Leidos Inc. awarded $120.6M for DISN infrastructure maintenance, highlighting wired telecommunications carrier needs
Contract Overview
Contract Amount: $120,619,976 ($120.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-01-01
End Date: 2020-12-31
Contract Duration: 365 days
Daily Burn Rate: $330.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GSM-O TO39 MAINTENANCE AND REPAIR 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 $120.6 million to LEIDOS, INC. for work described as: GSM-O TO39 MAINTENANCE AND REPAIR OF THE DISN INFRASTRUCTURE. Key points: 1. Contract value of over $120 million indicates significant investment in critical defense communication infrastructure. 2. The full and open competition suggests a robust market for these specialized telecommunications services. 3. Fixed-price contract type may offer cost certainty but requires careful scope management. 4. The single delivery order structure points to a specific, defined need within the broader contract. 5. Maintenance and repair services are essential for ensuring the reliability and security of the DISN. 6. The contract's duration of one year suggests a focus on immediate operational requirements.
Value Assessment
Rating: good
The contract value of $120.6 million for one year of maintenance and repair of DISN infrastructure appears substantial, reflecting the critical nature of the services. Benchmarking against similar large-scale telecommunications infrastructure contracts is necessary for a precise value-for-money assessment. However, the fixed-price nature suggests an expectation of defined costs for the services rendered. The award to Leidos, Inc. indicates a significant player in the defense IT and telecommunications sector is managing this critical asset.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of solutions. The Defense Information Systems Agency (DISA) likely sought the best value through a competitive process, which should translate into more favorable terms for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives competitive pricing for essential services.
Public Impact
The primary beneficiaries are the Department of Defense and its various branches, which rely on the DISN for secure and reliable communication. Services delivered include maintenance and repair of the Defense Information Systems Network (DISN) infrastructure. The geographic impact is likely widespread, covering all locations where DISN infrastructure is deployed to support military operations. Workforce implications may include specialized technicians and engineers required for maintaining complex telecommunications networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in maintenance and repair contracts if not clearly defined.
- Reliance on a single large contractor for critical infrastructure could pose risks if performance falters.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Fixed-price contract type can provide cost predictability.
- Leidos, Inc. is a well-established contractor with significant experience in defense IT and telecommunications.
Sector Analysis
The contract falls within the Wired Telecommunications Carriers industry, a sector critical for providing the backbone of modern communication networks. This sector is characterized by significant infrastructure investment, technological evolution, and a strong presence of large, established companies. Spending in this area for defense is substantial, as secure and reliable communication is paramount for national security. Comparable spending benchmarks would involve looking at other large-scale telecommunications maintenance and network support contracts within the federal government, particularly those supporting critical infrastructure.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract for critical infrastructure maintenance, it is unlikely that small businesses would be primary awardees unless through subcontracting. The focus on a large prime contractor suggests that subcontracting opportunities for specialized services might exist, but the primary award does not directly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the Defense Information Systems Agency (DISA) program office. Performance metrics and reporting requirements would be stipulated in the contract. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Information Systems Network (DISN)
- Telecommunications Infrastructure Maintenance
- Wired Network Services
- Department of Defense IT Services
Risk Flags
- Potential for service disruption if maintenance is inadequate.
- Risk of cost overruns if unforeseen repair issues arise.
- Dependence on a single contractor for critical infrastructure.
Tags
defense, department-of-defense, disa, wired-telecommunications-carriers, it-services, maintenance-and-repair, full-and-open-competition, firm-fixed-price, delivery-order, leidos-inc, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $120.6 million to LEIDOS, INC.. GSM-O TO39 MAINTENANCE AND REPAIR 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 $120.6 million.
What is the period of performance?
Start: 2020-01-01. End: 2020-12-31.
What is the historical spending trend for DISN infrastructure maintenance and repair by the Department of Defense?
Analyzing historical spending on DISN infrastructure maintenance and repair by the Department of Defense requires access to comprehensive contract data over multiple fiscal years. While this specific award is for $120.6 million in 2020, understanding the broader trend involves examining prior years' obligations for similar services. Factors influencing spending include network modernization efforts, aging infrastructure requiring more upkeep, and evolving cybersecurity requirements. A consistent or increasing trend might indicate a growing need for these services or a strategic investment in network resilience. Conversely, a decreasing trend could suggest successful modernization leading to reduced maintenance needs or shifts in defense spending priorities. Without multi-year data, it's difficult to establish a definitive trend, but this $120.6 million award represents a significant single-year investment.
How does the awarded amount compare to the estimated value or ceiling of the contract vehicle under which it was awarded?
The provided data indicates this is a Delivery Order (aw: DELIVERY ORDER) valued at $120,619,975.75. To compare this to the contract vehicle's ceiling, we would need information on the parent contract or Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Delivery orders typically draw from a pre-established contract with a defined ceiling and scope. If this delivery order represents a substantial portion of the parent contract's total value, it suggests a significant requirement. Conversely, if the parent contract has a much higher ceiling, this order might represent one of many taskings. Without details on the parent contract's ceiling, a direct comparison is not possible, but the amount itself signifies a substantial commitment for the specified period.
What specific types of maintenance and repair activities are covered under this contract for the DISN infrastructure?
The contract title, 'GSM-O TO39 MAINTENANCE AND REPAIR OF THE DISN INFRASTRUCTURE,' indicates a broad scope of services related to the Defense Information Systems Network (DISN). Specific activities typically encompass preventative maintenance to ensure system reliability, corrective maintenance to address faults and failures, and potentially upgrades or component replacements necessary to keep the infrastructure operational. This could include maintenance of physical network components (cabling, routers, switches), power and cooling systems for network facilities, and associated monitoring and diagnostic equipment. The exact breakdown of services would be detailed in the contract's Statement of Work (SOW), which specifies the deliverables, performance standards, and the precise nature of the maintenance and repair tasks required.
What is Leidos, Inc.'s track record with similar large-scale telecommunications infrastructure contracts for the Department of Defense?
Leidos, Inc. has a substantial track record in providing IT and telecommunications services to the Department of Defense and other federal agencies. They are frequently awarded large contracts related to network modernization, cybersecurity, and infrastructure support. Their experience often includes managing complex systems like the DISN or similar secure communication networks. Publicly available contract databases and company reports would detail their past performance, including the size and scope of previous awards, customer satisfaction ratings, and any significant challenges or successes. Given their position as a major defense contractor, it is probable they possess the necessary expertise and resources to manage a contract of this magnitude effectively.
Are there any performance risks associated with this contract, given its focus on maintenance and repair of critical infrastructure?
Performance risks associated with a contract for maintenance and repair of critical infrastructure like the DISN are inherent. Key risks include potential delays in response times for repairs, which could disrupt military communications; quality issues in maintenance that could lead to future failures; and the possibility of unforeseen technical challenges requiring additional resources or expertise beyond the initial scope. For a fixed-price contract, there's also a risk that the contractor might cut corners to maintain profitability if costs escalate unexpectedly. The government mitigates these risks through performance monitoring, defined service level agreements (SLAs), and penalties for non-performance, as well as through the contractor's own reputation and incentive to maintain a good performance record for future awards.
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. (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: $120,619,976
Exercised Options: $120,619,976
Current Obligation: $120,619,976
Subaward Activity
Number of Subawards: 108
Total Subaward Amount: $93,670,580
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: 2020-01-01
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2021-02-20
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