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 ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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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