Interior's $18M Software Support Contract Awarded to Leidos, Inc. Amidst Concerns

Contract Overview

Contract Amount: $18,002,858 ($18.0M)

Contractor: Leidos, Inc.

Awarding Agency: Department of the Interior

Start Date: 2006-10-31

End Date: 2012-02-03

Contract Duration: 1,921 days

Daily Burn Rate: $9.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SOFTWARE SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $18.0 million to LEIDOS, INC. for work described as: SOFTWARE SUPPORT Key points: 1. Leidos, Inc. secured an $18 million contract for software support. 2. The contract was awarded via a competitive delivery order. 3. Potential risks include the long duration and lack of specific performance metrics. 4. The sector is Information Technology, specifically software and computer stores.

Value Assessment

Rating: questionable

The contract's value of $18 million over approximately six years suggests a moderate annual spend. Benchmarking against similar software support contracts is difficult without detailed scope of work and performance data, but the duration raises questions about sustained value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a competitive delivery order, indicating some level of competition. However, the specific details of the competition and how price was determined are not fully transparent, potentially limiting optimal price discovery.

Taxpayer Impact: Taxpayer funds are utilized for this software support. The effectiveness and efficiency of the support will determine the ultimate value for taxpayers.

Public Impact

Citizens rely on government IT systems for various services, making software support crucial. The long-term nature of the contract could impact the adoption of newer, potentially more cost-effective technologies. Transparency in contract performance and spending is essential for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (1921 days)
  • Lack of specific performance metrics (implied)
  • Potential for vendor lock-in

Positive Signals

  • Awarded via competitive delivery order
  • Significant contract value indicates important service

Sector Analysis

This contract falls within the Information Technology sector, specifically related to software support. Spending in this area is substantial across government agencies, with benchmarks varying widely based on the complexity and criticality of the software.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on whether small businesses were subcontracted, which could represent missed opportunities for small business participation.

Oversight & Accountability

Oversight of this contract would involve monitoring Leidos's performance against the delivery order's requirements and ensuring that the Department of the Interior is receiving adequate software support for its investment. Accountability rests with the contracting officers to manage the contract effectively.

Related Government Programs

  • Computer and Software Stores
  • Department of the Interior Contracting
  • Departmental Offices Programs

Risk Flags

  • Long contract duration may lead to outdated technology or increased costs.
  • Lack of detailed performance metrics makes oversight difficult.
  • Potential for vendor lock-in with a single provider for an extended period.
  • Limited transparency on the competitive process and price justification.

Tags

computer-and-software-stores, department-of-the-interior, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.0 million to LEIDOS, INC.. SOFTWARE SUPPORT

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 $18.0 million.

What is the period of performance?

Start: 2006-10-31. End: 2012-02-03.

What specific software is being supported, and what is the criticality of this support to the Department of the Interior's mission?

The provided data does not specify the exact software being supported or its direct impact on the Department of the Interior's mission. Understanding the software's function is crucial for assessing the contract's true value and necessity. Without this context, it's difficult to determine if the $18 million expenditure is justified by its contribution to core governmental functions.

How was the price of $18 million determined to be fair and reasonable, especially given the long duration?

The determination of fair and reasonable pricing for this $18 million contract, spanning over 1900 days, likely involved a comparison of labor rates and estimated hours against market data or historical pricing for similar services. The competitive delivery order mechanism suggests multiple bids were evaluated, but the specific cost breakdown and profit margins are not detailed, making a definitive assessment challenging.

What mechanisms are in place to ensure the effectiveness and efficiency of Leidos's software support over the contract's lifespan?

Effectiveness and efficiency are typically ensured through performance work statements (PWS) with defined deliverables and service level agreements (SLAs). While the data doesn't explicitly list these, a well-managed contract would include regular performance reviews, key performance indicators (KPIs), and potential incentives or penalties tied to service quality and responsiveness.

Industry Classification

NAICS: Retail TradeElectronics and Appliance StoresComputer and Software Stores

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 11955 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: $18,002,858

Exercised Options: $18,002,858

Current Obligation: $18,002,858

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4461G

IDV Type: FSS

Timeline

Start Date: 2006-10-31

Current End Date: 2012-02-03

Potential End Date: 2012-02-03 00:00:00

Last Modified: 2016-09-02

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