Leidos Inc. contract for administrative management services awarded by DHS for over $17.4 million
Contract Overview
Contract Amount: $17,466,770 ($17.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-03-31
End Date: 2010-07-31
Contract Duration: 1,948 days
Daily Burn Rate: $9.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: LABOR HOURS
Sector: Other
Official Description: EA PROGRAM
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20016
Plain-Language Summary
Department of Homeland Security obligated $17.5 million to LEIDOS, INC. for work described as: EA PROGRAM Key points: 1. Contract awarded to a single large business, indicating potential for limited small business participation. 2. The contract duration of over 5 years suggests a long-term need for these services. 3. Awarded under full and open competition, which generally promotes competitive pricing. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The contract was awarded by the Department of Homeland Security, a major federal agency. 6. The contract type is 'Labor Hours', which can sometimes lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The total award amount of $17.47 million over approximately 5 years for administrative management and general management consulting services appears to be within a reasonable range for a contract of this nature and duration. However, without specific details on the deliverables and the labor mix, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for management consulting services within DHS or other large federal agencies would provide a clearer picture of whether the pricing is competitive. The 'Labor Hours' contract type necessitates close monitoring to ensure efficient use of resources and prevent scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple offerors had the opportunity to bid. The presence of 3 bids indicates a moderate level of competition. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access for potential contractors, the specific number of bidders can influence the intensity of the competition. A higher number of bidders typically leads to more aggressive pricing.
Taxpayer Impact: Taxpayers benefit from full and open competition as it generally drives down costs through market forces. A moderate number of bidders suggests that while competition was present, there might have been opportunities for even greater cost savings with more interested parties.
Public Impact
The Department of Homeland Security benefits from these administrative and management consulting services, likely improving operational efficiency and strategic planning. The services provided are general management consulting, which can encompass a wide range of support functions for the agency. The contract's performance is likely concentrated within the District of Columbia, where the agency's headquarters and major operations are often located. The contract supports the agency's administrative functions, indirectly impacting the federal workforce by potentially streamlining processes and resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Labor Hours' contract type can be susceptible to cost overruns if not meticulously managed and if the scope of work expands beyond initial estimates.
- A single award to a large incumbent contractor like Leidos, Inc. might limit opportunities for smaller, innovative firms to enter the federal contracting space for these services.
- The long duration of the contract (over 5 years) could lead to vendor lock-in and reduced flexibility for the agency to adapt to changing needs or explore alternative solutions.
Positive Signals
- Awarded under full and open competition, which provides a baseline for fair market pricing and broad access to potential contractors.
- Leidos, Inc. is a large, established government contractor with a significant track record, suggesting a high likelihood of successful performance and delivery.
- The contract is managed by the Department of Homeland Security, a critical agency with robust oversight mechanisms in place for its procurements.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for management consulting services is highly competitive, with numerous large and small firms vying for federal contracts. Comparable spending benchmarks for similar services within federal agencies often range from tens to hundreds of millions of dollars annually, depending on the scope and duration.
Small Business Impact
This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements were mandated. The award to a large business like Leidos, Inc. suggests that small businesses may not have had a direct opportunity to compete for the prime contract. However, it is possible that Leidos, Inc. may engage small businesses as subcontractors, which would contribute to the small business ecosystem. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.
Oversight & Accountability
The Department of Homeland Security, as the awarding agency, is responsible for the oversight of this contract. Standard federal procurement regulations and contract management best practices would apply, including performance monitoring, invoice review, and compliance checks. The Office of Procurement Operations likely plays a role in managing the administrative aspects of the contract. Transparency is generally maintained through contract databases like FPDS-NG, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Management and Consulting Services
- Professional Services
- Administrative Support Services
- Department of Homeland Security Contracts
- Leidos, Inc. Federal Contracts
Risk Flags
- Potential for cost overruns due to 'Labor Hours' contract type.
- Limited visibility into specific performance metrics and value realization.
- Moderate competition level may not have yielded the lowest possible price.
- Lack of explicit small business subcontracting goals could limit broader economic impact.
