Leidos Inc. contract for administrative management consulting services awarded by DHS for over $18.2M
Contract Overview
Contract Amount: $18,225,846 ($18.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2010-06-09
End Date: 2010-06-30
Contract Duration: 21 days
Daily Burn Rate: $867.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PS SETA
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $18.2 million to LEIDOS, INC. for work described as: PS SETA Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract was awarded under a full and open competition. 3. The contract type is Firm Fixed Price, indicating predictable costs. 4. The contract duration was 21 days, suggesting a short-term engagement. 5. The award was a delivery order, implying it was part of a larger contract vehicle. 6. The contractor, Leidos, Inc., is a significant player in the federal contracting space.
Value Assessment
Rating: fair
The contract value of over $18.2 million for a 21-day period appears high on a daily basis. Benchmarking against similar administrative management consulting services requires more granular data on the specific services rendered. Without details on the scope of work and deliverables, it's difficult to definitively assess value for money. However, the firm-fixed-price nature provides cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to compete. The presence of 4 bids indicates a reasonable level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.
Public Impact
The Department of Homeland Security benefits from administrative management and general management consulting services. These services are crucial for the efficient operation and management of the agency. The contract supports the agency's mission by providing expert advice and support. The geographic impact is primarily within the agency's operational areas, likely in Virginia where the contractor is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High daily cost given the short duration.
- Lack of detailed scope of work makes value assessment challenging.
- Potential for contractor lock-in if this was a delivery order under a broader IDIQ.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Multiple bids received, indicating market interest.
Sector Analysis
Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category within the professional services sector. Federal spending in this area supports a wide range of government functions, from strategic planning to operational efficiency improvements. The market is characterized by numerous large and small businesses offering specialized expertise. This contract fits within the government's ongoing need for external expertise to support its complex operations.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the contractor's size (Leidos, Inc.), it is unlikely to be a small business itself. Further analysis would be needed to determine if small business subcontracting goals were met.
Oversight & Accountability
As a delivery order under a larger contract vehicle, oversight would likely be managed through the terms of that parent contract. The firm-fixed-price nature simplifies some aspects of financial oversight. Transparency would depend on the public availability of the parent contract details and the specific task order.
Related Government Programs
- Management and Financial Consulting, Acquisition and Commercialization Services
- Professional Services
- Management Consulting Services
Risk Flags
- High Cost Per Day
- Short Contract Duration
- Lack of Detailed Scope Information
- Potential for Poor Value
Tags
professional-services, management-consulting, department-of-homeland-security, leidos-inc, firm-fixed-price, full-and-open-competition, delivery-order, administrative-management, general-management, virginia, fy2010
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $18.2 million to LEIDOS, INC.. PS SETA
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $18.2 million.
What is the period of performance?
Start: 2010-06-09. End: 2010-06-30.
What was the specific scope of work for this $18.2 million delivery order awarded to Leidos, Inc. for a 21-day period?
The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' (NAICS 541611). However, the specific scope of work for this $18.2 million delivery order, which lasted only 21 days, is not detailed. This short duration for such a substantial value suggests a highly intensive, specialized, or critical task. Without further documentation, it's impossible to ascertain the exact services rendered, such as strategic planning, organizational restructuring, process improvement, or crisis management support. The high daily burn rate implies a significant need for expert resources over a compressed timeframe.
How does the per-diem cost of this contract compare to industry benchmarks for similar high-level consulting services?
Calculating a precise per-diem cost requires dividing the total contract value ($18,225,846.20) by the number of days (21), resulting in approximately $867,897 per day. This figure is exceptionally high and significantly exceeds typical daily rates for management consultants, even for senior executives or specialized crisis teams. Standard industry benchmarks for top-tier consulting firms often range from $2,000 to $10,000 per consultant per day, depending on seniority and specialization. A rate of nearly $870,000 per day suggests either an extremely unique and critical service, a bundled cost including significant resources beyond personnel, or a potential anomaly in the data or contract structure that warrants further investigation.
What is Leidos, Inc.'s track record with the Department of Homeland Security, particularly in administrative management consulting?
Leidos, Inc. is a major federal contractor with a substantial history of performing work across various government agencies, including the Department of Homeland Security (DHS). While this specific contract highlights a significant award for administrative management consulting, Leidos's broader portfolio includes IT services, systems integration, cybersecurity, and logistics support for defense and civilian agencies. Their track record with DHS likely encompasses a wide array of services. To assess their specific performance on administrative consulting, one would need to examine past performance evaluations, contract close-out reports, and any relevant CPARS (Contractor Performance Assessment Reporting System) data related to similar engagements with DHS or other agencies.
Given the short duration and high value, what risks might be associated with this contract for the Department of Homeland Security?
The primary risk associated with this contract is the potential for poor value for money due to the extremely high daily cost. If the critical objectives were not met within the 21-day window, the investment may not yield the intended return. Another risk is the lack of sustained support; short-term, high-intensity engagements may not address underlying systemic issues that require longer-term solutions. There's also a risk related to knowledge transfer; if the consulting team leaves without adequately embedding recommendations or training internal staff, the agency might remain dependent on external support. Finally, the 'delivery order' nature suggests it might be part of a larger, potentially less scrutinized, contract vehicle, which could obscure the true cost and scope over time.
How does this contract's value compare to the total federal spending on administrative management and general management consulting services in fiscal year 2010?
To provide a meaningful comparison, we need to know the total federal spending for NAICS code 541611 in FY 2010. This single contract awarded to Leidos, Inc. for $18.2 million represents a significant portion of spending if the overall market for these services was relatively small. However, the federal government spends billions annually on professional services, including management consulting. Without the aggregate spending data for FY 2010, it's difficult to contextualize this contract's size relative to the entire federal market for administrative and management consulting. It's likely that $18.2 million is a substantial amount for a single, short-term delivery order, but may be a smaller fraction of the total annual federal expenditure in this category.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,225,846
Exercised Options: $18,225,846
Current Obligation: $18,225,846
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSHQDC09D00062
IDV Type: IDC
Timeline
Start Date: 2010-06-09
Current End Date: 2010-06-30
Potential End Date: 2013-01-31 00:00:00
Last Modified: 2017-08-03
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