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 Services › Architectural, Engineering, and Related Services › Engineering 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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