Interior Department's $75.6M OSD SETA Services contract awarded to Leidos, Inc. for consulting services

Contract Overview

Contract Amount: $75,591,278 ($75.6M)

Contractor: Leidos, Inc.

Awarding Agency: Department of the Interior

Start Date: 2005-09-23

End Date: 2011-04-15

Contract Duration: 2,030 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OSD SETA SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $75.6 million to LEIDOS, INC. for work described as: OSD SETA SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs if not managed carefully. 3. The duration of the contract is 2030 days, indicating a long-term engagement for services. 4. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 5. The contract was awarded to a single vendor, Leidos, Inc., after a competitive process. 6. The base award amount is over $75 million, representing a significant investment in consulting services.

Value Assessment

Rating: fair

The contract's value of $75.6 million over its duration appears substantial for consulting services. Benchmarking against similar OSD SETA (Operations, Support, and Defense) services contracts is crucial to determine if this represents good value. The Cost Plus Award Fee (CPAF) structure allows for performance incentives but also carries the risk of cost overruns if performance targets are not met efficiently. Without specific performance metrics and comparison data, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the designation suggests a robust competitive environment was intended. This approach generally aims to foster price discovery and secure the best possible value for the government by encouraging multiple companies to vie for the contract.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it is designed to drive down costs through market forces and ensure the government receives competitive pricing.

Public Impact

The primary beneficiaries are likely the Department of the Interior's various offices requiring specialized technical and scientific consulting. The services delivered are categorized under 'Other Scientific and Technical Consulting Services,' suggesting support for complex operational or strategic initiatives. The contract is geographically centered in the District of Columbia, indicating a focus on federal agency operations in the capital. The contract supports specialized professional roles, potentially impacting the workforce in the federal consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Award Fee contracts can sometimes lead to higher final costs than fixed-price contracts if award fees are consistently achieved without strict cost controls.
  • The long duration of the contract (over 5 years) may reduce flexibility for the agency to adapt to changing needs or market conditions.
  • Lack of specific details on performance metrics makes it difficult to assess the true value and effectiveness of the awarded services.

Positive Signals

  • Awarded through full and open competition, which typically promotes competitive pricing and vendor selection.
  • The Cost Plus Award Fee structure incentivizes contractor performance, potentially leading to higher quality service delivery.
  • The contract is with a well-established company, Leidos, Inc., which may indicate a level of reliability and expertise.

Sector Analysis

The federal consulting services market is vast, encompassing a wide range of specialized expertise. Contracts like this, under NAICS code 541690, fall into the 'Other Scientific and Technical Consulting Services' category. This sector is characterized by its responsiveness to government needs for specialized knowledge in areas such as policy analysis, program management, and technical support. Spending in this sector is often driven by complex federal mandates and the need for external expertise to supplement in-house capabilities.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the large contract value and the nature of specialized consulting services, it is possible that subcontracting opportunities may exist for small businesses. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. The Cost Plus Award Fee structure implies performance monitoring to determine award fee payouts. Transparency is generally facilitated through contract award databases, but detailed performance reports and Inspector General reviews would depend on specific agency policies and any identified issues.

Related Government Programs

  • Department of the Interior IT Services
  • Federal Management Consulting Services
  • Defense-related Consulting Contracts
  • Scientific and Technical Services Contracts

Risk Flags

  • Cost Plus Award Fee (CPAF) contract type carries inherent cost risk.
  • Long contract duration may limit flexibility.
  • Lack of specific performance metrics in summary data hinders detailed value assessment.

Tags

other-scientific-and-technical-consulting-services, department-of-the-interior, departmental-offices, definitive-contract, cost-plus-award-fee, full-and-open-competition, leidos-inc, district-of-columbia, large-contract, professional-services, federal-agency, consulting

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $75.6 million to LEIDOS, INC.. OSD SETA SERVICES

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $75.6 million.

What is the period of performance?

Start: 2005-09-23. End: 2011-04-15.

What is the historical spending pattern for OSD SETA Services at the Department of the Interior?

Historical spending data for OSD SETA Services at the Department of the Interior is not directly available in this dataset. However, the current award of $75.6 million suggests a significant and ongoing need for these services. To understand historical patterns, one would need to analyze past contract awards for similar services within the Department, looking at trends in contract values, durations, and awarded vendors over several fiscal years. This would help identify if spending has been consistent, increasing, or decreasing, and whether specific offices or programs have been the primary recipients of such services.

How does Leidos, Inc.'s performance on similar contracts compare to the value of this award?

Assessing Leidos, Inc.'s performance on similar contracts requires access to detailed performance evaluations and past performance data, which is not provided in this summary. Generally, for a contract of this magnitude ($75.6 million) and duration, agencies evaluate a contractor's track record, including their ability to meet deadlines, stay within budget (especially relevant for CPAF contracts), and deliver quality services. Leidos is a large, established government contractor, suggesting they have a history of managing significant contracts. However, specific comparisons would necessitate reviewing past performance reviews and potentially data from contract databases that track contractor performance ratings.

What are the key performance indicators (KPIs) used to determine award fees for this contract?

The specific Key Performance Indicators (KPIs) used to determine award fees for this 'OSD SETA SERVICES' contract are not detailed in the provided data. For Cost Plus Award Fee (CPAF) contracts, agencies typically establish a set of measurable performance objectives and criteria. These often include factors like technical performance, schedule adherence, cost control, management effectiveness, and customer satisfaction. The 'award fee' portion is paid based on the contractor's achievement of these pre-defined metrics, as assessed by the government. Without the contract's Performance Work Statement (PWS) or award fee plan, the exact KPIs remain unknown.

What is the risk associated with the Cost Plus Award Fee (CPAF) contract type for this service?

The primary risk associated with a Cost Plus Award Fee (CPAF) contract type for 'OSD SETA SERVICES' is the potential for costs to exceed initial estimates. While CPAF incentivizes performance through award fees, it also means the government pays the contractor's allowable costs plus a fee that can be adjusted based on performance. If performance targets are ambitious or if cost controls are not rigorously managed by the government, the final cost could be significantly higher than anticipated. This contrasts with fixed-price contracts, where cost risk is largely borne by the contractor. Effective oversight and clear performance metrics are crucial to mitigate CPAF risks.

Are there any specific OSD SETA Services that this contract is intended to support within the Department of the Interior?

The provided data categorizes this contract under 'OSD SETA SERVICES' and 'Other Scientific and Technical Consulting Services' (NAICS 541690) for the Department of the Interior. While the specific 'OSD' designation might imply a connection to Operations, Support, and Defense functions, the 'SETA' (Systems Engineering and Technical Assistance) aspect suggests broad applicability. Within the Department of the Interior, such services could support a wide range of activities, including IT modernization, environmental policy analysis, resource management systems, program evaluation, or strategic planning initiatives. The exact nature of the support would be detailed in the contract's Statement of Work (SOW).

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesOther Scientific and Technical Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation ID: NBCHR050008

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Science Applications International Corporation (UEI: 078745061)

Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $81,111,117

Exercised Options: $81,111,117

Current Obligation: $75,591,278

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2005-09-23

Current End Date: 2011-04-15

Potential End Date: 2011-04-15 00:00:00

Last Modified: 2021-06-25

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