DoD's $14.2M 4ENO Task Order to Leidos for IT Support Raises Questions on Value and Competition
Contract Overview
Contract Amount: $14,189,370 ($14.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-25
End Date: 2026-09-24
Contract Duration: 1,095 days
Daily Burn Rate: $13.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE TASK ORDER PROVIDES FACILITY AND STORAGE SUPPORT, ASSET MANAGEMENT, PROPERTY MANAGEMENT, LOGISTICS SUPPORT, SHIPPING/RECEIVING, CONFIGURATION, AND LIFECYCLE REPLACEMENT (LCR) TRACKING AND SUPPORT FOR 4TH ESTATE NETWORK OPTIMIZATION (4ENO).
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.2 million to LEIDOS, INC. for work described as: THE TASK ORDER PROVIDES FACILITY AND STORAGE SUPPORT, ASSET MANAGEMENT, PROPERTY MANAGEMENT, LOGISTICS SUPPORT, SHIPPING/RECEIVING, CONFIGURATION, AND LIFECYCLE REPLACEMENT (LCR) TRACKING AND SUPPORT FOR 4TH ESTATE NETWORK OPTIMIZATION (4ENO). Key points: 1. Leidos awarded a $14.2M task order for IT facility and logistics support for the 4th Estate Network Optimization (4ENO) program. 2. The contract falls under Computer Systems Design Services (NAICS 541512), a broad category with varying cost benchmarks. 3. Full and open competition was cited, but the specific impact on price discovery needs further examination. 4. The duration of 1095 days (3 years) suggests a need for sustained support, but the fixed-price nature may limit flexibility. 5. Analysis of Leidos's past performance and pricing for similar services is crucial for assessing value.
Value Assessment
Rating: fair
The firm-fixed-price contract for IT support services is valued at $14.2 million over three years. Benchmarking against similar IT logistics and asset management contracts within the DoD is necessary to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the widest range of potential bidders and competitive pricing. However, the specific details of the solicitation and evaluation process are needed to confirm effective price discovery.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.
Public Impact
Ensures continued IT infrastructure and logistics support for a critical defense network (4ENO). Supports the operational readiness of the 4th Estate by maintaining essential IT services. Potential for job creation within the IT services sector through this contract. The fixed-price structure provides budget certainty for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for scope creep in long-term IT support contracts.
- Limited insight into the specific technical solutions proposed by Leidos.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract provides cost predictability.
- Supports a critical defense network optimization program.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and related support. Spending in this area is substantial across government agencies, with benchmarks varying widely based on the complexity and scope of services required.
Small Business Impact
The data indicates this contract was not set aside for small businesses and Leidos, Inc. is a large business. There is no indication of small business subcontracting goals or participation in this specific award.
Oversight & Accountability
Oversight will be critical to ensure Leidos meets all performance requirements and that the fixed-price contract remains cost-effective throughout its term. The Defense Contract Management Agency (DCMA) or a similar entity would typically be responsible for monitoring performance.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of specific performance metrics.
- Potential for contractor to reduce service quality to maintain profit margins.
- Limited transparency into the competitive bidding process beyond 'full and open'.
- Long contract duration may outpace technological advancements.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.2 million to LEIDOS, INC.. THE TASK ORDER PROVIDES FACILITY AND STORAGE SUPPORT, ASSET MANAGEMENT, PROPERTY MANAGEMENT, LOGISTICS SUPPORT, SHIPPING/RECEIVING, CONFIGURATION, AND LIFECYCLE REPLACEMENT (LCR) TRACKING AND SUPPORT FOR 4TH ESTATE NETWORK OPTIMIZATION (4ENO).
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 $14.2 million.
What is the period of performance?
Start: 2023-09-25. End: 2026-09-24.
What specific performance metrics are in place to ensure the effectiveness of Leidos's facility, storage, asset, and logistics support for the 4ENO program?
The provided data does not detail specific performance metrics. Effective oversight would require clearly defined Key Performance Indicators (KPIs) related to uptime, response times, asset accuracy, and delivery efficiency. Without these, assessing the true effectiveness and value of the support beyond contract completion is challenging.
How does the $14.2 million cost compare to industry benchmarks for similar IT support and asset management services for a network of this scale?
Benchmarking this $14.2 million cost requires detailed comparison with similar contracts for IT facility management, asset tracking, and logistics support within the defense sector. Factors like the number of users, geographic distribution of facilities, and specific technology stack of the 4ENO program significantly influence costs. A thorough analysis against comparable government and commercial contracts is needed.
What is the potential risk of cost overruns or reduced service quality given the three-year duration and firm-fixed-price structure?
The firm-fixed-price structure inherently shifts cost risk to the contractor, Leidos. However, risks of reduced service quality or 'scope creep' can emerge if contract terms are not precisely defined or if oversight is insufficient. Ensuring clear deliverables and robust performance monitoring is key to mitigating these risks over the 1095-day period.
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: $35,042,887
Exercised Options: $14,783,315
Current Obligation: $14,189,370
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC104722D0002
IDV Type: IDC
Timeline
Start Date: 2023-09-25
Current End Date: 2026-09-24
Potential End Date: 2028-09-24 00:00:00
Last Modified: 2025-12-30
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