DoD's $41.4M Contract for RPA ROC&GCS O&M Awarded to Leidos, Inc. with No Competition
Contract Overview
Contract Amount: $41,448,389 ($41.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-06-15
End Date: 2021-12-14
Contract Duration: 1,278 days
Daily Burn Rate: $32.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: RPA ROC&GCS O&M
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $41.4 million to LEIDOS, INC. for work described as: RPA ROC&GCS O&M Key points: 1. Significant spending on RPA ROC&GCS O&M by the Department of Defense. 2. Leidos, Inc. secured the entire contract value. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: questionable
The contract's value of $41.4M over 1278 days for O&M services needs further benchmarking against similar IT support contracts. Without competition, it's difficult to assess if this represents a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competitive bidding process. This limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition on this $41.4M contract means taxpayers may not have received the best possible price for these services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The reliance on a single vendor for critical RPA operations could pose a risk. Transparency in government IT spending is reduced when contracts are not competed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
Positive Signals
- Contract awarded to a known entity (Leidos, Inc.)
- Clear contract duration and value
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). Spending in this area is substantial across government agencies, with O&M contracts often being long-term and critical for system sustainment.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure the government received fair value and that such awards are justified and not a pattern.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Vendor dependency
- Limited transparency in price determination
Tags
other-computer-related-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.4 million to LEIDOS, INC.. RPA ROC&GCS O&M
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $41.4 million.
What is the period of performance?
Start: 2018-06-15. End: 2021-12-14.
What specific justification was provided for awarding this contract on a sole-source basis, and how does it align with federal procurement regulations for non-competitive awards?
Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required services. The justification would typically detail why competition was not feasible or not in the government's best interest. Without access to the specific justification document, it's impossible to verify its validity or adherence to regulations like FAR Part 6.
What are the potential risks associated with a sole-source contract for critical RPA operations and maintenance, particularly regarding vendor lock-in and future pricing?
Sole-source contracts can lead to vendor lock-in, making it difficult and costly to switch providers in the future. This can reduce leverage in future negotiations, potentially leading to inflated prices for continued services or upgrades. It also concentrates risk, as the government becomes entirely dependent on one vendor's performance and stability.
How does the cost of this contract compare to industry benchmarks for similar IT Operations & Maintenance services, and what measures are in place to ensure cost-effectiveness over its duration?
Without specific performance metrics and detailed cost breakdowns, a direct comparison to industry benchmarks is challenging. However, the absence of competition inherently raises concerns about cost-effectiveness. Agencies typically rely on internal cost estimates, historical data, and potentially independent government cost estimates to validate pricing, but these are less robust than market-driven competition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,448,389
Exercised Options: $41,448,389
Current Obligation: $41,448,389
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $464,902
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-06-15
Current End Date: 2021-12-14
Potential End Date: 2021-12-14 00:00:00
Last Modified: 2021-06-21
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