Leidos, Inc. awarded $23M for computer operations and facility support by GSA
Contract Overview
Contract Amount: $23,024,478 ($23.0M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2008-04-01
End Date: 2010-03-31
Contract Duration: 729 days
Daily Burn Rate: $31.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: COMPUTER OPERATIONS, FACILITY ENGINEERING SUPPORT AND FACILITY MANAGEMENT.
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39522
Plain-Language Summary
General Services Administration obligated $23.0 million to LEIDOS, INC. for work described as: COMPUTER OPERATIONS, FACILITY ENGINEERING SUPPORT AND FACILITY MANAGEMENT. Key points: 1. Contract value of $23M over two years suggests a significant scope of services. 2. The use of a Cost Plus Award Fee (CPAF) contract type indicates a need for flexibility and performance incentives. 3. The contract was awarded as a competitive delivery order, implying a degree of market competition. 4. The duration of 729 days (2 years) is standard for this type of service contract. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract is not a small business set-aside, suggesting it was awarded to a large business.
Value Assessment
Rating: fair
The total award of $23,024,478.03 over two years averages to approximately $11.5M per year. Without specific performance metrics or comparable contract data, it is difficult to definitively assess value for money. The Cost Plus Award Fee (CPAF) structure allows for flexibility but can lead to higher costs if not managed carefully. Benchmarking against similar facility engineering and computer operations contracts would be necessary for a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a 'COMPETITIVE DELIVERY ORDER' under a larger indefinite-delivery indefinite-quantity (IDIQ) contract, indicating that multiple vendors likely had the opportunity to bid. The presence of '2' in the 'no' field (number of offers) suggests at least two offers were received, which is a positive sign for competition. However, the specific details of the bidding process and the number of proposals submitted are not fully detailed here.
Taxpayer Impact: A competitive award process generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition contracts.
Public Impact
Federal agencies requiring computer operations, facility engineering, and management services benefit from this contract. The services delivered are critical for the smooth functioning of government IT infrastructure and physical facilities. The contract is managed by the General Services Administration (GSA), supporting its mission to provide efficient government operations. The workforce implications include employment opportunities for individuals with expertise in IT operations, facility management, and engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPAF contracts can sometimes lead to cost overruns if award fee criteria are not tightly managed.
- Lack of specific performance metrics in the provided data makes it hard to gauge the true value and efficiency.
- The broad nature of 'computer operations' and 'facility management' could lead to scope creep if not clearly defined.
Positive Signals
- Awarded through a competitive process, suggesting potential for good value.
- The contract is managed by GSA, an agency focused on efficient government procurement.
- The CPAF structure incentivizes contractor performance, potentially leading to higher quality service delivery.
Sector Analysis
This contract falls within the IT services and facility management sectors. The IT services market is vast and highly competitive, with significant government spending. Facility engineering and management are essential support services across all government operations. The total federal spending on IT services alone runs into billions annually, making this contract a small but integral part of that ecosystem. Comparable contracts often involve long-term support for critical government functions.
Small Business Impact
The provided data indicates that this contract was not a small business set-aside ('sb': false). This suggests that the primary award went to a large business, likely Leidos, Inc. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. Without this detail, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors are often encouraged or required to meet small business subcontracting goals on broader IDIQ vehicles.
Oversight & Accountability
The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including performance monitoring and financial audits. As a competitive delivery order, it would be subject to the terms and conditions of the parent IDIQ contract and standard federal acquisition regulations. Transparency is generally maintained through contract award databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- IT Operations Support Services
- Facility Management Contracts
- Computer Systems Design Services
- General Services Administration Contracts
- Cost Plus Award Fee Contracts
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Ambiguity in performance metrics for award fee determination.
- Scope creep risk in broad service categories.
- Dependence on contractor performance for critical operations.
Tags
it-services, facility-management, computer-operations, general-services-administration, leidos-inc, cost-plus-award-fee, competitive-delivery-order, large-business, information-technology, mississippi, service-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $23.0 million to LEIDOS, INC.. COMPUTER OPERATIONS, FACILITY ENGINEERING SUPPORT AND FACILITY MANAGEMENT.
