DoD's $50M Translation Services Contract with Leidos Raises Questions on Competition and Value
Contract Overview
Contract Amount: $50,378,153 ($50.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-04-13
End Date: 2020-04-14
Contract Duration: 1,462 days
Daily Burn Rate: $34.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: IGF::OT::IGF LEARNED COUNSEL AND EXPERTS
Plain-Language Summary
Department of Defense obligated $50.4 million to LEIDOS, INC. for work described as: IGF::OT::IGF LEARNED COUNSEL AND EXPERTS Key points: 1. Significant spending on translation services highlights a critical need within the Department of Defense. 2. The sole-source nature of this contract warrants scrutiny regarding potential overpricing and limited market exploration. 3. Lack of competition may have led to suboptimal pricing and reduced incentive for innovation. 4. The long duration of the contract (4 years) suggests a sustained need, but also a missed opportunity for re-evaluation.
Value Assessment
Rating: questionable
The contract's value of $50.3M over four years for translation services is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar services procured through competitive means.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition in awarding a $50M contract means taxpayers may have paid more than necessary for translation and interpretation services.
Public Impact
Essential language support for military operations and intelligence gathering is provided. Potential for communication breakdowns in critical situations if services are not adequately resourced or priced. Taxpayer funds are allocated to a service area that could potentially be more cost-effectively managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration without re-competition
Positive Signals
- Provides critical translation services
- Established vendor relationship
Sector Analysis
The 'Translation and Interpretation Services' sector (NAICS 541930) is crucial for government operations, especially in defense and intelligence. Benchmarks for similar sole-source contracts are hard to establish, but competitive bids typically yield better value.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity to support small business participation in federal contracting.
Oversight & Accountability
The sole-source nature of this contract raises oversight concerns. It is essential to ensure that the Department of Defense adequately justified the lack of competition and that the pricing is reasonable and reflects value for money.
Related Government Programs
- Translation and Interpretation Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Potential for inflated pricing due to lack of competition.
- Limited transparency in the procurement process.
- Missed opportunity for small business participation.
- Risk of vendor lock-in and reduced service innovation.
Tags
translation-and-interpretation-services, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.4 million to LEIDOS, INC.. IGF::OT::IGF LEARNED COUNSEL AND EXPERTS
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 $50.4 million.
What is the period of performance?
Start: 2016-04-13. End: 2020-04-14.
What was the justification for awarding this translation services contract on a sole-source basis, and was a thorough market research conducted to ensure no other capable vendors could provide the ser
The justification for a sole-source award typically involves specific circumstances, such as the urgency of the requirement, the unique capabilities of the vendor, or the unavailability of other sources. Without access to the contract's justification documentation, it's impossible to confirm the specific reasons. However, a thorough market research should always be conducted to validate the necessity of a sole-source approach and ensure no viable competitive alternatives exist.
How does the per-unit cost or labor hour rate for this contract compare to industry benchmarks for translation and interpretation services, especially considering the lack of competition?
Without specific line-item data or access to the contract's detailed pricing structure, a direct comparison to industry benchmarks is challenging. However, sole-source contracts are inherently at a disadvantage regarding price discovery. It is highly probable that the rates are higher than what could have been achieved through a competitive bidding process, where multiple vendors would vie to offer the most cost-effective solution.
What mechanisms are in place to ensure the quality and effectiveness of the translation and interpretation services provided under this contract, given its sole-source nature?
Quality assurance for sole-source contracts relies heavily on the government's contract management and oversight. Mechanisms typically include performance metrics, regular reviews, and feedback channels from end-users. However, the absence of competitive pressure might reduce the vendor's incentive to proactively enhance service quality beyond the contractually mandated minimums. Robust government oversight is therefore critical.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Translation and Interpretation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ003416R0191
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 11951 FREEDOM DR, 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: $50,378,159
Exercised Options: $50,378,159
Current Obligation: $50,378,153
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-04-13
Current End Date: 2020-04-14
Potential End Date: 2020-04-14 00:00:00
Last Modified: 2025-07-29
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)