Leidos awarded $31.7M for Navy NMCI SMIT services, highlighting IT infrastructure support
Contract Overview
Contract Amount: $31,690,454 ($31.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $87.1K/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 $31.7 million to LEIDOS, INC. for work described as: SERVICE, MAPPING, INTEGRATION, AND TRANSPORT (SMIT) NMCI SERVICES. Key points: 1. Contract focuses on essential IT infrastructure, including network services and system integration. 2. Full and open competition suggests a competitive bidding process for this service. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. Delivery order structure allows for phased implementation and flexibility. 5. Service area covers critical IT support functions for the Department of the Navy. 6. Contract duration of one year indicates ongoing need for these services.
Value Assessment
Rating: good
The contract value of $31.7 million for a one-year period for IT services appears reasonable given the scope of NMCI services. Benchmarking against similar large-scale IT service contracts for the Department of Defense suggests this is within expected ranges. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.
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 bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs through market forces and ensuring the government receives competitive pricing.
Public Impact
The Department of the Navy benefits from reliable and integrated IT services essential for its operations. Service delivery includes mapping, integration, and transport of data and systems. Geographic impact is likely nationwide, supporting Navy installations and personnel. Workforce implications include support for IT professionals managing and maintaining these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed carefully, despite competitive initial award.
- Dependence on a single contractor for critical IT infrastructure could pose risks.
- Scope creep could increase costs if not strictly managed within the delivery order.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Full and open competition suggests a robust market for these services.
- Delivery order structure allows for phased implementation and adaptation.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The Navy's NMCI program is a massive undertaking to consolidate and modernize its IT infrastructure. Spending in this area is substantial across the federal government, with significant market size for companies capable of providing large-scale network and IT support.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Leidos, Inc. is a large prime contractor, the nature of such large-scale IT contracts often involves significant subcontracting opportunities. It is important to assess if and how small businesses are included in the subcontracting plan to ensure they benefit from this federal spending.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Transparency is generally maintained through contract award databases and reporting requirements. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget.
Related Government Programs
- NMCI Services
- Next Generation Enterprise Network (NGEN)
- Information Technology Support Services
- Defense Information Systems Agency (DISA) Contracts
Risk Flags
- Potential for vendor lock-in
- Dependence on critical IT infrastructure provider
- Scope creep risk
- Cybersecurity vulnerabilities
Tags
it-services, department-of-defense, department-of-the-navy, full-and-open-competition, firm-fixed-price, delivery-order, computer-systems-design, leidos-inc, nmci, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.7 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 $31.7 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the historical spending trend for NMCI SMIT services with Leidos, Inc. or its predecessors?
Analyzing historical spending for NMCI SMIT services with Leidos, Inc. requires examining past contract awards and delivery orders under the broader NMCI program. Leidos has been a significant player in the NMCI program, often taking over from previous prime contractors. Without specific historical data for this exact service line and contractor, it's difficult to provide precise figures. However, the NMCI program itself represents billions of dollars in IT spending over its lifecycle. Trends would likely show a shift towards cloud integration, cybersecurity enhancements, and modernization efforts, with spending fluctuating based on program phase and technological advancements. Understanding the year-over-year spending for Leidos on NMCI would reveal patterns of growth, stability, or potential decline in specific service areas.
How does the awarded amount compare to the ceiling value or previous delivery orders for similar NMCI services?
To assess how the $31.7 million awarded amount compares to previous delivery orders or the overall contract ceiling, one would need access to the specific contract vehicle under which this delivery order was issued. NMCI contracts are often large indefinite-delivery/indefinite-quantity (IDIQ) vehicles with substantial ceilings. Individual delivery orders are typically a fraction of this ceiling. If previous delivery orders for similar SMIT services were in the range of $20-40 million, then this award is consistent. If previous orders were significantly higher or lower, it might indicate a change in scope, market conditions, or the government's utilization of the contract. Without the specific contract ID and historical delivery order data, a precise comparison is not possible, but the amount appears to be a substantial, yet manageable, single-year task order.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?
Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for NMCI SMIT services are critical for ensuring the Department of the Navy receives the expected quality and availability of IT infrastructure. While specific KPIs are not detailed in the provided data, typical metrics for such contracts include network uptime percentages (e.g., 99.9% availability), incident response times (e.g., critical incidents resolved within 1 hour), data transport speeds, system integration success rates, and user satisfaction scores. Adherence to these SLAs often dictates performance incentives or penalties. The contract would outline detailed requirements for reporting on these KPIs, allowing the Navy to monitor Leidos's performance and ensure the effective functioning of its IT environment.
What is Leidos, Inc.'s track record with the Department of the Navy and similar large-scale IT service contracts?
Leidos, Inc. has a substantial track record with the Department of the Navy and other federal agencies, particularly in large-scale IT services and systems integration. They have been a major contractor for the Navy's Network-Centric Enterprise Services (NCES) and previously held significant roles within the NMCI program. Their experience spans network operations, cybersecurity, cloud migration, and enterprise IT management. While specific performance details on past contracts are often proprietary or require deep dives into contract performance reports, Leidos is generally recognized as a capable large prime contractor in the defense IT space. Any assessment of their track record would involve reviewing past performance evaluations, any significant contract disputes, and their success in delivering complex IT solutions across various military branches.
Are there any specific cybersecurity requirements or compliance mandates tied to this SMIT contract?
Yes, cybersecurity requirements and compliance mandates are intrinsically tied to any IT service contract with the Department of the Navy, especially one as critical as NMCI SMIT. This contract would undoubtedly adhere to stringent DoD cybersecurity policies, including the Cybersecurity Maturity Model Certification (CMMC) if applicable, NIST SP 800-171 for protecting controlled unclassified information (CUI), and various DoD Instruction (DoDI) series related to information assurance and cybersecurity. Specific requirements would likely cover network security, data encryption, access controls, vulnerability management, incident response, and continuous monitoring. Leidos would be obligated to implement and maintain robust cybersecurity measures to protect Navy networks and data from threats.
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: $31,690,454
Exercised Options: $31,690,454
Current Obligation: $31,690,454
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: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-07-24
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