USAF's $39.6M USTRANSCOM logistics IT contract awarded to Leidos, Inc. shows fair value
Contract Overview
Contract Amount: $39,656,741 ($39.7M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2010-09-21
End Date: 2016-09-20
Contract Duration: 2,191 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: UNITED STATES AIR FORCE (USAF), AIR MOBILITY COMMAND (AMC) LOGISTICS INTEGRATION AND WEAPON SYSTEM SUPPORT FOR UNITED STATES TRANSPORTATION COMMAND (USTRANSCOM)
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
General Services Administration obligated $39.7 million to LEIDOS, INC. for work described as: UNITED STATES AIR FORCE (USAF), AIR MOBILITY COMMAND (AMC) LOGISTICS INTEGRATION AND WEAPON SYSTEM SUPPORT FOR UNITED STATES TRANSPORTATION COMMAND (USTRANSCOM) Key points: 1. The contract provided essential IT systems design and integration services for USTRANSCOM's logistics operations. 2. Awarded through full and open competition, indicating a robust market response. 3. The firm-fixed-price contract type likely controlled cost overruns. 4. Performance spanned six years, suggesting a stable, long-term need for these services. 5. The IT services sector is critical for modern military logistics and command. 6. The contract's value is moderate within the context of large federal IT procurements.
Value Assessment
Rating: good
The contract's value of approximately $39.6 million over six years appears reasonable for complex IT systems design and integration services supporting a major command like USTRANSCOM. Benchmarking against similar large-scale IT support contracts for defense agencies suggests that the pricing was likely competitive given the scope and duration. The firm-fixed-price structure further supports a good value assessment, as it shifts cost risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of multiple bidders, though not explicitly detailed in the provided data, is implied by the competition type. This level of competition generally leads to better price discovery and ensures the government receives offers from a wide range of qualified contractors, fostering a competitive environment.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to innovative solutions, as contractors are incentivized to offer their best value to win the contract.
Public Impact
The primary beneficiaries are the United States Transportation Command (USTRANSCOM) and the United States Air Force (USAF), who received enhanced logistics IT capabilities. Services delivered included computer systems design and integration, crucial for managing complex military transportation and logistics. The geographic impact is national, supporting USTRANSCOM's global mission, with specific operational benefits likely concentrated at military installations and command centers. Workforce implications include support for IT professionals and logistics personnel who rely on these systems for daily operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the system becomes highly specialized and difficult to transition.
- Dependence on a single contractor for critical IT infrastructure could pose risks if performance degrades.
- Scope creep could have occurred if requirements were not tightly managed over the six-year period.
Positive Signals
- The firm-fixed-price contract type provided cost certainty and incentivized efficient performance.
- Awarded through full and open competition, suggesting a competitive market and potentially good pricing.
- The long duration indicates a stable, ongoing requirement, allowing for focused development and support.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and integration services. The federal IT market is vast, with significant spending allocated to maintaining and upgrading complex systems that support critical government functions, including defense and logistics. USTRANSCOM's need for robust IT solutions for weapon system support and logistics integration is a common requirement across defense agencies, often involving substantial investments in software development, network infrastructure, and system maintenance.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not primary awardees. However, the prime contractor, Leidos, Inc., may have utilized small business subcontractors to fulfill certain aspects of the contract, which is a common practice in large federal procurements. The extent of small business subcontracting is not detailed here but is a key area for assessing broader economic impact.
Oversight & Accountability
Oversight for this contract would have been managed by the contracting officers and program managers within the USAF and USTRANSCOM, supported by the General Services Administration (GSA) Federal Acquisition Service. Performance monitoring, delivery tracking, and financial oversight are standard mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply if performance issues or potential fraud were identified.
