Leidos, Inc. awarded $18.8M for IT network support to USEUCOM, spanning over 5 years
Contract Overview
Contract Amount: $18,844,812 ($18.8M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2005-09-02
End Date: 2010-11-04
Contract Duration: 1,889 days
Daily Burn Rate: $10.0K/day
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: HQ USEUCOM TRANSITION OF INFORMATION NETWORKS (TRAIN) SUPPORT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121, UNITED STATES OF AMERICA
Plain-Language Summary
General Services Administration obligated $18.8 million to LEIDOS, INC. for work described as: HQ USEUCOM TRANSITION OF INFORMATION NETWORKS (TRAIN) SUPPORT Key points: 1. Contract awarded for IT network design and integration services. 2. Significant duration suggests a need for sustained support. 3. Awarded by GSA, indicating potential for broader government use. 4. Cost Plus Award Fee contract type allows for performance incentives. 5. Focus on network transition implies modernization or upgrade efforts.
Value Assessment
Rating: fair
The contract's value of $18.8 million over approximately five years averages to about $3.76 million annually. Without specific performance metrics or comparable contract data, it is difficult to definitively assess value for money. The Cost Plus Award Fee structure introduces variability, making precise benchmarking challenging. However, the duration and scope suggest a substantial requirement for specialized IT support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition level for this contract is not specified in the provided data. Understanding whether this was a full and open competition, a limited competition, or a sole-source award is crucial for assessing its impact on pricing and efficiency. A competitive process typically drives down costs and encourages innovation, while a lack of competition may lead to higher prices.
Taxpayer Impact: The level of competition directly impacts taxpayer value. More bidders generally lead to better pricing and service options, ensuring funds are used more effectively. Limited or sole-source awards may require closer scrutiny to ensure fair pricing.
Public Impact
Provides critical IT network infrastructure support for U.S. European Command (USEUCOM). Ensures operational readiness and communication capabilities for military operations in the European theater. Supports the transition and modernization of information networks, enhancing security and efficiency. Indirectly benefits military personnel and their families by maintaining essential communication systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency regarding competition level hinders assessment of best value.
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
- The long duration of the contract may not adapt well to rapidly changing IT landscapes.
Positive Signals
- Award to a known entity like Leidos suggests a level of trust and proven capability.
- The contract's focus on network transition indicates a strategic investment in modernization.
- GSA's involvement suggests adherence to established procurement standards.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and integration. The market for such services is large and highly competitive, with numerous firms offering specialized solutions. This contract represents a significant investment in maintaining and upgrading critical defense communication infrastructure, a common area of federal spending.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract. Leidos, Inc. is a large business. Further investigation would be needed to determine if any subcontracting opportunities were mandated or pursued for small businesses within the scope of this award.
Oversight & Accountability
Oversight for this contract would likely be managed by the contracting officer at the General Services Administration (GSA) and the program managers within USEUCOM. The Cost Plus Award Fee structure necessitates robust performance monitoring to ensure award fees are justified. Transparency regarding performance metrics and award fee determinations would be key accountability measures.
Related Government Programs
- USEUCOM IT Support Contracts
- DoD Network Modernization Programs
- GSA IT Services Procurement
- Defense Information Systems Agency (DISA) Contracts
Risk Flags
- Potential for technological obsolescence due to contract length.
- Cost control risks inherent in Cost Plus Award Fee structures.
- Lack of specified competition level raises concerns about price discovery.
- Geopolitical complexities in the USEUCOM theater could impact operations.
Tags
it-services, computer-systems-design, network-support, defense, useucom, gsa, leidos-inc, cost-plus-award-fee, long-term-contract, california-based-contractor
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $18.8 million to LEIDOS, INC.. HQ USEUCOM TRANSITION OF INFORMATION NETWORKS (TRAIN) SUPPORT
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 $18.8 million.
What is the period of performance?
Start: 2005-09-02. End: 2010-11-04.
What specific IT network systems and technologies are covered under the TRAIN support contract?
