Leidos Inc. awarded $11M for wired telecommunications, highlighting long-term IT support needs
Contract Overview
Contract Amount: $10,992,470 ($11.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-10-01
End Date: 2012-03-31
Contract Duration: 1,643 days
Daily Burn Rate: $6.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TECH SPT FOR EAST & WEST
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.0 million to LEIDOS, INC. for work described as: TECH SPT FOR EAST & WEST Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1643 days indicates a significant, long-term requirement for services. 3. Fixed-price contract type suggests cost certainty for the government, shifting risk to the contractor. 4. The North American Industry Classification System (NAICS) code 517110 points to a focus on telecommunications infrastructure. 5. Awarded by the Defense Contract Management Agency, indicating a critical support function for defense operations. 6. The contract's value, while substantial, needs to be benchmarked against similar long-term telecommunications support contracts.
Value Assessment
Rating: fair
The contract value of approximately $11 million over roughly 4.5 years averages to about $2.4 million annually. Without specific details on the scope of services (e.g., number of users supported, geographic coverage, specific technologies), it is difficult to definitively benchmark this against similar contracts. However, for long-term telecommunications support, this figure appears within a reasonable range, assuming it covers comprehensive network infrastructure maintenance, upgrades, and operational support for a significant entity like the Defense Contract Management Agency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically involves a formal solicitation process, evaluation of proposals, and selection of the best value offer. The fact that it was fully competed suggests that the agency sought to maximize competition to achieve favorable pricing and service quality.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.
Public Impact
The primary beneficiaries are the Department of Defense and its associated agencies, receiving essential wired telecommunications services. Services delivered likely include the maintenance, operation, and potentially upgrade of critical voice and data network infrastructure. The geographic impact is likely concentrated around the operational areas of the Defense Contract Management Agency, potentially spanning multiple locations. Workforce implications include the need for skilled telecommunications technicians and engineers, both within the contractor's organization and potentially supporting government IT staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen technological changes or infrastructure issues.
- Risk of vendor lock-in if the chosen technology becomes proprietary and difficult to transition away from in the future.
- Dependence on a single contractor for critical communication infrastructure could pose a risk if performance degrades or the contractor faces financial instability.
Positive Signals
- The fixed-price nature of the contract provides budget certainty for the agency.
- Awarding to a known entity like Leidos, Inc. may indicate a level of confidence in their past performance and capabilities.
- The long duration suggests a stable, ongoing need that the contractor is expected to fulfill reliably.
Sector Analysis
The telecommunications industry is a vital sector underpinning modern infrastructure, including defense operations. This contract falls within the wired telecommunications carriers segment, focusing on the physical infrastructure and services that enable voice and data transmission. The market for such services is characterized by significant capital investment, technological evolution, and a mix of large established players and specialized providers. Government contracts in this area are crucial for ensuring secure and reliable communication networks, often requiring adherence to stringent security and performance standards.
Small Business Impact
There is no indication from the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The award to a large prime contractor like Leidos, Inc. suggests that the primary focus was on the prime's capabilities. Further analysis would be needed to determine if any subcontracting plans were mandated or voluntarily pursued by the prime contractor to engage the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to meet specifications within budget. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports may be internal to the agency.
Related Government Programs
- Defense Information Systems Agency (DISA) Telecommunications Services
- General Services Administration (GSA) Federal Telecommunications Contracts
- Department of Defense Network Modernization Programs
- Wired Network Infrastructure Maintenance Contracts
Risk Flags
- Long-term contract duration may increase risk of technological obsolescence.
- Firm-fixed-price contracts can sometimes lead to contractor pressure on quality if not managed closely.
- Dependence on a single vendor for critical infrastructure requires robust performance monitoring.
Tags
it, defense, wired-telecommunications-carriers, full-and-open-competition, firm-fixed-price, delivery-order, department-of-defense, defense-contract-management-agency, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.0 million to LEIDOS, INC.. TECH SPT FOR EAST & WEST
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2007-10-01. End: 2012-03-31.
What specific wired telecommunications services were included in this $11 million contract, and how did they support the Defense Contract Management Agency's mission?
