Leidos Inc. contract for Nation Critical Infrastructure services awarded by DHS for over $15M
Contract Overview
Contract Amount: $15,173,771 ($15.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-05-09
End Date: 2006-11-30
Contract Duration: 570 days
Daily Burn Rate: $26.6K/day
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: NATION CRITICAL INFRASTRUCTURE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407
Plain-Language Summary
Department of Homeland Security obligated $15.2 million to LEIDOS, INC. for work described as: NATION CRITICAL INFRASTRUCTURE Key points: 1. Contract value appears reasonable given the duration and scope of engineering services. 2. Sole-source award limits competitive dynamics and potential for price optimization. 3. Contract duration and type (Time and Materials) may present cost control risks. 4. Services align with critical infrastructure protection, a key DHS mission. 5. Geographic focus on Washington D.C. indicates a concentration of federal assets. 6. No small business set-aside noted, suggesting prime contractor is a large entity.
Value Assessment
Rating: fair
The contract value of approximately $15.17 million over 1.5 years for engineering services is difficult to benchmark without more detailed scope information. However, given the critical nature of infrastructure protection, the pricing may be within a reasonable range. The Time and Materials (T&M) contract type, while flexible, can sometimes lead to higher costs if not closely managed, compared to fixed-price contracts. Further analysis would require comparing specific labor rates and material markups to industry standards for similar engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no open competition. This approach is typically used when only one contractor possesses the unique capabilities or qualifications required for the specific service. While it ensures specialized expertise, it limits the government's ability to solicit bids from multiple vendors, potentially impacting price discovery and the opportunity for cost savings through competition.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from competitive bidding to drive down prices.
Public Impact
The primary beneficiary is the Department of Homeland Security, enhancing its ability to protect national critical infrastructure. Services delivered likely include engineering assessments, planning, and potentially design related to infrastructure security. The geographic impact is concentrated in the District of Columbia, where key federal assets are located. Workforce implications involve specialized engineering and technical personnel employed by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Risk of cost overruns due to Time and Materials contract type.
- Lack of competition may lead to suboptimal pricing.
- Sole-source nature limits transparency into alternative solutions or pricing.
Positive Signals
- Focus on critical infrastructure protection aligns with national security priorities.
- Award to a known entity (Leidos) may indicate established capability.
- Contract duration provides a defined period for service delivery.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, including national security and infrastructure management. The market for engineering services supporting federal agencies is substantial, with significant spending allocated to areas like defense, transportation, and homeland security. This specific contract's focus on 'Nation Critical Infrastructure' places it at the intersection of engineering expertise and national security, a high-priority area for government investment.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the prime contractor, Leidos, Inc., is a large business capable of performing the work independently. The absence of small business participation in this specific award means no direct benefit to the small business ecosystem through this contract, nor are there subcontracting opportunities for them.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. As a sole-source award, there may be heightened scrutiny to ensure the necessity and justification for the approach. Transparency is limited by the competitive nature, but contract performance metrics and financial reporting would be subject to standard government oversight. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.
Related Government Programs
- Department of Homeland Security - Critical Infrastructure Protection Programs
- Federal Engineering Services Contracts
- National Security Infrastructure Support
- Time and Materials Contracts
Risk Flags
- Sole-source award
- Time and Materials contract type
- Lack of small business participation
Tags
engineering-services, department-of-homeland-security, critical-infrastructure, nationwide, sole-source, time-and-materials, large-business, professional-scientific-and-technical-services, district-of-columbia, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $15.2 million to LEIDOS, INC.. NATION CRITICAL INFRASTRUCTURE
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 $15.2 million.
What is the period of performance?
Start: 2005-05-09. End: 2006-11-30.
What specific critical infrastructure assets or systems were covered under this contract?
The provided data does not specify the exact critical infrastructure assets or systems covered under this contract. The description 'Nation Critical Infrastructure' is broad and could encompass a wide range of facilities, systems, or networks vital to national security, economic stability, and public health and safety. Typically, such services involve assessments, vulnerability analyses, security planning, and potentially engineering solutions for sectors like energy, communications, transportation, water, and defense infrastructure. Further details would likely be found in the contract's statement of work (SOW) or associated documentation, which are not included in the provided data.
