Leidos Inc. awarded $87.5M for C4ISR IT and Cyber Support, with a 12-month base and 6-month option
Contract Overview
Contract Amount: $87,501,540 ($87.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-09-21
End Date: 2020-12-20
Contract Duration: 1,186 days
Daily Burn Rate: $73.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF TASK ORDER KX01 ON CONTRACT W15P7T-10-D-D414 IS A COST-PLUS-FIXED-FEE BASIS (CPFF) AND COST REIMBURSABLE TYPE CONTRACT IN SUPPORT OF THE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE (C4ISR) INTEGRATED LOGISTICS SUPPORT CENTER (ILSC) FIELDING SUPPORT DIRECTORATE (FSD), TRAINING SUPPORT DIVISION (TSD) FOR INFORMATION TECHNOLOGY TRAINING AND CYBER SUPPORT SERVICES. THIS TASK ORDER WILL HAVE A PERIOD OF PERFORMANCE (POP) OF TWELVE (12) MONTHS FROM DATE OF AWARD WITH AN OPTION FOR SIX (6) MONTHS.
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $87.5 million to LEIDOS, INC. for work described as: IGF::OT::IGF TASK ORDER KX01 ON CONTRACT W15P7T-10-D-D414 IS A COST-PLUS-FIXED-FEE BASIS (CPFF) AND COST REIMBURSABLE TYPE CONTRACT IN SUPPORT OF THE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE (C4ISR) INTEGRATED LOGISTICS SUPPORT C… Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost-Plus-Fixed-Fee (CPFF) and Cost Reimbursable, which can lead to cost overruns if not managed carefully. 3. Performance period of 12 months with a 6-month option provides flexibility but requires ongoing monitoring. 4. Services support the Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) Integrated Logistics Support Center. 5. Focus on Information Technology Training and Cyber Support Services indicates a critical need for modern defense capabilities. 6. The contract value of $87.5M represents a significant investment in C4ISR modernization and sustainment.
Value Assessment
Rating: fair
The contract value of $87.5M for a 12-month period with a 6-month option appears substantial for IT training and cyber support services. Benchmarking against similar C4ISR support contracts would be necessary to definitively assess value for money. The CPFF and Cost Reimbursable nature of the contract warrants close financial oversight to ensure costs remain within reasonable bounds and align with the services delivered. Without specific performance metrics or detailed cost breakdowns, a precise 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 multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this approach generally fosters price discovery and encourages competitive pricing. The agency sought a broad range of potential offerors, which is a positive sign for achieving a fair market price.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in better value for the government's investment.
Public Impact
The Department of the Army benefits from enhanced C4ISR capabilities through specialized IT training and cyber support. Services delivered include crucial information technology training and cyber support essential for modern military operations. The contract supports the Fielding Support Directorate, Training Support Division, indicating a focus on operational readiness and personnel development. Workforce implications may include the need for highly skilled IT and cybersecurity professionals to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee and cost-reimbursable contract types can incentivize higher spending if not rigorously managed.
- The duration of the contract, while including an option, requires continuous monitoring to ensure performance aligns with objectives.
- Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the services.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- The contract addresses critical C4ISR IT and cyber support needs, vital for national security.
- Leidos, Inc. is a large, established contractor with significant experience in government IT and defense services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting IT and cyber functions for defense C4ISR systems. The market for defense IT and cybersecurity services is substantial, driven by continuous technological advancements and evolving threat landscapes. Comparable spending benchmarks would typically involve analyzing other large-scale IT support and cyber defense contracts awarded by the Department of Defense to similar prime contractors.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Leidos, Inc., it is unlikely to directly benefit small businesses through set-asides. However, there may be opportunities for small businesses to participate as subcontractors to Leidos, depending on the subcontracting plan requirements, which are not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed performance and cost data may be considered sensitive.
Related Government Programs
- Department of Defense IT Modernization Programs
- C4ISR Systems Development and Sustainment
- Cybersecurity Support Services
- Defense Training and Simulation Contracts
Risk Flags
- Cost Overrun Risk (CPFF/Cost Reimbursable)
- Performance Monitoring Complexity
- Cybersecurity Threat Landscape
- Technology Obsolescence
Tags
it-services, cyber-security, c4isr, department-of-defense, department-of-the-army, leidos-inc, full-and-open-competition, cost-plus-fixed-fee, cost-reimbursable, maryland, engineering-services, training-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.5 million to LEIDOS, INC.. IGF::OT::IGF TASK ORDER KX01 ON CONTRACT W15P7T-10-D-D414 IS A COST-PLUS-FIXED-FEE BASIS (CPFF) AND COST REIMBURSABLE TYPE CONTRACT IN SUPPORT OF THE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE (C4ISR) INTEGRATED LOGISTICS SUPPORT CENTER (ILSC) FIELDING SUPPORT DIRECTORATE (FSD), TRAINING SUPPORT DIVISION (TSD) FOR INFORMATION TECHNOLOGY TRAINING AND CYBER SUPPORT SERVICES. THIS TASK ORDER WILL HAVE A PERIOD OF PERFORMANCE (POP) OF TWELVE (12) MONT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $87.5 million.
