DoD's $384M DISN Infrastructure Contract Awarded to Leidos, Inc. Faces Scrutiny
Contract Overview
Contract Amount: $384,567,780 ($384.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-01-19
End Date: 2020-11-18
Contract Duration: 1,034 days
Daily Burn Rate: $371.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: IGF::CT::IGF OPERATIONS AND SUSTAINMENT OF THE DISN INFRASTRUCTURE
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $384.6 million to LEIDOS, INC. for work described as: IGF::CT::IGF OPERATIONS AND SUSTAINMENT OF THE DISN INFRASTRUCTURE Key points: 1. The contract awarded to Leidos, Inc. for DISN infrastructure operations and sustainment represents a significant investment. 2. Competition for this contract was full and open, suggesting a competitive bidding process. 3. The fixed-price incentive contract type introduces potential risks and rewards tied to performance. 4. The sector is Defense, specifically IT infrastructure managed by the Defense Information Systems Agency.
Value Assessment
Rating: fair
The award amount of $384.5M over approximately 3 years for wired telecommunications carriers is substantial. Benchmarking against similar large-scale IT infrastructure sustainment contracts is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing structure and negotiation details would be needed to fully assess price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense communication infrastructure, with the expectation of efficient and effective service delivery.
Public Impact
Ensures the operational readiness of the Defense Information Systems Network (DISN), crucial for military communications. Supports the technological backbone for various Department of Defense operations and intelligence sharing. Potential impact on the cybersecurity posture of critical defense networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract type (Fixed Price Incentive) can lead to cost overruns if not managed carefully.
- Long duration (1034 days) may not keep pace with rapid technological advancements.
- Lack of specific performance metrics in the provided data makes effectiveness assessment difficult.
Positive Signals
- Awarded under full and open competition, indicating a potentially competitive price.
- Supports a critical national security function (DISN infrastructure).
- Leidos, Inc. is a major government contractor with extensive experience.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on IT infrastructure and telecommunications. Spending benchmarks for similar large-scale sustainment contracts are typically in the hundreds of millions of dollars.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine small business involvement.
Oversight & Accountability
Oversight would typically be conducted by the Defense Information Systems Agency (DISA) and potentially the DoD Inspector General. The fixed-price incentive structure suggests performance-based oversight is intended.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for cost overruns due to fixed-price incentive structure.
- Risk of technological obsolescence over the contract duration.
- Dependence on a single large contractor for critical infrastructure.
- Lack of detailed performance data for comprehensive value assessment.
Tags
wired-telecommunications-carriers, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $384.6 million to LEIDOS, INC.. IGF::CT::IGF OPERATIONS AND SUSTAINMENT OF THE DISN INFRASTRUCTURE
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 $384.6 million.
What is the period of performance?
Start: 2018-01-19. End: 2020-11-18.
What is the specific performance against cost and schedule targets under this fixed-price incentive contract, and how does it compare to the baseline?
The provided data lacks specific performance metrics against cost and schedule targets for this fixed-price incentive contract. A detailed review of contract performance reports and earned value management data would be required to assess if Leidos, Inc. met or exceeded targets, and how the incentive structure impacted the final cost to the government. This information is crucial for understanding the true value realized.
How does the per-unit cost of sustaining DISN infrastructure under this contract compare to industry benchmarks for similar services?
Without detailed breakdowns of services provided and their associated costs, a direct per-unit cost comparison is not feasible from the given data. Benchmarking would require analyzing specific line items such as network maintenance, hardware sustainment, and operational support against industry standards for comparable government or commercial contracts. This would reveal potential areas of over or under-spending.
What is the assessed risk of technological obsolescence given the contract duration and the rapid pace of IT advancements?
The contract duration of 1034 days (approximately 2.8 years) presents a moderate risk of technological obsolescence in the rapidly evolving IT landscape. While DISN infrastructure may have longer lifecycles, continuous upgrades and adaptation are essential. The fixed-price incentive structure might disincentivize proactive technology refresh unless explicitly incentivized within the contract terms.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
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: $384,567,780
Exercised Options: $384,567,780
Current Obligation: $384,567,780
Subaward Activity
Number of Subawards: 591
Total Subaward Amount: $247,163,533
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102812D0021
IDV Type: IDC
Timeline
Start Date: 2018-01-19
Current End Date: 2020-11-18
Potential End Date: 2021-01-18 00:00:00
Last Modified: 2024-09-26
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