DoD's $31M contract for learned counsel and expert services awarded to Leidos, Inc. without competition

Contract Overview

Contract Amount: $31,040,735 ($31.0M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-15

End Date: 2023-04-14

Contract Duration: 1,094 days

Daily Burn Rate: $28.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LEARNED COUNSEL / EXPERT

Plain-Language Summary

Department of Defense obligated $31.0 million to LEIDOS, INC. for work described as: LEARNED COUNSEL / EXPERT Key points: 1. The contract's value of over $31 million for specialized legal and expert services raises questions about cost-effectiveness given the lack of competition. 2. Awarding a significant contract without a competitive process limits opportunities for price discovery and potentially higher costs for taxpayers. 3. The duration of the contract (nearly three years) suggests a substantial and ongoing need for these services within the Department of Defense. 4. The absence of small business set-asides or subcontracting plans indicates that this contract did not prioritize small business participation. 5. The firm-fixed-price contract type provides cost certainty but does not inherently guarantee value for money without a competitive baseline. 6. The specific nature of 'learned counsel / expert' services suggests a need for highly specialized skills, which may influence the competitive landscape.

Value Assessment

Rating: questionable

The contract's value of $31 million for translation and interpretation services, awarded on a sole-source basis, makes a direct value-for-money assessment difficult. Without competitive bids, it's impossible to benchmark against market rates or other potential providers. The firm-fixed-price structure offers predictability but doesn't inherently ensure the best price. The lack of comparable contract data due to the sole-source nature hinders a robust assessment of whether the government received optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one source is capable of meeting the requirement, often due to unique capabilities or urgent needs. The lack of competition means there were no other bidders to compare against, and the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as there was no opportunity for multiple companies to bid and drive down costs through competition.

Public Impact

The Department of Defense is the primary beneficiary, receiving specialized legal and expert services. These services likely support critical functions within the DoD, potentially related to litigation, investigations, or complex policy analysis. The geographic impact is likely concentrated around DoD facilities or operational areas where these services are required. The contract supports highly specialized professional services, potentially impacting a niche workforce of legal experts and translators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition raises concerns about potential overpayment and reduced value for taxpayer funds.
  • Sole-source awards can limit the government's access to innovative solutions or more cost-effective alternatives.
  • The absence of small business participation may not align with broader federal goals for small business utilization.

Positive Signals

  • The firm-fixed-price contract type provides budget certainty for the agency.
  • The contract duration suggests a stable and predictable need for these specialized services.
  • Leidos, Inc. is a large, established government contractor with a broad range of capabilities.

Sector Analysis

The professional, scientific, and technical services sector is a significant area of federal spending. This contract falls under the 'Translation and Interpretation Services' category (NAICS 541930), which is a niche but essential service for government operations, particularly in defense and intelligence. The market for such specialized services can be concentrated among a few highly capable firms. Without competition, it's difficult to benchmark this contract against broader industry spending trends or identify potential cost savings.

Small Business Impact

This contract did not include any small business set-aside provisions, nor is there an indication of subcontracting plans for small businesses. This suggests that the primary contractor, Leidos, Inc., will be performing the majority, if not all, of the work. Consequently, this contract does not appear to contribute to the federal government's goals of supporting the small business ecosystem or ensuring small business participation in major contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. The firm-fixed-price nature of the award provides some cost control. Transparency is limited due to the sole-source award, making public scrutiny of the pricing and performance more challenging. The Inspector General of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

  • Department of Defense Legal Services
  • Federal Translation and Interpretation Services
  • Expert Witness Services Contracts
  • Professional Services Contracts

Risk Flags

  • Sole-source award
  • Lack of competition
  • No small business participation indicated

Tags

defense, department-of-defense, washington-headquarters-services, sole-source, professional-services, translation-interpretation-services, large-contract, firm-fixed-price, legal-services, expert-services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to LEIDOS, INC.. LEARNED COUNSEL / EXPERT

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 $31.0 million.

