Leidos Awarded $36.4M for DoD Product Improvement Engineering, Highlighting Computer Systems Design Services
Contract Overview
Contract Amount: $36,389,859 ($36.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-06-21
End Date: 2020-05-29
Contract Duration: 708 days
Daily Burn Rate: $51.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: PRODUCT IMPROVEMENT ENGINEERING - POST IOC BASELINING
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $36.4 million to LEIDOS, INC. for work described as: PRODUCT IMPROVEMENT ENGINEERING - POST IOC BASELINING Key points: 1. Contract awarded to Leidos, Inc. for $36.4 million. 2. Focuses on Computer Systems Design Services within the Defense Health Agency. 3. Competition method was Full and Open, indicating broad market access. 4. Contract type is Cost Plus Incentive Fee, aligning costs with performance.
Value Assessment
Rating: good
The contract's Cost Plus Incentive Fee structure suggests a focus on performance-based outcomes. Benchmarking against similar IT services contracts would provide a clearer picture of value, but the incentive component aims to manage costs effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing all eligible contractors to bid. This method generally promotes competitive pricing and ensures the government receives the best value by leveraging the widest possible pool of qualified vendors.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely drove down costs compared to a sole-source or limited competition scenario.
Public Impact
Enhances critical product improvement engineering for the Department of Defense. Supports the Defense Health Agency's operational readiness and technological advancement. Leverages specialized computer systems design services for complex defense needs. The contract duration of 708 days suggests a significant, ongoing project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not closely monitored.
- Reliance on a single large contractor (Leidos) may limit future competition or innovation from smaller firms.
Positive Signals
- Full and open competition ensures a robust marketplace was considered.
- The contract aims to improve essential defense systems.
- Incentive fee structure encourages contractor performance.
Sector Analysis
This contract falls within the IT and professional services sector, specifically Computer Systems Design Services. Spending in this area is substantial across the federal government, supporting critical infrastructure and modernization efforts. Benchmarks for similar IT services contracts vary widely based on complexity and scope.
Small Business Impact
While the contract was awarded to Leidos, Inc., a large business, the 'full and open' competition method theoretically allows small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract's performance will be subject to standard Department of Defense oversight mechanisms. Monitoring the Cost Plus Incentive Fee structure and adherence to project milestones will be crucial for accountability and ensuring taxpayer value.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Cost Overruns Potential (CPIF)
- Scope Creep Risk
- Dependency on Single Large Contractor
- Limited Visibility into Specific Deliverables
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.4 million to LEIDOS, INC.. PRODUCT IMPROVEMENT ENGINEERING - POST IOC BASELINING
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 $36.4 million.
What is the period of performance?
Start: 2018-06-21. End: 2020-05-29.
What specific product improvements are being targeted, and what is the expected return on investment for these enhancements?
The data does not specify the exact products or the nature of the improvements. Further details on the scope of 'Product Improvement Engineering - Post IOC Baselining' are needed to assess the ROI. Understanding the baseline metrics and the targeted improvements would allow for a quantitative analysis of the expected benefits and justification for the $36.4 million investment.
How effectively does the Cost Plus Incentive Fee structure mitigate risks associated with complex IT development and integration for the Defense Health Agency?
The CPIF structure aims to align Leidos's profit with achieving specific performance targets and cost efficiencies. This can mitigate risks by incentivizing the contractor to manage costs and deliver quality outcomes. However, robust government oversight is still critical to ensure targets are realistic and achievable, and that the incentive structure doesn't inadvertently encourage scope creep or suboptimal solutions.
What is the long-term strategic value of this contract beyond the immediate product improvements for the Defense Health Agency's IT infrastructure?
The long-term value lies in enhancing the operational effectiveness and security of critical defense health systems. Successful product improvements could lead to increased system reliability, better data management, and improved user experience for healthcare providers. This, in turn, supports the agency's mission delivery and potentially reduces future maintenance or upgrade costs by addressing issues proactively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $36,389,859
Exercised Options: $36,389,859
Current Obligation: $36,389,859
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $5,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003915D0044
IDV Type: IDC
Timeline
Start Date: 2018-06-21
Current End Date: 2020-05-29
Potential End Date: 2020-05-29 00:00:00
Last Modified: 2025-04-24
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