Leidos Inc. awarded $11.8M for language technology support by GSA over 5 years
Contract Overview
Contract Amount: $11,855,029 ($11.9M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2004-04-14
End Date: 2009-03-31
Contract Duration: 1,812 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: LANGUAGE TECHNOLOGY SUPPORT
Plain-Language Summary
General Services Administration obligated $11.9 million to LEIDOS, INC. for work described as: LANGUAGE TECHNOLOGY SUPPORT Key points: 1. Contract value represents a significant investment in advanced language processing capabilities. 2. Full and open competition suggests a robust market for these specialized services. 3. The contract duration of 5 years indicates a long-term need for sustained support. 4. Time and Materials pricing structure may pose cost control challenges if not closely managed. 5. The award to a single contractor, Leidos, Inc., warrants scrutiny for potential performance issues. 6. This contract likely supports critical government functions requiring sophisticated language analysis.
Value Assessment
Rating: fair
The contract's total value of $11.8 million over five years averages to approximately $2.36 million annually. Without specific benchmarks for language technology support services, it's difficult to definitively assess value for money. However, the Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not meticulously managed and monitored. Comparing this to similar large-scale language technology contracts would be necessary for a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of 10 bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging innovative solutions from multiple providers.
Public Impact
Government agencies requiring advanced language processing, translation, and analysis capabilities benefit from this contract. Services delivered likely include support for intelligence analysis, document processing, and communication interoperability. The geographic impact is likely nationwide, supporting various federal agencies regardless of their physical location. Workforce implications may include the need for specialized linguists, data scientists, and IT professionals within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to unpredictable costs if not managed effectively.
- The long contract duration may reduce flexibility to adopt newer technologies if they emerge.
- Reliance on a single contractor, Leidos, Inc., could pose risks if performance degrades or if the contractor faces financial instability.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market and potentially good value.
- The significant contract value indicates a recognized and sustained need for these critical services.
- A 5-year term allows for stable planning and execution of complex language technology projects.
Sector Analysis
The language technology sector is a rapidly evolving field within the broader IT and professional services market. This contract likely falls under IT professional services, focusing on specialized software and human expertise for processing and understanding human language. The market for such services is driven by increasing volumes of unstructured data, global communication needs, and advancements in artificial intelligence and machine learning. Comparable spending benchmarks would typically be found within IT services categories, with specific sub-benchmarks for natural language processing (NLP) and machine translation.
Small Business Impact
There is no indication that this contract included a small business set-aside. The prime contractor, Leidos, Inc., is a large business. This means that small businesses would likely participate as subcontractors, if at all. The extent of small business subcontracting would depend on the prime contractor's commitment and the availability of qualified small business vendors for specific tasks within the language technology support domain.
Oversight & Accountability
Oversight for this contract would primarily reside with the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms likely include regular performance reviews, contract surveillance, and financial audits to ensure compliance with terms and conditions. Transparency is typically managed through contract reporting requirements and public contract databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.
Related Government Programs
- Language Services
- IT Professional Services
- Intelligence Support Services
- Translation Services
- Natural Language Processing
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Risk of vendor lock-in over the 5-year contract duration.
- Dependence on a single contractor could impact flexibility and innovation.
- Need for continuous monitoring of performance and evolving technology landscape.
Tags
it, professional-services, language-technology, general-services-administration, leidos-inc, time-and-materials, full-and-open-competition, long-term-contract, federal-acquisition-service, intelligence-support
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $11.9 million to LEIDOS, INC.. LANGUAGE TECHNOLOGY SUPPORT
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 $11.9 million.
What is the period of performance?
Start: 2004-04-14. End: 2009-03-31.
What is Leidos, Inc.'s track record with similar government contracts, particularly in language technology support?
Leidos, Inc. has a substantial history of performing large-scale government contracts across various sectors, including IT services, intelligence, and defense. Their experience with language technology support would likely be documented through past performance evaluations in federal procurement databases. Analyzing their performance on previous, similar contracts would reveal their ability to meet deadlines, manage budgets, and deliver quality services. Specific details on their success rate, any past performance issues, and client satisfaction would be crucial for a comprehensive assessment. Given their size and scope, they are generally considered a capable contractor, but individual contract performance can vary.
How does the $11.8 million contract value compare to other federal spending on language technology support?
The $11.8 million contract value for language technology support over five years, averaging approximately $2.36 million annually, needs to be benchmarked against similar federal procurements. Without access to a comprehensive database of all language technology contracts, a direct comparison is challenging. However, this amount suggests a significant, but not exceptionally large, investment for a specialized IT service. Larger contracts in this domain might involve extensive AI development or global translation services for major agencies. Smaller contracts could focus on specific niche requirements or shorter-term projects. To provide a precise comparison, one would need to analyze contracts with similar scopes of work, durations, and agencies.
What are the primary risks associated with a Time and Materials (T&M) contract for language technology support?
The primary risk with a Time and Materials (T&M) contract for language technology support is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and materials used, plus a fee. If project scope creeps, inefficiencies arise, or labor rates are higher than anticipated, the total cost can escalate significantly beyond initial estimates. For language technology, this could involve unexpected complexities in data processing, extended research and development, or the need for more specialized personnel than initially planned. Effective oversight, detailed tracking of hours and materials, and clear scope management are critical to mitigating these risks.
How effective is full and open competition in ensuring value for money for language technology services?
Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for language technology services. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, fostering a competitive environment. This competition typically drives down prices, encourages innovation, and leads to a wider range of solutions. For specialized services like language technology, where technical expertise and innovation are key, a broad competition can uncover best-of-breed solutions and ensure that the government obtains services at market-competitive rates. The presence of 10 bids in this instance suggests a healthy level of competition.
What is the historical spending pattern for language technology support by the General Services Administration (GSA)?
Analyzing the historical spending patterns of the General Services Administration (GSA) for language technology support requires access to detailed procurement data over several years. GSA, as a major procurement agency, likely awards numerous contracts that could encompass language technology services, either directly or as part of broader IT or professional services. Trends might show an increasing investment in areas like machine translation, natural language processing (NLP), and AI-driven language analysis, reflecting technological advancements and growing government needs. Understanding GSA's historical allocation of funds to this sector would provide context for the significance of the $11.8 million award and indicate whether spending is increasing, decreasing, or remaining stable.
What are the potential performance implications of awarding a 5-year contract to a single vendor like Leidos, Inc.?
Awarding a 5-year contract to a single vendor, such as Leidos, Inc., for language technology support presents both potential benefits and risks. On the positive side, it allows for long-term planning, deep integration of services, and the development of specialized expertise within the contractor's team, potentially leading to greater efficiency and continuity. However, it also carries risks: the government becomes heavily reliant on one vendor, potentially limiting flexibility to adopt newer technologies or switch providers if performance falters. Vendor lock-in can occur, and if Leidos faces financial difficulties or strategic shifts, it could significantly disrupt the supported services. Robust performance management and clear exit strategies are crucial for mitigating these risks over the contract's lifespan.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 10
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,828,990
Exercised Options: $26,534,049
Current Obligation: $11,855,029
Parent Contract
Parent Award PIID: GS09K99BHD0010
IDV Type: GWAC
Timeline
Start Date: 2004-04-14
Current End Date: 2009-03-31
Potential End Date: 2009-03-31 00:00:00
Last Modified: 2011-04-14
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