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
- Lack of competition
- Sole-source award
- Potential for overpricing
Positive Signals
- Essential IT support for defense personnel data
- Contract awarded to established vendor
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
- Other Computer Related Services
- Department of Defense Contracting
- Defense Human Resources Activity Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated costs
- Limited innovation incentives
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 Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT 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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