Leidos awarded $107.4M contract for Navy IT services, highlighting significant spending in computer systems design
Contract Overview
Contract Amount: $107,404,199 ($107.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-12-07
End Date: 2022-12-30
Contract Duration: 753 days
Daily Burn Rate: $142.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NMCI - TRANS SERV - PHASE-IN EXECUTION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003
Plain-Language Summary
Department of Defense obligated $107.4 million to LEIDOS, INC. for work described as: NMCI - TRANS SERV - PHASE-IN EXECUTION Key points: 1. Contract value of $107.4M indicates substantial investment in IT infrastructure support. 2. Full and open competition suggests a robust market for these services. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Contract duration of 753 days provides a clear timeline for service delivery. 5. Focus on computer systems design services points to critical IT modernization efforts. 6. Awarded to a single contractor, Leidos, Inc., indicating their capability in this specialized area.
Value Assessment
Rating: good
The contract value of $107.4 million for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts within the Department of Defense suggests this award falls within expected spending ranges for comprehensive system design and integration. The firm-fixed-price structure provides cost certainty for the government, which is a positive indicator of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process generally leads to better price discovery and potentially more favorable terms for the government. This approach ensures that the most capable and cost-effective solution is selected.
Taxpayer Impact: Full and open competition maximizes taxpayer value by fostering a competitive environment that drives down prices and encourages innovation from a broad range of contractors.
Public Impact
The Department of the Navy benefits from enhanced IT systems and infrastructure support. Services delivered include computer systems design, crucial for modernizing military IT capabilities. The contract's impact is primarily within the District of Columbia, where the services are likely managed or delivered. Workforce implications include potential job creation or reallocation within Leidos, Inc. and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on work is not competitively bid.
- Dependence on a single contractor for critical IT systems design could pose risks if performance falters.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Full and open competition suggests a strong market and potential for competitive pricing.
- Award to a known entity, Leidos, Inc., suggests a level of established capability.
Sector Analysis
The IT services sector, particularly computer systems design, is a significant area of federal spending. This contract fits within the broader category of IT support and modernization for defense agencies. Comparable spending benchmarks for large IT service contracts often run into hundreds of millions of dollars, making this $107.4 million award a substantial but not unprecedented investment in maintaining and upgrading critical technological infrastructure.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, Leidos, Inc. The extent of small business participation will depend on Leidos's subcontracting plan and the availability of qualified small businesses for specific tasks within the computer systems design scope.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specific services within a set budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight details may not be publicly disclosed.
Related Government Programs
- Department of Defense IT Modernization Programs
- Navy Enterprise IT Services
- Computer Systems Design and Integration Contracts
- Federal Information Technology Acquisition Reform Act (FITARA) Compliance
Risk Flags
- Potential for scope creep in complex IT design projects.
- Dependence on a single contractor for critical IT functions.
- Need for robust oversight to ensure adherence to fixed-price terms.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, large-contract, district-of-columbia, leidos-inc, it-modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.4 million to LEIDOS, INC.. NMCI - TRANS SERV - PHASE-IN EXECUTION
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 $107.4 million.
What is the period of performance?
Start: 2020-12-07. End: 2022-12-30.
What is Leidos, Inc.'s track record with large federal IT contracts, particularly within the Department of Defense?
Leidos, Inc. has a significant and established track record of performing large-scale IT and systems integration contracts for the Department of Defense and other federal agencies. They are a major defense contractor with extensive experience in areas such as command and control systems, enterprise IT, cybersecurity, and data analytics. Their history includes numerous prime contracts, many of which are complex and high-value, demonstrating a capacity to manage significant budgets and technical requirements. While specific performance details for every contract are not always public, their continued success in winning competitive bids suggests a generally positive performance history and strong client relationships within the federal sector.
How does the $107.4 million contract value compare to similar IT systems design contracts awarded by the Navy or DoD in recent years?
The $107.4 million contract value for NMCI - TRANS SERV - PHASE-IN EXECUTION is substantial but falls within the typical range for large, multi-year IT systems design and support contracts awarded by the Department of the Navy and the broader Department of Defense. Similar contracts for enterprise IT services, network modernization, or complex system integration can range from tens of millions to several hundred million dollars, or even billions for very large enterprise-wide efforts. Given the 753-day duration and the nature of computer systems design services, this award appears to be a significant investment in a specific phase or component of the Navy's IT infrastructure, consistent with the scale of spending seen in comparable defense IT procurements.
What are the primary risks associated with a firm-fixed-price contract of this magnitude for IT systems design?
The primary risks associated with a firm-fixed-price contract of this magnitude for IT systems design revolve around scope creep and unforeseen technical challenges. If the requirements are not perfectly defined upfront, or if significant technical hurdles emerge during development or implementation, the contractor (Leidos, Inc.) may face cost overruns that are not recoverable under the fixed-price agreement. Conversely, the government bears the risk that the contractor might cut corners on quality or scope to protect their profit margin if unforeseen issues arise. Effective project management, clear communication, and robust change control processes are crucial to mitigate these risks for both parties.
How does this contract contribute to the overall effectiveness and modernization of the Navy's IT infrastructure?
This contract, focused on computer systems design services, is likely a critical component in the Navy's ongoing efforts to modernize its IT infrastructure. Such services are essential for developing, integrating, and implementing new systems, upgrading existing ones, and ensuring interoperability across various platforms and commands. By investing in specialized design services, the Navy aims to enhance its operational capabilities, improve data management and communication, strengthen cybersecurity defenses, and ensure its technological systems remain current and effective in supporting naval operations. The 'Phase-In Execution' designation suggests it's part of a larger transition or implementation plan.
What are the historical spending patterns for computer systems design services within the Department of the Navy?
The Department of the Navy consistently allocates significant funding towards IT services, including computer systems design. Historical spending patterns reveal a continuous need for these services to maintain, upgrade, and modernize the vast and complex IT infrastructure supporting naval operations globally. Annual spending on IT services, encompassing areas like systems design, integration, maintenance, and cybersecurity, often amounts to billions of dollars across the Navy. Contracts for computer systems design, like the one awarded to Leidos, are a recurring and essential part of this spending, reflecting the dynamic nature of technology and the military's reliance on advanced IT solutions.
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: FIRM FIXED PRICE (J)
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: $107,404,199
Exercised Options: $107,404,199
Current Obligation: $107,404,199
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $103,264,979
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: 2020-12-07
Current End Date: 2022-12-30
Potential End Date: 2022-12-30 00:00:00
Last Modified: 2023-07-25
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