Leidos Inc. awarded $22.9M contract for Defense Enclave Services by Department of Defense

Contract Overview

Contract Amount: $22,943,996 ($22.9M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-07-17

End Date: 2027-01-16

Contract Duration: 1,279 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEFENSE ENCLAVE SERVICES (DES) DEFENSE MEDIA ACTIVITY (DMA) - LEGACY

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to LEIDOS, INC. for work described as: DEFENSE ENCLAVE SERVICES (DES) DEFENSE MEDIA ACTIVITY (DMA) - LEGACY Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract vehicle. 3. Fixed-price contract type aims to control costs for the government. 4. Performance period spans over three years, indicating a medium-term engagement. 5. The contract is for computer systems design services, a critical IT function. 6. The awardee, Leidos, Inc., is a major defense contractor.

Value Assessment

Rating: good

The contract value of $22.9 million over approximately 3.5 years (1279 days) for IT services appears reasonable given the scope of defense enclave support. Benchmarking against similar large-scale IT service contracts for defense agencies suggests that pricing is likely competitive, especially given the firm-fixed-price structure which shifts cost risk to the contractor. Without specific details on the deliverables and service levels, a precise value-for-money assessment is challenging, but the competitive award process provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the best possible value by considering a wide range of potential contractors.

Taxpayer Impact: A competitive award process like this typically benefits taxpayers by driving down prices and encouraging innovation from multiple offerors, leading to more cost-effective solutions for essential defense IT services.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive reliable and secure IT infrastructure and support. Services delivered include computer systems design, integration, and potentially ongoing maintenance and support for critical defense enclaves. The geographic impact is likely concentrated within Department of Defense facilities, potentially across various locations where these enclaves are hosted. Workforce implications may include the employment of IT professionals, system administrators, and cybersecurity specialists by the contractor, Leidos, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep if initial requirements are not clearly defined.
  • Reliance on a single large contractor could limit future flexibility or innovation.
  • Ensuring continued cybersecurity resilience within the enclave is paramount.

Positive Signals

  • Firm-fixed-price contract structure helps control costs.
  • Award through full and open competition suggests competitive pricing.
  • Leidos, Inc. has significant experience in large-scale IT and defense contracts.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and computer systems design. The defense IT services market is substantial, driven by the need for secure and reliable systems to support military operations. Leidos, Inc. is a major player in this space, often competing for and winning large government contracts. Spending benchmarks for similar IT support contracts within the federal government can range widely based on complexity and scale, but contracts in the tens of millions are common for specialized defense IT needs.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. This suggests that the primary competition was likely among large businesses. There is no explicit information on subcontracting plans for small businesses, which would typically be detailed in the contract's terms and conditions. The absence of a small business set-aside means the direct impact on the small business ecosystem for this specific award is likely minimal, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Information Systems Agency (DISA), the contracting agency. Accountability measures are typically embedded within the contract's performance work statement (PWS), including service level agreements (SLAs) and key performance indicators (KPIs). Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

  • Defense Information Technology Services
  • IT Infrastructure Support
  • Computer Systems Design
  • Defense Enclave Operations
  • Information Assurance

Risk Flags

  • Potential cybersecurity risks associated with legacy systems.
  • Ensuring adequate performance and availability for critical defense operations.
  • Contract value and scope require robust oversight.

Tags

defense, department-of-defense, leidos-inc, it-services, computer-systems-design, full-and-open-competition, delivery-order, firm-fixed-price, maryland, defense-media-activity, legacy-systems, cybersecurity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to LEIDOS, INC.. DEFENSE ENCLAVE SERVICES (DES) DEFENSE MEDIA ACTIVITY (DMA) - LEGACY

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 $22.9 million.

What is the period of performance?

Start: 2023-07-17. End: 2027-01-16.

What is the specific nature of the 'Defense Enclave Services' being provided under this contract?

