DoD Awards $166M IT Support Services Task Order to Leidos, Inc. for Navy Base Year 4
Contract Overview
Contract Amount: $166,209,397 ($166.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-05-01
End Date: 2025-04-30
Contract Duration: 364 days
Daily Burn Rate: $456.6K/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 IT SUPPORT SERVICES FOR BASE YEAR 4.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $166.2 million to LEIDOS, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SMIT ENTERPRISE IT SUPPORT SERVICES FOR BASE YEAR 4. Key points: 1. The contract is for IT support services, a critical function for modern defense operations. 2. Leidos, Inc. is a major defense contractor, indicating significant competition in the sector. 3. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges. 4. The sector is IT services, a consistently high-spending area within the federal government.
Value Assessment
Rating: good
The total award amount is $166,209,396.98. Benchmarking against similar IT support contracts is difficult without specific service details, but the value suggests a substantial, long-term requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The competitive award process is expected to yield fair market value, minimizing unnecessary taxpayer expenditure.
Public Impact
Ensures continued IT support for Department of the Navy operations. Supports a major defense contractor, potentially impacting employment. IT services are fundamental to national security infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Duration of the base year is 364 days, with potential for follow-on orders.
Positive Signals
- Awarded under full and open competition.
- Leidos, Inc. is an established provider with a track record.
Sector Analysis
This contract falls within the IT services sector, which consistently represents a significant portion of federal spending. Benchmarks for similar large-scale IT support contracts vary widely based on scope and complexity.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large contracts like this are often awarded to prime contractors who may then subcontract to smaller firms.
Oversight & Accountability
The award was made by the Department of the Navy, part of the Department of Defense, which has established oversight mechanisms for contract performance and financial management.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Lack of specific service details in the provided data.
- Long-term reliance on a single contractor for critical IT functions.
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 $166.2 million to LEIDOS, INC.. THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SMIT ENTERPRISE IT SUPPORT SERVICES FOR BASE YEAR 4.
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 $166.2 million.
What is the period of performance?
Start: 2024-05-01. End: 2025-04-30.
What specific IT support services are included in this task order, and how do they align with the Navy's operational needs?
The task order specifies 'SMIT Enterprise IT Support Services'. While the exact services are not detailed here, they likely encompass network management, system maintenance, help desk support, and potentially cybersecurity functions crucial for the Department of the Navy's mission readiness and operational continuity.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this large IT support task order?
CPFF contracts carry inherent risks of cost overruns if the contractor's costs exceed initial estimates, even with a fixed fee. Effective government oversight is critical to monitor expenditures, ensure efficiency, and prevent scope creep that could inflate the final price beyond the intended value.
How will the effectiveness of Leidos's IT support services be measured and ensured throughout the contract period?
Effectiveness is typically measured through performance metrics and service level agreements (SLAs) defined in the contract. The Department of the Navy will likely monitor key performance indicators (KPIs) related to system uptime, response times, issue resolution rates, and user satisfaction to ensure Leidos meets its contractual obligations.
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
Solicitation ID: N0003918R0005
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: $203,226,997
Exercised Options: $203,226,997
Current Obligation: $166,209,397
Actual Outlays: $50,673,419
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: 2024-05-01
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-09-18
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