Leidos Inc. awarded $56.1M for enterprise requirements, highlighting IT services within the Defense Health Agency
Contract Overview
Contract Amount: $56,118,133 ($56.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-07-29
End Date: 2018-07-28
Contract Duration: 364 days
Daily Burn Rate: $154.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: STAGE 3 - ENTERPRISE REQUIREMENTS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $56.1 million to LEIDOS, INC. for work described as: STAGE 3 - ENTERPRISE REQUIREMENTS Key points: 1. Contract value of $56.1M for computer systems design services indicates significant investment in defense IT infrastructure. 2. The award to Leidos, Inc. suggests a reliance on established prime contractors for complex defense IT solutions. 3. A single delivery order under a larger contract structure warrants scrutiny of the overall program's cost-effectiveness. 4. The contract duration of 364 days points to a focused, short-term need for specific enterprise requirements. 5. Performance context is within the Defense Health Agency, underscoring the critical nature of IT support for military healthcare. 6. Sector positioning is firmly within IT services, specifically computer systems design, a vital component of modern defense operations.
Value Assessment
Rating: fair
The contract value of $56.1 million for a 364-day period for computer systems design services appears substantial. Benchmarking against similar enterprise IT support contracts within the Department of Defense is necessary to fully assess value for money. Without specific details on the deliverables and the complexity of the 'enterprise requirements,' a definitive value assessment is challenging. However, the cost-plus-fixed-fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, as it incentivizes the contractor to incur costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally favorable for price discovery and ensuring a range of technical solutions are evaluated. The specific number of bidders and the evaluation criteria would provide further insight into the intensity of the competition and its impact on the final award price.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive environment, which can drive down costs and encourage innovation, ultimately leading to better value for public funds.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the Defense Health Agency, which receives enhanced enterprise IT capabilities. Services delivered include computer systems design, crucial for the operational efficiency and security of defense health information systems. The geographic impact is likely concentrated around the Defense Health Agency's operational centers, potentially supporting personnel nationwide. Workforce implications may involve specialized IT professionals employed by Leidos, Inc. to fulfill the contract's technical requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type can lead to cost overruns if not rigorously managed.
- Limited duration of the delivery order may indicate a need for further, potentially more expensive, follow-on work.
- Lack of specific details on 'enterprise requirements' makes it difficult to assess the true scope and necessity of the spending.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- Leidos, Inc. is a large, established contractor with significant experience in defense IT.
- The contract supports critical IT infrastructure for the Defense Health Agency, a vital national security function.
Sector Analysis
The IT services sector, particularly within defense, is characterized by large, complex contracts often awarded to major system integrators. Spending in this area is driven by the need for secure, reliable, and advanced technological solutions to support military operations and intelligence. The market size for defense IT is substantial, with agencies like the Department of Defense being major clients. This contract fits within the broader category of IT support and systems integration for government agencies.
Small Business Impact
As this contract was awarded under full and open competition and does not indicate a small business set-aside, the primary contractor, Leidos, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Leidos utilizes small business subcontractors, which is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting of costs and progress. Transparency is generally facilitated through contract award databases, though specific performance metrics and detailed spending breakdowns may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Health Information System (DHIS)
- Information Technology Support Services
- Enterprise Resource Planning (ERP) Systems
- Cloud Computing Services for Defense
- Cybersecurity Services for DoD
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Creep Potential
- Definition of 'Enterprise Requirements' Unclear
- Dependence on Single Large Contractor
Tags
it-services, computer-systems-design, department-of-defense, defense-health-agency, delivery-order, full-and-open-competition, cost-plus-fixed-fee, large-business, virginia, enterprise-requirements
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.1 million to LEIDOS, INC.. STAGE 3 - ENTERPRISE REQUIREMENTS
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $56.1 million.
What is the period of performance?
Start: 2017-07-29. End: 2018-07-28.
What is the specific nature of the 'enterprise requirements' being addressed by this contract?
The provided data indicates the contract is for 'STAGE 3 - ENTERPRISE REQUIREMENTS' and falls under 'Computer Systems Design Services.' While the specific nature of these requirements is not detailed, it generally refers to the design, development, integration, and maintenance of IT systems that support an organization's overall business or mission objectives. For the Defense Health Agency (DHA), this could encompass a wide range of needs, such as upgrading electronic health record systems, enhancing data analytics capabilities, improving network infrastructure, or implementing new cybersecurity protocols to protect sensitive health information. The 'Stage 3' designation suggests this is part of a larger, phased IT modernization or development effort.
How does the $56.1 million award compare to similar IT services contracts awarded by the Defense Health Agency or Department of Defense?
The $56.1 million award for a 364-day delivery order for computer systems design services is a significant sum, reflecting the complexity and scale of IT needs within the Department of Defense. To benchmark effectively, one would compare this value against other contracts for similar services (e.g., systems integration, software development, IT infrastructure support) awarded by the DHA or other DoD components over comparable timeframes. For instance, larger enterprise-wide IT modernization programs can run into hundreds of millions or even billions of dollars over several years. This specific award, being a single delivery order, might represent a component of a larger contract vehicle or a specific project. Without more context on the scope of work and the specific IT systems involved, a precise comparison is difficult, but it falls within the typical range for substantial IT support contracts in the federal government.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?
Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Leidos, Inc., reimburse the contractor for allowable costs plus a fixed fee representing profit. A primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government bears the risk of cost overruns. If the scope of work is not well-defined or if unforeseen technical challenges arise, costs can escalate beyond initial estimates, potentially leading to the government paying more than anticipated. Effective oversight, rigorous auditing of costs, and clear definition of the scope and deliverables are crucial to mitigate these risks and ensure the government receives good value.
What is Leidos, Inc.'s track record with the Department of Defense and specifically the Defense Health Agency?
Leidos, Inc. is a major government contractor with extensive experience serving the Department of Defense and its various agencies, including the Defense Health Agency. They have a long history of providing a wide range of IT, systems engineering, and support services to military and intelligence clients. Their portfolio often includes large-scale programs related to health IT, command and control systems, logistics, and cybersecurity. While specific performance details for every contract are not always public, Leidos is generally considered a capable provider of complex technical solutions for the federal government. Past performance reviews and contract award data would offer more granular insights into their specific track record with the DHA.
How does this contract contribute to the overall IT modernization goals of the Defense Health Agency?
This contract, focused on 'STAGE 3 - ENTERPRISE REQUIREMENTS' and 'Computer Systems Design Services,' likely plays a role in the DHA's broader IT modernization strategy. Modernizing defense health IT is critical for improving patient care, enhancing data security, enabling interoperability between different military health systems, and supporting readiness operations. By engaging a contractor like Leidos for systems design, the DHA aims to update or develop new IT capabilities that align with these strategic objectives. This could involve anything from enhancing the infrastructure that supports the Military Health System's electronic health records to developing advanced data analytics platforms for population health management or improving the cybersecurity posture of sensitive health data.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1750 PRESIDENTS ST, 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: $73,678,756
Exercised Options: $73,678,756
Current Obligation: $56,118,133
Subaward Activity
Number of Subawards: 105
Total Subaward Amount: $77,860,401
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003915D0044
IDV Type: IDC
Timeline
Start Date: 2017-07-29
Current End Date: 2018-07-28
Potential End Date: 2018-07-28 00:00:00
Last Modified: 2021-03-06
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