DoD Awards $156M for Navy IT Support Services to Leidos Under Full and Open Competition
Contract Overview
Contract Amount: $156,119,835 ($156.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-05-01
End Date: 2024-04-30
Contract Duration: 365 days
Daily Burn Rate: $427.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SMIT ENTERPRISE SUPPORT SERVICES FOR BASE YEAR 3.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $156.1 million to LEIDOS, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SMIT ENTERPRISE SUPPORT SERVICES FOR BASE YEAR 3. Key points: 1. Significant contract value for enterprise support services. 2. Leidos, Inc. is the incumbent contractor. 3. Competition was full and open, suggesting potential for competitive pricing. 4. IT sector spending is substantial within the DoD.
Value Assessment
Rating: good
The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful oversight to manage costs. The awarded amount of $156M for one year suggests a substantial investment in IT support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition aims to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Ensures continued IT infrastructure and enterprise support for the Department of the Navy. Supports critical operations and readiness for naval forces. Potential for technological advancements through ongoing support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
- Reliance on a single contractor for enterprise support may pose risks if performance falters.
Positive Signals
- Full and open competition generally leads to better pricing.
- Established contractor (Leidos) likely has deep understanding of Navy systems.
Sector Analysis
This contract falls within the IT services sector, a major area of government spending. Benchmarks for similar computer systems design services contracts vary widely based on scope and complexity.
Small Business Impact
The contract was awarded under full and open competition and does not indicate specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The cost-plus-fixed-fee contract type necessitates robust oversight from the Department of the Navy to ensure costs are reasonable and fixed fees are earned appropriately. Performance metrics and regular reviews are crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus-fixed-fee contract type requires diligent oversight.
- Potential for vendor lock-in if competition is not sustained in future procurements.
- Dependence on a single vendor for critical IT support.
- Cybersecurity risks associated with enterprise IT support services.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $156.1 million to LEIDOS, INC.. THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SMIT ENTERPRISE SUPPORT SERVICES FOR BASE YEAR 3.
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 $156.1 million.
What is the period of performance?
Start: 2023-05-01. End: 2024-04-30.
What is the historical performance of Leidos, Inc. on similar Department of the Navy contracts?
Assessing Leidos's past performance on comparable contracts is crucial for evaluating the value and reliability of this award. Reviewing metrics such as on-time delivery, budget adherence, and customer satisfaction from previous engagements can provide insights into their capabilities and potential risks associated with this new task order.
How does the awarded amount compare to the estimated budget for these enterprise support services?
Understanding the relationship between the awarded amount ($156M) and the initial budget estimate is key to assessing value. If the award is significantly lower than estimates, it suggests successful cost negotiation due to competition. Conversely, if it's close to or exceeds estimates, further scrutiny of the pricing structure and scope is warranted.
What are the key performance indicators (KPIs) and service level agreements (SLAs) for this task order?
The effectiveness of this contract hinges on clearly defined KPIs and SLAs that measure the quality and timeliness of Leidos's enterprise support services. These metrics should align with the Department of the Navy's operational needs and allow for objective performance evaluation, ensuring accountability and successful service delivery.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR FL 15, 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: $207,046,800
Exercised Options: $207,046,800
Current Obligation: $156,119,835
Actual Outlays: $48,075,560
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003920D0054
IDV Type: IDC
Timeline
Start Date: 2023-05-01
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2024-04-26
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