DOD's JRSS PMO contract awarded to Leidos, Inc. for over $131M, with a 2-year duration
Contract Overview
Contract Amount: $131,430,266 ($131.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-06-29
End Date: 2021-05-28
Contract Duration: 699 days
Daily Burn Rate: $188.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DEPARTMENT OF DEFENSE (DOD) JOINT REGIONAL SECURITY STACK (JRSS) PORTFOLIO MANAGEMENT OFFICE (PMO) REQUIREMENTS
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $131.4 million to LEIDOS, INC. for work described as: DEPARTMENT OF DEFENSE (DOD) JOINT REGIONAL SECURITY STACK (JRSS) PORTFOLIO MANAGEMENT OFFICE (PMO) REQUIREMENTS Key points: 1. Contract value of $131.4M over two years suggests significant investment in defense IT infrastructure. 2. Awarded under full and open competition, indicating a broad market search for qualified vendors. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed tightly. 4. Performance period of 699 days (approx. 23 months) provides a defined timeframe for service delivery. 5. The primary NAICS code (517110) points to significant spending within the telecommunications sector. 6. Leidos, Inc. is a major defense contractor, suggesting established capabilities and experience.
Value Assessment
Rating: fair
The contract value of $131.4M over approximately two years for JRSS PMO requirements appears substantial. Benchmarking against similar large-scale IT portfolio management contracts within the Department of Defense is necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost escalation if not rigorously monitored and controlled by the agency. Without specific performance metrics or comparison data, it's difficult to definitively assess if this represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors were likely solicited and had the opportunity to bid. The number of bidders is not specified, but this approach generally promotes competitive pricing and allows the government to select the best-value solution. The open competition is a positive indicator for price discovery and ensuring a fair market approach.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most capable and cost-effective solution available in the market.
Public Impact
The primary beneficiaries are the Department of Defense's Joint Regional Security Stack (JRSS) Portfolio Management Office, which receives essential support services. Services delivered likely include program management, technical support, and potentially system integration for critical defense communication networks. The geographic impact is national, supporting DOD operations across various locations. Workforce implications include employment opportunities for IT professionals, program managers, and technical specialists within Leidos, Inc. and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type introduces risk of cost overruns if not closely managed.
- Lack of specific performance metrics in the provided data makes it hard to gauge efficiency.
- The two-year duration might be insufficient for long-term strategic portfolio management goals.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Leidos, Inc. is an established large defense contractor with relevant experience.
- The contract supports critical defense IT infrastructure (JRSS).
Sector Analysis
This contract falls within the Information Technology and Telecommunications sector, specifically supporting defense-related network infrastructure. The JRSS is a critical component of the DOD's cybersecurity strategy, aiming to provide a common set of security services across the enterprise. Spending in this area is substantial across government agencies, with significant investments in network modernization and security. Comparable spending benchmarks would involve looking at other large-scale IT service contracts for network management and security within DOD and other federal agencies.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. While Leidos, Inc. is a large prime contractor, there may be subcontracting opportunities for small businesses within the scope of this contract. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) and the JRSS PMO. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific internal oversight mechanisms are not detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Joint Regional Security Stack (JRSS)
- Defense Information Systems Agency (DISA) Contracts
- Department of Defense IT Services
- Cybersecurity Infrastructure Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
- Potential for scope creep in IT projects managed under flexible contract terms.
- Dependence on a single large contractor for critical infrastructure management.
Tags
department-of-defense, joint-regional-security-stack, portfolio-management, leidos-inc, wired-telecommunications-carriers, full-and-open-competition, delivery-order, cost-plus-fixed-fee, it-services, cybersecurity, defense-information-systems-agency, maryland
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $131.4 million to LEIDOS, INC.. DEPARTMENT OF DEFENSE (DOD) JOINT REGIONAL SECURITY STACK (JRSS) PORTFOLIO MANAGEMENT OFFICE (PMO) REQUIREMENTS
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 $131.4 million.
What is the period of performance?
Start: 2019-06-29. End: 2021-05-28.
What is the historical spending trend for JRSS Portfolio Management Office requirements?
Analyzing historical spending for JRSS PMO requirements is crucial for understanding the long-term investment in this capability. Without access to specific historical data for this exact contract or its predecessors, we can infer trends from broader DOD IT spending. The DOD consistently invests billions annually in IT modernization, cybersecurity, and network infrastructure. Contracts like this, supporting critical functions like JRSS, are likely to see sustained or increasing funding as threats evolve and technology advances. A detailed analysis would involve examining prior contract awards for JRSS PMO, including value, duration, and contractor, to identify patterns of spending, potential growth, or shifts in strategy over time.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar IT services?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty, allowing for flexibility. However, it places the risk of cost overruns primarily on the government, as the contractor is reimbursed for allowable costs plus a predetermined fixed fee. Compared to Firm-Fixed-Price (FFP) contracts, which offer greater cost certainty for the government but less flexibility for the contractor, CPFF can lead to higher final costs if not managed diligently. Other types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives that can better align contractor and government interests in cost control and performance. For IT services, especially those involving evolving technologies or complex integrations like JRSS, CPFF might be chosen for its adaptability, but it necessitates robust government oversight to ensure cost efficiency.
What is Leidos, Inc.'s track record with similar large-scale DOD IT contracts?
Leidos, Inc. has a significant and established track record as a major contractor for the Department of Defense, particularly in the IT and systems integration domains. They frequently win large, complex contracts involving network modernization, cybersecurity, enterprise IT services, and command and control systems. Their experience often includes managing large teams, handling sensitive data, and operating within stringent security and compliance frameworks. While specific performance details for every contract are not publicly available, their consistent success in securing and performing on high-value DOD contracts suggests a strong capability to meet the requirements of programs like the JRSS PMO. Past performance evaluations, often part of the federal procurement process, would provide more granular insights into their specific successes and challenges on prior engagements.
What are the key performance indicators (KPIs) typically associated with JRSS Portfolio Management?
Key Performance Indicators (KPIs) for JRSS Portfolio Management would likely focus on the effectiveness, efficiency, and security of the network infrastructure it oversees. Examples could include network uptime and availability percentages, latency metrics, successful security incident response times, the number of vulnerabilities identified and remediated, and the cost-effectiveness of managing the JRSS portfolio. Other KPIs might relate to the successful implementation of new security services or technologies, user satisfaction, and compliance with DOD security directives. The CPFF contract structure implies that these KPIs would be monitored closely by the government to ensure the contractor is meeting objectives while managing costs.
How does this contract align with broader DOD cybersecurity and network modernization initiatives?
This contract for JRSS Portfolio Management is directly aligned with the Department of Defense's overarching goals for cybersecurity and network modernization. The JRSS aims to consolidate and standardize security services across the DOD enterprise, creating a more unified and resilient network defense posture. By providing portfolio management for these critical security stacks, the contract supports the DOD's strategy to enhance situational awareness, improve threat detection and response, and reduce the attack surface. It contributes to the modernization effort by ensuring that the security infrastructure is effectively managed, maintained, and potentially upgraded to meet evolving cyber threats and operational requirements across the vast DOD network.
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: COST PLUS FIXED FEE (U)
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: $144,571,007
Exercised Options: $131,430,266
Current Obligation: $131,430,266
Subaward Activity
Number of Subawards: 58
Total Subaward Amount: $27,225,279
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102812D0021
IDV Type: IDC
Timeline
Start Date: 2019-06-29
Current End Date: 2021-05-28
Potential End Date: 2021-05-28 00:00:00
Last Modified: 2021-09-09
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