GSA's $15.5M navigation aids contract to Leidos, Inc. awarded non-competitively
Contract Overview
Contract Amount: $15,527,624 ($15.5M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2008-04-15
End Date: 2012-05-30
Contract Duration: 1,506 days
Daily Burn Rate: $10.3K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: NAVIGATION AIDS PROCUREMENT AND INSTALLATION
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
General Services Administration obligated $15.5 million to LEIDOS, INC. for work described as: NAVIGATION AIDS PROCUREMENT AND INSTALLATION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Time and Materials pricing structure can increase costs if not managed closely. 3. Contract duration of 1506 days suggests a significant, ongoing need. 4. The contract falls under Computer Facilities Management Services, indicating IT infrastructure support. 5. No small business set-aside was applied, potentially limiting opportunities for smaller firms. 6. The contract was awarded by the General Services Administration, a major federal procurement agency.
Value Assessment
Rating: questionable
Benchmarking the value of this specific contract is challenging due to its sole-source nature and the 'Time and Materials' pricing model, which can lead to unpredictable costs. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The absence of a fixed price or performance-based metrics makes a direct comparison to similar contracts less reliable for assessing value for money. Further analysis would require detailed cost breakdowns and comparison to industry standards for navigation aid procurement and installation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a non-competitive, sole-source basis. This means that only one vendor, Leidos, Inc., was solicited and awarded the contract. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they inherently limit price discovery and competition. The lack of multiple bidders means taxpayers did not benefit from the potential cost savings that could arise from a competitive bidding process.
Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as there was no opportunity for multiple vendors to compete and offer lower bids.
Public Impact
Leidos, Inc. benefits directly as the sole contractor. Services delivered likely involve the procurement and installation of navigation aids, crucial for federal operations. The geographic impact is not specified but likely relates to federal facilities or operational areas requiring navigation support. Workforce implications may include specialized technical roles for installation and maintenance of navigation systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Time and Materials contract type carries inherent cost overrun risks.
- Lack of transparency in the justification for sole-source award.
Positive Signals
- Contract awarded to a known entity (Leidos, Inc.) which may imply existing expertise.
- Contract duration suggests a sustained need and potential for reliable service delivery.
Sector Analysis
This contract falls within the broader Information Technology and professional services sector, specifically related to facilities management and specialized equipment procurement. The market for navigation aids can vary widely depending on the specific technology and application, but often involves specialized engineering and integration services. Benchmarking spending in this niche requires comparison to similar government or large-scale private sector projects involving complex system installations.
Small Business Impact
This contract does not appear to have a small business set-aside. The award to a large prime contractor like Leidos, Inc. suggests that subcontracting opportunities for small businesses may exist, but this is not guaranteed by the contract terms. The absence of a specific set-aside means that small businesses were not prioritized in the initial award decision.
Oversight & Accountability
Oversight for this contract would typically fall under the General Services Administration (GSA) contracting officers and program managers. The 'Time and Materials' nature of the contract necessitates close monitoring of labor hours and material costs to ensure compliance and prevent overspending. Transparency regarding the justification for the sole-source award and ongoing performance metrics would be key oversight elements.
Related Government Programs
- Federal IT Procurement
- Navigation Systems
- Facilities Management Services
- Sole-Source Contracts
Risk Flags
- Sole-source award
- Time and Materials pricing
- Lack of competition
Tags
navigation-aids, procurement, installation, leidos-inc, general-services-administration, gsa, non-competitive, sole-source, time-and-materials, computer-facilities-management-services, it-services, federal-acquisition-service
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $15.5 million to LEIDOS, INC.. NAVIGATION AIDS PROCUREMENT AND INSTALLATION
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 $15.5 million.
What is the period of performance?
Start: 2008-04-15. End: 2012-05-30.
What specific type of navigation aids were procured and installed under this contract?
The provided data does not specify the exact type of navigation aids procured. The contract falls under NAICS code 541513 (Computer Facilities Management Services), suggesting the navigation aids might be integrated with IT systems or related to facility operations. However, 'navigation aids' can encompass a wide range of equipment, from GPS-related systems to physical guidance markers or electronic signaling devices. Further investigation into contract line item numbers (CLINs) or associated documentation would be necessary to identify the specific technology and its application.
What was the justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was awarded as a 'NON-COMPETITIVE DELIVERY ORDER'. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without access to the Justification and Approval (J&A) document typically associated with sole-source awards, the precise reason remains unknown. This lack of competition means taxpayers did not benefit from potential cost reductions through a competitive bidding process.
How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?
Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For services like navigation aid procurement and installation, fixed-price or performance-based contracts might offer better cost certainty if the requirements are well-defined.
What is the track record of Leidos, Inc. in delivering similar navigation aid procurement and installation services?
Leidos, Inc. is a large government contractor with a broad range of capabilities, including IT services, systems engineering, and logistics. While the specific data here doesn't detail their performance on this particular contract, their extensive experience suggests they possess the technical capacity for such projects. However, the sole-source nature of this award means there's no direct comparison from a competitive standpoint. Assessing their track record would involve reviewing past performance evaluations, contract history, and any reported issues on similar government contracts.
What are the potential risks associated with a $15.5 million sole-source Time and Materials contract?
The primary risks associated with this contract are related to cost control and price fairness. The sole-source nature eliminates competitive pressure, potentially leading to higher prices than if multiple bids were solicited. The Time and Materials (T&M) pricing structure, without robust oversight, can lead to cost overruns if labor hours or material costs are not carefully managed and justified. There's also a risk that the government may not be receiving the most innovative or cost-effective solutions available in the market due to the lack of competition.
How does this contract's spending compare to other federal spending on navigation aids or related IT services?
Direct comparison of this $15.5 million contract to overall federal spending on navigation aids or IT services is difficult without broader spending data. The contract's classification under Computer Facilities Management Services (NAICS 541513) suggests it's part of a larger IT infrastructure spend. Federal spending on IT services is substantial, often in the tens of billions annually. However, the specific niche of 'navigation aids procurement and installation' within this category is less visible. To provide a meaningful comparison, one would need to aggregate similar contracts across agencies and analyze trends in this specialized area.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: MD578ATC1T5
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10302 EATON PLACE, SUITE 150, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,536,067
Exercised Options: $15,527,624
Current Obligation: $15,527,624
Parent Contract
Parent Award PIID: GS07T00BGD0028
IDV Type: GWAC
Timeline
Start Date: 2008-04-15
Current End Date: 2012-05-30
Potential End Date: 2012-05-30 00:00:00
Last Modified: 2013-01-07
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