DHS awards $122.6M IT Engineering Support Services contract to Leidos, Inc. over 4 years
Contract Overview
Contract Amount: $122,629,192 ($122.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2006-07-28
End Date: 2010-07-08
Contract Duration: 1,441 days
Daily Burn Rate: $85.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IT ENGINEERING SUPPORT SERVICES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $122.6 million to LEIDOS, INC. for work described as: IT ENGINEERING SUPPORT SERVICES Key points: 1. Contract awarded on a cost-plus-award-fee basis, allowing for performance-based incentives. 2. Competition was robust with 3 bidders, suggesting potential for competitive pricing. 3. The contract duration of 1441 days (approx. 4 years) indicates a significant, long-term need. 4. IT Engineering Support Services is a critical function for USCIS's operational efficiency. 5. The contract falls within the broader IT services sector, a major area of federal spending.
Value Assessment
Rating: good
Benchmarking the value of this contract requires more granular data on the specific IT engineering services provided. However, given the competitive nature of the award and the duration, the $122.6 million total value over approximately four years suggests a reasonable investment for critical IT support. Comparing it to similar large-scale IT support contracts within DHS or other agencies would provide a clearer picture of its cost-effectiveness. The cost-plus-award-fee structure incentivizes performance, which can lead to better value if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through a competitive delivery order process, indicating that multiple vendors had the opportunity to bid. With three bidders participating, the level of competition appears healthy, which typically drives better pricing and service offerings. The agency likely benefited from a range of technical solutions and cost proposals, allowing for selection of the most advantageous offer.
Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by fostering price discovery and encouraging vendors to offer their best value. This approach helps prevent overpayment and promotes a more responsible use of public funds.
Public Impact
USCIS benefits from enhanced IT engineering capabilities, supporting its mission of immigration services. The contract ensures the continuity and improvement of critical IT infrastructure and systems. Workforce implications may include direct and indirect employment opportunities within the IT sector. Geographic impact is likely concentrated where USCIS operations and IT support centers are located, primarily in Virginia. Citizens and residents interacting with USCIS systems will experience the benefits of reliable and efficient IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
- Dependence on a single contractor for critical IT engineering support could pose a risk if performance falters.
- Scope creep could increase the overall cost beyond initial projections if not managed tightly.
Positive Signals
- Competitive award process suggests a fair market price was likely achieved.
- Award Fee component incentivizes contractor performance and quality of service.
- Long-term nature of the contract allows for stable IT support and strategic planning.
Sector Analysis
The IT Engineering Support Services sector is a significant component of federal IT spending, encompassing a wide range of services from system design and development to maintenance and operational support. Federal agencies rely heavily on these services to maintain and modernize their complex technological infrastructures. Spending in this area is driven by the need for cybersecurity, data management, cloud migration, and the development of citizen-facing digital services. Comparable contracts often involve multi-year durations and substantial dollar values, reflecting the critical nature of IT to government operations.
Small Business Impact
The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large IT contracts often present subcontracting opportunities for specialized small businesses, provided the prime contractor actively seeks them out. The absence of explicit set-asides suggests the primary focus was on full and open competition to secure the best overall value.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officer and program managers. Performance would be monitored against the contract's requirements and the award fee criteria. Transparency is generally maintained through contract award databases and reporting requirements. The Department of Homeland Security's Office of Inspector General may also conduct audits or investigations into contract performance and spending as part of its oversight responsibilities.
Related Government Programs
- IT Professional Services
- Cloud Computing Services
- Cybersecurity Services
- Software Development
- IT Infrastructure Management
Risk Flags
- Cost Plus Award Fee contract type requires diligent oversight to manage costs.
- Long contract duration necessitates ongoing performance monitoring.
- Dependence on a single contractor for critical IT functions.
Tags
it-engineering-support, department-of-homeland-security, uscis, leidos-inc, competitive-delivery-order, cost-plus-award-fee, it-services, federal-contract, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $122.6 million to LEIDOS, INC.. IT ENGINEERING SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).
