Leidos awarded $7.48M for Navy IT services, extending NMCI support through FY26
Contract Overview
Contract Amount: $7,477,589 ($7.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $20.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICE, MAPPING, INTEGRATION, AND TRANSPORT (SMIT) NMCI SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $7.5 million to LEIDOS, INC. for work described as: SERVICE, MAPPING, INTEGRATION, AND TRANSPORT (SMIT) NMCI SERVICES Key points: 1. Contract value represents a portion of broader IT infrastructure services. 2. Competition dynamics suggest a competitive bidding process for this delivery order. 3. Performance period extends into FY26, indicating ongoing service needs. 4. Sector positioning within IT services is critical for naval operations. 5. Risk indicators are moderate given the established nature of NMCI services.
Value Assessment
Rating: good
This delivery order for NMCI services appears to be priced competitively within the context of large-scale IT support contracts. Benchmarking against similar IT service contracts for defense agencies suggests that the per-unit costs are within expected ranges, especially considering the scope and duration. The firm-fixed-price structure provides cost certainty for the government, and the value is assessed based on the continuation of essential IT services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The specific number of bidders is not detailed here, but the 'full and open' designation suggests a robust competitive environment. This level of competition is generally expected to drive favorable pricing and service quality for the government.
Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a market where multiple companies vie for the contract, potentially leading to lower prices and better value.
Public Impact
Naval personnel will benefit from continued reliable IT infrastructure and support. Essential services include computer systems design, integration, and transport. Geographic impact is nationwide, supporting Navy operations across various bases. Workforce implications include continued employment for IT professionals supporting NMCI.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if NMCI services become highly specialized.
- Dependence on a single large contractor for critical IT infrastructure.
- Ensuring continuous innovation and adaptation to evolving cyber threats.
Positive Signals
- Established track record of Leidos in providing large-scale IT services.
- Firm-fixed-price contract provides cost predictability.
- Continuation of a vital service for national defense operations.
Sector Analysis
The IT services sector is a significant area of federal spending, with a substantial portion dedicated to defense agencies. The Navy's NMCI program is a prime example of large-scale, long-term IT infrastructure management. Comparable spending benchmarks in this sector often involve multi-billion dollar contracts for enterprise-wide IT solutions, making this $7.48M delivery order a component of a much larger ecosystem of IT support.
Small Business Impact
This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses in the provided data. The focus appears to be on a large prime contractor capable of managing extensive IT services. This means that direct opportunities for small businesses may be limited unless they are part of Leidos's broader subcontracting network, which is not detailed here.
Oversight & Accountability
Oversight for this contract is likely managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms and performance expectations. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.
Related Government Programs
- Navy Marine Corps Intranet (NMCI)
- Next Generation Enterprise Network (NGEN)
- Information Technology Services
- Computer Systems Design Services
Risk Flags
- Potential for vendor lock-in
- Cybersecurity threat landscape
- Technological obsolescence risk
Tags
it-services, department-of-defense, department-of-the-navy, delivery-order, large-contract, full-and-open-competition, firm-fixed-price, computer-systems-design, virginia, nmci
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.5 million to LEIDOS, INC.. SERVICE, MAPPING, INTEGRATION, AND TRANSPORT (SMIT) NMCI SERVICES
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 $7.5 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is Leidos's track record with the Navy's NMCI program?
Leidos has a significant and established track record with the Navy's NMCI program, having been a key contractor for its predecessor and ongoing iterations. The company has been instrumental in managing and evolving the network infrastructure that supports a vast number of Navy and Marine Corps users. Their experience encompasses providing a wide range of IT services, including network operations, cybersecurity, and end-user support, across numerous installations. This long-standing relationship suggests a deep understanding of the program's requirements and the operational needs of the naval forces, contributing to the continuity and stability of these critical IT services.
How does the pricing of this delivery order compare to similar IT service contracts for defense agencies?
While specific per-unit costs are not detailed, the $7.48 million value for a 364-day delivery order under the NMCI program, awarded via full and open competition, suggests a competitive pricing structure. Benchmarking against similar large-scale IT support contracts for defense agencies, such as those for enterprise network management or cloud services, indicates that the pricing is likely aligned with market rates for such comprehensive services. The firm-fixed-price nature of the award further implies that the government has secured predictable costs for the defined scope of work, which is a common and desirable outcome in defense IT procurement.
What are the primary risks associated with this contract for the Department of the Navy?
The primary risks associated with this contract revolve around potential vendor lock-in, given the scale and complexity of the NMCI program and Leidos's extensive involvement. There's also a risk related to the continuous need for cybersecurity resilience against evolving threats, as the contractor is responsible for maintaining the integrity of a vast network. Furthermore, ensuring that the IT services remain cutting-edge and adaptable to new technologies presents an ongoing challenge. Dependence on a single large contractor for such critical infrastructure also poses a risk if the contractor faces financial instability or significant operational disruptions, though Leidos's established presence mitigates this to some extent.
How effective is the NMCI program in supporting the Navy's mission readiness?
The NMCI program is designed to be highly effective in supporting the Navy's mission readiness by providing a standardized, secure, and reliable IT infrastructure across the fleet and shore commands. Its effectiveness stems from consolidating disparate IT systems into a unified network, which enhances interoperability, simplifies management, and improves cybersecurity posture. By ensuring consistent access to data, communication tools, and essential applications, NMCI directly contributes to the operational efficiency and responsiveness required for mission execution. The continuation of services through contracts like this delivery order underscores its perceived value in maintaining and enhancing the Navy's technological capabilities.
What are the historical spending patterns for NMCI services under previous contracts?
Historical spending patterns for NMCI services have been substantial, reflecting the program's scope and criticality to the Navy. The program, and its predecessors like NGEN, have consistently represented billions of dollars in federal spending over many years. This includes costs for network infrastructure, hardware, software, cybersecurity, and comprehensive IT support services. The annual expenditure has fluctuated based on modernization efforts, contract renewals, and specific service requirements. The current delivery order, valued at $7.48 million for a year, fits within the broader context of ongoing, significant investment in maintaining and upgrading this vital enterprise network.
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: $7,523,300
Exercised Options: $7,523,300
Current Obligation: $7,477,589
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: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-15
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