Leidos Awarded $12.5M for DCMA Migration Execution Services, Boosting Defense IT Infrastructure

Contract Overview

Contract Amount: $12,477,580 ($12.5M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-07-29

Contract Duration: 667 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MIGRATION EXECUTION SERVICES (MES) FOR DEFENSE CONTRACT MANAGEMENT AGENCY (DCMA)

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.5 million to LEIDOS, INC. for work described as: MIGRATION EXECUTION SERVICES (MES) FOR DEFENSE CONTRACT MANAGEMENT AGENCY (DCMA) Key points: 1. Leidos, a major defense contractor, secured a significant contract for critical migration services. 2. The contract falls under Computer Systems Design Services, a key IT sector. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is substantial, indicating a long-term project with ongoing needs. 5. The award value is significant, requiring careful monitoring of performance and cost.

Value Assessment

Rating: good

The award value of $12.5M for 667 days of service appears reasonable given the scope of migration execution services for a major agency like DCMA. Benchmarking against similar IT service contracts suggests this pricing is within expected ranges for complex system migrations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for these essential migration services.

Public Impact

Enhances the operational capabilities of the Defense Contract Management Agency (DCMA) through improved IT systems. Supports national defense by ensuring the smooth transition of critical data and systems. Provides valuable IT services, contributing to the broader defense information technology ecosystem. The successful execution of this migration could lead to increased efficiency and cost savings in future defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration may lead to scope creep if not managed tightly.
  • Reliance on a single vendor for critical migration services poses a potential risk.
  • Performance metrics need to be rigorously tracked to ensure successful migration.

Positive Signals

  • Awarded through full and open competition, indicating a competitive process.
  • Firm Fixed Price contract type helps control costs.
  • Significant investment in critical defense IT infrastructure.

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is crucial for modernizing defense infrastructure and ensuring operational readiness. Benchmarks for similar large-scale IT migration projects indicate that this award value is within a typical range for complex, multi-year engagements.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false). While large prime contractors like Leidos are essential for complex projects, opportunities for small business subcontracting should be explored to foster broader participation and innovation within the defense IT sector.

Oversight & Accountability

The contract is managed under the Department of Defense, with oversight likely provided by the Defense Information Systems Agency (DISA). Rigorous oversight will be crucial to ensure the successful execution of the migration, adherence to timelines, and effective use of funds.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Defense Information Systems Agency Programs

Risk Flags

  • Potential for scope creep due to long contract duration.
  • Risk of vendor lock-in for critical migration services.
  • Need for robust performance monitoring to ensure successful migration.
  • Lack of small business participation noted in prime award.

Tags

computer-systems-design-services, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to LEIDOS, INC.. MIGRATION EXECUTION SERVICES (MES) FOR DEFENSE CONTRACT MANAGEMENT AGENCY (DCMA)

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 $12.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-07-29.

What specific metrics will be used to evaluate the success of the migration execution services?

Success metrics should focus on key performance indicators such as data integrity post-migration, system uptime during and after the transition, user adoption rates, and the achievement of defined performance improvements. Quantifiable targets for reduced latency, enhanced security, and successful decommissioning of legacy systems are also vital. Regular reporting against these KPIs will ensure accountability and demonstrate value.

What are the potential risks associated with the long duration of this contract and how are they being mitigated?

The 667-day duration presents risks of scope creep, technological obsolescence, and vendor lock-in. Mitigation strategies include clearly defined milestones, change control processes, and regular performance reviews. The government should also maintain flexibility to adapt to evolving technological needs and ensure clear exit strategies are in place to facilitate a smooth transition if required.

How does this contract contribute to the overall modernization goals of the DCMA and the broader Department of Defense?

This contract directly supports the modernization goals by enabling the migration of critical systems and data, which is foundational for adopting newer technologies and improving operational efficiency. Successful execution will enhance DCMA's ability to manage defense contracts effectively and securely, aligning with the DoD's broader objectives for a more agile, resilient, and data-driven defense enterprise.

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: $15,678,000

Exercised Options: $15,678,000

Current Obligation: $12,477,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104722D0002

IDV Type: IDC

Timeline

Start Date: 2024-09-30

Current End Date: 2026-07-29

Potential End Date: 2026-07-29 00:00:00

Last Modified: 2026-01-12

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