DoD's $28M DCPDS Software Support Contract Awarded to Leidos, Inc. Lacks Competition

Contract Overview

Contract Amount: $28,187,103 ($28.2M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2023-09-27

Contract Duration: 729 days

Daily Burn Rate: $38.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE INTEGRATION AND MAINTENANCE SUPPORT FOR DEFENSE CIVILIAN PERSONNEL DATA SYSTEM (DCPDS) SUSTAINMENT

Place of Performance

Location: WEBSTER, HARRIS County, TEXAS, 77598

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to LEIDOS, INC. for work described as: SOFTWARE INTEGRATION AND MAINTENANCE SUPPORT FOR DEFENSE CIVILIAN PERSONNEL DATA SYSTEM (DCPDS) SUSTAINMENT Key points: 1. Significant contract value of $28.19 million for software integration and maintenance. 2. Sole awardee, Leidos, Inc., raises concerns about competitive pricing and innovation. 3. The contract is for sustaining the Defense Civilian Personnel Data System (DCPDS). 4. Lack of competition suggests potential for higher costs and reduced value for taxpayers.

Value Assessment

Rating: questionable

The contract value of $28.19 million for software support is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar IT support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may prevent the government from obtaining the best possible pricing and services.

Taxpayer Impact: The lack of competition in this $28.19 million contract could lead to inflated costs, meaning taxpayers may be paying more than necessary for these essential IT services.

Public Impact

Personnel data systems are critical for military readiness and civilian workforce management. Sustaining these systems ensures continuity of operations for essential HR functions. Potential for taxpayer savings if competitive procurement were utilized in the future.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Other Computer Related Services, a broad category within the IT sector. Spending benchmarks for IT support services vary widely, but significant sole-source awards warrant scrutiny for value.

Small Business Impact

The contract was not awarded to a small business, and the sole-source nature of the award provides no direct benefit or opportunity for small businesses in this instance.

Oversight & Accountability

The 'NOT COMPETED' status indicates a lack of competitive oversight in the award process. Future oversight should focus on ensuring competitive procurements where feasible to maximize value.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to LEIDOS, INC.. SOFTWARE INTEGRATION AND MAINTENANCE SUPPORT FOR DEFENSE CIVILIAN PERSONNEL DATA SYSTEM (DCPDS) SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Human Resources Activity).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2021-09-28. End: 2023-09-27.

What is the justification for awarding this substantial software support contract on a sole-source basis, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or circumstances. Without further details, it's difficult to assess. However, for a contract of this magnitude, robust price analysis and negotiation are crucial to ensure fair pricing and taxpayer value, even in a non-competitive scenario.

What are the risks associated with relying on a single vendor for critical defense personnel data system maintenance and integration over an extended period?

Risks include vendor lock-in, potential for price increases without competitive pressure, reduced innovation, and dependency on the vendor's financial stability and strategic direction. A single point of failure could also impact system availability and security if the vendor faces significant challenges.

How effectively does the current software integration and maintenance support ensure the long-term viability and modernization of the DCPDS?

The effectiveness hinges on the vendor's performance and the contract's scope. While the contract ensures sustainment, the lack of competition might limit incentives for proactive modernization or adoption of cutting-edge solutions. Continuous monitoring and potential future competitive actions are key to ensuring long-term viability.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: H9821021RDCP1

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 9737 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 20878

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,187,103

Exercised Options: $28,187,103

Current Obligation: $28,187,103

Actual Outlays: $12,863,358

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2021-09-28

Current End Date: 2023-09-27

Potential End Date: 2023-09-27 00:00:00

Last Modified: 2025-04-22

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