What is the period of performance?
Start: 2017-09-21. End: 2020-12-20.
What is Leidos, Inc.'s track record with similar Department of Defense IT and cyber support contracts?
Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing large contracts for IT services, systems integration, and cybersecurity solutions. They are a major prime contractor involved in numerous complex programs across various military branches. Their experience often includes supporting C4ISR systems, logistics, and training initiatives. Analyzing their past performance on similar cost-plus contracts would reveal their ability to manage costs effectively and deliver required services within scope. Publicly available contract databases and agency performance reports can provide insights into their historical success rates, any past performance issues, and their overall reputation as a government contractor in these specialized areas.
How does the $87.5M contract value compare to similar C4ISR IT and cyber support contracts awarded by the DoD?
The $87.5 million contract value for a 12-month period with a 6-month option for C4ISR IT and cyber support is significant, reflecting the complexity and criticality of these services. To benchmark this value, one would compare it against other contracts awarded by the Department of Defense for similar scope, duration, and service types. For instance, contracts for system integration, network operations, cybersecurity maintenance, and specialized IT training for defense platforms can range from tens to hundreds of millions of dollars. Factors such as the specific C4ISR systems supported, the level of security clearance required, the geographic locations of service, and the contractor's overhead structure influence pricing. Without direct comparisons to contracts with identical parameters, this figure represents a substantial investment in maintaining and enhancing vital defense technological capabilities.
What are the primary risks associated with a Cost-Plus-Fixed-Fee (CPFF) and Cost Reimbursable contract for IT and cyber support?
The primary risks associated with CPFF and Cost Reimbursable contracts for IT and cyber support revolve around cost control and contractor incentive. For the government, there's a risk of cost overruns, as the contractor is reimbursed for allowable costs, potentially leading to expenditures exceeding initial estimates if not managed diligently. The fixed fee in CPFF provides some predictability, but the reimbursable portion can escalate. For the contractor, risks include the potential for disallowed costs by the government auditor and the need to maintain robust accounting systems to track expenses accurately. Effective risk mitigation requires strong government oversight, clear definition of allowable costs, detailed performance metrics, and regular audits to ensure the contractor is performing efficiently and costs are reasonable and allocable to the contract.
How effective is full and open competition in ensuring value for money for complex IT and cyber support services?
Full and open competition is generally considered the most effective method for ensuring value for money, especially for complex IT and cyber support services. It allows a broad range of qualified vendors to compete, driving down prices through market forces and encouraging innovation. The process typically involves detailed technical requirements and evaluation criteria, enabling the government to select the offer that provides the best overall value, not just the lowest price. However, the effectiveness hinges on the clarity of the solicitation, the rigor of the evaluation process, and the government's ability to accurately define its needs. For highly specialized or rapidly evolving fields like cyber support, ensuring that evaluators possess the necessary technical expertise is crucial for making informed decisions that truly represent value.
What are the historical spending patterns for C4ISR IT and cyber support within the Department of the Army?
Historical spending patterns for C4ISR IT and cyber support within the Department of the Army have shown a consistent and increasing trend over the past decade. This is driven by the military's reliance on advanced communication, intelligence, and surveillance systems, coupled with the escalating nature of cyber threats. Budgets allocated to C4ISR modernization, sustainment, and cybersecurity have grown significantly as technology evolves and new operational requirements emerge. The Army, in particular, invests heavily in ensuring its command and control capabilities are robust, secure, and interoperable across various platforms and domains. Analyzing past budgets and contract awards for C4ISR-related IT and cyber services would reveal specific areas of increased investment, such as cloud migration, data analytics, network security, and advanced training solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 9737 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $127,549,711
Exercised Options: $96,208,515
Current Obligation: $87,501,540
Subaward Activity
Number of Subawards: 135
Total Subaward Amount: $20,972,106
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T10DD414
IDV Type: IDC
Timeline
Start Date: 2017-09-21
Current End Date: 2020-12-20
Potential End Date: 2020-12-20 12:12:00
Last Modified: 2022-10-17
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