Leidos Inc. awarded $15.5M for administrative management and general management consulting services by GSA
Contract Overview
Contract Amount: $15,466,966 ($15.5M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2006-04-28
End Date: 2009-02-01
Contract Duration: 1,010 days
Daily Burn Rate: $15.3K/day
Number of Offers Received: 3
Pricing Type: LABOR HOURS
Sector: Other
Official Description: FINANCE SUPPORT SERVICES
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914
State: Colorado Government Spending
Plain-Language Summary
General Services Administration obligated $15.5 million to LEIDOS, INC. for work described as: FINANCE SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in management consulting. 2. The contract was awarded to a single, large incumbent contractor. 3. Potential for cost overruns or scope creep exists given the contract type. 4. Performance period spans over two years, indicating a need for sustained support. 5. This contract falls within the broader professional services sector for the federal government.
Value Assessment
Rating: fair
The contract value of $15.5 million for administrative management and general management consulting services appears to be within a reasonable range for a multi-year federal contract of this nature. Benchmarking against similar contracts for management consulting services would provide a clearer picture of value for money. The contract type (Labor Hours) can sometimes lead to higher costs if not managed tightly, as it directly ties cost to hours worked rather than fixed deliverables. Without specific performance metrics or comparison data, it's difficult to definitively assess if the pricing is competitive or if the government is receiving excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that the General Services Administration (GSA) likely determined that only one contractor, Leidos, Inc., could fulfill the specific requirements of this procurement. Sole-source awards often occur when there is a unique capability, a critical need for continuity with an incumbent, or when full and open competition is not feasible or cost-effective. The lack of competition means that price discovery through market forces was limited, potentially leading to a higher price than if multiple bidders had competed.
Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity for competitive bidding to drive down costs. This can result in a less favorable price compared to what might have been achieved in a competitive environment.
Public Impact
Federal agencies requiring administrative and general management consulting support benefit from this contract. Services delivered likely include strategic planning, organizational efficiency improvements, and operational support. The geographic impact is likely nationwide, supporting various federal agency operations. The contract supports a workforce of consultants and management experts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
- Labor hour contract type requires diligent oversight to prevent scope creep and ensure efficiency.
- Lack of defined deliverables in the contract description could lead to ambiguity in performance expectations.
Positive Signals
- Award to an established contractor like Leidos suggests a level of confidence in their capabilities.
- The contract duration indicates a recognized need for ongoing management consulting services.
- GSA's involvement suggests adherence to federal procurement standards.
Sector Analysis
The federal professional services sector, particularly management and administrative consulting, is a significant area of government spending. This contract for administrative management and general management consulting services (NAICS code 541611) fits within this broad category. The market for these services is competitive, with numerous large and small businesses offering expertise. However, specific sole-source awards like this one bypass direct market competition for the awarded task. Comparable spending benchmarks for similar consulting services across agencies would be necessary for a precise value assessment.
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 specific small business programs. This means that opportunities for small businesses to directly participate in this specific contract are limited, unless they are subcontractors to the prime contractor, Leidos, Inc. The absence of a small business set-aside may impact the direct flow of federal dollars to the small business ecosystem for this particular award.
Oversight & Accountability
Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures would be tied to the contract's performance work statement and delivery requirements. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.
Related Government Programs
- Management and Consulting Services
- Professional Services Contracts
- Federal Agency Support Services
- Administrative Operations Support
Risk Flags
- Sole-source award
- Labor hour contract type
- Potential for cost overruns
- Limited competition
Tags
professional-services, management-consulting, administrative-support, general-services-administration, leidos-inc, sole-source, labor-hours, multi-year, federal-acquisition-service, naics-541611
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $15.5 million to LEIDOS, INC.. FINANCE SUPPORT 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 $15.5 million.
What is the period of performance?
Start: 2006-04-28. End: 2009-02-01.
What is Leidos, Inc.'s track record with federal management consulting contracts?
Leidos, Inc. has a substantial track record of performing federal contracts across various agencies and service areas, including management and consulting services. Their history includes numerous awards for IT, engineering, and professional services. For management consulting specifically, Leidos has been involved in projects related to organizational efficiency, strategic planning, and program management support. Analyzing their past performance on similar contracts, including any past performance evaluations or disputes, would provide insight into their reliability and effectiveness in delivering consulting services to the federal government. Their size and experience suggest a capacity to handle complex requirements, but also necessitate rigorous oversight to ensure value and adherence to contract terms.
How does the $15.5 million contract value compare to similar GSA management consulting awards?
The $15.5 million contract value for administrative management and general management consulting services awarded to Leidos, Inc. by GSA needs to be benchmarked against comparable contracts to assess its value. GSA procures a wide range of professional services, and consulting contracts can vary significantly in price based on scope, duration, and complexity. Without specific details on the services rendered and the contract's duration (though the 'dur' field suggests 1010 days, approximately 2.7 years), a direct comparison is challenging. However, for multi-year, sole-source consulting engagements, this value is not unusual. A more precise comparison would involve analyzing the average cost per hour or per deliverable for similar NAICS codes (541611) awarded by GSA or other agencies over the same period.
What are the primary risks associated with this sole-source, labor-hour contract?
The primary risks associated with this sole-source, labor-hour contract are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to a higher price than if multiple vendors had competed. This limits price discovery and negotiation leverage. Secondly, the labor-hour contract type, while offering flexibility, carries inherent risks of cost escalation if not managed meticulously. The contractor is paid for the hours worked, creating an incentive for longer task durations or increased staffing if not strictly monitored. This necessitates robust government oversight to ensure efficient performance, prevent scope creep, and control costs. Without clear performance metrics and diligent administration, the government could overpay for services.
What is the expected impact of this contract on federal agency operational efficiency?
The expected impact of this contract on federal agency operational efficiency hinges on the specific consulting services provided by Leidos, Inc. As the contract covers 'Administrative Management and General Management Consulting Services,' it is likely intended to improve agency processes, streamline operations, enhance strategic planning, and optimize resource allocation. Effective consulting can lead to cost savings, improved service delivery, and better decision-making. However, the actual impact depends on the quality of Leidos's advice, the agency's willingness and ability to implement recommendations, and the clarity of the contract's objectives. If the consulting engagements successfully identify and address inefficiencies, the agency's operational effectiveness should improve.
How has federal spending on administrative management consulting services evolved over the past five years?
Federal spending on administrative management consulting services, generally categorized under NAICS code 541611, has seen fluctuations over the past five years, influenced by agency budgets, strategic priorities, and broader economic conditions. While specific aggregate data for this exact contract's value is not provided, overall trends indicate a consistent demand for these services across various federal agencies. Agencies often seek external expertise to navigate complex challenges, implement new policies, improve organizational structures, and enhance efficiency. Spending in this area can increase during periods of government reorganization, technological adoption, or when agencies face significant policy shifts. Conversely, budget constraints or a focus on core mission functions might lead to reductions. Analyzing historical spending patterns for this specific contract and similar ones would reveal trends in demand and pricing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Contractor Details
Address: 1710 SAIC DRIVE, ROOM #8031, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,466,966
Exercised Options: $15,466,966
Current Obligation: $15,466,966
Parent Contract
Parent Award PIID: GS23F8006H
IDV Type: FSS
Timeline
Start Date: 2006-04-28
Current End Date: 2009-02-01
Potential End Date: 2009-02-01 00:00:00
Last Modified: 2013-04-01
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