Leidos awarded $93.5M contract for cybersecurity services by the Department of Defense
Contract Overview
Contract Amount: $93,499,435 ($93.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-31
End Date: 2025-07-30
Contract Duration: 1,276 days
Daily Burn Rate: $73.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: JSP CYBER SECURITY
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $93.5 million to LEIDOS, INC. for work described as: JSP CYBER SECURITY Key points: 1. Contract value represents a significant investment in critical cybersecurity infrastructure. 2. Competition dynamics suggest a robust market for advanced cyber solutions. 3. Performance period extends over three years, indicating a need for sustained support. 4. The firm-fixed-price structure aims to control costs and ensure predictable spending. 5. This award falls within the broader IT services sector, crucial for national security.
Value Assessment
Rating: good
The contract value of $93.5 million for cybersecurity services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT service contracts awarded by the Department of Defense suggests this falls within expected ranges for comprehensive cyber support. The firm-fixed-price (FFP) contract type is generally favorable for the government in managing cost certainty, especially for well-defined services like those implied by the NAICS code. However, a detailed cost breakdown and comparison to specific service delivery metrics would be needed for a more precise value assessment.
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 bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of interest and competition, which is generally beneficial for price discovery and achieving value for money.
Taxpayer Impact: Full and open competition maximizes the potential for competitive pricing, which directly benefits taxpayers by ensuring the government secures services at the most advantageous rates available in the market.
Public Impact
The Department of Defense and its various branches will benefit from enhanced cybersecurity capabilities. Services delivered are expected to include computer facilities management and advanced cyber defense. The primary geographic impact is within the District of Columbia, where the agency is located. This contract supports a workforce skilled in cybersecurity and IT infrastructure management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not tightly managed throughout the performance period.
- Dependence on a single contractor for critical cybersecurity functions could pose a risk if performance falters.
- Ensuring continuous innovation in cybersecurity practices by the contractor is essential given the evolving threat landscape.
Positive Signals
- The firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a strong market offering and potential for competitive pricing.
- The multi-year duration allows for sustained support and development of specialized expertise.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on cybersecurity and computer facilities management. The IT services market is a substantial segment of federal spending, with cybersecurity being a rapidly growing and critical sub-sector due to increasing cyber threats. The Defense Information Systems Agency (DISA) is a major procurer of such services, and this contract aligns with the agency's mission to provide, operate, and assure information systems for the DoD. Comparable spending benchmarks for large-scale cybersecurity contracts often run into tens or hundreds of millions of dollars annually.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is unlikely to have significant direct subcontracting opportunities specifically mandated for small businesses unless specified in the contract's statement of work. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors for specialized services, contributing indirectly to the small business ecosystem.
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 within the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- DoD Cybersecurity Modernization Program
- Defense Information Technology Contracting Office (DITCO) Contracts
- Cybersecurity Services for Federal Agencies
- IT Infrastructure Support Contracts
Risk Flags
- Contract duration exceeds 3 years, requiring careful monitoring of sustained performance.
- Cybersecurity is a high-stakes domain with rapidly evolving threats, demanding continuous adaptation.
- Dependence on a single large contractor for critical functions warrants close oversight.
Tags
it-services, cybersecurity, department-of-defense, defense-information-systems-agency, firm-fixed-price, full-and-open-competition, delivery-order, district-of-columbia, large-contract, computer-facilities-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $93.5 million to LEIDOS, INC.. JSP CYBER SECURITY
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 $93.5 million.
What is the period of performance?
Start: 2022-01-31. End: 2025-07-30.
What is Leidos, Inc.'s track record with the Department of Defense for similar cybersecurity contracts?
Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing large contracts across various IT and defense-related services. Their history includes significant work in areas such as enterprise IT, cloud migration, cybersecurity, and command and control systems. For instance, Leidos has been a prime contractor on numerous large-scale DoD programs, including significant roles in network modernization and cybersecurity operations. Their performance on past contracts, often involving complex technical requirements and high security standards, suggests a capacity to handle the demands of this new cybersecurity award. A detailed review of their past performance ratings and any past performance issues on similar DoD contracts would provide further insight into their reliability for this specific award.
How does the $93.5 million contract value compare to similar cybersecurity contracts awarded by DISA or the DoD?
The $93.5 million contract value for cybersecurity services awarded to Leidos, Inc. by the Department of Defense (via DISA) is substantial but falls within the typical range for large, multi-year IT service contracts supporting critical infrastructure. DISA and other DoD components frequently award contracts in the tens to hundreds of millions of dollars for comprehensive cybersecurity solutions, network operations, and IT infrastructure management. For example, contracts for enterprise-wide cybersecurity support, threat detection, and incident response can easily exceed this amount over their performance periods. The firm-fixed-price nature of this award suggests a defined scope, making direct comparison to other FFP contracts for similar services more relevant. Without specific details on the exact services rendered, it's challenging to pinpoint precise benchmarks, but the overall value is consistent with the scale of cybersecurity needs within a major military branch.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks associated with this contract include potential technical obsolescence in cybersecurity solutions, contractor performance issues, and the evolving nature of cyber threats. Given the rapid pace of technological change in cybersecurity, ensuring the contractor maintains state-of-the-art capabilities throughout the contract's duration is crucial. Mitigation strategies likely involve performance metrics within the contract, regular reviews, and potentially clauses for incorporating updated technologies. Contractor performance risk is managed through the firm-fixed-price structure, which incentivizes efficient delivery, and through standard DoD oversight mechanisms. The evolving threat landscape risk is inherent to cybersecurity; mitigation relies on robust threat intelligence sharing, agile response capabilities, and continuous adaptation, which are expected components of the contracted services.
What is the expected effectiveness of the cybersecurity services to be delivered under this contract?
The expected effectiveness of the cybersecurity services hinges on the specific tasks outlined in the contract's statement of work, which are not fully detailed here. However, based on the NAICS code (541513 - Computer Facilities Management Services) and the agency (DoD), the services likely encompass a broad range of protective measures. These could include network security monitoring, vulnerability assessments, intrusion detection and prevention, incident response, and potentially secure system configuration and management. The effectiveness will be measured against performance standards and objectives set forth in the contract. A successful outcome would mean a demonstrable reduction in security incidents, improved system resilience, and enhanced protection of sensitive DoD data and systems against cyber threats.
How has federal spending on cybersecurity services evolved, and where does this contract fit in?
Federal spending on cybersecurity services has seen a dramatic and consistent increase over the past decade, driven by a growing awareness of and response to escalating cyber threats targeting government systems and sensitive data. This contract, valued at $93.5 million over its period of performance, fits within this trend as a significant investment by the Department of Defense. It represents a portion of the broader federal cybersecurity budget, which spans across numerous agencies and encompasses a wide array of services, from threat intelligence and prevention to incident response and security infrastructure management. The DoD is consistently one of the largest federal spenders in this domain, reflecting the critical nature of its information assets and operational requirements.
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 - APLLICATIONS
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: $93,499,435
Exercised Options: $93,499,435
Current Obligation: $93,499,435
Subaward Activity
Number of Subawards: 41
Total Subaward Amount: $10,624,616
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: 2022-01-31
Current End Date: 2025-07-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2025-12-03
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