The TRAIN (TRANSITION OF INFORMATION NETWORKS) support contract for HQ USEUCOM likely encompasses a broad range of IT network systems critical for military command and control. This would typically include local area networks (LANs), wide area networks (WANs), secure communication systems, data centers, cloud integration services, and potentially specialized systems for intelligence, surveillance, and reconnaissance (ISR) data flow. The 'transition' aspect suggests a focus on upgrading or migrating existing infrastructure to newer, more secure, or more efficient platforms, possibly involving cybersecurity enhancements, software-defined networking (SDN), or integration with emerging technologies like 5G or advanced encryption standards. The specific technologies would be detailed in the contract's Statement of Work (SOW).
How does the Cost Plus Award Fee (CPAF) structure influence contractor performance and cost control for this contract?
The Cost Plus Award Fee (CPAF) contract structure incentivizes Leidos, Inc. to perform well by offering a base fee plus an additional award fee determined by the government based on performance against defined criteria. This structure aims to achieve a balance between cost reimbursement and performance motivation. For cost control, the 'cost plus' element means the government reimburses allowable costs, but the 'award fee' component is discretionary and tied to exceeding or meeting specific performance targets. This encourages the contractor to not only control costs but also to deliver high-quality services and achieve specific objectives. Effective oversight is crucial to ensure the award fees are justified and that the government is receiving optimal value, preventing potential cost escalation without commensurate performance gains.
What is the historical spending pattern for similar IT network support contracts awarded by GSA or the Department of Defense?
Historical spending on IT network support contracts by GSA and the Department of Defense is substantial and consistently high, reflecting the critical nature of these services for national security and government operations. Contracts for network design, integration, maintenance, and transition can range from millions to billions of dollars, depending on scope, duration, and complexity. Agencies like the Defense Information Systems Agency (DISA) frequently award large contracts for global network operations and modernization. GSA, through its various IT schedules and GWACs (Government-Wide Acquisition Contracts), facilitates procurement for numerous agencies. Benchmarking this $18.8 million contract requires comparing its annual value and scope against similar, recent awards for comparable services, considering factors like the specific military command supported (e.g., USEUCOM vs. CENTCOM) and the technological sophistication required.
What are the potential risks associated with a long-duration IT support contract like this one?
Long-duration IT support contracts, such as this five-year award, carry several potential risks. Technological obsolescence is a primary concern; IT landscapes evolve rapidly, and a five-year plan might not align with the latest advancements or security protocols by its end. Vendor lock-in can also be a risk, making it difficult and costly to switch providers if performance degrades or needs change. Furthermore, the contractor's institutional knowledge might decline over time if key personnel leave, impacting service quality. For the government, managing scope creep over an extended period can be challenging, potentially leading to cost overruns if not carefully monitored. Finally, maintaining consistent oversight and ensuring the contractor remains agile and responsive to evolving threats and requirements over such a long timeframe requires dedicated effort.
How does the geographic focus on USEUCOM impact the requirements and potential challenges of this contract?
The geographic focus on U.S. European Command (USEUCOM) implies that the IT network support contract must address the unique operational environment and requirements of that theater. This includes supporting military installations and personnel across numerous countries in Europe and parts of Africa, potentially involving diverse regulatory environments, varying levels of infrastructure maturity, and complex interoperability challenges with allied nations' systems. Challenges may include navigating different national IT policies, ensuring robust cybersecurity across a wide and potentially less controlled perimeter, and managing logistics for equipment and personnel in a geographically dispersed area. The contract must ensure seamless communication and data flow for command and control operations critical to U.S. interests in the region.
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
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,059,132
Exercised Options: $35,059,132
Current Obligation: $18,844,812
Parent Contract
Parent Award PIID: GS00T99ALD0210
IDV Type: GWAC
Timeline
Start Date: 2005-09-02
Current End Date: 2010-11-04
Potential End Date: 2010-11-04 00:00:00
Last Modified: 2016-07-18
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