DoD's $61.2M IT contract to Leidos, Inc. for computer systems design services shows fair value
Contract Overview
Contract Amount: $61,220,517 ($61.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-10-28
End Date: 2022-09-30
Contract Duration: 337 days
Daily Burn Rate: $181.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FOR THE PROVISION OF NON-PERSONAL SERVICES IAW SMIT CONTRACT AND THIS ORDER'S REQUIREMENT.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003
Plain-Language Summary
Department of Defense obligated $61.2 million to LEIDOS, INC. for work described as: FOR THE PROVISION OF NON-PERSONAL SERVICES IAW SMIT CONTRACT AND THIS ORDER'S REQUIREMENT. Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. Leidos, Inc. has a substantial track record with the federal government, indicating experience in delivering complex IT solutions. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of 337 days is standard for this type of service delivery. 5. The geographic location of performance in Washington D.C. aligns with many federal IT service contracts. 6. The absence of small business set-asides or subcontracting requirements warrants further investigation into small business participation.
Value Assessment
Rating: fair
The contract's value of $61.2 million for computer systems design services appears reasonable when benchmarked against similar large-scale IT procurements by the Department of Defense. The firm-fixed-price structure helps control costs. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. The contract's duration of 337 days suggests a focused project, and the pricing should reflect the complexity and duration of the work performed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to more favorable pricing for the government. The open competition suggests that the agency sought the best value from a wide range of qualified contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing and high-quality services.
Public Impact
The Department of the Navy benefits from enhanced computer systems design and support, crucial for its operational efficiency. The contract supports the modernization and maintenance of critical IT infrastructure within the Department of Defense. Performance is concentrated in Washington D.C., impacting the local IT workforce and economy. The services delivered are essential for maintaining secure and effective communication and data management systems for naval operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency regarding the number of bidders in the full and open competition.
- Absence of specific details on performance metrics and evaluation criteria.
- No indication of small business participation or subcontracting goals.
- Limited information on the specific technical requirements and deliverables.
- Potential for vendor lock-in if the system designed is proprietary and difficult to transition.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Firm-fixed-price contract type minimizes cost overrun risks for the government.
- Contractor (Leidos, Inc.) has significant federal contracting experience.
- Contract duration is clearly defined, allowing for focused project execution.
- Performance location is specified, aiding in logistical planning.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. This is a large and dynamic market within the federal government, with significant annual spending on IT solutions. The Department of Defense is a major consumer of these services, often requiring complex, secure, and scalable systems. Benchmarks for similar IT services contracts can range widely based on complexity, duration, and specific technologies involved, but multi-million dollar awards for system design and integration are common.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements. This suggests that large businesses were the primary focus for this procurement. The lack of small business involvement could limit opportunities for smaller firms to participate in this significant federal contract, potentially impacting the broader small business IT ecosystem that supports federal agencies.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. As a delivery order under an existing contract, it inherits the oversight of the parent contract. The firm-fixed-price nature provides a degree of financial oversight by limiting potential cost increases. Transparency could be enhanced by providing more details on performance metrics and evaluation outcomes. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Modernization Programs
- Navy Command and Control Systems
- Federal Civilian IT Services
- IT Services for National Security Agencies
- Computer Systems Design and Related Services
Risk Flags
- Lack of detailed performance metrics
- Limited information on competition specifics (number of bidders)
- No explicit small business subcontracting plan mentioned
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-navy, firm-fixed-price, delivery-order, full-and-open-competition, washington-dc, large-contract, information-technology, systems-integration
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.2 million to LEIDOS, INC.. FOR THE PROVISION OF NON-PERSONAL SERVICES IAW SMIT CONTRACT AND THIS ORDER'S REQUIREMENT.
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 $61.2 million.
What is the period of performance?
Start: 2021-10-28. End: 2022-09-30.
What is Leidos, Inc.'s track record with the Department of Defense and similar IT contracts?
Leidos, Inc. is a major government contractor with a substantial history of performing IT services for the Department of Defense and other federal agencies. They have experience across a wide range of IT domains, including systems design, integration, cybersecurity, and data analytics. Their track record typically involves large, complex projects, often under firm-fixed-price or cost-plus-fixed-fee arrangements. While specific performance details for this particular contract are not publicly detailed, Leidos's overall profile suggests a capable contractor for complex IT system design services. Their extensive experience implies familiarity with federal procurement regulations and DoD operational requirements.
How does the $61.2 million contract value compare to similar computer systems design services contracts?
The $61.2 million contract value for computer systems design services is within the typical range for large-scale IT projects awarded by the Department of Defense. Similar contracts for system design, integration, and development can easily reach tens or hundreds of millions of dollars, depending on the scope, complexity, and duration. For instance, contracts involving enterprise resource planning (ERP) system implementation, cybersecurity infrastructure upgrades, or the development of new command and control systems often fall into this financial bracket. The firm-fixed-price nature of this contract suggests that the government has a clear understanding of the requirements and has negotiated a price that is considered fair for the defined scope of work.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this contract include potential scope creep if requirements are not well-defined, technical challenges in system design and integration, and potential delays impacting operational readiness. Mitigation strategies are primarily embedded in the contract type and the contractor's experience. The firm-fixed-price structure shifts the risk of cost overruns to Leidos, Inc., incentivizing efficient project management. Leidos's established track record suggests they possess the technical expertise and project management capabilities to navigate design complexities. However, robust government oversight, clear communication, and adherence to defined milestones are crucial for managing risks effectively throughout the contract lifecycle.
How effective is the 'full and open competition' approach in ensuring value for taxpayers on this contract?
The 'full and open competition' approach is generally effective in ensuring value for taxpayers by fostering a competitive environment where multiple vendors vie for the contract. This process encourages bidders to offer their best pricing and technical solutions to win the award. For this $61.2 million contract, it implies that the Department of the Navy sought proposals from a wide range of qualified companies, potentially leading to a more advantageous price than a sole-source or limited competition award. The effectiveness is maximized when the solicitation clearly defines requirements and evaluation criteria, allowing for a fair comparison of proposals and ensuring the selected solution provides the best overall value.
What is the historical spending trend for computer systems design services by the Department of the Navy?
The Department of the Navy consistently spends significant amounts on computer systems design services, reflecting the critical role of IT in modern naval operations. Historical spending trends show a steady demand for services related to network infrastructure, software development, cybersecurity solutions, and data management systems. This spending is often driven by modernization efforts, the need to maintain legacy systems, and the adoption of new technologies to enhance operational capabilities. The annual expenditure in this category can fluctuate based on specific program requirements, budget allocations, and strategic priorities, but it generally represents a substantial portion of the DoD's overall IT budget.
Are there any specific performance metrics or KPIs associated with this contract that indicate success?
The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, for IT system design services, KPIs might include adherence to project timelines, successful completion of design milestones, system performance benchmarks (e.g., uptime, response time), security compliance, and user satisfaction. The effectiveness of the delivered system would be evaluated against these metrics. Without access to the contract's Statement of Work (SOW) or performance clauses, a detailed assessment of success indicators is not possible from the given information.
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 - SECURITY AND COMPLIANCE
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: $61,220,517
Exercised Options: $61,220,517
Current Obligation: $61,220,517
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: 2021-10-28
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2022-08-09
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