Leidos Inc. awarded $227M for JFHQ DODIN services, with a 5-year contract duration
Contract Overview
Contract Amount: $226,845,606 ($226.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-06-18
End Date: 2026-06-17
Contract Duration: 1,825 days
Daily Burn Rate: $124.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: JFHQ DODIN
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $226.8 million to LEIDOS, INC. for work described as: JFHQ DODIN Key points: 1. The contract's firm-fixed-price structure aims to control costs and provide predictable spending. 2. Full and open competition suggests a robust market with potential for competitive pricing. 3. The contract duration of five years allows for long-term planning and consistent service delivery. 4. Performance is situated within the critical Defense Information Systems Agency, highlighting its strategic importance. 5. The award falls under Computer Facilities Management Services, a key IT support category.
Value Assessment
Rating: good
Benchmarking this contract's value requires detailed comparison to similar IT service contracts within the Department of Defense. However, the firm-fixed-price nature suggests an effort to lock in costs. The contract's value of approximately $227 million over five years averages to about $45.4 million annually, which appears reasonable for comprehensive IT facilities management services supporting a major command like JFHQ DODIN. Further analysis would involve comparing specific service deliverables and labor rates against industry standards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The specific number of bidders is not provided, but the method of competition suggests a healthy market for these services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government receives the best value for its investment.
Public Impact
The primary beneficiary is the Joint Force Headquarters Department of Defense Information Network (JFHQ DODIN), which receives essential IT infrastructure support. Services delivered include computer facilities management, crucial for maintaining the operational readiness of critical defense networks. The geographic impact is primarily within the Department of Defense's operational theaters, ensuring network availability and security. Workforce implications include the potential for skilled IT professionals to be employed by the contractor, supporting defense IT operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Dependence on a single large contractor could create vendor lock-in risks.
- Ensuring consistent service quality across a five-year period requires robust performance monitoring.
Positive Signals
- Firm-fixed-price contract helps control costs and provides budget predictability.
- Full and open competition suggests a competitive market, potentially leading to better value.
- Long contract duration allows for stable service provision and knowledge retention.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. This is a critical area for government operations, particularly within defense, where reliable and secure IT infrastructure is paramount. The market for such services is large and competitive, with numerous large and small businesses capable of providing these solutions. The value of this contract is significant, reflecting the complexity and importance of managing the DODIN.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own subcontracting plans and the nature of the services required.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Information Systems Agency (DISA) and the contracting activity within the Department of Defense. Accountability measures would be embedded in the contract's performance work statement and delivery orders, with regular reviews and reporting requirements. Transparency is facilitated through contract award databases, though specific performance metrics and oversight reports may be internal to the agency.
Related Government Programs
- Defense Information Technology Support Services
- Network Operations and Maintenance Contracts
- IT Infrastructure Management
- Cybersecurity Services Contracts
- Joint Force Headquarters Support Contracts
Risk Flags
- Potential for vendor lock-in due to long-term, specialized service.
- Risk of performance degradation if oversight is not rigorous.
- Cybersecurity vulnerabilities within managed facilities.
- Challenges in adapting to rapidly evolving IT requirements under FFP.
Tags
it-services, defense, department-of-defense, joint-force-headquarters, dod, computer-facilities-management, leidos-inc, firm-fixed-price, full-and-open-competition, delivery-order, maryland, disa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $226.8 million to LEIDOS, INC.. JFHQ DODIN
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 $226.8 million.
What is the period of performance?
Start: 2021-06-18. End: 2026-06-17.
What is Leidos, Inc.'s track record with similar Department of Defense IT contracts?
Leidos, Inc. has a substantial track record of performing IT services for the Department of Defense across various agencies and commands. They are frequently awarded large-scale contracts for network operations, cybersecurity, enterprise IT, and systems integration. Their history includes managing complex IT infrastructures and providing mission-critical support. While specific performance details for past contracts are often proprietary, their consistent presence as a prime contractor on significant DoD programs suggests a demonstrated capability to meet the demanding requirements of military IT operations. Analyzing past performance reviews and contract modifications would provide a more granular understanding of their reliability and effectiveness in similar engagements.
How does the $227 million contract value compare to similar IT facilities management contracts within the DoD?
The $227 million contract value for JFHQ DODIN services, spread over five years, averages approximately $45.4 million annually. This figure is substantial but falls within the range of large-scale IT service contracts awarded by the Department of Defense. Similar contracts for enterprise IT management, network operations, and cybersecurity support for major commands or agencies can range from tens to hundreds of millions of dollars annually. Factors influencing this value include the scope of services (e.g., infrastructure, help desk, cybersecurity), the number of users supported, the criticality of the systems, and the geographic locations covered. Without specific details on the service components and performance metrics, a precise benchmark is difficult, but the award appears commensurate with the scale and importance of supporting the DODIN.
What are the primary risks associated with this contract for the Department of Defense?
Primary risks for the Department of Defense (DoD) in this contract include potential vendor lock-in, given the long duration and specialized nature of IT facilities management. There's also a risk of service degradation if performance monitoring is insufficient or if the contractor faces staffing challenges. Scope creep, where requirements expand beyond the initial agreement without corresponding adjustments in cost or timeline, is another common risk in IT service contracts. Furthermore, cybersecurity vulnerabilities within the managed facilities could pose a significant risk to the DODIN. Ensuring robust oversight, clear performance metrics, and contingency plans for contractor failure or performance issues are crucial mitigation strategies.
How effective is the firm-fixed-price (FFP) contract type in managing costs for IT services like these?
The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in IT services when the scope of work is well-defined and unlikely to change significantly. For a contract like JFHQ DODIN's computer facilities management, an FFP structure provides budget certainty for the government, as the price is fixed regardless of the contractor's actual costs. This shifts the cost risk to the contractor. However, if the requirements are not precisely defined upfront, an FFP contract can lead to disputes or limit flexibility if changes are needed. In such cases, a cost-reimbursement or time-and-materials contract might offer more adaptability, albeit with less cost certainty for the government. The success of FFP here hinges on the clarity and stability of the defined requirements.
What is the historical spending trend for Computer Facilities Management Services within the DoD?
Historical spending trends for Computer Facilities Management Services (CFMS) within the DoD have generally shown a consistent and significant investment. As the military increasingly relies on robust and secure IT infrastructure, the demand for services like network management, data center operations, and end-user support has grown. Spending in this category often fluctuates based on modernization initiatives, cybersecurity threats, and the consolidation or expansion of military networks. While specific annual figures for CFMS can vary, the overall trend indicates a sustained high level of expenditure reflecting the critical nature of these services to defense operations. Agencies like DISA are central to this spending, managing vast IT resources.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC102818R0024
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR FL 15, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $229,763,404
Exercised Options: $226,845,606
Current Obligation: $226,845,606
Subaward Activity
Number of Subawards: 42
Total Subaward Amount: $23,163,830
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HC102820D0001
IDV Type: IDC
Timeline
Start Date: 2021-06-18
Current End Date: 2026-06-17
Potential End Date: 2026-06-17 00:00:00
Last Modified: 2025-12-19
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