DoD's $94M TAC MOBILE SETSS contract with Leidos faced full and open competition, awarded as a cost-plus incentive fee
Contract Overview
Contract Amount: $94,096,734 ($94.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-03-11
End Date: 2022-07-08
Contract Duration: 4,502 days
Daily Burn Rate: $20.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: TACMOBILE SETSS TECHNICAL SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $94.1 million to LEIDOS, INC. for work described as: TACMOBILE SETSS TECHNICAL SERVICES Key points: 1. Contract Value: $94.1 million over 12 years. 2. Competition: Awarded under full and open competition. 3. Risk: Cost-plus incentive fee structure may lead to cost overruns. 4. Sector: Engineering Services within the Defense sector.
Value Assessment
Rating: fair
The contract's cost-plus incentive fee structure, while aiming to incentivize performance, can lead to higher final costs compared to fixed-price contracts. Benchmarking against similar engineering services contracts is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the cost-plus incentive fee pricing type may not have fully optimized price discovery, potentially allowing for higher costs than a fixed-price approach.
Taxpayer Impact: Taxpayers may bear higher costs due to the cost-plus incentive fee structure, though competition aimed to mitigate this.
Public Impact
Long-term contract duration (12 years) provides stability but limits flexibility for future technological advancements. Significant investment in technical services for the Department of Defense. Potential for cost overruns due to the incentive fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee structure
- Long contract duration
- Lack of specific unit cost data
Positive Signals
- Full and open competition
- Significant contract value indicates critical need
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense operations. Spending benchmarks for such long-term, high-value engineering contracts can vary widely based on specific technological requirements and project scope.
Small Business Impact
The data does not indicate any specific involvement or set-asides for small businesses in this contract. Large prime contractors like Leidos often manage complex projects, potentially subcontracting portions, but direct small business participation isn't specified.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency, suggesting established oversight. However, the cost-plus nature necessitates diligent monitoring to ensure cost efficiency and prevent contractor overcharging.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPIF structure.
- Risk of technological obsolescence over the 12-year duration.
- Limited transparency on specific services and cost breakdowns.
- Lack of explicit small business participation.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $94.1 million to LEIDOS, INC.. TACMOBILE SETSS TECHNICAL SERVICES
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 $94.1 million.
What is the period of performance?
Start: 2010-03-11. End: 2022-07-08.
What specific technical services were provided under this contract, and how did they contribute to the DoD's mission?
The contract, 'TAC MOBILE SETSS TECHNICAL SERVICES,' likely encompassed a broad range of engineering and technical support critical for Department of Defense operations. Without specific details, it's presumed these services aided in the development, integration, or maintenance of complex defense systems, ensuring operational readiness and technological superiority for the agency.
How effectively did the cost-plus incentive fee structure manage costs and incentivize performance compared to alternative contract types?
The cost-plus incentive fee (CPIF) structure aims to balance cost control with contractor motivation. While it allows for flexibility and shared risk, it can also lead to higher final costs than fixed-price contracts if not rigorously managed. The effectiveness hinges on the clarity of performance metrics and the government's ability to scrutinize costs and incentivize efficiency.
What is the long-term strategic value of this 12-year contract for the DoD, considering potential technological obsolescence?
A 12-year contract suggests a long-term strategic need for the services provided. The value lies in ensuring continuity and deep expertise for critical systems. However, the risk of technological obsolescence is significant. The DoD likely included provisions for adaptation or review to mitigate this, but the extended duration inherently carries this risk.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003909R0031
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $108,511,764
Exercised Options: $107,441,879
Current Obligation: $94,096,734
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-03-11
Current End Date: 2022-07-08
Potential End Date: 2022-07-08 00:00:00
Last Modified: 2024-04-15
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