Leidos Inc. awarded $61.1M contract for Marine Corps operational support, highlighting engineering services demand
Contract Overview
Contract Amount: $61,126,849 ($61.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-15
End Date: 2025-06-14
Contract Duration: 1,825 days
Daily Burn Rate: $33.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: WIDE RANGE OF OPERATIONAL, ANALYTICAL, AND MANAGEMENT SUPPORT SERVICES IN SUPPORT OF THE UNITED STATES MARINE CORPS CENTRAL COMMAND.
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $61.1 million to LEIDOS, INC. for work described as: WIDE RANGE OF OPERATIONAL, ANALYTICAL, AND MANAGEMENT SUPPORT SERVICES IN SUPPORT OF THE UNITED STATES MARINE CORPS CENTRAL COMMAND. Key points: 1. Contract supports critical operational, analytical, and management functions for the U.S. Marine Corps Central Command. 2. Full and open competition indicates a robust bidding process for these essential services. 3. The contract duration of five years suggests a long-term need for these support services. 4. Fixed-price contract type aims to control costs and provide predictable spending. 5. The award falls under engineering services, a sector with consistent federal demand. 6. Leidos, Inc. is a significant player in government contracting, suggesting established capabilities.
Value Assessment
Rating: good
The contract value of $61.1 million over five years averages approximately $12.2 million annually. Benchmarking this against similar large-scale operational support contracts for military commands is challenging without more specific service details. However, the fixed-price nature of the contract suggests an effort to manage costs effectively. The number of bids received (33) indicates a competitive environment that likely contributed to a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. With 33 bids received, the competition level appears high, suggesting that the government sought a broad range of qualified contractors. This level of competition is generally expected to drive down prices and ensure the selection of a contractor offering the best value.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective solution for essential Marine Corps support services.
Public Impact
The primary beneficiaries are the United States Marine Corps Central Command, receiving vital operational, analytical, and management support. Services delivered include a wide range of support critical for mission readiness and effectiveness. The geographic impact is centered on the operational areas of the Marine Corps Central Command. Workforce implications include employment opportunities for personnel with expertise in operational support, analysis, and management within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial service definitions are not tightly managed.
- Dependence on a single contractor for critical support functions could pose a risk if performance falters.
- Ensuring consistent quality of services across the five-year contract term requires diligent oversight.
Positive Signals
- Full and open competition suggests a strong market response and potential for high-quality service providers.
- Fixed-price contract type provides cost certainty for the government.
- The long-term nature of the contract allows for stable support and potential for contractor efficiency gains.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and services. The federal government is a significant consumer of these services, particularly for defense and infrastructure projects. The market for defense-related engineering and operational support is substantial, with major contractors like Leidos playing a key role in delivering complex solutions to military branches.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Given the scale and nature of the services, it is possible that Leidos, Inc. may engage small businesses for specialized support, but this is not a primary focus of the award information provided. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes contractor performance within budget. Transparency is generally maintained through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Marine Corps Logistics Support Contracts
- Department of Defense Operational Support Services
- Defense Intelligence Agency Support Contracts
- Combatant Command Support Services
Risk Flags
- Contract duration exceeds typical shorter-term service contracts.
- High number of bidders suggests potential for intense price competition, but also complexity in evaluation.
- Fixed-price contract requires careful monitoring to ensure quality is not sacrificed for cost savings.
Tags
defense, department-of-defense, department-of-the-navy, marine-corps, operational-support, engineering-services, full-and-open-competition, firm-fixed-price, large-contract, leidos-inc, central-command, multi-year-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.1 million to LEIDOS, INC.. WIDE RANGE OF OPERATIONAL, ANALYTICAL, AND MANAGEMENT SUPPORT SERVICES IN SUPPORT OF THE UNITED STATES MARINE CORPS CENTRAL COMMAND.
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 Navy).
What is the total obligated amount?
The obligated amount is $61.1 million.
