Leidos awarded $14.9M for Navy IT services, extending NMCI support through FY26
Contract Overview
Contract Amount: $14,888,996 ($14.9M)
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: $40.9K/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 $14.9 million to LEIDOS, INC. for work described as: SERVICE, MAPPING, INTEGRATION, AND TRANSPORT (SMIT) NMCI SERVICES. Key points: 1. Contract value represents a significant investment in essential 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. Duration of 364 days indicates a short-term extension or specific project. 5. Focus on SMIT services highlights the critical nature of data integration and transport. 6. Contract awarded to a large, established prime contractor, Leidos, Inc.
Value Assessment
Rating: good
The contract value of approximately $14.9 million for a 364-day period for IT services appears reasonable given the scope of NMCI services. Benchmarking against similar large-scale IT support contracts for federal agencies, especially within the Department of Defense, suggests this pricing is within expected ranges. The firm fixed-price nature provides cost predictability, though detailed cost breakdowns are not available to assess profit margins or specific cost efficiencies.
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. While the number of bidders is not specified, this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through robust price discovery and encourages innovation among bidders.
Public Impact
Naval forces personnel will benefit from continued reliable IT infrastructure and services. Ensures seamless operation of critical data mapping, integration, and transport functions. Services are primarily delivered within Virginia, supporting a key defense hub. Maintains the operational readiness of the Navy's IT backbone, impacting thousands of users.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if this contract is part of a larger, long-term strategy.
- Dependence on a single large contractor for critical IT infrastructure.
- Scope creep could increase costs beyond the initial award amount if not managed tightly.
Positive Signals
- Award to a reputable contractor with extensive experience in federal IT services.
- Firm fixed-price contract type offers budget certainty.
- Full and open competition suggests a well-vetted and potentially cost-effective solution.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration. The NMCI (Navy-Marine Corps Intranet) program is a massive undertaking, and contracts like this are crucial for its ongoing operation and evolution. Spending in this area is substantial across the federal government, with agencies continually investing in modernizing and maintaining their IT infrastructure to support mission-critical operations and cybersecurity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large prime contractor, Leidos, Inc. While there's no direct information on subcontracting plans, large federal IT contracts often involve significant subcontracting opportunities. It is important to monitor whether a portion of this work is allocated to small businesses to ensure broader participation in the federal IT ecosystem.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The firm fixed-price nature provides a degree of financial oversight. Accountability will be managed through contract performance metrics and delivery schedules. Transparency is facilitated by the contract award notice. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- NMCI Services
- Navy Marine Corps Information Technology Center (NMITC)
- Defense Information Systems Agency (DISA) contracts
- General Services Administration (GSA) IT Schedule contracts
Risk Flags
- Potential for scope creep
- Cybersecurity vulnerabilities
- Dependence on single large contractor
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-navy, leidos-inc, full-and-open-competition, firm-fixed-price, delivery-order, virginia, nmci, sm-it, large-contractor
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.9 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 $14.9 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the historical spending trend for NMCI services under Leidos, Inc. or its predecessors?
Analyzing historical spending data for NMCI services awarded to Leidos, Inc. is crucial for understanding long-term investment patterns and potential cost efficiencies or escalations. Without specific historical data for this exact contract line item, we can infer trends from broader NMCI program spending. The NMCI program itself has seen billions in investment over its lifecycle. Leidos, as a major IT contractor, likely holds or has held numerous contracts supporting NMCI. A review of past contract awards, modifications, and spending reports for Leidos related to NMCI would reveal if this $14.9 million award represents a typical annual spend, an increase, or a decrease, providing context on the government's sustained commitment and potential cost management strategies over time.
How does the per-unit cost of these SMIT services compare to similar contracts awarded by other military branches or federal agencies?
Benchmarking the per-unit cost of these SMIT services against similar contracts is essential for assessing value for money. Since the specific units of service (e.g., per user, per server, per data transaction) are not detailed in the provided data, a direct comparison is challenging. However, if we consider the total contract value ($14.9M) and duration (364 days), we can estimate an approximate monthly burn rate. Comparing this rate to similar IT infrastructure and integration contracts within the Department of Defense (e.g., DISA) or other large civilian agencies (e.g., GSA's IT schedules) would indicate if Leidos' pricing is competitive. A higher-than-average burn rate might suggest less favorable pricing or a more complex scope, warranting further investigation into the specific services rendered.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is performance measured?
The key performance indicators (KPIs) and service level agreements (SLAs) are critical for evaluating the performance and effectiveness of this IT services contract. While not explicitly provided, typical SLAs for SMIT services under a program like NMCI would include metrics related to network uptime, data transfer speeds, system availability, incident response times, and data integrity. Performance is usually measured through regular reporting by the contractor, government acceptance testing, and potentially independent audits. The Department of the Navy would have established specific targets for these KPIs, and failure to meet them could result in penalties or corrective actions, impacting contractor payment and future contract awards. Understanding these metrics is vital for assessing if the government is receiving the expected value and quality of service.
What is Leidos, Inc.'s track record with the Department of the Navy and specifically with NMCI-related services?
Leidos, Inc. has a substantial and long-standing track record of providing IT services to the Department of the Navy and supporting the NMCI program. As a major defense contractor, Leidos has consistently been awarded significant contracts for network operations, cybersecurity, and enterprise IT solutions. Their experience with NMCI likely spans many years, potentially through predecessor companies or direct awards. This extensive history suggests a deep understanding of the Navy's requirements, infrastructure, and operational environment. While past performance is generally positive, a thorough review would involve examining specific contract performance evaluations (e.g., CPARS reports) to identify any past issues, successes, or areas for improvement related to their service delivery under similar agreements.
Are there any identified risks or challenges associated with the continuation of these specific SMIT services under the current contract?
Potential risks and challenges associated with the continuation of these SMIT services include technological obsolescence, cybersecurity threats, and the complexity of integrating diverse IT systems. Given the dynamic nature of IT, ensuring the services remain current and effective against evolving threats is paramount. The reliance on a single contractor, even a reputable one like Leidos, can also pose risks related to vendor lock-in or potential disruptions if the contractor faces financial or operational difficulties. Furthermore, the sheer scale and complexity of NMCI mean that integration challenges between different systems and data transport mechanisms are an ongoing concern. Effective risk mitigation would involve robust cybersecurity protocols, regular technology refresh cycles, and strong contract management by 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: $14,888,996
Exercised Options: $14,888,996
Current Obligation: $14,888,996
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: 2025-12-30
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