What is the period of performance?

Start: 2020-04-15. End: 2023-04-14.

What specific 'learned counsel / expert' services were procured under this contract?

The data provided indicates the contract is for 'LEARNED COUNSEL / EXPERT' services and falls under the 'Translation and Interpretation Services' category (NAICS 541930). This suggests the services procured are highly specialized, likely involving legal advice, expert testimony, or interpretation in complex legal or operational contexts within the Department of Defense. The 'learned counsel' aspect points towards specialized legal expertise, potentially in areas requiring deep knowledge of specific regulations, international law, or technical fields. The 'expert' designation further implies the need for individuals with recognized authority or deep knowledge in a particular domain to support DoD operations, investigations, or litigation.

Why was this contract awarded on a sole-source basis to Leidos, Inc.?

The provided data explicitly states the contract was 'NOT COMPETED' and is a 'SOLE SOURCE' award. While the specific justification for this sole-source determination is not detailed in the provided data, common reasons include: a unique capability possessed only by Leidos, Inc.; an urgent and compelling need where competition would cause unacceptable delays; or that Leidos, Inc. is the only responsible source capable of providing the required services. Without further documentation (like a Justification for Other Than Full and Open Competition - JOFOC), the precise rationale remains unknown, but it implies a belief by the Department of Defense that no other vendor could meet the requirement under the given circumstances.

How does the $31 million contract value compare to similar services within the DoD or federal government?

Benchmarking the $31 million value is challenging without knowing the exact scope and duration of services. However, given it's a sole-source award for specialized legal and interpretation services over nearly three years, the amount is substantial. Federal spending on professional and legal services is significant, but the lack of competition prevents a direct comparison of unit costs or overall value against potentially lower bids from other firms. To assess value, one would need to compare the hourly rates or project costs against internal DoD cost estimates or publicly available data for similar, competitively procured contracts, which are not provided here.

What is the track record of Leidos, Inc. in providing similar services to the federal government?

Leidos, Inc. is a major government contractor with extensive experience across various sectors, including defense, intelligence, and IT. They frequently secure large contracts for a wide array of services. While this specific contract is for 'learned counsel / expert' and 'translation/interpretation,' Leidos's broad capabilities suggest they likely have experience in supporting complex government requirements. A deeper dive into their contract history would reveal specific past performance on similar tasks, client satisfaction, and any past performance issues, which are not detailed in the provided summary data.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risks associated with a sole-source contract of this magnitude ($31 million) include: 1) Inflated pricing due to the lack of competitive pressure, potentially leading to reduced value for taxpayer money. 2) Limited innovation, as the government doesn't benefit from the diverse approaches or technological advancements that multiple bidders might offer. 3) Potential for vendor lock-in, making it difficult or costly to switch providers in the future. 4) Reduced transparency and accountability, as the justification for the sole-source award may not be publicly scrutinized as rigorously as a competitive process. 5) The risk that the chosen vendor may not be the absolute best fit or most cost-effective option available in the market.

What is the historical spending pattern for 'Translation and Interpretation Services' by the Washington Headquarters Services (WHS)?

The provided data only details this single contract awarded on April 15, 2020, with an end date of April 14, 2023, valued at $31,040,734.98. It does not offer historical spending patterns for WHS or the Department of Defense in the 'Translation and Interpretation Services' category (NAICS 541930). To understand historical spending, one would need to access broader federal procurement databases (like USASpending.gov) and filter for the specific agency, fiscal years, and NAICS codes to identify trends, total expenditures, and the prevalence of competitive versus sole-source awards in this service area.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesTranslation 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: HQ003420R0125

Offers Received: 1

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: $31,040,735

Exercised Options: $31,040,735

Current Obligation: $31,040,735

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $10,245,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2020-04-15

Current End Date: 2023-04-14

Potential End Date: 2023-04-14 00:00:00

Last Modified: 2025-09-17

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