DoD's $18M IT contract for computer systems design services awarded to Leidos, Inc
Contract Overview
Contract Amount: $17,960,139 ($18.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $49.3K/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: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.0 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. Value for money appears fair given the fixed-price nature of the contract, though detailed cost breakdowns are not available. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a fixed-price contract type generally transferring cost risk to the contractor. 4. Performance context is for computer systems design services, a critical area for defense operations. 5. This contract falls within the IT services sector, specifically computer systems design. 6. The award is a delivery order against an existing prime contract, indicating a pre-established relationship and potentially streamlined acquisition.
Value Assessment
Rating: fair
The contract's total value is $17.96 million over one year. Benchmarking against similar IT services contracts is challenging without more granular data on the specific services provided. However, the firm-fixed-price structure suggests an attempt to control costs. The award being a delivery order against a prime contract may indicate a pre-negotiated rate, which could be favorable or unfavorable depending on the original prime contract's competitiveness.
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 a bid. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The Department of the Navy utilized this approach, suggesting confidence in the market's ability to provide suitable solutions.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it is expected to drive down prices through market forces and increase the likelihood of obtaining the best value.
Public Impact
The Department of Defense benefits from enhanced computer systems design capabilities. Services delivered are critical for maintaining and improving the Navy's IT infrastructure. The geographic impact is likely concentrated around Navy installations where these services are deployed. Workforce implications may include the need for specialized IT personnel, both within the contractor's organization and potentially for government oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed service descriptions makes it difficult to fully assess value for money.
- Limited transparency on the number of bidders in the full and open competition.
- Potential for scope creep if requirements are not clearly defined in the delivery order.
Positive Signals
- Awarded under firm-fixed-price terms, which caps costs for the government.
- Utilizes full and open competition, promoting market-driven pricing.
- Delivery order against an existing prime contract may leverage established processes and potentially pre-negotiated rates.
Sector Analysis
The Information Technology (IT) sector, particularly computer systems design services, is a significant area of federal spending. This contract for $17.96 million fits within the broader landscape of IT support for defense agencies. Comparable spending benchmarks for similar system design contracts can vary widely based on complexity, duration, and specific technologies involved. The federal government consistently invests heavily in IT to maintain its operational capabilities and modernize systems.
Small Business Impact
This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). As a delivery order against a prime contract, the subcontracting opportunities for small businesses would depend on the terms of the original prime contract and Leidos, Inc.'s subcontracting plan. Without explicit set-asides for this specific order, the direct impact on small businesses is not guaranteed, though prime contractors are often encouraged or required to utilize small businesses in their supply chain.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a firm-fixed-price delivery order, the focus of oversight would be on ensuring the contractor meets the defined scope of work and delivery schedules. Transparency is moderate, with the contract details available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Modernization Programs
- Navy Information Technology Support Services
- Computer Systems Design and Related Services
- Federal Civilian IT Procurement
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Reliance on a single contractor for critical IT services.
- Cybersecurity vulnerabilities in system design.
- Limited transparency on specific performance metrics.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-navy, firm-fixed-price, delivery-order, full-and-open-competition, leidos-inc, information-technology, defense-contracting, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 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 $18.0 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the track record of Leidos, Inc. in providing similar computer systems design services to the Department of Defense?
Leidos, Inc. has a substantial track record with the Department of Defense and other federal agencies, frequently securing large contracts for IT services, including systems design, integration, and support. Their portfolio often includes complex projects for defense and intelligence communities. Historical data from federal procurement databases (like FPDS or SAM.gov) would show numerous awards for similar services, indicating significant experience. While specific performance metrics for this particular delivery order are not yet available, Leidos's general performance history with the DoD is extensive, suggesting a capacity to handle such requirements. However, a detailed review of past performance evaluations for comparable contracts would be necessary for a comprehensive assessment.
How does the awarded value of $17.96 million compare to market rates for similar computer systems design services?
Benchmarking the $17.96 million value against market rates for computer systems design services requires a detailed understanding of the specific tasks, technologies, and personnel involved. As a firm-fixed-price contract, the government has capped its financial exposure. However, without a breakdown of labor categories, hours, and specific deliverables, a direct comparison to market rates is difficult. Generally, large-scale IT services contracts for defense agencies can command significant prices due to security requirements, specialized expertise, and the critical nature of the systems. The fact that this is a delivery order against an existing prime contract suggests that rates may have been established previously, potentially offering some level of pre-negotiated value. A more precise comparison would involve analyzing industry reports on IT service pricing for government contracts of similar scope and complexity.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential scope creep, contractor underperformance, and cybersecurity vulnerabilities. Scope creep is a risk in any IT project where requirements may evolve; mitigation involves clear definition of the delivery order's scope and robust change management processes. Contractor underperformance is mitigated by the firm-fixed-price structure, which incentivizes timely and quality delivery, and by the government's oversight and performance monitoring. Cybersecurity risks are inherent in IT contracts; mitigation relies on adherence to stringent DoD cybersecurity standards, background checks for personnel, and secure development practices mandated by the contract. Leidos's established presence and experience with DoD security protocols suggest a baseline level of risk management is in place.
How effective is the 'full and open competition' approach likely to be in ensuring the best value for this specific contract?
The 'full and open competition' approach is generally considered the most effective method for ensuring best value in federal contracting, as it maximizes the pool of potential bidders and fosters price competition. For this specific contract, its effectiveness hinges on the clarity of the solicitation requirements and the number and quality of bids received. If the requirements were well-defined and attracted multiple capable bidders, it is likely to have driven competitive pricing and innovation. However, the effectiveness can be diminished if the solicitation is overly complex, if only a few companies possess the necessary specialized capabilities, or if the evaluation criteria do not adequately balance price and technical merit. The fact that it was a delivery order against an existing prime contract might suggest a more streamlined competition, potentially limiting the number of bidders compared to a new standalone contract.
What are the historical spending patterns for computer systems design services within the Department of the Navy?
Historical spending patterns for computer systems design services within the Department of the Navy (DoN) show a consistent and significant investment in IT infrastructure and modernization. The DoN, like other branches of the DoD, relies heavily on advanced IT systems for command, control, communications, intelligence, and logistics. Spending in this category typically fluctuates based on strategic priorities, technological advancements, and specific platform upgrade cycles. Data from sources like the Federal Procurement Data System (FPDS) would reveal billions of dollars spent annually across various IT service categories, including systems design, software development, and network integration. Contracts of this nature are recurring, reflecting the ongoing need to maintain and enhance the DoN's complex digital ecosystem.
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: $17,960,139
Exercised Options: $17,960,139
Current Obligation: $17,960,139
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: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-07-07
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