Leidos Inc. awarded $60.1M for computer systems design services by the Department of the Navy

Contract Overview

Contract Amount: $60,130,337 ($60.1M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-14

End Date: 2022-09-30

Contract Duration: 290 days

Daily Burn Rate: $207.3K/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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $60.1 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. Contract value of $60.1M for computer systems design services. 2. Awarded to Leidos, Inc. under a full and open competition. 3. Delivery order issued under an existing prime contract. 4. Services to be performed in Washington D.C. 5. Contract duration of 290 days. 6. Firm Fixed Price contract type.

Value Assessment

Rating: good

The contract value of $60.1M for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar contracts for IT services of this magnitude is challenging without more detailed service descriptions. However, the firm fixed price structure suggests a defined scope, which can contribute to cost control. The award to a large, established contractor like Leidos, Inc. often implies a certain level of expected performance and quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and innovation. The use of a delivery order under an existing prime contract suggests that the initial competition for the prime contract was robust.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down costs through competitive pressure and ensuring the government receives the best value.

Public Impact

The Department of the Navy benefits from enhanced computer systems design capabilities. Services are critical for supporting naval operations and IT infrastructure. Workforce in Washington D.C. will be directly involved in service delivery. The contract supports the modernization and efficiency of defense IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific details on the number of bidders in the full and open competition.
  • The duration of 290 days for a $60.1M contract may warrant scrutiny regarding the intensity of services required.
  • No information provided on small business subcontracting goals or performance.

Positive Signals

  • Awarded under a full and open competition, suggesting a competitive bidding process.
  • Firm Fixed Price contract type helps control costs and provides budget certainty.
  • Leidos, Inc. is a large, experienced contractor with a significant presence in government IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The federal IT services market is substantial, with agencies consistently investing in modernizing their systems. This contract likely supports the Navy's broader IT modernization efforts, aligning with government-wide initiatives to improve digital infrastructure and cybersecurity. Comparable spending benchmarks for similar IT services contracts can vary widely based on complexity and scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem is unclear. Further investigation into subcontracting requirements would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. As a delivery order under an existing prime contract, the initial contract likely underwent significant review. Transparency is facilitated by public contract databases, but detailed performance metrics and oversight reports are not publicly available in this summary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Department of Defense IT Services
  • Navy Information Technology Support
  • Computer Systems Design and Integration
  • Federal IT Modernization Programs

Risk Flags

  • Potential for scope creep in FFP contracts.
  • Limited public detail on specific services and performance metrics.
  • No explicit mention of small business subcontracting goals.

Tags

it-services, computer-systems-design, department-of-defense, department-of-the-navy, firm-fixed-price, delivery-order, full-and-open-competition, leidos-inc, washington-dc, information-technology, defense-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.1 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 $60.1 million.

What is the period of performance?

Start: 2021-12-14. End: 2022-09-30.

What specific computer systems design services are being provided under this contract?

The provided data indicates the contract is for 'Computer Systems Design Services' (na: 541512) and includes the description 'FOR THE PROVISION OF NON-PERSONAL SERVICES IAW SMIT CONTRACT AND THIS ORDER'S REQUIREMENT.' However, the exact nature of these services is not detailed. Typically, computer systems design services can encompass a wide range of activities, including analyzing user needs, designing system architecture, developing software, integrating hardware and software components, and providing technical consulting. Without further documentation, it is difficult to ascertain the precise deliverables, such as whether this involves new system development, upgrades to existing systems, network design, or specialized software engineering.

How does the $60.1M contract value compare to similar IT services contracts awarded by the Department of the Navy?

Benchmarking the $60.1M contract value requires comparing it to similar 'Computer Systems Design Services' (NAICS 541512) contracts awarded by the Department of the Navy or other Department of Defense agencies. Given that this is a delivery order under an existing prime contract, the initial competition for the prime contract likely established a baseline. However, without knowing the specific scope, duration, and complexity of the services, a direct comparison is difficult. Generally, contracts in the tens of millions of dollars for specialized IT services are common within large federal agencies like the Navy, reflecting the significant investment in maintaining and upgrading complex defense systems. The firm fixed price nature suggests a well-defined scope, which aids in cost predictability.

What is the track record of Leidos, Inc. in performing similar computer systems design services for the federal government?

Leidos, Inc. is a major government contractor with extensive experience in IT services, including computer systems design, for various federal agencies. They have a long history of supporting defense and intelligence community IT infrastructure. Their track record typically includes large-scale system integration, software development, cybersecurity solutions, and enterprise IT management. While specific performance metrics for this particular delivery order are not publicly available, Leidos's substantial presence and numerous awards in this domain suggest a generally strong capability. However, as with any large contractor, past performance reviews and any documented issues on previous contracts would provide a more nuanced understanding of their specific strengths and weaknesses.

What are the potential risks associated with this contract, given its firm fixed price nature and duration?

A primary risk with a Firm Fixed Price (FFP) contract, especially for complex IT services, is the potential for scope creep if requirements are not precisely defined upfront. If the scope expands beyond the initial definition, the contractor may incur additional costs, potentially leading to disputes or a reduction in quality if they attempt to absorb the overruns. For Leidos, Inc., the risk lies in accurately estimating the effort required for the 290-day duration to meet the $60.1M value. Conversely, if the scope is too narrowly defined, the government might not receive all necessary services. The relatively short duration (less than a year) for a contract of this value could indicate a focused project or a specific phase of a larger effort, but it also means less time for the contractor to recover from initial miscalculations.

How does this contract fit into the broader IT modernization strategy of the Department of the Navy?

This contract for computer systems design services likely supports the Department of the Navy's ongoing efforts to modernize its IT infrastructure, enhance cybersecurity, and improve operational efficiency. Federal agencies, including the Navy, are under constant pressure to upgrade legacy systems, adopt cloud technologies, and implement more agile development practices. Contracts like this enable the design and implementation of new systems or the significant enhancement of existing ones, which are crucial for maintaining technological superiority and supporting mission-critical functions. The specific role of this contract would depend on the nature of the 'SMIT CONTRACT' mentioned, which could refer to a specific Navy IT initiative or platform.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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: $60,130,337

Exercised Options: $60,130,337

Current Obligation: $60,130,337

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: 2021-12-14

Current End Date: 2022-09-30

Potential End Date: 2022-09-30 00:00:00

Last Modified: 2022-08-09

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