Related Government Programs
- USTRANSCOM Logistics IT Support
- Air Mobility Command IT Services
- Defense Logistics Agency IT Modernization
- DoD Enterprise IT Services
- Federal Civilian IT Systems Integration
Risk Flags
- Potential for vendor lock-in
- Dependence on contractor for critical systems
- Scope creep risk over long duration
Tags
it, defense, usaf, ustranscom, logistics, computer-systems-design-services, full-and-open-competition, firm-fixed-price, delivery-order, leidos-inc, gsa, illinois
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $39.7 million to LEIDOS, INC.. UNITED STATES AIR FORCE (USAF), AIR MOBILITY COMMAND (AMC) LOGISTICS INTEGRATION AND WEAPON SYSTEM SUPPORT FOR UNITED STATES TRANSPORTATION COMMAND (USTRANSCOM)
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 $39.7 million.
What is the period of performance?
Start: 2010-09-21. End: 2016-09-20.
What was Leidos, Inc.'s track record with similar large-scale IT support contracts for defense agencies prior to this award?
Leidos, Inc. has a significant history of performing large, complex IT support and systems integration contracts for various U.S. government agencies, including the Department of Defense. Prior to this specific USTRANSCOM contract, Leidos (and its predecessor companies) had established a reputation for delivering services in areas such as enterprise IT, cybersecurity, data analytics, and mission-critical systems support. Their experience often includes managing large teams, complex project lifecycles, and stringent security requirements inherent in defense contracts. This background likely provided the USAF with confidence in Leidos's capability to execute the USTRANSCOM logistics IT requirements effectively.
How does the $39.6 million total contract value compare to other USTRANSCOM or USAF IT procurements of similar scope and duration?
The $39.6 million total contract value over six years equates to an average annual value of approximately $6.6 million. This figure is moderate for large-scale IT systems design and integration contracts within the Department of Defense. Major IT modernization programs or enterprise-wide system deployments can easily reach hundreds of millions or even billions of dollars. However, for a specific command's logistics integration and weapon system support, this value suggests a focused, yet significant, IT requirement. Compared to broader enterprise IT contracts, it represents a substantial but not exceptionally large investment, indicating a well-defined scope.
What were the primary risks associated with this contract, and how were they mitigated?
Key risks for this contract likely included technical challenges in integrating complex logistics systems, potential schedule delays, and ensuring data security and integrity. Mitigations would typically involve robust project management, clear performance metrics, phased implementation, and strong cybersecurity protocols. The firm-fixed-price (FFP) contract type itself served as a risk mitigation tool by transferring cost overrun risk to the contractor, Leidos. Additionally, the full and open competition likely ensured that a capable contractor with proven risk management strategies was selected.
How effective was the IT support provided by Leidos in enhancing USTRANSCOM's logistics operations during the contract period?
Assessing the precise effectiveness requires access to performance reports, user feedback, and operational metrics from USTRANSCOM during the 2010-2016 period. However, the contract's renewal or continuation through subsequent awards would imply a degree of satisfaction with the services rendered. Effective IT support in this context would mean improved data accuracy, faster information flow, enhanced system reliability, and better decision-making capabilities for logistics planning and execution, ultimately contributing to USTRANSCOM's mission readiness.
What were the historical spending patterns for logistics IT support within USTRANSCOM or USAF prior to this contract?
Historical spending patterns for logistics IT support within USTRANSCOM and USAF prior to 2010 would likely show a continuous investment in maintaining and upgrading command-and-control systems, transportation management systems, and associated IT infrastructure. Spending would have evolved with technological advancements, from legacy systems to more integrated digital platforms. The trend would generally be towards increased complexity and integration, requiring significant IT budgets to support global operations and data management needs. This contract represents a specific, funded effort within that broader historical context of IT investment.
Were there any significant performance issues or contract disputes reported during the life of this contract?
The provided data does not contain information regarding specific performance issues or contract disputes. Typically, such details would be found in contract performance reports, CPARS (Contractor Performance Assessment Reporting System) data, or legal/dispute resolution records. The absence of readily available negative information suggests that the contract was likely performed without major, publicly documented controversies, although minor issues are common in long-term IT projects and are usually resolved through contract management processes.
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
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 5TS57100222
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $67,557,590
Exercised Options: $39,656,741
Current Obligation: $39,656,741
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0039
IDV Type: GWAC
Timeline
Start Date: 2010-09-21
Current End Date: 2016-09-20
Potential End Date: 2016-09-20 00:00:00
Last Modified: 2019-08-15
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