What is the period of performance?
Start: 2020-06-15. End: 2025-06-14.
What is Leidos, Inc.'s track record with similar Department of Defense contracts?
Leidos, Inc. has a substantial track record with the Department of Defense, having secured numerous large-scale contracts across various military branches and agencies. Their portfolio includes extensive work in areas such as IT services, systems engineering, logistics, and operational support. For instance, they have been awarded significant contracts with the Navy, Air Force, and Army for complex defense programs. Their history suggests a capacity to manage large, multi-faceted contracts and deliver on demanding requirements, often involving advanced technological solutions and mission-critical support. This experience positions them as a reliable, albeit large, contractor for the Marine Corps' needs.
How does the $61.1 million contract value compare to other operational support contracts for similar commands?
The $61.1 million contract value over five years, averaging approximately $12.2 million annually, is a significant but not extraordinary amount for comprehensive operational, analytical, and management support services for a major military command like USMC Central Command. Comparable contracts for other combatant commands or large service branches can range from tens of millions to hundreds of millions of dollars annually, depending on the scope of services, geographic reach, and specific mission requirements. Factors such as the level of analytical support, the complexity of management functions, and the criticality of operational services influence the overall value. This contract appears to be within the expected range for substantial, long-term support.
What are the primary risks associated with this type of long-term, fixed-price support contract?
The primary risks associated with this long-term, fixed-price support contract include potential contractor underperformance, where Leidos might struggle to meet the demanding operational, analytical, and management requirements consistently over five years. Another risk is scope creep, where the requirements may evolve or expand beyond the initial contract definition, potentially leading to cost overruns if not managed strictly through contract modifications. For the government, there's also the risk of becoming overly reliant on a single contractor for critical functions. Conversely, if the fixed price is set too high due to initial uncertainty, the government might overpay for services if costs decrease or efficiency increases significantly during the contract period.
How effective is full and open competition in ensuring value for money in defense support services?
Full and open competition is generally considered the most effective method for ensuring value for money in defense support services. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. The high number of bids (33) in this case suggests that the market was robust and that multiple companies were capable of meeting the requirements. This competition pressures bidders to offer their best pricing and most capable solutions to win the contract, leading to a more cost-effective outcome for taxpayers compared to sole-source or limited competition scenarios.
What is the historical spending trend for engineering services (NAICS 541330) by the Department of the Navy?
Historical spending trends for engineering services (NAICS 541330) by the Department of the Navy have generally shown a consistent and significant demand, reflecting the complex engineering, design, and technical support required for naval platforms, infrastructure, and systems. Over the past decade, spending in this category has fluctuated based on defense budgets, modernization priorities, and specific shipbuilding or upgrade programs. While precise year-over-year figures require detailed database analysis, the Navy consistently allocates substantial funds to engineering services to maintain its technological edge and operational readiness. This contract aligns with that historical pattern of investment in specialized engineering and support capabilities.
What are the implications of the firm-fixed-price (FFP) contract type for this award?
The firm-fixed-price (FFP) contract type for this award has significant implications for both the contractor and the government. For Leidos, Inc., it means they assume the primary risk for cost overruns. Their profit is determined by their ability to manage the contract's costs effectively within the agreed-upon price. This structure incentivizes efficiency and cost control on the part of the contractor. For the Department of the Navy, the FFP type provides cost certainty, as the total price is fixed regardless of the contractor's actual costs. This is advantageous for budgeting and financial planning, although it requires careful initial price negotiation to ensure fairness and avoid overpayment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: M0026420Q0028
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, 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: $61,126,849
Exercised Options: $61,126,849
Current Obligation: $61,126,849
Actual Outlays: $20,244,979
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $34,885
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU122
IDV Type: IDC
Timeline
Start Date: 2020-06-15
Current End Date: 2025-06-14
Potential End Date: 2025-12-14 00:00:00
Last Modified: 2025-05-16
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