Leidos Inc. awarded $38.7M engineering services contract by Department of the Interior

Contract Overview

Contract Amount: $38,765,102 ($38.8M)

Contractor: Leidos, Inc.

Awarding Agency: Department of the Interior

Start Date: 2000-06-15

End Date: 2006-09-08

Contract Duration: 2,276 days

Daily Burn Rate: $17.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 51

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $38.8 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded at a competitive fixed price, suggesting potential for value. 2. Delivery order under a larger IDIQ contract indicates established procurement vehicle. 3. Contract duration of 2276 days (approx. 6.2 years) suggests a long-term need. 4. NAICS code 541330 (Engineering Services) places this within a common government service sector. 5. Contract awarded to a large, established prime contractor, Leidos, Inc. 6. The contract was awarded as a delivery order, not a new standalone award.

Value Assessment

Rating: fair

The total award amount of $38.7 million for engineering services over approximately 6.2 years suggests a moderate annual spend. Benchmarking this against similar large-scale engineering contracts requires more granular data on the specific services rendered. However, the firm-fixed-price structure is generally favorable for cost control. Without detailed service breakdowns or comparison to industry standards for similar engineering tasks, a definitive value assessment is challenging. The contract was awarded as a delivery order against an existing IDIQ, which may imply pre-negotiated rates that could be competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple offerors likely had the opportunity to bid. The fact that it is a delivery order under a larger IDIQ suggests that the initial competition for the IDIQ vehicle was robust. The specific competition for this delivery order would have involved a subset of IDIQ holders, but the 'full-and-open' designation implies a broad initial competition for the parent contract. This level of competition generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A full and open competition for the underlying IDIQ contract provides taxpayers with assurance that the government sought the best possible value from a wide range of potential providers.

Public Impact

Benefits federal agencies requiring specialized engineering expertise. Delivers essential engineering services to support government operations and infrastructure. Geographic impact is likely nationwide, depending on the specific projects undertaken. Workforce implications include employment for engineers and technical specialists within Leidos and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration could lead to scope creep or evolving requirements not fully captured in initial pricing.
  • Reliance on a single large prime contractor may limit opportunities for smaller, specialized firms.
  • The specific nature of 'engineering services' is broad and could encompass a wide range of activities, making direct cost comparison difficult.

Positive Signals

  • Awarded under a competitive process, suggesting potential for good value.
  • Firm-fixed-price contract type helps control costs and provides budget certainty.
  • The contract is a delivery order against an IDIQ, indicating a streamlined procurement process for established needs.

Sector Analysis

Engineering services are a critical component of government operations, supporting everything from infrastructure development to complex technical projects. The market for these services is substantial, with numerous large and small firms competing for federal contracts. This contract, valued at $38.7 million over several years, fits within the typical spending patterns for major engineering support requirements. Comparable spending benchmarks would depend on the specific engineering disciplines involved, but this award is consistent with significant federal engineering service needs.

Small Business Impact

The contract details do not indicate a specific small business set-aside. As a delivery order awarded to a large prime contractor, Leidos, Inc., the primary impact on small businesses would be through potential subcontracting opportunities. The extent of small business participation will depend on Leidos's subcontracting plan and the specific nature of the engineering services required. Without explicit set-aside provisions, direct award opportunities for small businesses are unlikely.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. Performance monitoring would be crucial to ensure the engineering services meet the government's requirements.

Related Government Programs

  • General Services Administration (GSA) Schedules
  • Architect-Engineer Services Contracts
  • Professional Services Schedule (PSS)
  • Department of Defense Engineering Contracts

Risk Flags

  • Long contract duration may increase risk of requirement changes.
  • Broad 'engineering services' category lacks specificity for detailed analysis.
  • Awarded as a delivery order, specific competition details for this order are limited.

Tags

engineering-services, department-of-the-interior, leidos-inc, firm-fixed-price, competitive-delivery-order, large-contract, professional-services, federal-contract, virginia, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $38.8 million to LEIDOS, INC.. See the official description on USAspending.

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 $38.8 million.

What is the period of performance?

Start: 2000-06-15. End: 2006-09-08.

What specific types of engineering services are covered under this contract?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. However, the specific sub-disciplines or types of engineering work (e.g., civil, mechanical, electrical, environmental, software) are not detailed. This broad categorization means the $38.7 million award could encompass a wide array of technical support, design, analysis, or consulting activities. Understanding the precise nature of these services is crucial for a more accurate assessment of value, risk, and comparison to market rates. Further details would likely be found in the contract's statement of work (SOW).

How does the $38.7 million award compare to historical spending on similar engineering services by the Department of the Interior?

To compare this $38.7 million award to historical spending, one would need to analyze past Department of the Interior (DOI) contracts for engineering services, ideally those with similar scope and duration. The provided data shows this is a delivery order with an end date in 2006, suggesting it's a historical award. Without access to a comprehensive database of DOI's historical procurement data for engineering services, a direct comparison is difficult. However, the amount suggests a significant, long-term requirement for specialized engineering expertise within the department during that period.

What is the track record of Leidos, Inc. in performing similar engineering services for the federal government?

Leidos, Inc. is a major government contractor with a substantial history of providing a wide range of services, including engineering, IT, and logistics, to various federal agencies. Their track record in engineering services is extensive, often involving large, complex projects. Performance on specific contracts can vary, but as a large, established company, they generally possess the resources and expertise to handle significant engineering requirements. A detailed review of their past performance ratings on similar federal contracts would provide a more precise assessment of their capabilities and reliability in this domain.

What are the potential risks associated with a contract of this duration (2276 days)?

A contract duration of 2276 days (approximately 6.2 years) presents several potential risks. Firstly, requirements can change significantly over such a long period, potentially leading to scope creep or the need for contract modifications, which could impact cost and schedule. Secondly, technology and best practices in engineering evolve rapidly; services procured today might be outdated by the contract's end. Thirdly, maintaining consistent performance and oversight over an extended period can be challenging for the government. Finally, long-term reliance on a single contractor might reduce flexibility and inhibit the adoption of new solutions or approaches.

How does the firm-fixed-price (FFP) contract type influence the value and risk for this engineering services award?

The firm-fixed-price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and risks are understood. For this $38.7 million engineering services contract, FFP means Leidos, Inc. bears the primary risk of cost overruns. This incentivizes the contractor to manage costs efficiently and deliver the services within the agreed-upon price. For the government, it provides budget certainty. However, if the scope is not perfectly defined, the contractor may build in higher contingency costs, potentially leading to a less competitive price than other contract types like cost-plus.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 51

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1710 SAIC DRIVE, ROOM #8033, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,765,102

Exercised Options: $38,765,102

Current Obligation: $38,765,102

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0107J

IDV Type: FSS

Timeline

Start Date: 2000-06-15

Current End Date: 2006-09-08

Potential End Date: 2006-09-08 00:00:00

Last Modified: 2024-02-09

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