What is the total obligated amount?
The obligated amount is $122.6 million.
What is the period of performance?
Start: 2006-07-28. End: 2010-07-08.
What is the historical spending trend for IT Engineering Support Services at USCIS?
Analyzing historical spending trends for IT Engineering Support Services at USCIS is crucial for understanding budget allocation and identifying potential patterns of increased or decreased investment in this area. Without specific historical data for this contract or similar services, a precise trend cannot be determined. However, federal IT spending, in general, has been on an upward trajectory, driven by modernization efforts, cybersecurity needs, and the expansion of digital services. Agencies like USCIS often see fluctuations based on specific project requirements, system upgrades, and evolving technological landscapes. A detailed analysis would involve examining annual spending reports for USCIS IT services over the past 5-10 years to identify growth rates, major contract awards, and shifts in service priorities.
How does Leidos, Inc.'s performance on similar contracts compare to the award fee structure of this contract?
Assessing Leidos, Inc.'s performance on similar contracts requires access to past performance evaluations and award fee determinations. Generally, Cost Plus Award Fee (CPAF) contracts tie a significant portion of the contractor's profit to achieving specific performance metrics and objectives. If Leidos has a strong track record of meeting or exceeding performance standards on previous CPAF contracts, it suggests they are well-equipped to manage this USCIS contract effectively and potentially earn higher award fees. Conversely, a history of performance issues or lower-than-expected award fees on similar contracts could indicate a higher risk for this engagement. Publicly available contract data and agency performance reviews, where accessible, would provide the most direct comparison.
What are the key performance indicators (KPIs) used to determine the award fee for this contract?
The specific Key Performance Indicators (KPIs) used to determine the award fee for this IT Engineering Support Services contract are not detailed in the provided data. However, in CPAF contracts, KPIs typically align with critical aspects of service delivery and project management. For IT engineering support, these could include metrics such as system uptime and availability, response times for issue resolution, successful completion of project milestones, adherence to security protocols, user satisfaction ratings, and efficiency improvements achieved through engineering solutions. The contract's Performance Work Statement (PWS) would outline these KPIs in detail, and the award fee would be calculated based on how well Leidos, Inc. met or exceeded these defined targets over the contract period.
What is the potential risk associated with the 'Cost Plus Award Fee' (CPAF) contract type for this IT engineering support?
The primary risk associated with a Cost Plus Award Fee (CPAF) contract type for IT engineering support is the potential for costs to exceed initial estimates, as the government agrees to reimburse allowable costs plus a fee that includes an award component based on performance. While CPAF aims to incentivize performance, it can lead to higher overall costs compared to fixed-price contracts if not managed diligently. Effective oversight is crucial to ensure that costs are reasonable and allocable, and that the award fee is genuinely earned through superior performance rather than being a de facto increase in profit. Scope creep, if not rigorously controlled, can also inflate costs under a CPAF structure. The government must maintain strong program management and financial oversight to mitigate these risks.
How does the $122.6 million contract value compare to the overall IT budget of the Department of Homeland Security?
To accurately compare the $122.6 million contract value to the overall IT budget of the Department of Homeland Security (DHS), specific budget figures for the relevant fiscal years would be required. DHS is a large agency with a substantial IT budget that funds a wide array of services, systems, and infrastructure across its various components, including USCIS. This $122.6 million represents a significant investment, likely covering a substantial portion of USCIS's IT engineering support needs over its four-year duration. However, without the total DHS IT budget context, it's difficult to ascertain its proportion. Generally, IT spending constitutes a significant percentage of any large federal agency's operational budget, reflecting the critical role technology plays in mission execution.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $122,629,192
Exercised Options: $122,629,192
Current Obligation: $122,629,192
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 26301D0046
IDV Type: IDC
Timeline
Start Date: 2006-07-28
Current End Date: 2010-07-08
Potential End Date: 2010-07-08 00:00:00
Last Modified: 2016-05-16
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