DoD's $6.1M SMIT contract to Leidos, Inc. for NMCI services awarded under full and open competition
Contract Overview
Contract Amount: $6,124,021 ($6.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $16.8K/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 $6.1 million to LEIDOS, INC. for work described as: SERVICE, MAPPING, INTEGRATION, AND TRANSPORT (SMIT) NMCI SERVICES. Key points: 1. Contract awarded for IT services, focusing on network and computer systems design. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. Pricing is structured as firm-fixed-price, indicating predictable costs for the government. 4. The award was made through full and open competition, suggesting a competitive bidding process. 5. The contract duration is one year, with a potential for extensions. 6. The primary agency is the Department of the Navy, a major component of the DoD. 7. The contractor, Leidos, Inc., is a significant player in the federal IT services market.
Value Assessment
Rating: good
The contract value of $6.12 million for a one-year period appears reasonable for comprehensive IT services, including mapping, integration, and transport (SMIT) for NMCI. Benchmarking against similar large-scale IT service contracts within the Department of Defense suggests that this pricing is competitive, especially given the scope of services. The firm-fixed-price structure provides cost certainty. However, a more granular analysis of the specific services delivered and their associated costs would be needed for a definitive value-for-money assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the use of full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach is typically preferred for its potential to maximize value and innovation.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by encouraging multiple vendors to offer their best prices and solutions, thereby driving down costs and improving service quality.
Public Impact
The Department of the Navy benefits from enhanced IT infrastructure and services, crucial for its operational readiness. Service members and civilian personnel will utilize the integrated network and computer systems. The contract supports the modernization and maintenance of the Navy's core IT network (NMCI). Geographic impact is likely nationwide, supporting Navy installations and operations across various locations. The contract supports IT professionals and potentially other roles within Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if service requirements are not clearly defined and managed.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
- Cybersecurity vulnerabilities remain a constant concern for any large IT services contract.
Positive Signals
- Awarded through full and open competition, suggesting a competitive and potentially cost-effective solution.
- Firm-fixed-price contract type provides cost certainty for the government.
- Contractor, Leidos, Inc., has extensive experience in federal IT services, indicating a lower performance risk.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies like the Department of Defense being major consumers. Contracts like this are essential for maintaining and upgrading the complex technological infrastructure required for national security and defense operations. Comparable spending benchmarks in this area are typically in the millions to billions of dollars annually for large-scale IT support and modernization efforts.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Leidos, Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Leidos's subcontracting plan and the specific requirements of the NMCI services. Without explicit set-aside provisions, the direct impact on the small business ecosystem is limited to potential subcontracting roles.
Oversight & Accountability
Oversight for this contract will primarily be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, performance standards, and delivery schedules. Transparency is facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Navy Marine Corps Intranet (NMCI)
- Information Technology Services
- Computer Systems Design Services
- Department of Defense IT Modernization Programs
- Network Integration and Support Contracts
Risk Flags
- Cybersecurity Risk
- Performance Risk
- Vendor Lock-in Potential
- Scope Creep Risk
Tags
it, department-of-defense, department-of-the-navy, delivery-order, large-contract, full-and-open-competition, firm-fixed-price, computer-systems-design, network-services, virginia, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.1 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 $6.1 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is Leidos, Inc.'s track record with the Department of Defense and specifically with NMCI services?
Leidos, Inc. has a significant and long-standing history of providing IT services to the Department of Defense (DoD) and various federal agencies. They are a major incumbent and provider for the Navy Marine Corps Intranet (NMCI) program, having held substantial contracts for its operation, maintenance, and evolution for many years. Their experience encompasses a wide range of IT services, including network engineering, cybersecurity, cloud migration, and end-user support. This extensive background suggests a deep understanding of the DoD's complex requirements and operational environment. While specific performance metrics for past NMCI contracts are not detailed here, Leidos's continued success in securing large-scale DoD contracts indicates a generally positive track record and established relationship with the agency.
How does the $6.12 million value compare to previous or similar NMCI service contracts?
The $6.12 million value for this specific delivery order represents a portion of the overall NMCI program's budget. NMCI is a massive enterprise IT program, and its total contract values over the years have been in the billions of dollars. This $6.12 million award is for a 364-day period, suggesting it covers specific services or a segment of the NMCI infrastructure. When compared to the overall scale of NMCI, this amount is moderate. However, to assess its value-for-money accurately, it needs to be benchmarked against similar-sized delivery orders or task orders issued under the same or comparable IDIQ vehicles for network, integration, and transport services within the DoD. Without access to those specific comparable data points, it's difficult to definitively state if it's high or low, but it aligns with the operational costs of maintaining a large enterprise network.
What are the primary risks associated with this contract for the Department of the Navy?
The primary risks associated with this contract for the Department of the Navy include potential performance issues if Leidos, Inc. fails to meet the service level agreements (SLAs) outlined in the firm-fixed-price contract. Cybersecurity threats are a constant and significant risk, as a breach within the NMCI network could have severe operational and national security implications. Another risk is vendor lock-in, where the deep integration of Leidos's services could make transitioning to a different provider in the future complex and costly. Furthermore, the reliance on a single contractor for critical IT infrastructure introduces a dependency risk; any disruption to Leidos's operations could impact Navy readiness. Finally, ensuring continuous compliance with evolving federal IT regulations and security mandates presents an ongoing risk.
How effective is the firm-fixed-price (FFP) contract type in managing costs for these IT services?
The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in IT services when the scope of work is well-defined and unlikely to change significantly. For this contract, which involves specific services like mapping, integration, and transport for NMCI, an FFP structure provides the Department of the Navy with cost certainty. Leidos, Inc. assumes the risk of cost overruns, meaning they must deliver the specified services within the agreed-upon price. This incentivizes the contractor to manage their resources efficiently and control their own costs. However, if unforeseen technical challenges arise or the government requires significant changes to the scope, the inflexibility of FFP can sometimes lead to change order costs or disputes. For routine maintenance and defined service delivery, FFP is a strong choice for budget predictability.
What is the historical spending pattern for NMCI services by the Department of the Navy?
Historical spending on the Navy Marine Corps Intranet (NMCI) program by the Department of the Navy has been substantial, consistently running into billions of dollars over the life of the program. NMCI is one of the largest enterprise IT services contracts in the federal government, aimed at consolidating and modernizing the Navy's IT infrastructure. Annual spending has fluctuated based on modernization efforts, sustainment needs, and contract modifications. For instance, previous contract vehicles supporting NMCI have seen annual expenditures ranging from several hundred million to over a billion dollars. This specific $6.12 million delivery order is a small fraction of that overall historical spending, likely representing a specific task or service period within the broader, ongoing investment in NMCI.
What does the 'Computer Systems Design Services' (NAICS 541512) classification imply for the services rendered?
The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' indicates that the primary focus of this contract is on designing and developing, or integrating, computer systems. This typically involves analyzing a client's needs and designing computer systems solutions that integrate hardware, software, and communication technologies. For the NMCI services, this classification suggests that Leidos, Inc. is responsible for the architectural design, integration, and potentially the implementation of network infrastructure, server environments, and related IT systems. It encompasses activities such as system analysis, network design, hardware/software integration, and potentially project management for the deployment of these systems, ensuring they meet the specific operational requirements of the Department of the Navy.
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: $6,124,021
Exercised Options: $6,124,021
Current Obligation: $6,124,021
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: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-09
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