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 $23.0 million.
What is the period of performance?
Start: 2008-04-01. End: 2010-03-31.
What is the track record of Leidos, Inc. in performing similar IT operations and facility management contracts for the federal government?
Leidos, Inc. has a substantial track record with the federal government, often securing large and complex contracts across various domains, including IT services, logistics, and engineering. Their experience spans multiple agencies, including the Department of Defense, intelligence community, and civilian agencies. For IT operations and facility management, Leidos typically engages in providing comprehensive support, encompassing network management, cybersecurity, data center operations, and physical infrastructure maintenance. Their performance history on similar contracts would be detailed in past performance evaluations during the bidding process, which are crucial for assessing their capability to execute this specific award effectively. Reviewing their contract awards and performance ratings in public databases like FPDS can provide insights into their reliability and success rates in delivering these types of services.
How does the annual cost of this contract compare to similar IT operations and facility management contracts awarded by GSA or other agencies?
The annual cost of this contract, approximately $11.5 million ($23M / 2 years), needs to be benchmarked against comparable contracts to assess value. GSA manages a vast portfolio of IT and facility services contracts. To perform a comparison, one would look for contracts with similar scope (e.g., comprehensive IT operations, large-scale facility management), duration, and service level agreements. Factors like geographic location, specific technologies used, and security requirements can significantly influence pricing. Without access to detailed pricing data for comparable contracts, a precise benchmark is challenging. However, the competitive nature of the award suggests that the pricing is likely within a reasonable market range, assuming effective competition among bidders. A deeper analysis would involve examining the specific tasks and deliverables outlined in the contract statement of work.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT operations and facility management?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT operations and facility management revolve around cost control and performance definition. For the government, there's a risk that costs could escalate beyond initial projections if the 'cost' component is not tightly managed or if the contractor inflates expenses. The 'award fee' component introduces subjectivity; if the criteria for earning the award fee are not clearly defined, measurable, and consistently applied, it can lead to disputes or dissatisfaction. Contractors may focus on meeting award fee criteria rather than overall mission objectives. For IT operations and facility management, which involve complex, dynamic environments, ensuring that the award fee structure truly incentivizes the most critical outcomes (e.g., system uptime, energy efficiency, security posture) is paramount. Poorly defined metrics can lead to suboptimal performance or unintended consequences.
What is the expected effectiveness of this contract in ensuring reliable IT operations and facility upkeep for the supported entities?
The expected effectiveness hinges on several factors, including the clarity of the contract's performance standards, the contractor's capabilities, and the government's oversight. As a competitive delivery order, it implies that Leidos, Inc. was selected based on its ability to meet or exceed requirements. The CPAF structure is designed to incentivize high performance, suggesting an expectation of reliable service delivery. However, effectiveness is ultimately measured by the achievement of key performance indicators (KPIs) related to system availability, response times, facility maintenance schedules, and incident resolution. The General Services Administration's (GSA) role in monitoring performance and administering the award fee will be critical. If the contract is well-managed and the performance metrics are aligned with mission needs, it should contribute significantly to the reliable functioning of the supported IT systems and facilities.
How has federal spending on computer operations and facility management services evolved over the past five years, and where does this contract fit in?
Federal spending on computer operations and facility management services has generally seen a steady increase over the past five years, driven by the growing reliance on IT infrastructure and the need to maintain aging government facilities. Agencies are increasingly outsourcing these functions to specialized contractors to leverage expertise and potentially achieve cost efficiencies. This $23 million contract, spanning two years, represents a moderate-sized award within the broader federal spending landscape for these services. It fits within the GSA's mission to procure and manage shared services for the government. While not a mega-contract, it contributes to the overall federal investment in maintaining operational readiness and technological capabilities across various government departments or programs supported by GSA.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
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: $23,129,973
Exercised Options: $23,110,094
Current Obligation: $23,024,478
Parent Contract
Parent Award PIID: GS00T99ALD0210
IDV Type: GWAC
Timeline
Start Date: 2008-04-01
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2014-03-11
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