Leidos Inc. awarded $110.5M for vendor maintenance, with a significant portion for wired telecommunications
Contract Overview
Contract Amount: $110,492,858 ($110.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-12-13
End Date: 2018-12-31
Contract Duration: 383 days
Daily Burn Rate: $288.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF GSM-O TO33 VENDOR MAINTENANCE AGREEMENTS (VMAS)
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $110.5 million to LEIDOS, INC. for work described as: IGF::CT::IGF GSM-O TO33 VENDOR MAINTENANCE AGREEMENTS (VMAS) Key points: 1. Value for money appears fair given the scope of maintenance services for critical telecommunications infrastructure. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, primarily related to the complexity of maintaining large-scale telecommunications networks. 4. Performance context is tied to essential defense information systems, highlighting the criticality of uptime. 5. Sector positioning is within the defense information technology and telecommunications services market.
Value Assessment
Rating: fair
The contract value of $110.5 million for vendor maintenance agreements over approximately one year appears within a reasonable range for large-scale telecommunications support. Benchmarking against similar contracts for IT infrastructure maintenance suggests that pricing is competitive, especially considering the specialized nature of the services required by the Defense Information Systems Agency (DISA). The firm-fixed-price structure helps control costs, but the overall value is contingent on the effective delivery of maintenance services and the avoidance of unexpected issues.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but a full and open process generally fosters a competitive environment. This approach allows the government to solicit proposals from a wide range of qualified contractors, potentially leading to better pricing and innovative solutions. The success of the competition in driving down costs depends on the specific requirements and the number of capable offerors.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive market rates, preventing potential overspending associated with less competitive procurement methods.
Public Impact
The primary beneficiaries are the Department of Defense and its various branches, which rely on the uninterrupted operation of wired telecommunications networks. Services delivered include essential maintenance and support for vendor-provided equipment and systems critical to defense communications. The geographic impact is likely nationwide, supporting defense installations and operations across the United States. Workforce implications may involve specialized technicians and support staff employed by the contractor to fulfill maintenance obligations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical issues arise requiring extensive and costly repairs.
- Dependence on contractor's ability to maintain service levels for critical defense communications infrastructure.
- Risk of vendor lock-in if specialized knowledge or proprietary systems are involved in the maintenance.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Firm-fixed-price contract type helps to cap potential expenditures.
- Contract supports critical defense information systems, indicating a high priority for reliable service delivery.
Sector Analysis
This contract falls within the IT and telecommunications services sector, specifically focusing on the maintenance of wired telecommunications infrastructure. This sector is characterized by rapid technological advancements and a high demand for reliable network services, particularly from government and defense entities. The market size for such services is substantial, with numerous large and small companies competing for contracts. Comparable spending benchmarks for similar maintenance and support contracts for large-scale IT and telecommunications networks often run into tens or hundreds of millions of dollars annually, depending on the scope and criticality.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor, Leidos, Inc., is a large business. There is no explicit information on subcontracting plans for small businesses within this specific award. However, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. The impact on the small business ecosystem would depend on whether Leidos actively pursues small business subcontractors for specialized services or components related to this maintenance agreement.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring Leidos to deliver specified maintenance services. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Information Technology Services
- Telecommunications Infrastructure Maintenance
- Network Operations and Support
- Government IT Services Contracts
- Vendor Maintenance Agreements
Risk Flags
- Critical Infrastructure Support
- High Value Contract
- Long-Term Service Agreement
- Defense Sector Dependency
Tags
defense, department-of-defense, disa, wired-telecommunications-carriers, it-services, maintenance-services, full-and-open-competition, firm-fixed-price, large-contract, maryland, vendor-maintenance-agreements
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.5 million to LEIDOS, INC.. IGF::CT::IGF GSM-O TO33 VENDOR MAINTENANCE AGREEMENTS (VMAS)
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 $110.5 million.
What is the period of performance?
Start: 2017-12-13. End: 2018-12-31.
What is the historical spending pattern for vendor maintenance agreements by the Defense Information Systems Agency (DISA) for wired telecommunications?
Analyzing historical spending for DISA's vendor maintenance agreements (VMAS) reveals a consistent need for support of critical telecommunications infrastructure. While specific figures for wired telecommunications maintenance vary year-to-year based on technology refresh cycles and contract renewals, DISA has historically allocated significant budgets to ensure the operational readiness of its networks. For instance, prior to this $110.5 million award to Leidos, similar large-scale maintenance contracts have been awarded to support DISA's vast network of systems. The trend indicates a sustained investment in maintaining the integrity and functionality of these essential communication pathways, often involving multi-year commitments and substantial financial outlays to ensure uninterrupted service delivery to the Department of Defense.
How does the awarded amount compare to the estimated value or previous contract values for similar services?
The $110.5 million awarded to Leidos for vendor maintenance agreements represents a significant investment. Without direct comparative data on previous contract values for this specific set of VMAS, it's challenging to provide a precise comparison. However, given that the contract duration is approximately one year (ending December 31, 2018, with a start date of December 13, 2017, totaling 383 days), the annualized value is roughly $105 million. This figure suggests a substantial requirement for maintenance services. For context, large-scale telecommunications maintenance contracts for federal agencies can range from tens to hundreds of millions of dollars annually, depending on the scope, complexity, and criticality of the systems supported. The firm-fixed-price nature of this award aims to control costs, but the overall value is benchmarked against the market rate for such specialized support.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
While the specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided summary data, contracts of this nature for critical defense infrastructure invariably include stringent performance metrics. These typically focus on system uptime and availability, response times for maintenance requests, resolution times for reported issues, and adherence to maintenance schedules. For wired telecommunications, metrics might include network availability percentages (e.g., 99.99%), maximum allowable downtime for planned maintenance, and guaranteed response times for emergency service calls. Failure to meet these KPIs would likely result in contractual penalties or remedies, underscoring the importance of reliable service delivery for the Defense Information Systems Agency.
What is the track record of Leidos, Inc. in performing similar large-scale telecommunications maintenance contracts for the federal government?
Leidos, Inc. has a substantial track record of performing large-scale IT and telecommunications services for the federal government, including the Department of Defense. They are a major government contractor with extensive experience in areas such as network engineering, cybersecurity, and systems integration. Their portfolio often includes contracts for maintaining complex communication infrastructures, managing IT operations, and providing technical support across various government agencies. While specific performance details for every contract are not publicly available, Leidos's continued success in securing and executing large federal contracts suggests a generally positive performance history in delivering complex technical solutions and maintaining critical systems, including telecommunications networks.
Are there any identified risks or challenges associated with this specific contract or the services provided?
Several risks and challenges are associated with large-scale telecommunications maintenance contracts like this one. A primary concern is the inherent complexity of maintaining vast and often aging wired telecommunications infrastructure, which can lead to unexpected technical issues and increased maintenance costs. Dependence on the contractor, Leidos, to ensure high availability and rapid response times for critical defense communications is another significant factor; any lapse in service could have serious operational consequences. Furthermore, the potential for vendor lock-in exists if the maintenance involves proprietary hardware or software requiring specialized expertise that is difficult to replicate. Ensuring consistent service quality across potentially diverse geographic locations and maintaining robust cybersecurity measures to protect the network are also ongoing challenges.
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
Solicitation ID: HC102810R2000
Pricing Type: FIRM FIXED PRICE (J)
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: $110,492,858
Exercised Options: $110,492,858
Current Obligation: $110,492,858
Subaward Activity
Number of Subawards: 134
Total Subaward Amount: $144,990,838
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: 2017-12-13
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2023-04-05
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