Tags
management-consulting, administrative-support, department-of-homeland-security, leidos-inc, labor-hours, full-and-open-competition, district-of-columbia, professional-services, large-business, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $17.5 million to LEIDOS, INC.. EA PROGRAM
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 $17.5 million.
What is the period of performance?
Start: 2005-03-31. End: 2010-07-31.
What specific types of administrative and management consulting services were provided under this contract?
The contract, NAICS code 541611, covers Administrative Management and General Management Consulting Services. While the specific deliverables are not detailed in the provided data, these services typically encompass areas such as organizational structure analysis, process improvement, strategic planning support, policy development, program management assistance, and operational efficiency enhancements. For the Department of Homeland Security, this could translate to support in areas like border security operations management, emergency preparedness planning, cybersecurity strategy, or internal administrative process optimization. The 'Labor Hours' contract type suggests that the contractor provided personnel to perform these consulting tasks, billing based on the time spent by their employees or subcontractors.
How does the awarded amount of $17.47 million compare to similar contracts for management consulting services within the federal government?
The awarded amount of $17.47 million over approximately 5 years for administrative and general management consulting services is a substantial figure, reflecting the scale and importance of the Department of Homeland Security's needs. To benchmark this effectively, one would compare it to other contracts awarded by DHS or similar large agencies (e.g., DoD, HHS) for comparable services (NAICS 541611) with similar durations and contract types (Labor Hours). Contracts for management consulting can vary widely, but for a large federal agency over several years, this amount is not unusual. However, a detailed comparison would require analyzing the specific scope of work, the level of expertise required, and the number of bidders involved in each contract. Without that granular data, it's difficult to definitively state if this represents excellent or merely fair value.
What is Leidos, Inc.'s track record with federal contracts, particularly within the Department of Homeland Security?
Leidos, Inc. is a major government contractor with a long history of serving various federal agencies, including the Department of Homeland Security. They have a broad portfolio of contracts spanning IT services, defense, intelligence, and homeland security solutions. Their track record generally indicates significant experience and capability in delivering complex services. Within DHS, Leidos has held numerous contracts across different components, often related to cybersecurity, mission support, and systems integration. While specific performance ratings for individual contracts are not publicly detailed in this summary, their continued success in winning large federal contracts suggests a generally positive performance history and a strong understanding of government requirements and processes.
What are the potential risks associated with a 'Labor Hours' contract type for management consulting services?
The 'Labor Hours' contract type, while offering flexibility, carries inherent risks, particularly for services like management consulting. The primary risk is cost escalation if the hours worked exceed initial estimates or if the project scope expands without adequate controls. This can lead to the contract exceeding its ceiling value. For the government, it requires diligent oversight to ensure that the hours billed are reasonable, necessary, and directly related to the contract's objectives. There's also a risk of 'scope creep,' where tasks not originally envisioned are added, increasing labor hours and costs. Effective management requires clear task definitions, regular progress reviews, and a strong understanding of the contractor's labor rates and efficiency.
How has federal spending on administrative and management consulting services evolved over the past decade?
Federal spending on administrative and management consulting services has generally seen a steady increase over the past decade, driven by the government's continuous need for efficiency improvements, strategic guidance, and specialized expertise. Agencies across the board, from defense and homeland security to health and human services, utilize these services to navigate complex challenges, implement new technologies, and optimize operations. Factors contributing to this trend include evolving regulatory landscapes, the need for digital transformation, and the demand for specialized knowledge in areas like cybersecurity and data analytics. While specific figures fluctuate annually based on budget appropriations and agency priorities, the overall trajectory indicates a sustained reliance on external consulting expertise to support government functions and achieve policy objectives.
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: 3
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DRIVE, ROOM #8031, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,466,770
Exercised Options: $17,466,770
Current Obligation: $17,466,770
Parent Contract
Parent Award PIID: GS23F8006H
IDV Type: FSS
Timeline
Start Date: 2005-03-31
Current End Date: 2010-07-31
Potential End Date: 2010-07-31 00:00:00
Last Modified: 2013-04-01
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