DoD's $160M NMCI Services contract awarded to Leidos, Inc. for IT support
Contract Overview
Contract Amount: $159,857,953 ($159.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-01
End Date: 2022-09-30
Contract Duration: 29 days
Daily Burn Rate: $5.5M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NMCI SERVICES - SMIT 9/22- NEW ORDERS
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $159.9 million to LEIDOS, INC. for work described as: NMCI SERVICES - SMIT 9/22- NEW ORDERS Key points: 1. Contract value represents a significant investment in IT infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. This award is part of a larger, ongoing IT services framework. 5. Performance period is relatively short, indicating a specific task order. 6. Focus on computer systems design services highlights critical IT needs.
Value Assessment
Rating: good
The contract value of approximately $160 million for a one-month period is substantial, suggesting a large scope of work or high-demand services. Benchmarking against similar large-scale IT service contracts is challenging without more detailed service descriptions. However, the fixed-price nature of the award implies that the government has a clear understanding of the costs involved, which can be a positive indicator of value if the services are delivered as expected.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overpricing that could occur with less competitive solicitations.
Public Impact
The Department of the Navy benefits from enhanced IT systems and support. Services delivered likely include computer systems design, integration, and maintenance. Geographic impact is likely nationwide, supporting naval operations across various bases. Workforce implications may involve IT professionals employed by Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short performance duration (1 month) may indicate a need for rapid deployment or a specific, time-bound project.
- Lack of detail on specific services rendered makes it difficult to fully assess performance outcomes.
- High contract value for a short period warrants scrutiny to ensure efficient resource allocation.
Positive Signals
- Awarded under full and open competition, suggesting a fair and competitive process.
- Fixed-price contract type provides cost predictability for the government.
- Leidos, Inc. is a large, established government contractor with significant IT experience.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. The IT services market for the federal government is vast, with significant spending allocated to maintaining and modernizing systems. Contracts like this are crucial for ensuring the operational readiness of defense agencies. Comparable spending benchmarks would typically involve analyzing other large IT support contracts within the Department of Defense or other federal agencies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in this award notice.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, requiring delivery of specified services. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics are often internal.
Related Government Programs
- NMCI (Navy Marine Corps Intranet)
- IT Services
- Computer Systems Design
- Department of Defense IT Procurement
Risk Flags
- Short contract duration for a high value may indicate urgency or a specific project phase.
- Lack of detailed service description limits full value assessment.
- Reliance on a single large contractor for critical infrastructure.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-navy, leidos-inc, full-and-open-competition, firm-fixed-price, delivery-order, nmci, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $159.9 million to LEIDOS, INC.. NMCI SERVICES - SMIT 9/22- NEW ORDERS
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 $159.9 million.
What is the period of performance?
Start: 2022-09-01. End: 2022-09-30.
What is the historical spending trend for NMCI Services under Leidos, Inc. or its predecessors?
Analyzing historical spending for NMCI Services, particularly under Leidos, Inc., requires accessing broader contract data beyond this single award. The Navy Marine Corps Intranet (NMCI) is a long-standing program, and Leidos has been a significant player in its evolution. Past awards under NMCI have often been multi-year, multi-billion dollar efforts. This specific award, valued at approximately $160 million for a one-month period, appears to be a delivery order against a larger, potentially existing, contract vehicle. To understand the trend, one would need to examine the total value and duration of all NMCI-related awards to Leidos over several fiscal years, looking for patterns in spending, service scope, and contract types to identify any increases, decreases, or shifts in focus.
How does the per-unit cost of these NMCI services compare to industry benchmarks?
Determining a precise per-unit cost for comparison is challenging without specific details on the services rendered (e.g., per user, per server, per hour of support). The provided data indicates a total award of $159,857,952.98 for a 29-day period. If we assume this is primarily for IT support personnel and systems management, a rough daily cost can be estimated. However, 'Computer Systems Design Services' can encompass a wide range of activities, from software development to network infrastructure implementation. Industry benchmarks for IT services vary significantly based on complexity, location, and the specific skill sets required. Without a defined unit of measure (like 'per technician hour' or 'per managed endpoint'), a direct comparison to market rates is speculative. Generally, large government IT contracts aim for competitive pricing, but the scale and specialized nature of military IT can command different rates than commercial equivalents.
What are the key performance indicators (KPIs) associated with this contract, and how is Leidos, Inc. performing against them?
The provided data does not specify the Key Performance Indicators (KPIs) for this particular delivery order. Typically, for IT services contracts, KPIs might include system uptime percentages, response times for service requests, incident resolution rates, cybersecurity compliance metrics, and user satisfaction scores. Performance against these KPIs would be monitored by the Department of the Navy's contracting officer's representative (COR). While this award notice doesn't detail performance, Leidos, as a large incumbent contractor, likely operates under established performance standards within the broader NMCI framework. Information on specific performance against KPIs is usually found in internal government performance reports or contract CPARS (Contractor Performance Assessment Reporting System) summaries, which are not publicly detailed in this format.
What is the risk profile of Leidos, Inc. as a contractor for this type of IT service?
Leidos, Inc. generally presents a low to moderate risk profile for large-scale IT services contracts. As a major defense contractor with extensive experience in managing complex IT infrastructure like NMCI, they possess established processes, a skilled workforce, and a track record of performance. Key risk areas for any contractor of this size include potential cost overruns (mitigated here by a fixed-price award), schedule delays, cybersecurity vulnerabilities, and personnel turnover. However, Leidos's size and experience suggest robust internal controls and risk management strategies are in place. Past performance data, often captured in CPARS, would provide a more granular view of their specific risk history related to similar contracts.
How does this $160M award fit into the overall IT spending of the Department of the Navy?
This $160 million award for NMCI Services represents a component of the Department of the Navy's (DoN) broader IT budget, which typically runs into the billions of dollars annually. The DoN relies heavily on robust IT infrastructure for command, control, communications, intelligence, and daily operations. NMCI, in particular, is a foundational program designed to provide a unified and secure IT environment. This specific award, being for a short duration (one month), likely represents a task order for specific enhancements, support, or transition activities within the larger NMCI program. It is not indicative of the total annual IT spend but rather a specific, funded requirement within a given period, contributing to the overall operational capability enabled by the DoN's IT investments.
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
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: $159,857,953
Exercised Options: $159,857,953
Current Obligation: $159,857,953
Subaward Activity
Number of Subawards: 341
Total Subaward Amount: $340,319,984
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: 2022-09-01
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2022-10-05
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