Leidos Inc. awarded $82.3M for GSM-O II maintenance, with contract ending Jan 2030
Contract Overview
Contract Amount: $82,306,969 ($82.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2030-12-31
Contract Duration: 1,825 days
Daily Burn Rate: $45.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: GSM-O II MAINTENANCE AND REPAIR
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $82.3 million to LEIDOS, INC. for work described as: GSM-O II MAINTENANCE AND REPAIR Key points: 1. Value for money assessed through fixed-price incentive structure, aiming to align contractor performance with cost objectives. 2. Competition dynamics indicate a full and open approach, suggesting a robust market for these services. 3. Risk indicators include the long duration of the contract, potentially exposing the government to evolving technological needs. 4. Performance context relies on the fixed-price incentive model to drive efficiency and quality. 5. Sector positioning within IT services, specifically computer facilities management, highlights a critical support function for defense operations.
Value Assessment
Rating: good
The contract's fixed-price incentive (FPI) structure suggests an effort to control costs while incentivizing performance. Benchmarking against similar IT maintenance contracts is challenging without more granular data on service scope and SLAs. However, the total award value of $82.3 million over approximately five years indicates a significant investment in maintaining critical defense IT infrastructure. The base contract value and the incentive structure will be key to assessing true value for money upon completion.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of full and open competition suggests that the Defense Information Systems Agency (DISA) sought to leverage the broadest possible market to meet its requirements.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, thereby maximizing the value of federal spending.
Public Impact
The primary beneficiaries are the Department of Defense and its various components, which rely on the GSM-O II program for essential IT infrastructure and services. Services delivered include maintenance and repair of computer facilities, ensuring the operational readiness of critical defense networks. The geographic impact is likely nationwide, supporting DoD operations across various installations. Workforce implications may include the direct employment of IT professionals by Leidos, Inc. and potential indirect employment in supporting industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years) could lead to technology obsolescence if not managed proactively.
- Reliance on a single awardee for critical IT maintenance could pose a risk if performance falters.
- The complexity of integrated IT systems requires continuous monitoring and adaptation to evolving threats.
Positive Signals
- Fixed-price incentive contract type encourages cost control and performance alignment.
- Full and open competition suggests a competitive market and potential for value.
- Award to a known entity (Leidos) may indicate a track record of successful performance in similar roles.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on Computer Facilities Management Services. This is a critical area for government operations, particularly for defense agencies that require robust, secure, and continuously available IT infrastructure. The market for such services is large and competitive, with numerous firms capable of providing specialized maintenance and support. Comparable spending benchmarks would involve analyzing other large-scale IT maintenance contracts awarded by federal agencies for similar scope and duration.
Small Business Impact
The 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 stemming from a set-aside. However, as a large prime contractor, Leidos, Inc. may engage small businesses for subcontracting opportunities, depending on their internal procurement strategies and the specific needs of the contract. The absence of a small business set-aside means that the primary competition was open to all eligible large businesses.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are embedded within the fixed-price incentive contract type, which links contractor profit to performance and cost targets. Transparency is facilitated through federal procurement databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- GSM-O II Program
- Defense Information Technology Services
- IT Infrastructure Maintenance
- Computer Facilities Management
- Department of Defense IT Contracts
Risk Flags
- Long-term contract duration
- Potential for technology obsolescence
- Reliance on single prime contractor for critical services
Tags
it-services, maintenance-and-repair, department-of-defense, defense-information-systems-agency, fixed-price-incentive, full-and-open-competition, information-technology, computer-facilities-management, leidos-inc, maryland, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.3 million to LEIDOS, INC.. GSM-O II MAINTENANCE AND REPAIR
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 $82.3 million.
What is the period of performance?
Start: 2026-01-01. End: 2030-12-31.
What is Leidos, Inc.'s track record with similar large-scale IT maintenance contracts for the Department of Defense?