How does the $15.17 million contract value compare to similar engineering services contracts for critical infrastructure protection?
Benchmarking the $15.17 million contract value against similar contracts is challenging without more specific details on the scope of work, duration, and the specific types of critical infrastructure addressed. However, for a period of approximately 1.5 years (570 days), this value suggests a significant undertaking. Contracts for critical infrastructure protection can range widely, from small, specialized assessments to large-scale engineering and security system implementations. Given that this was a sole-source award to Leidos, Inc. by the Department of Homeland Security, it implies a need for specialized expertise. Without comparable sole-source contracts for similar services or data on the labor hours and rates involved, a precise value comparison is difficult. Generally, large-scale engineering and security consulting for critical national assets can run into tens or hundreds of millions of dollars over longer periods.
What are the primary risks associated with a sole-source, Time and Materials contract for critical infrastructure engineering services?
A sole-source, Time and Materials (T&M) contract for critical infrastructure engineering services presents several key risks. Firstly, the sole-source nature eliminates competition, meaning the government does not benefit from potential price reductions or innovative solutions that multiple bidders might offer. This can lead to higher costs than a competitively awarded contract. Secondly, the T&M structure carries inherent cost-control risks. Since the contractor is reimbursed for actual labor hours and material costs plus a fee or fixed overhead/profit, there is less incentive to control costs or expedite work compared to a fixed-price contract. This can lead to cost overruns if the project scope expands or if labor hours are not efficiently managed. For critical infrastructure, where stakes are high, ensuring cost-effectiveness alongside robust service delivery is paramount, making close oversight crucial for T&M sole-source awards.
What is Leidos, Inc.'s track record with the Department of Homeland Security and in critical infrastructure protection?
Leidos, Inc. has a significant and established track record with the Department of Homeland Security (DHS) and in providing services related to national security and critical infrastructure. As a major government contractor, Leidos frequently secures contracts across various federal agencies, including DHS, covering a wide array of technical, engineering, and support services. Their work often involves complex systems integration, cybersecurity, data analytics, and mission support, all of which are relevant to protecting critical infrastructure. While this specific contract highlights a sole-source award for engineering services, Leidos's broader portfolio demonstrates extensive experience in supporting government efforts to safeguard national assets. Their history with DHS suggests a level of trust and proven capability in meeting the agency's demanding requirements.
How does this contract align with the Department of Homeland Security's mission and priorities?
This contract directly aligns with the Department of Homeland Security's core mission of protecting the nation from threats. A significant component of homeland security involves safeguarding critical infrastructure – the essential physical and cyber systems and assets that are vital to national security, economic stability, and public health and safety. By awarding engineering services for 'Nation Critical Infrastructure,' DHS is investing in the expertise needed to assess, secure, and maintain these vital systems. This aligns with DHS's strategic priorities, which consistently emphasize resilience, preparedness, and the protection of the nation's most important assets against a range of potential threats, including natural disasters, cyberattacks, and terrorism.
What are the potential long-term implications of this contract for federal critical infrastructure security?
The long-term implications of this contract depend on the specific services rendered and their effectiveness. If the engineering services provided lead to enhanced security measures, better risk assessments, or improved resilience of critical infrastructure, then the contract contributes positively to national security. However, the sole-source and T&M nature warrants careful monitoring to ensure value for money and sustained effectiveness. Over the long term, repeated sole-source awards in critical areas could potentially stifle innovation or lead to complacency if not managed rigorously. Conversely, successful execution by Leidos could establish a strong foundation for ongoing protection efforts, potentially leading to follow-on contracts or broader implementation of recommended security enhancements across various critical infrastructure sectors.
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
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 2900 SABRE ST, VIRGINIA BEACH, VA, 02
Business Categories: Category Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $15,173,771
Exercised Options: $15,173,771
Current Obligation: $15,173,771
Parent Contract
Parent Award PIID: GS07F0134L
IDV Type: FSS
Timeline
Start Date: 2005-05-09
Current End Date: 2006-11-30
Potential End Date: 2006-11-30 00:00:00
Last Modified: 2011-01-24
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