DoD's $50M Contract for Courtroom Support Services Awarded to Leidos, Inc. with No Competition

Contract Overview

Contract Amount: $50,050,639 ($50.1M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-15

End Date: 2026-09-14

Contract Duration: 1,095 days

Daily Burn Rate: $45.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COURTROOM AND CASE PREPARATION SUPPORT SERVICES

Plain-Language Summary

Department of Defense obligated $50.1 million to LEIDOS, INC. for work described as: COURTROOM AND CASE PREPARATION SUPPORT SERVICES Key points: 1. Significant contract value of $50 million for specialized support services. 2. Sole-source award to Leidos, Inc. raises questions about competition and potential cost savings. 3. Risk of inflated pricing due to lack of competitive bidding. 4. Services fall under 'Translation and Interpretation Services' within the professional services sector.

Value Assessment

Rating: questionable

The contract's $50 million value for translation and interpretation services is substantial. Without competitive bidding, it's difficult to assess if this price is aligned with market rates for similar services provided to other government agencies or private sector clients.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential courtroom and case preparation support services.

Public Impact

Taxpayers may be overpaying for translation and interpretation services due to the absence of competitive bidding. The Department of Defense relies on Leidos, Inc. for critical legal support, highlighting potential single-point-of-failure risks. Lack of transparency in the procurement process could erode public trust in government spending efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Potential for overpricing
  • Limited oversight on pricing

Positive Signals

  • Contract awarded to an established vendor
  • Services are critical for legal operations

Sector Analysis

The $50 million contract for translation and interpretation services falls within the professional services sector. Benchmarks for similar government contracts in this area are difficult to establish without competitive data, but large sole-source awards warrant scrutiny.

Small Business Impact

The contract was awarded to Leidos, Inc., a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the government is receiving fair value. Accountability for pricing and performance will be crucial given the lack of competitive pressure.

Related Government Programs

  • Translation and Interpretation Services
  • Department of Defense Contracting
  • Washington Headquarters Services Programs

Risk Flags

  • Sole-source award lacks competitive justification.
  • Potential for inflated pricing due to no competition.
  • Limited transparency in contract award process.
  • Risk of vendor lock-in and reduced innovation.
  • No clear small business participation.

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 $50.1 million to LEIDOS, INC.. COURTROOM AND CASE PREPARATION SUPPORT SERVICES

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 $50.1 million.

What is the period of performance?

Start: 2023-09-15. End: 2026-09-14.

What is the justification for awarding this significant contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. Without further details, it's unclear why Leidos, Inc. was the only viable option for these courtroom and case preparation support services. A thorough review should confirm that all reasonable efforts to foster competition were exhausted or that the specific circumstances truly precluded it.

How will the Department of Defense ensure fair pricing and value for money on this $50 million sole-source contract?

Ensuring fair pricing on a sole-source contract requires diligent cost analysis, benchmarking against similar services (if available), and potentially negotiating profit margins. The Department of Defense should employ independent cost estimators and conduct thorough audits to validate Leidos, Inc.'s pricing structure and ensure the services provided are essential and efficiently delivered.

What are the potential risks associated with relying solely on Leidos, Inc. for these critical legal support services over a three-year period?

The primary risk is a lack of innovation and potential complacency from the sole provider, leading to service degradation or price increases over time. Additionally, a single point of failure exists; if Leidos, Inc. experiences performance issues or capacity constraints, the Department of Defense's legal operations could be significantly disrupted without immediate alternative solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesTranslation and Interpretation Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003423R0080

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: $87,489,156

Exercised Options: $64,866,329

Current Obligation: $50,050,639

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $72,792,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2023-09-15

Current End Date: 2026-09-14

Potential End Date: 2027-09-14 00:00:00

Last Modified: 2025-12-18

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