Leidos awarded $18.8M contract for Navy support services, highlighting broad professional services needs
Contract Overview
Contract Amount: $18,826,360 ($18.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-05-26
End Date: 2026-05-25
Contract Duration: 1,825 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NCCOSC SUPPORT SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.8 million to LEIDOS, INC. for work described as: NCCOSC SUPPORT SERVICES Key points: 1. Contract value of $18.8 million over five years suggests a significant, long-term need for specialized support. 2. Awarded under full and open competition, indicating a robust market for these services. 3. The definitive contract type implies a clear scope of work and established terms. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code points to a wide range of potential activities. 5. Firm Fixed Price contract type offers cost certainty for the government. 6. The contract duration of 1825 days (5 years) allows for sustained support and potential for contractor efficiency gains.
Value Assessment
Rating: good
The contract value of $18.8 million over five years, averaging approximately $3.76 million annually, appears reasonable for comprehensive professional, scientific, and technical support services. Benchmarking against similar large-scale support contracts within the Department of Defense, this award falls within a typical range for services requiring specialized expertise. The firm fixed-price structure provides cost predictability for the government, mitigating risks associated with cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a healthy level of competition for these services, which typically leads to better pricing and service quality. The competitive process allows the government to select the offer that provides the best value, balancing cost and technical merit.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among multiple capable contractors.
Public Impact
The primary beneficiaries are the Department of the Navy, receiving essential professional, scientific, and technical support to fulfill its mission. Services delivered likely encompass a broad spectrum of technical assistance, research, analysis, and program management. The geographic impact is centered in Virginia, where the contractor is located, suggesting potential for local economic benefits and employment. Workforce implications include the potential for skilled professionals to be employed by Leidos to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the 'All Other Professional, Scientific, and Technical Services' are not tightly defined.
- Reliance on a single large contractor for a broad range of services could create dependency.
- The firm fixed-price nature might disincentivize innovation if not managed carefully to allow for improvements.
Positive Signals
- Awarded through full and open competition, indicating a competitive market and potential for best value.
- Firm fixed-price contract provides cost certainty and budget predictability for the government.
- Long-term contract duration allows for stable support and potential for economies of scale.
- The contractor, Leidos, is a well-established entity with significant experience in government contracting.
Sector Analysis
The professional, scientific, and technical services sector is a vast and critical component of the federal contracting landscape. This contract, falling under NAICS code 541990, represents a segment of the market focused on specialized expertise that doesn't fit into more narrowly defined categories. The Department of Defense is a major consumer of these services, utilizing them for everything from research and development to operational support and strategic analysis. Comparable spending benchmarks for similar multi-year support contracts within the DoD often range from several million to tens of millions of dollars annually, depending on the scope and criticality of the services.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor, Leidos, is a large business. There is no explicit indication of small business subcontracting requirements in the provided data. This means that opportunities for small businesses to participate in this contract would likely be through subcontracting directly with Leidos, should they choose to engage them. The absence of a small business set-aside suggests that the competition was focused on large, capable firms for this particular requirement.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Defense Support Services
- Naval Operations and Support Contracts
- Professional and Technical Services Procurement
- All Other Professional, Scientific, and Technical Services Contracts
Risk Flags
- Potential for undefined scope within broad NAICS code.
- Risk of contractor performance degradation over a long contract term.
- Dependency on a single large contractor for critical support functions.
Tags
department-of-defense, department-of-the-navy, definitive-contract, firm-fixed-price, full-and-open-competition, professional-scientific-technical-services, leidos-inc, virginia, large-business, naics-541990, contract-award
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to LEIDOS, INC.. NCCOSC SUPPORT 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 $18.8 million.
What is the period of performance?
Start: 2021-05-26. End: 2026-05-25.
What is Leidos's track record with similar Department of the Navy contracts?
Leidos has a substantial track record with the Department of the Navy, having been awarded numerous contracts across various service areas. Their history includes significant work in areas such as IT services, systems engineering, logistics support, and research and development. Analyzing their past performance on similar definitive contracts, particularly those involving broad professional, scientific, and technical services, would reveal their ability to manage complex requirements, meet delivery schedules, and maintain quality standards. Past performance evaluations, where available, would provide insights into their reliability and effectiveness in fulfilling government obligations. This specific contract's value and duration are consistent with Leidos's typical engagement levels with the DoD.
How does the $18.8 million value compare to other 'All Other Professional, Scientific, and Technical Services' contracts awarded by the Navy?
The $18.8 million value for this five-year contract, averaging approximately $3.76 million annually, is a moderate figure within the broad category of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) awarded by the Department of the Navy. The Navy procures a wide spectrum of services under this NAICS code, ranging from highly specialized R&D support to general administrative and technical assistance. Contracts can vary significantly in value, with some specialized R&D efforts or large-scale program management contracts reaching hundreds of millions of dollars. Conversely, smaller, more focused support tasks might be valued in the low millions. Therefore, this award appears to be a substantial but not exceptionally large contract within its category, suggesting a well-defined scope of services.
What are the primary risks associated with a firm fixed-price contract for broad technical services?
The primary risk with a firm fixed-price (FFP) contract for broad technical services lies in the potential for the contractor to underbid or underestimate the complexity and effort required, leading to reduced quality or profit margins. Conversely, if the scope is not precisely defined, the government risks paying for services that were not originally intended or required. For the government, the risk is that the contractor may cut corners to maintain profitability if unforeseen challenges arise, potentially impacting service quality. For the contractor, the risk is absorbing cost overruns if the work proves more extensive or difficult than anticipated. Effective management and clear statement of work are crucial to mitigate these risks.
How does the 'full and open competition' impact the government's value for money?
Full and open competition is designed to maximize value for the government by fostering a competitive environment among potential offerors. When multiple companies are vying for a contract, they are incentivized to offer their best pricing and most innovative solutions to win the award. This process typically leads to lower prices than sole-source or limited competition scenarios, as contractors compete on merit and cost-effectiveness. The presence of 3 bidders in this case suggests a sufficient level of competition to drive price discovery and ensure that the selected contractor provides a strong balance of technical capability and cost. This process helps ensure that taxpayer funds are utilized efficiently.
What is the historical spending trend for 'All Other Professional, Scientific, and Technical Services' by the Department of the Navy?
Historical spending by the Department of the Navy on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) has generally shown a consistent demand, reflecting the diverse and evolving needs of naval operations and support. While specific year-over-year figures fluctuate based on strategic priorities and budget allocations, the overall trend indicates a significant and sustained investment in this broad service category. The Navy frequently procures services under this NAICS code for specialized research, technical consulting, program management, and other support functions that do not fit into more specific industry classifications. This contract award aligns with that historical pattern of utilizing external expertise to augment internal capabilities.
What are the implications of a 5-year contract duration for service continuity and contractor performance?
A 5-year contract duration (1825 days) provides significant benefits for both the government and the contractor. For the government, it ensures service continuity and stability, reducing the administrative burden and potential disruption associated with frequent re-procurement. This long-term commitment allows the contractor to invest in specialized resources, personnel, and processes, potentially leading to greater efficiency and expertise over time. It also provides a stable revenue stream for the contractor, encouraging them to build a dedicated team and foster long-term relationships. However, it also means the government is committed to a specific provider for an extended period, necessitating robust performance monitoring to ensure continued value and address any potential performance issues proactively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0018921RZ031
Offers Received: 3
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: $20,736,079
Exercised Options: $18,826,360
Current Obligation: $18,826,360
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-05-26
Current End Date: 2026-05-25
Potential End Date: 2026-11-25 00:00:00
Last Modified: 2025-05-08
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