Leidos, Inc. awarded $16.7M for IT support, with 5 bids indicating strong competition
Contract Overview
Contract Amount: $16,735,559 ($16.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-02-21
End Date: 2024-08-21
Contract Duration: 2,008 days
Daily Burn Rate: $8.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SOLUTION ENG.&SYSTEMS TEST SUPPORT
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.7 million to LEIDOS, INC. for work described as: SOLUTION ENG.&SYSTEMS TEST SUPPORT Key points: 1. Value for money appears reasonable given the extensive contract duration and scope. 2. Strong competition was present, suggesting fair pricing and market responsiveness. 3. Potential risks include contractor performance over a long period and evolving IT needs. 4. This contract supports critical defense IT infrastructure, aligning with agency priorities. 5. The IT services sector is highly competitive, with many capable providers. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight.
Value Assessment
Rating: good
The contract value of $16.7 million over approximately five years for IT support services appears to be within a reasonable range for the scope of work. Benchmarking against similar IT support contracts for defense agencies suggests that the pricing is competitive, especially considering the specialized nature of the services. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, necessitates diligent oversight to ensure costs remain controlled and aligned with the fixed fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with five bids received. This level of competition is a positive indicator, suggesting that multiple vendors were interested and capable of performing the required services. The presence of five bidders likely contributed to a more competitive pricing environment and allowed the agency to select the offer that best met its technical and cost requirements.
Taxpayer Impact: Strong competition benefits taxpayers by driving down prices and ensuring the government receives the best value for its investment in critical IT support.
Public Impact
The Department of Defense, specifically the Defense Threat Reduction Agency, benefits from enhanced IT systems and operational support. Services delivered include computer systems design and integration, crucial for maintaining defense capabilities. The primary geographic impact is within Virginia, where the contractor is located, supporting federal operations. Workforce implications include employment for IT professionals and support staff within Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
- Ensuring continued relevance and adaptation of IT solutions over the contract's extended duration.
- Dependence on a single contractor for critical IT systems could pose a risk if performance falters.
Positive Signals
- Awarded under full and open competition, indicating a robust selection process.
- Contractor (Leidos, Inc.) is a well-established entity with significant experience in government IT services.
- The contract duration allows for stability and continuity in essential IT support.
Sector Analysis
The IT services sector is a vast and dynamic market, with government contracts forming a significant portion. This contract falls under computer systems design services, a sub-sector characterized by high demand for specialized expertise in areas like system integration, testing, and support. The market size for federal IT services is in the tens of billions annually, with agencies like the Department of Defense being major spenders. This contract represents a typical engagement for providing essential IT infrastructure support within the defense sector.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, although Leidos, Inc. may engage small businesses as subcontractors in its broader operations.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Threat Reduction Agency's contracting officers and program managers. Accountability measures would be embedded within the contract terms, including performance metrics and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense IT Modernization Programs
- DoD Cybersecurity Support Contracts
- Federal Civilian IT Services
- IT Professional Services
Risk Flags
- Contract duration exceeds typical IT support cycles, requiring careful performance monitoring.
- Cost Plus Fixed Fee structure necessitates robust cost oversight to prevent overruns.
Tags
it-services, computer-systems-design, department-of-defense, defense-threat-reduction-agency, delivery-order, full-and-open-competition, cost-plus-fixed-fee, leidos-inc, virginia, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to LEIDOS, INC.. SOLUTION ENG.&SYSTEMS TEST SUPPORT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $16.7 million.
What is the period of performance?
Start: 2019-02-21. End: 2024-08-21.
What is Leidos, Inc.'s track record with similar IT support contracts within the Department of Defense?
Leidos, Inc. has a substantial track record of performing IT support and systems integration services for various Department of Defense agencies. They are a large government contractor with extensive experience in complex IT environments, including cybersecurity, cloud migration, and enterprise resource planning systems. Their past performance on similar contracts would have been a key factor in the Defense Threat Reduction Agency's decision-making process. While specific details of past performance are not provided here, Leidos's general reputation and scale suggest a capacity to handle such requirements. Agencies typically review past performance evaluations, including CPARS (Contractor Performance Assessment Reporting System) data, when making award decisions for competitive procurements.
How does the $16.7 million contract value compare to other IT support contracts awarded by the Defense Threat Reduction Agency?
The $16.7 million contract value for Leidos, Inc. for IT support services appears to be a moderate-sized award for the Defense Threat Reduction Agency (DTRA). DTRA, like other defense agencies, procures a range of IT services, from small, specialized task orders to larger, multi-year contracts. Without access to DTRA's complete contract portfolio, a precise comparison is difficult. However, given the contract's duration (approximately five years) and the nature of computer systems design services, this value suggests a significant, ongoing need for IT support rather than a one-time project. It aligns with the agency's need for stable, long-term IT infrastructure and operational assistance.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for IT services lies in the potential for cost overruns. While the fixed fee provides the contractor with an incentive to control costs, the government bears the risk of all allowable costs exceeding initial estimates. This structure can lead to higher overall expenditures for the government if the contractor's cost management is not rigorous or if unforeseen technical challenges arise. For the government, effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. The CPFF structure is often used when the scope of work is not precisely defined at the outset, allowing for flexibility but demanding robust financial monitoring.
How effective is full and open competition in ensuring value for money for IT services in the defense sector?
Full and open competition is generally considered the most effective method for ensuring value for money in IT services for the defense sector. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as seen with the five bids in this case, allows the agency to compare technical approaches and costs, selecting the best overall value. While full and open competition requires more upfront effort in terms of solicitation and evaluation, the long-term benefits in terms of cost savings and access to a wider range of capabilities typically outweigh these initial investments for the taxpayer.
What are the historical spending patterns for computer systems design services within the Department of Defense?
Historical spending patterns for computer systems design services within the Department of Defense show a consistent and significant investment. The DoD is one of the largest federal purchasers of IT services, including system design, integration, and support. Spending in this category has generally trended upwards over the past decade, driven by the need for modernization, cybersecurity enhancements, and the adoption of new technologies like cloud computing and artificial intelligence. Agencies within the DoD frequently award multi-year, high-value contracts for these services to support their complex operational requirements. Fluctuations in spending can occur due to budget cycles, shifting strategic priorities, and the introduction of new acquisition strategies.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HDTRA118R0045
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 9737 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,705,928
Exercised Options: $19,701,128
Current Obligation: $16,735,559
Actual Outlays: $6,010,712
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $4,464,907
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA119D0004
IDV Type: IDC
Timeline
Start Date: 2019-02-21
Current End Date: 2024-08-21
Potential End Date: 2024-08-21 00:00:00
Last Modified: 2026-03-18
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