SAIC's $38M contract for logistics consulting services delivered over 6 years by the Department of the Interior
Contract Overview
Contract Amount: $37,972,104 ($38.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of the Interior
Start Date: 2003-10-01
End Date: 2009-09-30
Contract Duration: 2,191 days
Daily Burn Rate: $17.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SAIC
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of the Interior obligated $38.0 million to LEIDOS, INC. for work described as: SAIC Key points: 1. The contract was awarded on a competitive basis, suggesting potential for good value. 2. The use of Time and Materials pricing may introduce cost uncertainty if not managed closely. 3. The duration of the contract (6 years) indicates a long-term need for these services. 4. The specific NAICS code (541614) points to a focus on process and logistics consulting. 5. The contract was awarded to SAIC, a large government contractor with a significant presence. 6. The contract was not set aside for small businesses, indicating it was likely too large or specialized.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more granular data on the services provided and market rates for similar consulting. The Time and Materials (T&M) pricing structure can sometimes lead to higher costs compared to fixed-price contracts if not carefully monitored for scope creep and efficiency. However, T&M can also offer flexibility for evolving requirements. The total value of $38 million over six years averages to approximately $6.3 million annually, which needs to be assessed against the complexity and criticality of the logistics consulting provided to the Department of the Interior.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating it was competed under a broader contract vehicle. The data suggests there were at least three bidders ('no': 3), which is a positive sign for competition. A competitive process generally allows for price discovery and encourages contractors to offer their best value to win the award. The level of competition is a key factor in determining whether the government secured a fair price.
Taxpayer Impact: The competitive nature of this award suggests that taxpayer dollars were likely used efficiently, as multiple firms vied for the contract, driving down potential costs.
Public Impact
Federal agencies, specifically the Department of the Interior, benefit from improved operational efficiency and logistics. The services delivered likely involve optimizing supply chains, distribution networks, and internal processes. The geographic impact is primarily within the District of Columbia, where the contract was awarded. The contract supports professional services roles within the consulting sector, potentially impacting the federal workforce indirectly through contractor employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing if not managed stringently.
- Long contract duration could lead to vendor lock-in or reduced agility if requirements change significantly.
- Lack of small business participation might indicate limited opportunities for smaller, specialized firms in this specific procurement.
Positive Signals
- Awarded through a competitive process, indicating potential for good value and price discovery.
- The contract addresses a core functional area (logistics consulting) critical for agency operations.
- The contractor, SAIC, is a well-established entity with experience in government contracting.
Sector Analysis
The federal spending on logistics consulting services falls within the broader professional services sector. This sector is characterized by a wide range of specialized firms, from large system integrators to boutique consulting groups. Government spending in this area is driven by the need for efficiency, modernization, and optimization of complex operations. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar consulting services across various agencies, considering factors like contract duration, scope, and pricing models.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals mentioned in the provided data. This suggests that the primary award went to a large business (SAIC), and opportunities for small businesses would likely be through subcontracting if SAIC chooses to engage them. The absence of explicit small business targets means there's no direct mechanism to ensure small business participation within this specific contract's framework.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS-NG, which provide public access to contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.
Related Government Programs
- Logistics Support Services
- Management and Financial Consulting, Scientific and Technical Consulting, and Services
- Professional Services
- Supply Chain Management
Risk Flags
- Potential for cost overruns due to T&M pricing
- Long contract duration may not adapt to evolving needs
- Limited transparency on specific deliverables and outcomes
Tags
professional-services, logistics-consulting, department-of-the-interior, competitive-award, time-and-materials, large-contract, district-of-columbia, federal-agency, consulting-services, process-improvement, distribution-services
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $38.0 million to LEIDOS, INC.. SAIC
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 $38.0 million.
What is the period of performance?
Start: 2003-10-01. End: 2009-09-30.
What specific logistics challenges was the Department of the Interior trying to address with this contract?
The provided data indicates the contract was for 'Process, Physical Distribution, and Logistics Consulting Services' under NAICS code 541614. While the specific challenges are not detailed, this type of consulting typically aims to improve the efficiency, cost-effectiveness, and reliability of an organization's supply chain and distribution networks. This could involve optimizing inventory management, transportation routes, warehousing operations, and the overall flow of goods and information. The Department of the Interior, managing vast physical assets and diverse operations across the nation, likely sought to streamline these processes to reduce operational costs, enhance service delivery, and ensure timely availability of resources.
How does the Time and Materials (T&M) pricing structure compare to other contract types for similar consulting services?
Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly during performance. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost overruns for the government if not managed diligently. For consulting services, fixed-price contracts might be preferred for well-defined projects, while T&M could be suitable for research, development, or advisory roles where the exact effort is uncertain. The government's ability to control costs under T&M heavily relies on robust oversight, detailed tracking of hours, and clear definitions of labor categories and rates.
What is SAIC's track record with the Department of the Interior and similar logistics consulting contracts?
Science Applications International Corporation (SAIC) is a major government contractor with extensive experience across various federal agencies, including the Department of the Interior. While this specific contract highlights a $38 million award for logistics consulting, SAIC's broader portfolio includes IT services, engineering, and other professional services. Their track record with the Department of the Interior would involve reviewing past performance evaluations, contract modifications, and any disputes or awards associated with their previous work. Assessing their performance on similar logistics consulting contracts across other agencies would provide further context on their capabilities, reliability, and cost-effectiveness in delivering these specialized services.
How does the $38 million total contract value over six years compare to typical spending on logistics consulting by federal agencies?
The total contract value of $38 million over six years, averaging approximately $6.3 million annually, places this contract in the mid-to-large range for federal logistics consulting engagements. Federal agencies often spend significant amounts on optimizing their operations, especially those with complex supply chains and physical infrastructure like the Department of the Interior. Benchmarking requires comparing this to similar contracts awarded by agencies like the Department of Defense, GSA, or other large civilian departments for comparable services. Factors such as the scope of work, the level of expertise required, and the duration significantly influence these figures. Without more specific data on the services rendered, a precise comparison is difficult, but the amount suggests a substantial and ongoing need for expert logistics support.
What are the potential risks associated with a six-year contract for consulting services?
A six-year contract duration for consulting services presents several potential risks. Firstly, the risk of scope creep is amplified over a longer period, potentially leading to cost increases if not managed tightly. Secondly, the technology and best practices in logistics consulting can evolve rapidly; a long-term contract might not always align with the most current methodologies unless provisions for adaptation are included. Thirdly, there's a risk of 'vendor lock-in,' where the agency becomes overly reliant on a single provider, potentially diminishing future competition or innovation. Finally, institutional knowledge gained by the contractor might not be effectively transferred back to government personnel, creating a continued dependency. Robust contract management and periodic reviews are crucial to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DRIVE, ROOM #8033, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $88,998,694
Exercised Options: $84,243,779
Current Obligation: $37,972,104
Parent Contract
Parent Award PIID: GS10F0091L
IDV Type: FSS
Timeline
Start Date: 2003-10-01
Current End Date: 2009-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2014-09-04
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