The provided data indicates the contract (ID: [Not Provided]) was for 'TECH SPT FOR EAST & WEST' under NAICS code 517110 (Wired Telecommunications Carriers). While the exact scope is not detailed, this typically encompasses the installation, maintenance, operation, and potentially upgrade of the agency's internal and external wired communication networks. This would include services like circuit provisioning, network infrastructure management, troubleshooting, and ensuring the reliability and security of voice and data transmission systems essential for DCMA's oversight and management of defense contracts across its East and West regions. The $10.99 million value over approximately 4.5 years suggests a comprehensive, long-term support agreement critical for maintaining operational readiness and communication integrity.
How does the $10.99 million contract value compare to similar long-term telecommunications support contracts awarded by the Department of Defense?
Benchmarking this $10.99 million contract requires comparing it to similar firm-fixed-price, full-and-open competition awards for wired telecommunications support over a comparable duration (approx. 4.5 years) and for agencies of similar size and scope within the DoD. Without access to a detailed database of comparable contracts with specific service details, a precise comparison is challenging. However, for supporting a critical agency like the Defense Contract Management Agency, which requires robust and secure communication infrastructure across potentially multiple locations, an annual spend of roughly $2.4 million ($10.99M / 4.5 years) for comprehensive telecommunications support appears to be within a reasonable range. Larger, more complex network infrastructure projects or those involving cutting-edge technology would naturally command higher figures.
What were the key performance indicators (KPIs) or service level agreements (SLAs) established for this contract to ensure contractor performance?
The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this particular contract. However, for a firm-fixed-price contract involving critical telecommunications support for the Department of Defense, typical SLAs would likely focus on network uptime (e.g., 99.9% availability), response times for service outages or technical issues, resolution times for reported problems, and adherence to security protocols. Performance would be monitored by the Defense Contract Management Agency (DCMA) contracting officer's representative (COR). Failure to meet these SLAs could result in penalties, reduced payment, or contract termination, depending on the severity and frequency of breaches.
What is the track record of Leidos, Inc. in providing similar telecommunications support services to government agencies?
Leidos, Inc. has a substantial track record in providing a wide range of IT and telecommunications services to government agencies, including the Department of Defense. They are a major government contractor known for handling complex technology solutions, network infrastructure, cybersecurity, and systems integration. Their experience often includes large-scale, long-term support contracts similar to this one. While this specific contract award is for $10.99 million, Leidos has managed significantly larger contracts across various federal agencies. Their history suggests they possess the technical expertise and capacity to manage such requirements, though specific performance on individual contracts would require deeper investigation into past performance reviews and contract close-out data.
Were there any identified risks associated with this contract, and what mitigation strategies were put in place?
The provided data does not explicitly list risks or mitigation strategies for this contract. However, general risks associated with long-term telecommunications support contracts include technological obsolescence, potential for cost increases due to unforeseen infrastructure needs, cybersecurity vulnerabilities, and contractor performance issues. Mitigation strategies typically involve robust contract language defining scope and performance standards, regular performance reviews by the contracting agency (DCMA in this case), contingency planning for service disruptions, and potentially incorporating clauses for technology refresh or upgrades. The firm-fixed-price nature itself acts as a risk mitigation tool for the government regarding cost certainty, shifting cost overrun risks to the contractor.
How has spending on wired telecommunications support by the Defense Contract Management Agency evolved over time, and does this contract represent a significant shift?
The provided data only includes details for this single contract award from October 1, 2007, to March 31, 2012. To understand the evolution of spending and whether this $10.99 million contract represents a significant shift, historical spending data for the Defense Contract Management Agency (DCMA) on similar telecommunications services would be required. Without that broader context, it's impossible to determine trends or shifts. This contract, valued at approximately $2.4 million annually over its duration, appears to be a substantial investment in maintaining critical communication infrastructure, suggesting a consistent or potentially growing need for reliable wired telecommunications support within the agency during that period.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,206,355
Exercised Options: $12,959,391
Current Obligation: $10,992,470
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0017
IDV Type: IDC
Timeline
Start Date: 2007-10-01
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2017-03-09
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