Leidos Inc. awarded $53.3M for IT support services, with 2 bids received
Contract Overview
Contract Amount: $53,340,905 ($53.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-08-05
End Date: 2019-12-20
Contract Duration: 1,963 days
Daily Burn Rate: $27.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF DPAS LABOR SUPPORT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $53.3 million to LEIDOS, INC. for work described as: IGF::OT::IGF DPAS LABOR SUPPORT Key points: 1. Value for money appears fair given the fixed-price nature and competition level. 2. Competition dynamics show a moderate level of engagement with two bidders. 3. Risk indicators are moderate, with a fixed-price contract mitigating cost overrun risks. 4. Performance context is for IT support services, a common government requirement. 5. Sector positioning is within IT services, a significant area of federal spending.
Value Assessment
Rating: fair
The contract's total value of $53.3 million over approximately five years suggests a moderate annual spend. Benchmarking against similar IT support contracts is challenging without more granular service details. However, a firm fixed-price structure generally provides cost certainty for the government, implying a reasonable attempt at value for money, assuming the awarded price reflects market rates for the services rendered.
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 bids. With two bids received, the competition level suggests a moderate degree of market interest. While more than two bidders could potentially drive prices lower, two bidders still provide a basis for price discovery and comparison.
Taxpayer Impact: The presence of two bidders indicates some level of competition, which is generally beneficial for taxpayers by encouraging competitive pricing. However, a higher number of bidders could have potentially led to even greater cost savings.
Public Impact
The Department of Defense benefits from IT support services essential for its operations. Services delivered likely include help desk support, system maintenance, and potentially network administration. The geographic impact is primarily within Washington D.C. and surrounding areas, given the agency's location. Workforce implications include the employment of IT professionals by the contractor to fulfill the service requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized.
- Reliance on a single contractor for critical IT functions could pose a risk.
- Scope creep could occur if not managed tightly, leading to increased costs.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Full and open competition allows for a broad range of potential offerors.
- Award to an established contractor like Leidos suggests a degree of reliability.
Sector Analysis
The IT services sector is a vast and critical component of federal procurement, encompassing a wide range of support, development, and maintenance activities. Federal spending in this area consistently ranks among the largest categories. This contract for IT support services fits within the broader IT services market, which includes areas like cloud computing, cybersecurity, and software development. Comparable spending benchmarks would depend on the specific nature of the IT support provided.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Leidos, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless Leidos voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- IT Professional Services
- IT Operations and Maintenance
- Defense IT Support
- Washington Headquarters Services Contracts
Risk Flags
- Moderate competition level (2 bidders) may limit price discovery.
- Scope definition and potential for scope creep should be closely monitored.
- Reliance on a single contractor for critical IT functions.
Tags
it-services, department-of-defense, washington-dc, full-and-open-competition, large-contract, firm-fixed-price, it-support, leidos-inc, washington-headquarters-services, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.3 million to LEIDOS, INC.. IGF::OT::IGF DPAS LABOR SUPPORT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $53.3 million.
What is the period of performance?
Start: 2014-08-05. End: 2019-12-20.
What is the historical spending pattern for IT support services by the Washington Headquarters Services?
Analyzing historical spending patterns for IT support services by the Washington Headquarters Services (WHS) is crucial for understanding trends and identifying potential anomalies. While the provided data focuses on a single contract awarded to Leidos, Inc. for $53.3 million, a comprehensive analysis would involve examining WHS's procurement history over several fiscal years. This would include identifying all contracts related to IT support, their values, durations, and awarded contractors. Trends might reveal an increasing or decreasing reliance on external IT support, shifts in technology focus (e.g., from legacy systems to cloud services), and the average cost per year for such services. Comparing the Leidos contract's annual value to the historical average could indicate whether it represents a typical, above-average, or below-average investment for WHS. Such historical context is vital for assessing the current contract's value and strategic alignment within the agency's IT infrastructure.
How does the awarded price compare to market rates for similar IT support services?
Determining if the awarded price of $53.3 million for Leidos Inc.'s IT support services is competitive requires benchmarking against market rates. This involves comparing the contract's labor categories, skill levels, and service scope against industry pricing data. Factors such as geographic location (Washington D.C. metro area), security clearance requirements, and the specific technologies supported significantly influence market rates. Government databases like the General Services Administration (GSA) schedules or commercial price lists from other large IT service providers can offer comparative data. Additionally, analyzing the pricing structures of the other bidder, if publicly available, would provide direct insight. Without detailed service descriptions and labor mix, a precise comparison is difficult, but the firm fixed-price nature suggests an attempt to lock in a specific cost, implying the government sought a price deemed reasonable at the time of award based on available information and competitive offers.
What is Leidos Inc.'s track record with federal IT support contracts?
Leidos Inc. has a substantial track record as a major government contractor, including extensive experience in providing IT support services across various federal agencies. Their portfolio often includes complex system integration, cybersecurity, enterprise IT management, and mission-critical support. Examining Leidos's past performance on similar contracts, particularly those with the Department of Defense or other large civilian agencies, would reveal their ability to meet performance requirements, manage costs, and adhere to schedules. Key indicators include past performance evaluations, any significant contract disputes or terminations, and the scale and duration of previous IT support engagements. A history of successful contract completions and positive performance reviews generally suggests a lower risk associated with awarding them new contracts. Conversely, any documented issues could raise concerns about their capacity or reliability for future work.
What are the potential risks associated with this specific IT support contract?
Several potential risks are associated with this IT support contract, even with a firm fixed-price structure and full and open competition. One primary risk is vendor performance; if Leidos Inc. fails to deliver the required IT support services adequately, it could disrupt critical government operations. Another risk relates to the evolving nature of technology; the services defined in the contract might become outdated or insufficient as technology advances, potentially requiring costly modifications or new procurements. Dependence on a single contractor for essential IT functions can also create a vulnerability. Furthermore, while the fixed-price nature mitigates cost overruns due to scope changes, unforeseen technical challenges or security threats could still necessitate contract adjustments or lead to performance issues if not managed proactively. The limited competition (two bidders) could also imply a risk that the government did not secure the absolute best possible price or solution available in the market.
How does the duration and value of this contract compare to typical IT support agreements?
This contract, valued at approximately $53.3 million and spanning roughly 1963 days (about 5.4 years), falls within a common range for large-scale federal IT support agreements. The duration is typical for multi-year service contracts that require significant setup, transition, and ongoing operational phases. The total value suggests a substantial scope of work, likely encompassing a broad range of IT services for a significant organizational component like the Washington Headquarters Services. Many federal IT support contracts are awarded for base periods of 1-5 years, often with options for extensions, making this contract's length fairly standard. The annual value, roughly $9.8 million ($53.3M / 5.4 years), is also within the expected range for comprehensive IT support for a large agency. Contracts significantly shorter might indicate more specialized, project-based work, while much longer durations could raise concerns about flexibility and adaptation to technological changes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ003414Q0010
Offers Received: 2
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: $53,340,905
Exercised Options: $53,340,905
Current Obligation: $53,340,905
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $2,525,908
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F116AA
IDV Type: FSS
Timeline
Start Date: 2014-08-05
Current End Date: 2019-12-20
Potential End Date: 2019-12-20 00:00:00
Last Modified: 2023-08-03
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