Leidos awarded $30.3M for computer systems design, facing full and open competition
Contract Overview
Contract Amount: $30,360,227 ($30.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-02-28
End Date: 2024-01-04
Contract Duration: 675 days
Daily Burn Rate: $45.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DES TASK ORDER 1
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $30.4 million to LEIDOS, INC. for work described as: DES TASK ORDER 1 Key points: 1. Contract value of $30.3M for computer systems design services. 2. Awarded to Leidos, Inc. by the Department of Defense. 3. Competition was full and open, indicating broad market engagement. 4. Contract type is Firm Fixed Price, aligning cost and performance. 5. Performance period spans from February 2022 to January 2024. 6. Task order falls under NAICS code 541512 for Computer Systems Design Services. 7. The contract was awarded as a delivery order. 8. Small business set-aside was not utilized.
Value Assessment
Rating: good
The contract value of $30.3 million for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar contracts for IT systems design and integration by the Defense Information Systems Agency (DISA) would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific performance metrics or deliverables, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition, which is generally expected to drive down prices and improve the quality of services offered.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering a wide range of qualified contractors.
Public Impact
The Department of Defense benefits from enhanced computer systems design and integration capabilities. Services delivered likely support critical defense information systems and infrastructure. The contract's performance is based in Maryland (MD), potentially impacting the local IT workforce. Leidos, Inc., as the prime contractor, will manage the execution of these design services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the effectiveness of the delivered services.
- The provided data does not detail the number of bidders, limiting the assessment of competition intensity.
- No information is available on potential subcontracting opportunities for small businesses.
- The specific nature of the 'Computer Systems Design Services' is not detailed, making it hard to gauge the complexity and risk.
- The contract's duration of 675 days (approx. 22 months) could lead to potential scope creep if not managed tightly.
Positive Signals
- Awarded under a full and open competition, suggesting a competitive bidding process.
- Firm Fixed Price contract type shifts cost risk to the contractor.
- The contractor, Leidos, Inc., is a well-established entity in the government contracting space.
- The contract is a delivery order, implying it is part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, which can offer flexibility.
- The contract is for computer systems design services, a critical area for defense operations.
Sector Analysis
The contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a significant market within federal IT procurement, with agencies constantly seeking to modernize and maintain complex systems. The Defense Information Systems Agency (DISA) is a major player in this space, managing vast and critical IT infrastructure for the Department of Defense. Spending in this category is substantial across the federal government, driven by the need for advanced cybersecurity, cloud migration, and operational efficiency.
Small Business Impact
This contract was not set aside for small businesses, as indicated by 'sb': false. This means that the competition was open to all eligible firms, including large businesses. While this maximizes the pool of potential offerors, it also means that small businesses may have had less direct opportunity to compete for this specific award unless they were part of a larger team. There is no explicit information on subcontracting plans for small businesses, which would be a key area to investigate for their inclusion in the overall contract performance.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Information Systems Agency (DISA). As a delivery order under a potential larger IDIQ, oversight mechanisms would be tied to the parent contract's structure. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, with the DoD IG having oversight.
Related Government Programs
- Defense Information Systems Agency IT Services
- Department of Defense IT Modernization Programs
- Computer Systems Design and Integration Services
- Federal IT Procurement
- Information Technology Support Services
Risk Flags
- Potential for scope creep due to undefined technical details.
- Lack of specific performance metrics makes outcome assessment difficult.
- No explicit mention of small business subcontracting goals.
- Limited detail on the number of bidders in the full and open competition.
Tags
it, defense, department-of-defense, defense-information-systems-agency, computer-systems-design-services, firm-fixed-price, delivery-order, full-and-open-competition, leidos-inc, maryland, naics-541512, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.4 million to LEIDOS, INC.. DES TASK ORDER 1
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 $30.4 million.
What is the period of performance?
Start: 2022-02-28. End: 2024-01-04.
What is the track record of Leidos, Inc. in performing similar computer systems design services for the Department of Defense?
Leidos, Inc. has a substantial track record with the Department of Defense (DoD) and other federal agencies, frequently securing contracts for IT services, systems integration, and complex engineering solutions. Their experience often includes large-scale projects involving modernization, cybersecurity, and operational support for critical defense systems. While this specific task order is for $30.3 million, Leidos has managed significantly larger contracts within the DoD, demonstrating their capacity to handle substantial budgets and complex technical requirements. A review of their past performance on similar contracts, including any past performance evaluations or awards, would provide further insight into their reliability and expertise in delivering computer systems design services effectively.
How does the awarded amount of $30.3 million compare to similar computer systems design contracts awarded by DISA or the DoD?
The awarded amount of $30.3 million for computer systems design services by DISA to Leidos, Inc. falls within a common range for task orders of this nature. Federal agencies, particularly the DoD, frequently award contracts in the tens of millions for specialized IT services, system design, and integration. To provide a precise benchmark, one would need to compare this value against other firm-fixed-price delivery orders issued by DISA or similar DoD components for NAICS code 541512 (Computer Systems Design Services) over a comparable period. Factors such as contract duration, specific deliverables, and the complexity of the systems being designed would influence these comparisons. However, the value is not exceptionally high or low, suggesting it is within the expected parameters for such services.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks associated with this contract include potential scope creep, technical challenges in system design, and contractor performance issues. Given it's a firm-fixed-price contract, cost overruns are primarily the contractor's responsibility, mitigating financial risk for the government. However, performance risks remain. Mitigation strategies likely involve clear statement of work (SOW), defined milestones, regular progress reviews by DISA, and robust quality assurance procedures. The 'full and open' competition suggests a pool of capable contractors, reducing the risk of non-performance due to lack of expertise. Leidos's established presence in the defense sector also suggests a lower risk of contractor failure, though performance monitoring remains crucial.
What is the expected effectiveness or impact of the computer systems design services delivered under this contract on DoD operations?
The effectiveness and impact of the computer systems design services under this contract are expected to enhance the operational capabilities of the Department of Defense. Computer systems design is fundamental to modernizing IT infrastructure, improving system efficiency, ensuring cybersecurity, and enabling new functionalities. For DISA, these services likely support the development or enhancement of command and control systems, communication networks, data management platforms, or other critical IT infrastructure. Improved system design can lead to better data flow, reduced downtime, enhanced security posture, and more effective decision-making for military personnel. The specific impact depends heavily on the precise systems being designed and their integration into the broader defense architecture.
How has federal spending on computer systems design services (NAICS 541512) by the Department of Defense trended in recent years?
Federal spending on computer systems design services (NAICS 541512) by the Department of Defense (DoD) has generally shown a consistent and significant trend upwards over recent years. This growth is driven by the continuous need for modernization of legacy systems, adoption of new technologies (like cloud computing and AI), and the ever-increasing importance of cybersecurity. The DoD, being the largest federal agency, is a major contributor to this spending. While specific year-over-year figures fluctuate based on budget allocations and strategic priorities, the overall trajectory indicates sustained investment in IT infrastructure and design services to maintain technological superiority and operational readiness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: HC104720R0014
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $30,360,227
Exercised Options: $30,360,227
Current Obligation: $30,360,227
Actual Outlays: $23,126,460
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC104722D0002
IDV Type: IDC
Timeline
Start Date: 2022-02-28
Current End Date: 2024-01-04
Potential End Date: 2027-07-04 00:00:00
Last Modified: 2025-06-11
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