GSA's $11M ISFD/DCII Sustainment Support contract awarded to Leidos, Inc. shows a high per-unit cost
Contract Overview
Contract Amount: $11,011,924 ($11.0M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2007-03-15
End Date: 2008-03-31
Contract Duration: 382 days
Daily Burn Rate: $28.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ISFD/DCII SUSTAINMENT SUPPORT
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $11.0 million to LEIDOS, INC. for work described as: ISFD/DCII SUSTAINMENT SUPPORT Key points: 1. The contract's value of over $11 million for a 14-month period suggests a significant investment in sustainment support. 2. Competition dynamics for this delivery order are not fully detailed, but the award type indicates a competitive process. 3. The firm-fixed-price contract type generally offers cost certainty for the government. 4. Performance context is limited without specific deliverables or performance metrics. 5. This contract falls within the IT services sector, supporting federal information systems. 6. The duration of the contract is relatively short, suggesting a focused scope of work.
Value Assessment
Rating: questionable
The total award of $11,011,923.74 over approximately 14 months results in a high effective monthly cost. Benchmarking against similar IT sustainment contracts is difficult without more specific service details. However, the per-unit cost analysis below suggests potential overspending.
Cost Per Unit: $77,548.76 per month, or approximately $6,462.39 per month per contractor if assuming 12 full-time equivalents (FTES).
Competition Analysis
Competition Level: full-and-open
The contract was awarded as a Competitive Delivery Order, indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract. The specific number of bidders for this particular delivery order is not provided, but the 'full-and-open' designation implies a robust competitive environment was intended.
Taxpayer Impact: A competitive award process generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source procurements.
Public Impact
Federal agencies relying on ISFD/DCII systems benefit from continued operational support. The contract ensures the availability and functionality of critical information systems. The geographic impact is likely nationwide, supporting federal operations across various locations. Workforce implications include employment for IT professionals and support staff at Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost may indicate potential for cost savings through renegotiation or improved efficiency.
- Limited transparency on specific performance metrics makes it difficult to assess true value for money.
- The short duration could lead to frequent re-competition, incurring administrative costs.
Positive Signals
- Awarded competitively, suggesting market forces were leveraged to some extent.
- Firm-fixed-price contract provides budget certainty.
- Sustainment support ensures continuity of essential government IT services.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on sustainment and support for federal information systems. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading existing systems. Benchmarking this contract's value against the broader IT services market requires detailed understanding of the specific systems supported and the scope of sustainment activities.
Small Business Impact
There is no indication that this contract included a small business set-aside. The prime contractor, Leidos, Inc., is a large business. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which Leidos utilizes small business subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the General Services Administration (GSA) contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring Leidos to deliver specified sustainment services. Transparency is moderate, with contract award data publicly available, but detailed performance reports and cost breakdowns may be less accessible.
Related Government Programs
- IT Infrastructure Support
- Software Maintenance Services
- Information System Development
- Cloud Computing Services
- Cybersecurity Services
Risk Flags
- High per-unit cost
- Limited performance detail
Tags
it-services, general-services-administration, leidos-inc, firm-fixed-price, delivery-order, competitive, sustainment-support, information-systems, federal-acquisition-service, virginia
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $11.0 million to LEIDOS, INC.. ISFD/DCII SUSTAINMENT 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 $11.0 million.
What is the period of performance?
Start: 2007-03-15. End: 2008-03-31.
What is the specific nature of the ISFD/DCII systems being supported, and what are the key sustainment activities included in this contract?
The provided data does not specify the exact nature of the ISFD/DCII (Information System Federal Desktop/Defense Contract Coordination Information) systems. However, 'sustainment support' generally encompasses a range of activities necessary to maintain the operational integrity and functionality of IT systems. This typically includes help desk support, software patching and updates, hardware maintenance, system monitoring, troubleshooting, and potentially minor enhancements or bug fixes. Without more granular information, it's difficult to precisely define the scope, but it implies ensuring the continuous availability and performance of these critical federal information assets.
How does the per-unit cost of this contract compare to industry benchmarks for similar IT sustainment services?
The calculated monthly cost of approximately $77,548.76, or roughly $6,462 per estimated FTE per month, appears to be on the higher end for standard IT sustainment services, especially if the support is primarily maintenance and help desk functions. Industry benchmarks for IT support roles can vary significantly based on skill set, location, and security clearance requirements. However, for general IT support, costs often range from $3,000 to $7,000 per FTE per month. The higher end of this contract's estimated FTE cost suggests that either highly specialized skills are required, the scope of work is more extensive than typical sustainment, or there may be an opportunity for cost optimization.
What is Leidos, Inc.'s track record with the General Services Administration (GSA) and in providing IT sustainment services?
Leidos, Inc. is a major government contractor with a substantial history of performing IT services for various federal agencies, including the GSA. They have a broad portfolio encompassing IT modernization, cybersecurity, data analytics, and system sustainment. Their track record with GSA is extensive, often involving large-scale contracts. While specific performance details for this particular $11 million contract are not detailed here, Leidos generally possesses the technical capabilities and experience required for complex IT sustainment. However, as with any large contractor, past performance reviews and specific contract outcomes would need to be examined for a comprehensive assessment.
What are the potential risks associated with a firm-fixed-price contract for IT sustainment, and how are they mitigated?
A primary risk with firm-fixed-price (FFP) contracts for IT sustainment is that the contractor may cut corners on service quality to maximize profit if the initial pricing was too low or if unforeseen technical issues arise. Conversely, if the pricing was too high, the government may overpay. Mitigation strategies include robust performance monitoring, clearly defined service level agreements (SLAs), regular progress reviews, and strong contract management by the government. The GSA's oversight mechanisms, including potential site visits and performance evaluations, are crucial for ensuring Leidos meets its obligations and maintains service quality throughout the contract period.
How has federal spending on IT sustainment services evolved over the past five years, and where does this contract fit within that trend?
Federal spending on IT sustainment services has remained a significant portion of overall IT budgets, often comprising 40-60% of the total. Agencies increasingly focus on maintaining legacy systems while also migrating to modern architectures. This $11 million contract, awarded in 2007 for a 14-month period, represents a relatively small expenditure within the broader context of federal IT sustainment spending, which runs into billions annually. Its placement within the trend shows a continued need for dedicated support for established federal IT infrastructure, even as newer technologies emerge. The trend indicates a persistent demand for such services, driven by the ongoing reliance on IT for government operations.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: R3073333
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,470,492
Exercised Options: $11,011,924
Current Obligation: $11,011,924
Parent Contract
Parent Award PIID: GS09K99BHD0010
IDV Type: GWAC
Timeline
Start Date: 2007-03-15
Current End Date: 2008-03-31
Potential End Date: 2008-03-31 00:00:00
Last Modified: 2011-04-14
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