Leidos awarded $190M task order for Navy IT support, extending enterprise services through April 2026
Contract Overview
Contract Amount: $190,282,631 ($190.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2026-04-30
Contract Duration: 364 days
Daily Burn Rate: $522.8K/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 5.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $190.3 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 5. Key points: 1. Task order focuses on enterprise IT support, indicating a need for ongoing operational stability. 2. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost management. 3. Competition was full and open, suggesting a robust market for these services. 4. The duration of one year (base year) suggests potential for follow-on work and evolving requirements. 5. The specific NAICS code (541512) points to a focus on computer systems design, not just hardware provision. 6. The award to a single contractor, Leidos, Inc., highlights their established role in supporting DoD IT infrastructure.
Value Assessment
Rating: good
The contract value of approximately $190 million for a one-year period represents a significant investment in IT support. Benchmarking this against similar large-scale IT support contracts within the Department of Defense is crucial. While the Cost Plus Fixed Fee structure can accommodate unforeseen technical challenges, it necessitates rigorous oversight to ensure costs remain aligned with the value delivered. The absence of specific performance metrics in the provided data makes a definitive value-for-money assessment challenging without further context on service level agreements and outcomes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The fact that it resulted in a single award to Leidos, Inc. suggests they were the most competitive offeror based on the evaluation criteria. A full and open competition generally fosters price discovery and encourages competitive pricing, which is beneficial for the government.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the government's investment in critical IT support services.
Public Impact
Naval forces and personnel will benefit from reliable and sustained enterprise IT support, ensuring operational readiness. Services delivered include computer systems design and support, crucial for maintaining complex defense networks. The primary geographic impact is likely within the Department of the Navy's operational areas, potentially global. Workforce implications may include the continued employment of IT specialists by Leidos, Inc. and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
- Reliance on a single contractor for critical IT infrastructure poses a risk if performance degrades.
- The duration of the base year may limit long-term strategic planning for IT modernization.
Positive Signals
- Full and open competition suggests a healthy market and potential for competitive pricing.
- Award to an established contractor like Leidos, Inc. implies a degree of proven capability.
- The task order addresses essential enterprise IT support, crucial for mission success.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services market supporting government operations. The Department of Defense is a major consumer of these services, with significant spending allocated to maintaining and upgrading complex IT infrastructures. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by DoD agencies for similar scope and duration, often running into hundreds of millions of dollars annually.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular task order. This suggests that the primary focus was on securing the most capable large business contractor. There is no explicit information on subcontracting plans for small businesses, which would typically be detailed in the proposal and contract terms, and could represent an opportunity for small business involvement.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and invoicing procedures. Transparency is generally facilitated through contract award databases and reporting requirements, though specific operational details may remain sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Modernization Programs
- Naval Information Warfare Systems Command (NAVWAR) Contracts
- Enterprise IT Services for Federal Agencies
- Computer Systems Design and Related Services
Risk Flags
- Cost Overrun Risk (CPFF)
- Contractor Performance Dependency
- Cybersecurity Vulnerability Management
- Technology Obsolescence
Tags
it-services, department-of-defense, department-of-the-navy, cost-plus-fixed-fee, task-order, enterprise-it, computer-systems-design, full-and-open-competition, leidos-inc, virginia, defense-it
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $190.3 million to LEIDOS, INC.. THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SMIT ENTERPRISE IT SUPPORT SERVICES FOR BASE YEAR 5.
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 $190.3 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-04-30.
What is Leidos, Inc.'s track record with the Department of the Navy for IT support services?
Leidos, Inc. has a substantial history of contracting with the Department of the Navy and the broader Department of Defense for a wide array of IT and systems integration services. Their portfolio includes significant work in areas such as enterprise IT modernization, cybersecurity, command and control systems, and data analytics. Given their size and focus, it is common for Leidos to be a prime contractor on large, complex task orders like this one. A detailed review of historical contract awards, performance evaluations (e.g., CPARS), and past performance questionnaires would provide a more granular understanding of their specific successes and challenges in delivering similar IT support services to the Navy.
How does the $190 million cost compare to similar Navy IT support contracts?
The $190 million cost for a one-year task order for enterprise IT support services is substantial, reflecting the complexity and scale of supporting a major military branch like the Navy. To benchmark this effectively, one would need to compare it against other full and open competition awards for similar IT support (NAICS 541512) to the Department of the Navy or other DoD components over the past 2-3 years. Factors such as the specific services included (e.g., help desk, network management, system administration, cybersecurity integration), the number of end-users supported, and the contract type (Cost Plus Fixed Fee vs. Firm Fixed Price) significantly influence pricing. Without these comparative data points, it's difficult to definitively state if this represents excellent or questionable value.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support revolve around cost control and contractor incentive. While CPFF allows for flexibility in scope and accommodates unforeseen technical challenges inherent in complex IT environments, it places a greater burden on the government to meticulously track and audit incurred costs. The 'fixed fee' component is negotiated upfront, but the 'cost plus' aspect means the government reimburses the contractor for allowable costs. This structure can potentially incentivize contractors to incur higher costs if the fee is not structured to align with efficient performance. Risks include potential cost overruns if costs exceed estimates, and the need for robust government oversight to ensure costs are reasonable, allocable, and allowable, and that the contractor is motivated to perform efficiently to achieve the fixed fee.
How does the 'full and open competition' impact the effectiveness of this IT support contract?
A 'full and open competition' award, as indicated for this task order, generally enhances the effectiveness of the IT support contract by ensuring that the government has access to the broadest possible pool of qualified vendors. This competitive process typically drives innovation, encourages competitive pricing, and allows the government to select the offeror that best meets the technical requirements, past performance, and price criteria. The effectiveness is further realized if the evaluation process rigorously assesses not just price but also the proposed technical approach, management plan, and the contractor's ability to deliver reliable and high-quality IT support services critical to the Navy's mission. The competition itself serves as a mechanism to ensure that the selected contractor is well-positioned to meet the demanding needs of the Department of the Navy.
What are the implications of this contract for the future of Navy enterprise IT?
This task order signifies a commitment to maintaining and supporting the Navy's existing enterprise IT infrastructure for the duration of the contract. It suggests that the current architecture is deemed functional and requires continued operational support rather than a complete overhaul within this specific award period. The CPFF structure allows for adaptation to evolving IT needs, potentially incorporating necessary upgrades or changes. However, the one-year base period also implies that future IT strategies, including potential cloud migration, system modernization, or shifts in technology, will be addressed in subsequent contract actions or procurements. This award ensures stability in the interim while longer-term strategic IT planning continues.
What is the significance of the NAICS code 541512 (Computer Systems Design Services) for this contract?
The NAICS code 541512, 'Computer Systems Design Services,' indicates that this task order encompasses more than just basic IT maintenance or help desk support. It suggests that the scope of work likely includes the design, development, integration, and implementation of computer systems. This could involve activities such as system architecture planning, software integration, network design, and potentially the development or customization of specific IT solutions to meet the Navy's enterprise needs. It implies a focus on the strategic and technical aspects of managing and evolving the Navy's IT environment, rather than purely operational support.
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: $208,875,289
Exercised Options: $208,875,289
Current Obligation: $190,282,631
Actual Outlays: $27,330,282
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: 2025-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-19
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)