Leidos, Inc. has a significant history of performing large-scale IT services and support contracts for the Department of Defense and other federal agencies. They are a major defense contractor with extensive experience in areas such as network operations, systems integration, cybersecurity, and IT infrastructure management. While specific details on past performance for contracts identical to GSM-O II are not provided here, their overall profile suggests a capacity to handle complex IT maintenance requirements. A deeper dive into their contract performance history, including any past performance evaluations or awards for similar services, would be necessary for a comprehensive assessment. This would involve reviewing contract databases and agency performance reports to gauge their reliability and effectiveness in delivering critical IT support.
How does the $82.3 million award value compare to similar IT maintenance contracts for defense agencies?
The $82.3 million award for GSM-O II maintenance and repair over approximately five years represents a substantial investment, averaging around $16.5 million annually. To benchmark this value, one would need to compare it against other large, indefinite-delivery/indefinite-quantity (IDIQ) or task-order contracts for IT infrastructure maintenance and computer facilities management services awarded by agencies like DISA, the Army, Navy, or Air Force. Factors such as the scope of services (e.g., number of facilities, types of systems supported, service level agreements), contract duration, and the specific technologies involved are crucial for a meaningful comparison. Without access to a detailed database of comparable contracts with similar service levels and scope, it is difficult to definitively state whether this award represents excellent, fair, or questionable value. However, given the critical nature of defense IT, such significant investments are often necessary to ensure operational readiness.
What are the primary risks associated with a five-year contract for IT maintenance and repair?
The primary risks associated with a five-year contract for IT maintenance and repair include technological obsolescence, evolving cybersecurity threats, and potential vendor lock-in or performance degradation over time. Technology evolves rapidly in the IT sector; a five-year contract might lock the government into using systems or support methods that become outdated, less efficient, or less secure. Cybersecurity threats are also constantly changing, requiring agile and up-to-date defenses that may not be fully anticipated at the contract's outset. Furthermore, over the life of a long-term contract, there's a risk that the contractor's performance could decline, or that the government's needs might shift in ways not adequately addressed by the original contract terms. Proactive contract management, regular performance reviews, and built-in flexibility clauses are essential to mitigate these risks.
How does the fixed-price incentive (FPI) contract type aim to ensure program effectiveness and value?
The fixed-price incentive (FPI) contract type is designed to provide a strong incentive for the contractor to control costs and improve performance by establishing a target cost, target profit, and a price ceiling. If the contractor achieves costs below the target cost, both the government and the contractor share in the savings according to a predetermined formula. Conversely, if costs exceed the target cost but remain below the ceiling, the contractor's profit is reduced. If costs exceed the ceiling, the contractor bears a larger share of the overruns. This structure aims to make the contractor highly motivated to perform efficiently and effectively to maximize their profit, thereby enhancing program effectiveness and ensuring better value for the government by controlling expenditures and encouraging quality service delivery.
What is the historical spending trend for the GSM-O II program or similar IT maintenance contracts within the Defense Information Systems Agency?
Analyzing historical spending trends for the GSM-O II program or similar IT maintenance contracts within DISA is crucial for understanding budget allocation and identifying potential patterns of cost escalation or efficiency. Without specific historical data for GSM-O II, we can infer that DISA, as a major IT service provider for the DoD, likely has consistent and significant spending in this area due to the critical nature of its operations. Trends in federal IT spending generally show an increasing demand for advanced capabilities, cybersecurity, and cloud services, alongside the ongoing need for maintaining legacy systems. Examining past contract awards, their values, and durations for similar services within DISA would reveal whether spending has been stable, increasing, or decreasing, and whether competition has influenced cost trends over time. This context helps in evaluating the current $82.3 million award relative to historical investments.
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: FIXED PRICE INCENTIVE (L)
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: $116,505,131
Exercised Options: $96,430,959
Current Obligation: $82,306,969
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: 2026-01-01
Current End Date: 2030-12-31
Potential End Date: 2030-12-31 00:00:00
Last Modified: 2026-01-15
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