DoD Awards $89M for AHLTA Sustainment Bridge Contract to Leidos, Inc
Contract Overview
Contract Amount: $88,966,119 ($89.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-04-30
End Date: 2018-06-30
Contract Duration: 1,522 days
Daily Burn Rate: $58.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AHLTA SUSTAINMENT BRIDGE BASE PERIOD
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $89.0 million to LEIDOS, INC. for work described as: AHLTA SUSTAINMENT BRIDGE BASE PERIOD Key points: 1. Leidos, Inc. secured an $88.97M contract for AHLTA sustainment. 2. The contract was not competed, raising questions about price discovery. 3. Engineering Services (NAICS 541330) is the sector for this award. 4. The contract duration was 1522 days, ending in June 2018.
Value Assessment
Rating: questionable
The contract value of $88.97M for a 4-year sustainment period is difficult to benchmark without specific service details. However, the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was 'NOT COMPETED', indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a fully competitive process, impacting taxpayer value.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The sustainment of a critical system like AHLTA was awarded without exploring market competition. The long contract duration suggests a significant reliance on the awarded vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in award
Positive Signals
- Sustainment of critical system
- Firm Fixed Price contract type
Sector Analysis
This contract falls under Engineering Services, a broad category. The specific application within the Defense Health Agency suggests a specialized IT/healthcare IT service. Benchmarking requires comparison to similar IT sustainment contracts.
Small Business Impact
No information is available regarding small business participation in this contract award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further investigation into the justification for limiting competition and ensuring appropriate oversight was applied to safeguard taxpayer funds.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- Long contract duration without re-evaluation
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $89.0 million to LEIDOS, INC.. AHLTA SUSTAINMENT BRIDGE BASE PERIOD
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $89.0 million.
What is the period of performance?
Start: 2014-04-30. End: 2018-06-30.
What was the specific justification for not competing this contract, and was it adequately documented?
The provided data states the contract was 'NOT COMPETED'. A thorough review would be needed to ascertain the specific justification, such as a sole-source vendor with unique capabilities or an emergency requirement. Adequate documentation and justification are crucial for ensuring fair and efficient use of taxpayer funds and adherence to procurement regulations.
How does the per-unit cost of this sustainment contract compare to industry benchmarks for similar IT systems?
Without detailed service breakdowns and specific performance metrics, a direct per-unit cost comparison is challenging. However, the lack of competition suggests that the negotiated price may not reflect the most cost-effective solution available in the market. Benchmarking against similar sustainment contracts for large-scale IT systems, especially those awarded competitively, would be necessary.
What was the impact of the firm-fixed-price contract type on overall cost and risk allocation?
A firm-fixed-price (FFP) contract generally shifts most of the risk to the contractor, providing cost certainty for the government. For sustainment services, FFP can be effective if requirements are well-defined. However, if scope creep or unforeseen technical issues arise, the contractor may seek adjustments or the government might receive less value if the price was not optimized through competition.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT001114R0012
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR, 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: $88,966,119
Exercised Options: $88,966,119
Current Obligation: $88,966,119
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2014-04-30
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2024-06-28
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