Leidos awarded $47.6M IT support contract by Defense Threat Reduction Agency, with a 364-day term
Contract Overview
Contract Amount: $47,557,548 ($47.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-17
End Date: 2026-03-16
Contract Duration: 364 days
Daily Burn Rate: $130.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IT DIRECTORATE INTEGRATED INFORMATION TECHNOLOGY SUPPORT SERVICES (I3TS)
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $47.6 million to LEIDOS, INC. for work described as: IT DIRECTORATE INTEGRATED INFORMATION TECHNOLOGY SUPPORT SERVICES (I3TS) Key points: 1. Contract value appears reasonable for comprehensive IT support services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include contractor performance and evolving IT needs. 4. This contract supports critical IT infrastructure for a defense agency. 5. Positioned within the IT services sector, specifically computer systems design. 6. The contract type (Cost Plus Award Fee) allows for performance incentives.
Value Assessment
Rating: good
The contract value of approximately $47.6 million for a one-year period for IT Directorat e Integrated Information Technology Support Services (I3TS) appears to be within a reasonable range for comprehensive IT support. Benchmarking against similar large-scale IT support contracts for defense agencies, this award seems competitive. The Cost Plus Award Fee (CPAF) structure suggests that the government aims to incentivize strong performance, potentially leading to better value than a fixed-price contract if the contractor meets or exceeds performance targets.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 4 bids suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down costs and improving service offerings.
Public Impact
The primary beneficiaries are the personnel of the Defense Threat Reduction Agency (DTRA), who will receive enhanced IT support. Services delivered include computer systems design and integration, IT support, and potentially network management. The geographic impact is primarily within Virginia, where the agency's operations are likely centered. Workforce implications include the potential for direct and indirect employment by the contractor, Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if award fee criteria are not met efficiently.
- Dependence on a single contractor for critical IT infrastructure.
- Risk of scope creep if requirements are not clearly defined and managed.
Positive Signals
- Leidos, Inc. is a large, established government contractor with a significant IT services portfolio.
- The Cost Plus Award Fee structure incentivizes high performance.
- Full and open competition suggests a robust selection process.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration services. The market for government IT support is substantial, with agencies increasingly relying on external expertise for complex technological needs. Comparable spending benchmarks for similar IT support contracts within the Department of Defense often range in the tens to hundreds of millions of dollars annually, depending on the scope and duration.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Threat Reduction Agency's contracting officers and program managers. Performance will be monitored against the terms of the Cost Plus Award Fee contract, with regular reviews and reporting. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- IT Support Services
- Computer Systems Design Services
- Defense Information Technology Services
- Information Technology Professional Services
- Defense Threat Reduction Agency Contracts
Risk Flags
- Contract performance risk
- Cost overrun potential
- Cybersecurity vulnerabilities
- Dependency on key personnel
Tags
it-services, computer-systems-design, department-of-defense, defense-threat-reduction-agency, delivery-order, cost-plus-award-fee, full-and-open-competition, large-contract, virginia, information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.6 million to LEIDOS, INC.. IT DIRECTORATE INTEGRATED INFORMATION TECHNOLOGY SUPPORT SERVICES (I3TS)
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 $47.6 million.
What is the period of performance?
Start: 2025-03-17. End: 2026-03-16.
What is Leidos, Inc.'s track record with similar IT support contracts for 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 major prime contractor on numerous large-scale IT programs, including network modernization, cybersecurity, and enterprise IT services. Their experience often involves managing complex technical environments and supporting mission-critical operations. Analyzing their past performance on similar contracts, particularly those with Cost Plus Award Fee structures, would provide insight into their ability to deliver effectively and manage costs within defined performance parameters. Historical data from contract databases and performance reviews would be crucial for a comprehensive assessment.
How does the awarded amount compare to historical spending on IT support by the Defense Threat Reduction Agency?
The awarded amount of approximately $47.6 million for a one-year period represents a significant investment in IT support for the Defense Threat Reduction Agency (DTRA). To provide a precise comparison, historical spending data for DTRA's IT support services over the past several fiscal years would be needed. This would allow for an analysis of trends, identifying whether this award is an increase, decrease, or consistent with previous expenditures. Factors such as changes in agency mission, technological advancements, and contract consolidation could influence year-over-year spending. Without specific historical DTRA IT spending figures, it's challenging to definitively benchmark this award against past outlays.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT services?
A primary risk with Cost Plus Award Fee (CPAF) contracts is the potential for costs to exceed initial estimates, as the contractor is reimbursed for allowable costs. While the 'award fee' component incentivizes performance, it doesn't cap the base cost. There's also a risk that the government may not accurately define or measure the performance criteria, leading to disputes over award fees or a contractor focusing on easily achievable metrics rather than true value. For IT services, risks include the contractor not adequately managing technical challenges, cybersecurity threats, or evolving requirements, which could lead to increased costs and potentially lower award fees if performance suffers. Effective government oversight is crucial to mitigate these risks.
How does the 'Computer Systems Design Services' (NAICS 541512) classification impact the scope of this contract?
The NAICS code 541512, 'Computer Systems Design Services,' indicates that the primary focus of this contract is on designing and integrating computer systems. This typically includes activities such as analyzing user needs, designing system architecture, developing and implementing software solutions, and providing IT consulting. It encompasses a broad range of IT services beyond simple hardware or software maintenance, often involving the creation of new systems or the significant modification of existing ones. For this contract, it suggests that Leidos will be involved in shaping and building the IT infrastructure and solutions required by the Defense Threat Reduction Agency, rather than just providing off-the-shelf support.
What is the significance of the contract award type being a 'Delivery Order' (aw)?
The designation of this award as a 'Delivery Order' (aw) implies that it is likely part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the government has established a framework contract with pre-negotiated terms and conditions, and this delivery order represents a specific task or requirement placed against that framework. For the contractor, it signifies a confirmed order for services with a defined scope, duration, and value. For the agency, it allows for flexibility in acquiring services as needed, often with streamlined procurement processes compared to awarding entirely new contracts.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HDTRA125R0029
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
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: $205,318,406
Exercised Options: $47,558,348
Current Obligation: $47,557,548
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: 2025-03-17
Current End Date: 2026-03-16
Potential End Date: 2030-03-16 00:00:00
Last Modified: 2026-03-18
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