Navy awards $61.8M contract for technical support services to Leidos, Inc

Contract Overview

Contract Amount: $61,787,978 ($61.8M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-28

End Date: 2024-09-18

Contract Duration: 1,848 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Engineering Services

Official Description: THE NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP) WEAPONS SYSTEMS SUPPORT (WSS) REQUIRES PROGRAM, TECHNICAL, AND ADMINISTRATIVE SUPPORT SERVICES, VIA THE TECHNICAL ASSISTANCE FOR REPAIRABLES PROCESSING (TARP) PROGRAM.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $61.8 million to LEIDOS, INC. for work described as: THE NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP) WEAPONS SYSTEMS SUPPORT (WSS) REQUIRES PROGRAM, TECHNICAL, AND ADMINISTRATIVE SUPPORT SERVICES, VIA THE TECHNICAL ASSISTANCE FOR REPAIRABLES PROCESSING (TARP) PROGRAM. Key points: 1. Contract awarded to Leidos, Inc. for essential technical support services. 2. The contract supports the NAVSUP Weapons Systems Support TARP Program. 3. This is a firm-fixed-price contract with a significant duration. 4. The award was made under full and open competition.

Value Assessment

Rating: good

The contract value of $61.8 million over approximately 5 years appears reasonable for specialized technical support services. Benchmarking against similar contracts for program, technical, and administrative support in the defense sector would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Full and open competition is expected to yield a fair price, maximizing taxpayer value for the required services.

Public Impact

Ensures continued operational support for critical Navy repairable parts processing. Supports the readiness and efficiency of naval supply systems. Provides specialized technical and administrative expertise to the Department of the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

  • Full and open competition
  • Firm-fixed-price contract type

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting naval operations. Spending in this sector is crucial for maintaining defense readiness and technological advancement.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, nor is there information suggesting subcontracting opportunities. Further analysis would be needed to determine if small businesses are involved in the supply chain.

Oversight & Accountability

The award was made by the Naval Supply Systems Command (NAVSUP), a key component of the Department of Defense responsible for supply chain management. Oversight is inherent in the contracting process of such a large agency.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Long contract duration
  • Potential for vendor lock-in

Tags

engineering-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.8 million to LEIDOS, INC.. THE NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP) WEAPONS SYSTEMS SUPPORT (WSS) REQUIRES PROGRAM, TECHNICAL, AND ADMINISTRATIVE SUPPORT SERVICES, VIA THE TECHNICAL ASSISTANCE FOR REPAIRABLES PROCESSING (TARP) PROGRAM.

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 $61.8 million.

What is the period of performance?

Start: 2019-08-28. End: 2024-09-18.

What specific technical expertise does Leidos, Inc. bring to the TARP program that justifies the contract value?

The contract requires program, technical, and administrative support services for the Technical Assistance for Repairables Processing (TARP) Program. Leidos, Inc. likely possesses specialized knowledge in managing complex repairable parts logistics, technical documentation, and administrative processes critical to naval aviation and ship readiness. Their expertise ensures efficient processing, repair, and return of vital components, directly impacting operational availability and cost-effectiveness.

Are there any potential risks associated with relying on a single contractor for these critical support services over a five-year period?

While competition was used for the initial award, a long-term reliance on Leidos, Inc. could present risks such as vendor lock-in, potential for price increases in future modifications, or a decrease in service innovation if competition is not maintained. The government should monitor performance closely and explore opportunities for competitive re-solicitation or task order competition to mitigate these risks.

How effectively does this contract contribute to the overall mission readiness of the U.S. Navy's supply chain?

This contract is designed to directly enhance the mission readiness of the Navy's supply chain by ensuring the efficient processing and management of repairable parts through the TARP program. By providing essential technical and administrative support, it helps maintain the availability of critical components for naval assets, thereby supporting operational capabilities and reducing downtime.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018919R3030

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1750 PRESIDENTS ST, 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: $63,619,098

Exercised Options: $63,619,098

Current Obligation: $61,787,978

Actual Outlays: $1,412,604

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7578

IDV Type: IDC

Timeline

Start Date: 2019-08-28

Current End Date: 2024-09-18

Potential End Date: 2024-09-18 00:00:00

Last Modified: 2024-10-10

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