Leidos Inc. awarded $18.9M contract for computer and software stores by the Department of Defense
Contract Overview
Contract Amount: $18,908,989 ($18.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-12-31
End Date: 2011-06-30
Contract Duration: 911 days
Daily Burn Rate: $20.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TFSMS - SOLE SOURCE
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.9 million to LEIDOS, INC. for work described as: TFSMS - SOLE SOURCE Key points: 1. Contract value of $18.9M over approximately 2.5 years suggests a moderate scale of operations. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government, but could shift risk to the contractor. 4. The specific Product Service Code (PSC) and NAICS code indicate a focus on computer hardware and software procurement. 5. Awarded to a single contractor, Leidos, Inc., highlighting their role in fulfilling this specific requirement. 6. The contract duration of 911 days (approx. 2.5 years) is typical for IT hardware and software support services.
Value Assessment
Rating: fair
The total award of $18.9M over 911 days averages to approximately $20,756 per day. Without specific details on the items procured (e.g., quantity, type of software/hardware), a direct value-for-money assessment is challenging. However, the benchmark of $20,756 per day for IT hardware and software procurement needs to be compared against similar contracts for similar scope and volume to determine if it represents a competitive price point. The fixed-price nature suggests the government aimed for cost predictability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit bids. The data indicates one award, but the competition level refers to the initial solicitation process. A full and open competition generally leads to a wider pool of potential bidders, which can drive down prices and improve the quality of offers. The specific number of bids received is not provided, which would offer further insight into the actual competitiveness of this particular solicitation.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a robust bidding process, potentially leading to lower prices and better service offerings.
Public Impact
The Department of Defense benefits from the procurement of necessary computer hardware and software. This contract supports the operational readiness and technological infrastructure of the Navy. The services delivered likely include the provision and potentially maintenance of IT equipment and software licenses. Geographic impact is likely concentrated within the operational areas of the Department of the Navy, primarily in Virginia where the contractor is located. Workforce implications may include roles within Leidos, Inc. for procurement, logistics, and technical support related to the IT assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the items procured makes it difficult to assess if the $18.9M represents optimal value.
- The absence of the number of bids received limits the assessment of the actual competitive pressure during the solicitation.
- Potential for vendor lock-in if the procured software or hardware requires specialized support from Leidos, Inc. in the future.
Positive Signals
- Awarded under full and open competition, suggesting a fair and transparent solicitation process.
- Fixed-price contract type provides cost certainty for the government, mitigating budget risks.
- Leidos, Inc. is a large, established government contractor with a track record in IT services, suggesting reliability.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on the procurement of computer hardware and software. The market for IT goods and services for the federal government is substantial, with agencies constantly seeking to modernize their infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT procurement contracts awarded by the Department of Defense or other federal agencies for similar types of equipment and software, considering factors like volume, complexity, and support requirements.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Leidos, Inc., a major defense contractor, it is unlikely that small businesses would be directly involved as prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to Leidos, Inc., depending on the specific requirements of the contract and Leidos's subcontracting plans. The absence of a small business set-aside suggests the requirement was likely beyond the scope or capacity typically addressed by small business set-asides.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers responsible for the IT systems being supported. Accountability measures are embedded within the fixed-price contract terms, requiring delivery of specified goods and services. Transparency is 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
- Department of Defense IT Procurement
- Navy Computer Hardware and Software
- Federal IT Services Contracts
- Leidos, Inc. Government Contracts
Risk Flags
- Lack of specific itemization
- Limited competition insight (number of bids unknown)
- Potential for cost overruns if contractor underbid
Tags
it, defense, department-of-defense, department-of-the-navy, leidos-inc, computer-software-stores, firm-fixed-price, full-and-open-competition, delivery-order, virginia, moderate-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to LEIDOS, INC.. TFSMS - SOLE SOURCE
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 $18.9 million.
What is the period of performance?
Start: 2008-12-31. End: 2011-06-30.
What specific types of computer hardware and software were procured under this contract?
The provided data does not specify the exact types of computer hardware and software procured. The NAICS code 443120 (Computer and Software Stores) and the PSC code (not provided) offer a general indication of the product category. To understand the specifics, one would need to consult the contract's statement of work or detailed line item information. This could range from desktop computers, laptops, servers, networking equipment, operating systems, productivity software, or specialized defense-related software. The lack of this detail limits a precise assessment of the value and necessity of the procurement.
How does the $18.9M award compare to similar IT procurement contracts by the Department of Defense?
Comparing the $18.9M award requires identifying similar contracts based on scope, quantity, and type of IT goods. Without specific details on the items procured, a direct comparison is difficult. However, for context, the Department of Defense awards billions of dollars annually in IT contracts. A $18.9M contract over approximately 2.5 years is a moderate-sized award. To benchmark effectively, one would look for contracts with similar product categories (e.g., enterprise hardware, software licenses) awarded to similar-sized entities or for comparable operational needs within the DoD. The average daily expenditure of roughly $20,756 would be a key metric for such comparisons.
What is Leidos, Inc.'s track record with similar Department of Defense IT contracts?
Leidos, Inc. is a major government contractor with extensive experience in IT services and solutions for the Department of Defense and other federal agencies. They have a history of managing large-scale IT procurements, system integration, and support services. Their track record typically includes successful delivery on complex projects, though like any large contractor, they may have faced challenges on specific contracts. Reviewing their past performance evaluations (e.g., CPARS) for similar IT hardware and software contracts would provide a more detailed understanding of their reliability and performance history with the DoD.
What are the potential risks associated with this fixed-price contract?
The primary risk associated with a fixed-price contract, from the government's perspective, is that the contractor may incur costs exceeding the agreed-upon price, potentially leading to reduced quality or delivery issues if the contractor seeks to cut corners to maintain profitability. Conversely, if the contractor significantly underestimates costs, they bear the loss. For the government, risks include the contractor potentially delivering lower-quality goods or services to maximize profit, or facing contractor default if they cannot fulfill the contract at the fixed price. Effective oversight and clear performance metrics are crucial to mitigate these risks.
How has the Department of Defense's spending on computer and software stores evolved over the years?
The Department of Defense's spending on computer and software stores has generally trended upwards over the years, driven by the increasing reliance on technology for military operations, intelligence gathering, and administrative functions. This includes investments in hardware upgrades, software development and licensing, cybersecurity solutions, and cloud computing services. While specific figures for 'computer and software stores' as a distinct category can fluctuate based on procurement strategies and budget allocations, the overall IT spending by the DoD remains a significant portion of its budget, reflecting the critical role of technology in modern defense.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,292,340
Exercised Options: $18,908,989
Current Obligation: $18,908,989
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4461G
IDV Type: FSS
Timeline
Start Date: 2008-12-31
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2022-02-09
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