The contract is for 'Defense Enclave Services (DES)' supporting the 'Defense Media Activity (DMA) - Legacy'. While the specific technical details are not fully elaborated in the provided data, 'enclave services' typically refer to the provision, management, and security of isolated, highly protected IT environments. For DMA, this likely involves maintaining secure networks, servers, and applications that support media dissemination and communication services for the Department of Defense. This could encompass infrastructure hosting, system administration, cybersecurity monitoring, network management, and ensuring the availability and integrity of systems critical to military information operations.

How does the $22.9 million contract value compare to historical spending on similar DMA IT services?

To accurately compare the $22.9 million contract value to historical spending, one would need access to historical contract data for DMA's IT services, specifically for enclave support. The provided data indicates this is a delivery order under a larger contract vehicle, suggesting it might be part of a broader, potentially multi-year, IT services agreement. Without knowing the total value of the parent contract or previous spending on similar services for DMA, a direct historical comparison is difficult. However, $22.9 million over approximately 3.5 years represents an average annual spend of roughly $6.5 million, which is a significant but not extraordinary amount for specialized defense IT infrastructure and support services, especially considering the security requirements of a defense enclave.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract involving Defense Enclave Services (DES) for the Defense Media Activity (DMA), typical KPIs and SLAs would likely focus on system availability (uptime), network performance (latency, bandwidth), response times for technical support, security compliance (e.g., vulnerability remediation timelines), data integrity, and disaster recovery/business continuity metrics. These would be detailed in the Performance Work Statement (PWS) and are crucial for ensuring the contractor, Leidos, Inc., meets the stringent operational requirements of the Department of Defense.

What is Leidos, Inc.'s track record with similar large-scale IT service contracts for the Department of Defense?

Leidos, Inc. has a substantial track record of performing large-scale IT service contracts for the Department of Defense and other federal agencies. They are a major government contractor with extensive experience in areas such as enterprise IT, cybersecurity, cloud computing, data analytics, and systems integration. Their portfolio includes numerous contracts for managing complex IT infrastructures, providing mission-critical support, and developing advanced technological solutions for defense clients. This experience suggests they possess the necessary technical expertise, personnel, and management capabilities to execute a contract like the Defense Enclave Services for DMA effectively.

Are there any specific cybersecurity risks associated with supporting a 'legacy' defense enclave?

Yes, supporting a 'legacy' defense enclave introduces specific cybersecurity risks. Legacy systems often rely on older technologies, architectures, and software that may no longer be supported by vendors, making them vulnerable to newly discovered exploits. Patching and updating these systems can be challenging or impossible without risking operational disruption. Furthermore, legacy systems may not incorporate modern security features like advanced encryption, multi-factor authentication, or robust intrusion detection/prevention systems. This can increase the attack surface and the potential for data breaches, unauthorized access, or denial-of-service attacks. The contractor, Leidos, Inc., would need to implement rigorous compensating controls and continuous monitoring to mitigate these inherent risks.

What is the significance of this contract being a 'Delivery Order' under a larger contract vehicle?

The fact that this is a 'Delivery Order' (aw: DELIVERY ORDER) signifies that it is a task-specific order issued under a pre-existing, broader contract vehicle, likely a Multiple Award Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar framework agreement. This approach allows the government to procure specific services or supplies efficiently without needing to conduct a full, separate procurement for each individual need. For the Department of Defense, this means they have a pre-negotiated contract with Leidos, Inc. in place, and this delivery order defines the specific scope, price, and period of performance for the Defense Enclave Services for DMA. It streamlines the acquisition process and provides flexibility in ordering services as needed.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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: $31,973,708

Exercised Options: $22,947,111

Current Obligation: $22,943,996

Actual Outlays: $365,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104722D0002

IDV Type: IDC

Timeline

Start Date: 2023-07-17

Current End Date: 2027-01-16

Potential End Date: 2028-01-16 00:00:00

Last Modified: 2025-12-22

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