DHS Awards $31.8M Engineering Services Contract to Leidos, Inc. with Cost Reimbursement

Contract Overview

Contract Amount: $31,776,509 ($31.8M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-04-28

End Date: 2021-10-14

Contract Duration: 1,630 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF THE CONTRACT LINE ITEMS FOR CONTRACT ACCESS FEE (CAF), OTHER DIRECT COSTS (ODCS)AND TRAVEL ARE REIMBURSABLE AT COST. FEE SHALL NOT BE PAID ON ODCS OR TRAVEL. THE PERIOD OF PERFORMANCE IS FROM JANUARY 28, 2017 THROUGH JANUARY 27, 2022 FOR THE BASE PERIOD OF ONE (1) YEAR AND FOUR (4) OPTION PERIODS OF ONE (1) YEAR EACH.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.8 million to LEIDOS, INC. for work described as: IGF::CT::IGF THE CONTRACT LINE ITEMS FOR CONTRACT ACCESS FEE (CAF), OTHER DIRECT COSTS (ODCS)AND TRAVEL ARE REIMBURSABLE AT COST. FEE SHALL NOT BE PAID ON ODCS OR TRAVEL. THE PERIOD OF PERFORMANCE IS FROM JANUARY 28, 2017 THROUGH JANUARY 27, 2022 FOR THE BASE PERIOD OF ONE (1) … Key points: 1. Contract awarded to Leidos, Inc. for engineering services. 2. Period of performance spans January 2017 to January 2022, including base and option periods. 3. Cost reimbursement structure for CAF, ODCS, and Travel, with no fee on ODCS/Travel. 4. NAICS code 541330 indicates Engineering Services.

Value Assessment

Rating: fair

The contract uses a Cost Plus Fixed Fee (CPFF) pricing structure. Reimbursement for Contract Access Fee, Other Direct Costs, and Travel is at cost, with no fee applied to ODCS or Travel. This structure requires careful monitoring to ensure costs remain reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The use of cost reimbursement with fixed fees on certain elements necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively.

Public Impact

Ensures continued engineering support for Department of Homeland Security operations. Potential for cost overruns if not managed diligently due to cost-reimbursable elements. Supports Leidos, Inc. and its subcontractors, contributing to the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost reimbursement requires strong oversight to prevent overspending.
  • Fixed fee component needs clear definition and justification.
  • Potential for scope creep in engineering services contracts.

Positive Signals

  • Awarded through full and open competition.
  • Clear delineation of reimbursable costs and fee application.

Sector Analysis

This contract falls within the Engineering Services sector, characterized by complex project management and technical expertise. Spending benchmarks for similar engineering services contracts can vary widely based on scope and duration.

Small Business Impact

The provided data does not indicate any specific subcontracting requirements or participation from small businesses in this contract award.

Oversight & Accountability

The cost-reimbursable nature of certain contract line items necessitates strong government oversight to ensure costs are reasonable, allocable, and allowable, and that the fixed fee is justified.

Related Government Programs

  • Engineering Services
  • Department of Homeland Security Contracting
  • Office of Procurement Operations Programs

Risk Flags

  • Cost reimbursement requires diligent oversight.
  • Potential for undefined scope creep.
  • Fixed fee justification needs clarity.
  • Contract duration is substantial.

Tags

engineering-services, department-of-homeland-security, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.8 million to LEIDOS, INC.. IGF::CT::IGF THE CONTRACT LINE ITEMS FOR CONTRACT ACCESS FEE (CAF), OTHER DIRECT COSTS (ODCS)AND TRAVEL ARE REIMBURSABLE AT COST. FEE SHALL NOT BE PAID ON ODCS OR TRAVEL. THE PERIOD OF PERFORMANCE IS FROM JANUARY 28, 2017 THROUGH JANUARY 27, 2022 FOR THE BASE PERIOD OF ONE (1) YEAR AND FOUR (4) OPTION PERIODS OF ONE (1) YEAR EACH.

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 $31.8 million.

What is the period of performance?

Start: 2017-04-28. End: 2021-10-14.

What specific engineering services are being procured under this contract, and how do they align with DHS's mission objectives?

The contract is for general engineering services under NAICS code 541330. While the specific services aren't detailed, they likely support various Department of Homeland Security operational needs, potentially including infrastructure, systems, or program support. A clear understanding of how these services directly contribute to DHS's core mission is crucial for validating the necessity and value of the expenditure.

What mechanisms are in place to control costs and ensure value for money given the cost-reimbursable elements of the contract?

The contract utilizes a Cost Plus Fixed Fee structure with specific cost reimbursement for CAF, ODCS, and Travel, excluding fee on ODCS/Travel. Effective cost control relies on robust government oversight, including audits, reviews of incurred costs, and adherence to the contract's defined scope. Clear performance metrics and regular progress reviews are essential to ensure value is being delivered.

How will the effectiveness of the engineering services provided by Leidos, Inc. be measured and evaluated throughout the contract period?

Effectiveness is typically measured through performance metrics, key performance indicators (KPIs), and adherence to milestones outlined in the contract. For engineering services, this could include timely delivery of designs, successful project completion, quality of deliverables, and responsiveness to DHS requirements. Regular performance reviews and feedback loops are critical for ensuring the contractor meets expectations.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: HSHQDC-16-Q-00135

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1750 PRESIDENTS ST FL 4, 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: $32,354,914

Exercised Options: $31,776,509

Current Obligation: $31,776,509

Actual Outlays: $636

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU122

IDV Type: IDC

Timeline

Start Date: 2017-04-28

Current End Date: 2021-10-14

Potential End Date: 2025-10-25 00:00:00

Last Modified: 2025-09-25

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