DoD's Navy Awards $85M Computer Systems Design Services Order to Leidos, Inc

Contract Overview

Contract Amount: $84,953,186 ($85.0M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $232.7K/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: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $85.0 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. Significant award for computer systems design services. 2. Leidos, Inc. is a major defense contractor. 3. Full and open competition was utilized. 4. The contract is firm-fixed-price, indicating clear cost expectations.

Value Assessment

Rating: good

The $85M award for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT service contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified vendors to bid.

Taxpayer Impact: The competitive bidding process is expected to yield fair market value, maximizing taxpayer return on this significant IT services contract.

Public Impact

Supports critical Department of the Navy operations through advanced computer systems design. Potential for technological advancements and efficiencies in naval IT infrastructure. Ensures continued service delivery for essential defense functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration of 365 days may require follow-on actions.
  • Reliance on a single large contractor for critical services.

Positive Signals

  • Firm-fixed-price contract provides cost certainty.
  • Full and open competition promotes market efficiency.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across government agencies, with significant competition among large IT firms.

Small Business Impact

The data indicates this contract was not awarded to a small business. Opportunities for small business subcontracting should be explored to ensure broader economic participation.

Oversight & Accountability

The use of a delivery order under an existing contract suggests prior oversight. However, ongoing monitoring of performance and adherence to contract terms is crucial.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for scope creep if requirements are not tightly managed.
  • Dependence on Leidos's continued performance and capacity.
  • Risk of vendor lock-in if proprietary solutions are heavily utilized.
  • Cybersecurity risks associated with sensitive defense systems design.

Tags

computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.0 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 $85.0 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What specific computer systems design services are included in this order?

The provided data specifies 'Computer Systems Design Services' (NAICS 541512) but lacks granular detail on the exact services. Further analysis would require reviewing the associated contract documents (SMIT contract) and the specific requirements of this delivery order to understand the scope, such as software development, network design, or system integration.

How does the awarded amount compare to the base contract value or previous orders?

The $85 million award is a significant sum for a single delivery order. Without knowing the total value of the parent SMIT contract or historical spending on similar orders, it's difficult to assess if this represents an increase or is in line with expectations. Benchmarking against similar large-scale IT service contracts awarded by the DoD would be beneficial.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators are not detailed in the provided data. For a contract of this magnitude and importance to the Department of the Navy, KPIs would likely focus on system performance, uptime, successful integration of new designs, adherence to project timelines, and overall user satisfaction. These would be critical for ensuring the effectiveness of the computer systems design services.

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: $84,953,186

Exercised Options: $84,953,186

Current Obligation: $84,953,186

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: 2023-10-01

Current End Date: 2024-09-30

Potential End Date: 2024-09-30 00:00:00

Last Modified: 2025-04-26

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