DoD's $97.8M IT Services Contract with Leidos Faces Scrutiny Over Pricing and Competition
Contract Overview
Contract Amount: $97,849,695 ($97.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-07-01
End Date: 2016-12-31
Contract Duration: 1,279 days
Daily Burn Rate: $76.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: IGF::OT::IGF IT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032
Plain-Language Summary
Department of Defense obligated $97.8 million to LEIDOS, INC. for work described as: IGF::OT::IGF IT SERVICES Key points: 1. Contract value of $97.8M for IT services. 2. Leidos, Inc. is the primary contractor. 3. Competition method was 'Full and Open', but specific price discovery is unclear. 4. Sector is IT Services, specifically Computer Systems Design Services.
Value Assessment
Rating: fair
The contract's fixed-price with economic price adjustment structure, coupled with a benchmark of $76,505 (likely for a specific task or period), requires further analysis against similar DoD IT service contracts to determine true value.
Cost Per Unit: $76,505
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the impact on price discovery is not fully detailed. The existence of multiple delivery orders (8) suggests potential for competitive tasking, but the overall price competitiveness needs deeper investigation.
Taxpayer Impact: The significant contract value necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively, especially given the potential for price adjustments.
Public Impact
Defense Information Systems Agency (DISA) relies on these IT services. The contract supports critical IT infrastructure within the Department of Defense. Potential for cost overruns due to economic price adjustment clauses. Ensuring fair competition and value for money is paramount for taxpayer accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed price discovery analysis for 'Full and Open' competition.
- Potential for cost escalation through economic price adjustment.
- Limited insight into the specific services provided under the 8 delivery orders.
Positive Signals
- Contract was awarded under 'Full and Open' competition.
- Services are critical for national defense IT infrastructure.
- Fixed-price elements provide some cost certainty.
Sector Analysis
This contract falls within the IT Services sector, specifically Computer Systems Design Services. Spending in this area for the DoD is substantial, and benchmarks for similar contracts are crucial for assessing value.
Small Business Impact
The data does not indicate any specific set-asides or participation from small businesses in this contract. Further analysis would be needed to determine if small business opportunities were explored or included.
Oversight & Accountability
Oversight by the Defense Information Systems Agency and the Department of Defense is critical. The IG's involvement (implied by 'IGF') suggests ongoing scrutiny, but specific oversight mechanisms and their effectiveness are not detailed.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for cost overruns due to EPA.
- Lack of detailed price discovery analysis.
- Limited transparency on specific task order costs.
- No clear indication of small business participation.
Tags
computer-systems-design-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.8 million to LEIDOS, INC.. IGF::OT::IGF IT SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $97.8 million.
What is the period of performance?
Start: 2013-07-01. End: 2016-12-31.
How does the $76,505 benchmark compare to industry standards for similar Computer Systems Design Services contracts awarded by the DoD during the 2013-2016 period?
A comprehensive comparison requires access to a broader dataset of DoD IT service contracts from the specified period. However, $76,505 as a benchmark suggests a specific scope of work. Without knowing if this is per month, per year, or for a specific deliverable, direct comparison is difficult. Generally, IT services can range widely in cost based on complexity, duration, and required expertise.
What specific mechanisms were in place to mitigate cost increases due to the 'economic price adjustment' clause, and how effective were they in controlling expenditures?
The effectiveness of economic price adjustment (EPA) clauses hinges on the specific indices used for adjustment and pre-defined caps. Without knowing the exact EPA formula and any negotiated limitations, it's impossible to assess their impact. Robust oversight would involve regular reviews of the indices and ensuring adjustments were justified and within contractual limits to protect taxpayer interests.
Beyond the 'Full and Open' designation, what steps were taken during the solicitation process to ensure maximum price competition and identify the most cost-effective solution?
While 'Full and Open' implies broad solicitation, effective price discovery involves detailed evaluation criteria, clear performance work statements, and potentially multiple award contracts or task order competitions. The extent to which Leidos's proposal represented the most cost-effective solution would depend on the evaluation process, including technical merit, past performance, and price analysis, which are not detailed here.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 8
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $97,849,695
Exercised Options: $97,849,695
Current Obligation: $97,849,695
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0039
IDV Type: GWAC
Timeline
Start Date: 2013-07-01
Current End Date: 2016-12-31
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2020-09-09
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