Leidos Inc. contract for IT Programming Services awarded by GSA valued at $39.6M over 4 years
Contract Overview
Contract Amount: $39,645,657 ($39.6M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2004-12-03
End Date: 2009-03-30
Contract Duration: 1,578 days
Daily Burn Rate: $25.1K/day
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT PROGRAMING SERVICES
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30301, UNITED STATES OF AMERICA
State: Georgia Government Spending
Plain-Language Summary
General Services Administration obligated $39.6 million to LEIDOS, INC. for work described as: IT PROGRAMING SERVICES Key points: 1. Contract awarded using Time and Materials pricing, which can pose risks if not closely managed. 2. The contract duration of over 4 years suggests a long-term need for these IT services. 3. Awarded to a single vendor, Leidos Inc., raising questions about competition and potential price optimization. 4. The contract's value of $39.6M places it in the mid-to-large range for IT services. 5. Performance context is limited without specific details on deliverables and outcomes. 6. Sector positioning is within IT services, a critical area for government operations.
Value Assessment
Rating: fair
The contract's total value of $39.6M over approximately 4 years averages to about $9.9M annually. Without specific details on the services rendered or comparable contracts, it's difficult to definitively benchmark value. However, Time and Materials contracts can sometimes lead to higher costs if not managed diligently, as they incentivize labor hours rather than fixed outcomes. Further analysis would require understanding the specific IT programming tasks performed and comparing the hourly rates to market benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source action, meaning only one vendor, Leidos Inc., was solicited. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The lack of competition means the government may not have received the most advantageous pricing or the widest range of technical solutions available in the market.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price pressures inherent in a competitive bidding environment.
Public Impact
The primary beneficiaries are likely federal agencies requiring IT programming support, ensuring the continuity of essential digital services. Services delivered include IT programming, which could encompass software development, system integration, and maintenance. The geographic impact is likely nationwide, supporting federal operations across various locations. Workforce implications may include the direct employment of IT professionals by Leidos Inc. and potentially indirect impacts on the broader IT services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition, potentially leading to suboptimal pricing.
- Time and Materials contract type can increase costs if not managed effectively.
- Lack of detailed performance metrics makes value assessment challenging.
Positive Signals
- Award to an established contractor like Leidos Inc. may indicate a level of trust and past performance.
- Long contract duration suggests a stable, ongoing need for the services provided.
- The contract supports critical IT functions within the government.
Sector Analysis
The IT services sector is a significant component of federal spending, encompassing a wide range of activities from software development to cybersecurity and cloud computing. This contract falls within the IT programming services sub-sector. Federal spending in IT services is consistently high, driven by the need to modernize legacy systems, develop new applications, and maintain existing infrastructure. Comparable spending benchmarks would typically involve analyzing other large IT services contracts awarded by agencies like GSA, DoD, or civilian departments.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting it was not awarded under the Small Business Administration's programs. This means that opportunities for small businesses to directly participate as the prime contractor were likely limited. Subcontracting opportunities for small businesses may exist, but this would depend on Leidos Inc.'s subcontracting plan and the specific needs of the IT programming services required.
Oversight & Accountability
Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms for oversight would include contract performance reviews, financial audits, and adherence to the terms and conditions of the Time and Materials contract. Transparency is dependent on GSA's reporting practices and the availability of contract data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- IT Professional Services
- Software Development Services
- System Integration Services
- IT Operations and Maintenance
Risk Flags
- Sole Source Award
- Time and Materials Pricing
Tags
it-services, programming, leidos-inc, general-services-administration, gsa, federal-acquisition-service, time-and-materials, sole-source, mid-size-contract, georgia, it-support
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $39.6 million to LEIDOS, INC.. IT PROGRAMING SERVICES
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 $39.6 million.
What is the period of performance?
Start: 2004-12-03. End: 2009-03-30.
What specific IT programming services were delivered under this contract, and were they critical to agency operations?
The provided data indicates the contract was for 'IT PROGRAMING SERVICES' awarded to LEIDOS, INC. by the General Services Administration (GSA) via its Federal Acquisition Service. While the specific nature of the programming services is not detailed, such contracts typically encompass a broad range of activities including software development, system integration, application maintenance, and potentially IT infrastructure support. Given that GSA procures services for various federal agencies, these IT programming services were likely critical for enabling or maintaining essential government functions, such as data management, citizen services, internal operations, or national security systems. Without access to the contract's statement of work or performance reports, a precise determination of criticality is not possible, but IT programming is fundamental to modern government operations.
How does the $39.6M contract value compare to similar IT programming services contracts awarded by GSA or other federal agencies?
The $39.6 million contract value for IT programming services awarded to Leidos Inc. by GSA over approximately four years (December 2004 to March 2009) positions it as a mid-to-large value contract within the federal IT landscape. To benchmark this, one would typically compare it against other IT programming, software development, or IT professional services contracts of similar duration and scope. For instance, larger agencies like the Department of Defense or the Department of Homeland Security often award multi-billion dollar IT contracts. However, within GSA's Federal Acquisition Service, which often acts as a procurement hub for other agencies, a $10 million annual average is substantial. Without specific comparable contract data for the same period (2004-2009) and service type, a precise comparison is difficult, but it represents a significant investment in IT capabilities.
What are the potential risks associated with the 'Time and Materials' (T&M) contract type used for this award?
The use of a 'Time and Materials' (T&M) contract type for this $39.6 million IT programming services award presents several potential risks. T&M contracts reimburse the contractor for the direct labor hours at specified hourly rates and for the actual cost of materials. The primary risk is the potential for cost overruns, as the total contract cost is not fixed and can increase if more labor hours or materials are consumed than initially anticipated. This structure can incentivize contractors to extend project timelines or increase billable hours, rather than focusing on efficiency and timely delivery. Effective oversight, detailed tracking of labor hours, and robust management of material costs are crucial to mitigate these risks and ensure the government receives good value for its investment.
Given this was a sole-source award, what does this imply about the procurement process and potential alternatives?
A sole-source award, as indicated for this contract, means that the General Services Administration (GSA) did not conduct a competitive bidding process. Instead, they directly negotiated with Leidos Inc. This typically occurs when only one source is capable of meeting the government's needs, often due to unique capabilities, proprietary technology, or specific circumstances like urgent requirements. However, sole-source awards bypass the price discovery benefits of competition, potentially leading to higher costs for the government compared to a fully competed contract. It also limits the government's exposure to a wider range of innovative solutions or alternative approaches that other qualified vendors might offer. The justification for sole-source procurement is usually rigorously reviewed.
What is Leidos Inc.'s track record with federal IT contracts, particularly with GSA, around the time this contract was awarded?
Leidos Inc. (and its predecessor, SAIC's government solutions business, which was acquired by Leidos) has a long and extensive history of performing federal IT contracts across numerous agencies, including GSA. During the period this contract was active (2004-2009), Leidos was already a major government contractor. Their track record generally involves large-scale IT services, systems integration, and support for complex government programs. While specific performance details for this particular $39.6M contract are not provided, Leidos's overall presence suggests they possess the capacity and experience to handle such requirements. Federal contract databases often contain past performance information, which would be used by agencies during competitive procurements to assess a contractor's reliability and capability.
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $42,184,671
Exercised Options: $42,184,671
Current Obligation: $39,645,657
Parent Contract
Parent Award PIID: GS09K99BH0010
IDV Type: FSS
Timeline
Start Date: 2004-12-03
Current End Date: 2009-03-30
Potential End Date: 2009-03-30 00:00:00
Last Modified: 2015-08-05
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