DOD's JRSS PMO contract awarded to Leidos, Inc. for over $219.9M, spanning 5 years
Contract Overview
Contract Amount: $219,951,572 ($220.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-05-29
End Date: 2026-05-28
Contract Duration: 1,825 days
Daily Burn Rate: $120.5K/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 $220.0 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 exceeds $219.9 million over its five-year term. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risk. 4. This contract supports the Joint Regional Security Stack (JRSS) Portfolio Management Office (PMO). 5. The North American Industry Classification System (NAICS) code 541513 indicates Computer Facilities Management Services. 6. The contract duration is 1825 days, aligning with the five-year period. 7. The award was a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle.
Value Assessment
Rating: fair
The contract's value of over $219.9 million for five years of computer facilities management services is substantial. Benchmarking this against similar large-scale IT infrastructure support contracts within the Department of Defense is crucial. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure costs remain reasonable and that the fixed fee provides adequate incentive for efficient performance. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the scale suggests significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a wider range of proposals and potentially more competitive pricing. The number of bidders is not specified, but the open competition suggests a healthy market engagement for these services. This approach is generally favored for ensuring the government receives the best value through market forces.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality, ensuring that public funds are used efficiently.
Public Impact
The primary beneficiaries are the Department of Defense components relying on the JRSS for secure network operations. Services delivered include portfolio management and computer facilities management, crucial for maintaining robust IT infrastructure. The geographic impact is likely global, supporting DOD operations worldwide. Workforce implications include the potential for skilled IT professionals employed by Leidos, Inc. and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can lead to cost overruns if not managed diligently.
- The long duration of the contract may reduce flexibility to adapt to rapidly changing technology.
- Reliance on a single large contractor for critical infrastructure management poses a potential single point of failure risk.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- The contract supports a critical DOD initiative (JRSS) ensuring operational continuity.
- Leidos, Inc. is a large, established contractor with significant experience in government IT services.
Sector Analysis
The IT services sector, particularly within defense, is characterized by large, complex contracts supporting critical national security functions. The JRSS PMO contract falls within the realm of IT infrastructure management and cybersecurity support. The market for such services is dominated by a few large system integrators and IT service providers capable of handling the scale and security requirements of federal agencies. Spending in this area is consistently high due to the ongoing need for modernization and secure operations.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. This suggests that the contract was not specifically targeted towards small businesses. However, large prime contractors like Leidos often engage small businesses through subcontracting opportunities. Further analysis would be needed to determine the extent of small business involvement in fulfilling the JRSS PMO requirements.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, specifically the Defense Information Systems Agency (DISA) which awarded the delivery order. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases and reporting requirements, though specific performance metrics and cost details may be sensitive. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DOD Information Technology Services
- Joint Regional Security Stack (JRSS)
- Cybersecurity Support Contracts
- IT Portfolio Management
- Computer Facilities Management
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type requires stringent cost oversight.
- Long-term contract duration may pose risks related to technological obsolescence.
- Dependence on a single contractor for critical infrastructure management.
Tags
dod, defense, it-services, computer-facilities-management, cybersecurity, portfolio-management, full-and-open-competition, cost-plus-fixed-fee, delivery-order, leidos-inc, disa, maryland
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $220.0 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 $220.0 million.
What is the period of performance?
Start: 2021-05-29. End: 2026-05-28.
What is the historical spending trend for JRSS PMO support, and how does this award compare?
Analyzing historical spending for the JRSS PMO is essential for context. Without specific prior contract data for this exact PMO, we can look at broader trends in DOD IT infrastructure and cybersecurity spending. The DOD consistently allocates tens of billions annually to IT modernization, network security, and related services. A single contract valued at over $219.9 million over five years represents a significant investment within a specific program but is part of a much larger overall IT budget. Comparing this to previous JRSS-related efforts or similar portfolio management contracts would reveal if this award represents an increase, decrease, or stable level of investment for this capability. Factors like evolving threats, technological advancements, and strategic shifts within the DOD influence these spending patterns.
How does Leidos, Inc.'s performance on similar DOD IT contracts inform the risk assessment for this award?
Leidos, Inc. is a major defense contractor with a substantial portfolio of IT and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) contracts across various government agencies, including the DOD. Their track record on similar large-scale, complex IT service contracts provides valuable insights into their capabilities, project management proficiency, and ability to meet stringent security and performance requirements. A review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would highlight areas of strength and any recurring issues. For this JRSS PMO contract, Leidos's experience in managing large IT infrastructures, cybersecurity solutions, and portfolio management functions suggests a lower performance risk, assuming past performance is indicative of future results. However, the CPFF structure necessitates ongoing vigilance regarding cost control and efficiency.
What are the key performance indicators (KPIs) expected for this JRSS PMO contract, and how are they measured?
Key Performance Indicators (KPIs) for a contract like the JRSS PMO typically revolve around the availability, performance, security, and efficiency of the IT infrastructure and services managed. Specific KPIs might include system uptime percentages, network latency metrics, incident response times, cybersecurity vulnerability remediation rates, successful deployment of new capabilities, and adherence to budget. The contract's Statement of Work (SOW) and Performance Work Statement (PWS) would detail these KPIs and the methodologies for measuring them. For a CPFF contract, demonstrating progress against these KPIs is crucial for justifying costs and ensuring the government receives the intended value. Regular reporting, audits, and performance reviews are standard mechanisms for tracking and evaluating performance against these metrics.
What is the strategic importance of the JRSS program to the Department of Defense, and how does this contract support it?
The Joint Regional Security Stack (JRSS) is a critical component of the Department of Defense's cybersecurity strategy, designed to provide a common set of security services across the global network. It aims to consolidate and standardize security infrastructure, enhancing threat detection, prevention, and response capabilities while reducing the complexity and cost of managing disparate security systems. The JRSS PMO contract, managed by Leidos, Inc., is vital for the effective implementation, operation, and sustainment of this program. It ensures that the JRSS architecture is properly managed, updated, and integrated, supporting the DOD's mission-critical operations by maintaining a secure and resilient network environment essential for national defense.
How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives for this JRSS PMO requirement?
The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, as might be the case with evolving IT requirements. For the JRSS PMO contract, CPFF provides Leidos, Inc. with the flexibility to adapt to changing technical needs. However, it places a significant burden on the government to meticulously audit costs to ensure they are reasonable and allocable. The fixed fee incentivizes the contractor to complete the work within the estimated cost range to maximize their profit margin, but it doesn't directly reward cost savings beyond that. Effective government oversight and robust cost-tracking mechanisms are paramount to mitigate the risk of cost overruns inherent in CPFF agreements.
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: COST PLUS FIXED FEE (U)
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: $225,025,406
Exercised Options: $220,828,004
Current Obligation: $219,951,572
Subaward Activity
Number of Subawards: 75
Total Subaward Amount: $74,747,470
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: 2021-05-29
Current End Date: 2026-05-28
Potential End Date: 2026-05-28 00:00:00
Last Modified: 2025-09-23
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