomes without excessive cost inflation.

What are the potential risks associated with a worldwide IT support and operations contract?

A worldwide IT support and operations contract, such as the one awarded to Leidos, Inc., carries several inherent risks. Geographically dispersed operations introduce complexities in logistics, communication, and cultural differences. Ensuring consistent service quality across different regions and time zones can be challenging. Cybersecurity risks are amplified due to a larger attack surface and varying local regulations or infrastructure capabilities. Furthermore, managing a global workforce requires robust HR policies and compliance with international labor laws. Unexpected events like natural disasters, political instability, or widespread network outages in specific regions can disrupt service delivery. The contractor must maintain high levels of redundancy, disaster recovery planning, and adaptable operational strategies to mitigate these multifaceted risks effectively.

What is Leidos, Inc.'s track record in providing IT support and operations services to the federal government?

Leidos, Inc. has a substantial and well-established track record in providing a wide array of IT support and operations services to various U.S. federal agencies. As a major government contractor, they have experience across defense, intelligence, civilian, and health sectors. Their portfolio often includes large-scale system integration, enterprise IT management, cybersecurity solutions, and mission-critical operational support. Leidos has been involved in numerous complex projects requiring global reach and high availability, similar to the requirements of this task order. Their history includes managing significant IT infrastructure, developing and implementing new technologies, and ensuring the continuity of essential government functions. Government contract databases and performance reviews generally reflect Leidos's capacity to handle demanding IT service requirements, though specific performance on individual contracts can vary.

How does the 'Computer Systems Design Services' NAICS code (541512) typically align with IT support and operations functions?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' broadly encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. While 'design' is in the title, this category often extends to include related services such as systems analysis, development, implementation, and crucially, ongoing IT support and operations. Many contracts for IT support and operations fall under this code because they involve managing, maintaining, and optimizing the computer systems that were initially designed or implemented. This includes tasks like network management, database administration, help desk support, and ensuring system availability and performance, all of which are integral to the lifecycle of computer systems.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 1710 SAIC DR, MCLEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,255,232

Exercised Options: $32,183,232

Current Obligation: $32,183,232

Parent Contract

Parent Award PIID: GS00T99ALD0210

IDV Type: GWAC

Timeline

Start Date: 2005-01-25

Current End Date: 2006-09-04

Potential End Date: 2006-09-04 00:00:00

Last Modified: 2011-03-24

More Contracts from Leidos, Inc.

View all Leidos, Inc. federal contracts →

Other General Services Administration Contracts

View all General Services Administration contracts →

Explore Related Government Spending