DoD's $11.4M IT contract to Leidos, Inc. for computer systems design services awarded under full and open competition
Contract Overview
Contract Amount: $11,434,563 ($11.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-08-22
End Date: 2025-09-30
Contract Duration: 39 days
Daily Burn Rate: $293.2K/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 $11.4 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 awarded to a large, established prime contractor with a history of significant federal work. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of the delivery order is short (39 days), suggesting a specific, time-bound need. 4. The contract falls under the IT sector, specifically computer systems design services. 5. Awarded by the Department of the Navy, indicating a focus on defense-related IT infrastructure or support. 6. The contract was competed under full and open competition, suggesting a broad market solicitation.
Value Assessment
Rating: good
The contract's value of $11.4M for a 39-day period for computer systems design services appears to be within a reasonable range for complex IT projects. Benchmarking against similar large-scale IT service contracts awarded by the Department of Defense, this value is not exceptionally high or low. The firm fixed price structure provides cost certainty for the government, assuming the scope of work is well-defined and achievable within the stated budget. Further analysis would require detailed understanding of the specific services rendered and the complexity of the systems involved.
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. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended and likely achieved, which is generally beneficial for price discovery and ensuring the government receives competitive pricing.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by driving down prices through market forces and encouraging innovation from a wider pool of potential contractors.
Public Impact
The primary beneficiaries are the Department of the Navy and its operational units, receiving enhanced computer systems design capabilities. Services delivered likely include the design, development, integration, or modification of complex computer systems critical for naval operations. The geographic impact is likely concentrated within the operational areas or facilities supported by the Department of the Navy, potentially worldwide. Workforce implications may involve skilled IT professionals, systems engineers, and project managers employed by Leidos, Inc. and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not precisely defined for the short duration.
- Reliance on a single large contractor may limit opportunities for smaller, specialized firms in future engagements.
- The specific nature of 'computer systems design services' can be broad, requiring careful monitoring to ensure alignment with stated needs.
Positive Signals
- Firm Fixed Price contract structure provides cost certainty and incentivizes contractor efficiency.
- Award under full and open competition suggests a competitive process that likely yielded a fair price.
- Leidos, Inc. is a well-established contractor with significant experience in federal IT services, indicating a lower risk of performance issues.
Sector Analysis
The IT services sector, particularly computer systems design, is a critical component of federal spending, supporting a vast array of government functions. This contract falls within the broader IT services market, which is characterized by rapid technological advancements and a mix of large prime contractors and specialized small businesses. The Department of Defense is a major consumer of these services, often requiring highly secure and complex solutions. Comparable spending benchmarks for IT design services can vary widely based on complexity, duration, and specific technologies involved.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to Leidos, Inc., there is potential for subcontracting opportunities for small businesses. However, the extent to which small businesses will participate depends on Leidos's subcontracting plan and the specific technical requirements of the computer systems design services. Without explicit small business set-aside goals, the direct impact on the small business ecosystem for this specific award is likely minimal, though indirect opportunities may arise.
Oversight & Accountability
The contract is subject to oversight by the Department of the Navy, which is responsible for monitoring performance and ensuring compliance with contract terms. As a delivery order under a larger contract (SMIT), oversight may be integrated into existing program management structures. Transparency is facilitated by public contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- SMIT Contract (SeaPort-Next Generation - IT Services)
- Department of Defense IT Modernization Programs
- Naval Information Warfare Systems Command (NAVWAR) Contracts
- General Services Administration (GSA) IT Schedule Contracts
Risk Flags
- Potential for scope definition ambiguity given the short duration.
- Reliance on a single large prime contractor.
- Firm Fixed Price risk if scope is not perfectly defined.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-navy, leidos-inc, firm-fixed-price, full-and-open-competition, delivery-order, defense-it, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.4 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 $11.4 million.
What is the period of performance?
Start: 2025-08-22. End: 2025-09-30.
What is the specific nature of the 'Computer Systems Design Services' being procured under this delivery order?
The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS code 541512) under the SMIT contract. While the specific details of the services are not fully elaborated in the summary data, this typically encompasses a range of activities including analyzing user needs, designing system architecture, developing software specifications, integrating hardware and software components, and potentially overseeing system implementation. Given the awarding agency (Department of the Navy) and the short duration (39 days), these services likely pertain to a specific, well-defined IT project, possibly related to system upgrades, new capability integration, or specialized design work for naval IT infrastructure. Further details would be found in the Statement of Work (SOW) associated with the delivery order.
How does the $11.4M value compare to similar IT design contracts awarded by the Department of the Navy?
The $11.4 million value for computer systems design services over a 39-day period is substantial on a daily basis, suggesting a high level of complexity or urgency. To benchmark effectively, one would compare this to other IT design contracts awarded by the Department of the Navy, particularly those under similar contract vehicles like SeaPort-Next Generation (if SMIT is related) or other IT schedules. Factors like the specific technologies involved (e.g., AI, cybersecurity, cloud integration), the level of personnel required (e.g., senior architects vs. junior designers), and the criticality of the system being designed would influence pricing. Without access to the detailed SOW and specific performance metrics, a precise comparison is difficult, but the value suggests a significant undertaking for the short timeframe.
What are the key performance indicators (KPIs) or metrics used to evaluate Leidos, Inc.'s performance on this contract?
The provided summary data does not explicitly list the Key Performance Indicators (KPIs) or evaluation metrics for this specific delivery order. However, for IT services contracts, particularly those involving system design, common KPIs often include adherence to project timelines, quality of design documentation, successful integration of components, user satisfaction with the designed system, and compliance with security and technical specifications. For a Firm Fixed Price contract, meeting the defined scope within budget and schedule is paramount. The Department of the Navy would typically have a Quality Assurance Surveillance Plan (QASP) outlining how performance is monitored and evaluated against the contract requirements.
What is the historical spending pattern for computer systems design services by the Department of the Navy with Leidos, Inc.?
Leidos, Inc. is a major federal contractor, and the Department of the Navy is a significant client. Historical spending data would likely show substantial, ongoing awards to Leidos for various IT services, including system design, integration, and support. Analyzing past contracts would reveal trends in the types of services procured, average contract values, and the duration of engagements. This specific $11.4M award for a short period might represent a focused project within a larger, ongoing relationship. A deeper dive into federal procurement databases (like FPDS or USASpending) would be necessary to quantify historical spending patterns and identify any significant shifts or concentrations.
What are the potential risks associated with a Firm Fixed Price contract for complex IT system design?
Firm Fixed Price (FFP) contracts, while offering cost certainty, carry inherent risks, especially for complex IT system design where requirements can evolve or unforeseen technical challenges arise. Key risks include: 1) Contractor underestimation: Leidos might underestimate the effort required, leading to reduced profit margins or potential quality compromises to meet the fixed price. 2) Scope Creep: If the government's needs change or are not clearly defined initially, managing scope creep under an FFP can lead to disputes or costly change orders. 3) Technical Hurdles: Unforeseen technical complexities in system design could strain the fixed budget. 4) Contractor Default: In extreme cases, if the contractor cannot deliver within the fixed price, it could lead to performance issues or contract termination. Effective risk mitigation involves meticulous SOW definition, robust change control processes, and close government oversight.
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: $11,434,563
Exercised Options: $11,434,563
Current Obligation: $11,434,563
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: 2025-08-22
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-23
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