Leidos Inc. awarded $21.6M for NASA administrative system support, a sole-source contract spanning six years
Contract Overview
Contract Amount: $21,662,885 ($21.7M)
Contractor: Leidos, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2001-08-25
End Date: 2007-02-15
Contract Duration: 2,000 days
Daily Burn Rate: $10.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: FINANCIAL ADMINISTRATIVE SYSTEM SUPPORT.
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $21.7 million to LEIDOS, INC. for work described as: FINANCIAL ADMINISTRATIVE SYSTEM SUPPORT. Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. Long contract duration (6 years) may not reflect current market needs or technological advancements. 3. Focus on administrative support suggests a stable, ongoing requirement rather than innovative solutions. 4. Awarded to a single vendor, Leidos, Inc., raising questions about market availability of alternatives. 5. The contract's value, while significant, needs benchmarking against similar IT support services. 6. Lack of competition is a key risk indicator for potential overpricing or suboptimal service delivery.
Value Assessment
Rating: fair
The contract value of $21.6 million over six years for administrative system support appears reasonable on an annual basis, approximately $3.6 million per year. However, without specific details on the scope of services, deliverables, and performance metrics, a direct comparison to similar contracts is challenging. The absence of competition suggests that pricing may not have been rigorously tested against market alternatives, which could indicate a fair, but not necessarily optimal, price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning NASA did not conduct a competitive bidding process. This approach is typically justified when only one vendor possesses the necessary capabilities or when urgency dictates. The lack of competition means that NASA did not benefit from multiple proposals, which could have driven down prices and spurred innovation. The decision to go sole-source warrants scrutiny to ensure it was indeed the most appropriate procurement strategy.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage market forces to secure the best possible pricing for taxpayers. This can lead to higher costs compared to competitively awarded contracts.
Public Impact
NASA personnel benefit from the continuity and stability of essential administrative systems. The contract ensures the ongoing operation and maintenance of critical financial and administrative IT infrastructure. The primary geographic impact is within NASA facilities where these administrative systems are utilized. Workforce implications are primarily for Leidos, Inc. employees supporting the contract, and indirectly for NASA staff relying on the systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially leading to higher costs.
- Long contract duration may not align with evolving technological needs or market prices.
- Lack of transparency in the justification for sole-source procurement.
- Absence of performance metrics makes it difficult to assess service effectiveness.
- Potential for vendor lock-in due to the long-term, single-source relationship.
Positive Signals
- Contract ensures continuity of essential administrative functions for NASA.
- Leidos, Inc. has a long-standing relationship, potentially indicating reliable service delivery.
- The contract supports critical IT infrastructure, vital for agency operations.
- Awarded to a large, established company with significant IT support experience.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming and support. The market for such services is vast and competitive, with numerous providers capable of offering administrative system support. NASA's spending on IT services is a significant portion of its overall budget, aimed at maintaining complex operational and administrative systems. Benchmarking this contract's value against other government or commercial contracts for similar IT support services would provide further insight into its cost-effectiveness.
Small Business Impact
This contract was not set aside for small businesses and was awarded to Leidos, Inc., a large corporation. There is no indication of subcontracting plans for small businesses within the provided data. This means the contract does not directly contribute to the government's small business utilization goals and may not foster opportunities within the small business ecosystem for this specific requirement.
Oversight & Accountability
Oversight for this contract would typically be managed by NASA's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the lack of publicly available detailed justifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- NASA Financial Management Systems
- NASA IT Infrastructure Support
- Government Administrative IT Services
- Custom Computer Programming Services
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Contract duration may exceed optimal alignment with technological evolution.
- Limited public information on specific performance metrics and justification for sole-sourcing.
Tags
it-services, custom-computer-programming, nasa, national-aeronautics-and-space-administration, definitive-contract, sole-source, labor-hours, large-contractor, administrative-support, texas
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $21.7 million to LEIDOS, INC.. FINANCIAL ADMINISTRATIVE SYSTEM SUPPORT.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $21.7 million.
What is the period of performance?
Start: 2001-08-25. End: 2007-02-15.
What specific administrative systems are covered under this contract, and what are their criticality to NASA's operations?
The provided data does not specify the exact administrative systems covered. However, given the contract title 'FINANCIAL ADMINISTRATIVE SYSTEM SUPPORT' and the North American Industry Classification System (NAICS) code 541511 (Custom Computer Programming Services), it likely encompasses systems related to financial management, human resources, procurement, and other core administrative functions. These systems are critical for the day-to-day operations of NASA, enabling efficient resource allocation, personnel management, and compliance with federal regulations. The continuity of these systems is paramount for NASA's mission execution.
What was the justification for awarding this contract on a sole-source basis to Leidos, Inc.?
The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. Federal procurement regulations typically require competitive bidding unless specific exceptions apply, such as the existence of only one responsible source, urgent and compelling needs, or specific statutory authorities. Without further documentation (e.g., a Justification for Other Than Full and Open Competition - JOFOC), the precise reason for the sole-source award to Leidos, Inc. remains unclear. It is possible that Leidos possessed unique capabilities, proprietary technology, or was the incumbent provider with deep institutional knowledge that NASA deemed essential and irreplaceable through competition within the given timeframe.
How does the $21.6 million contract value compare to historical spending on similar administrative IT support at NASA or other federal agencies?
The total contract value of $21.6 million over approximately six years (August 2001 to February 2007) averages to about $3.6 million annually. To assess its comparability, one would need to analyze historical spending data for similar administrative IT support contracts within NASA and across other federal agencies. Factors such as the scope of services, number of users supported, complexity of systems, and specific technologies deployed significantly influence contract values. Without access to a broader dataset of comparable contracts, it is difficult to definitively state whether this $3.6 million annual spend is high, low, or average for the services rendered.
What performance metrics or service level agreements (SLAs) were included in this contract to ensure effective service delivery by Leidos, Inc.?
The provided summary data does not include details on performance metrics or Service Level Agreements (SLAs) associated with this contract. Typically, contracts of this nature would outline specific performance expectations, such as system uptime, response times for issue resolution, data security standards, and user satisfaction levels. The effectiveness of Leidos, Inc.'s service delivery would be measured against these agreed-upon metrics. The absence of this information in the summary prevents a thorough assessment of the contract's performance outcomes and value realization.
What is Leidos, Inc.'s track record with NASA and other federal agencies for providing IT support services?
Leidos, Inc. is a major government contractor with a substantial history of providing IT and support services to various federal agencies, including NASA. Their track record generally involves large-scale system integration, IT modernization, and operational support. While specific performance details for this particular contract are not fully detailed in the summary, Leidos's continued engagement with government entities suggests a capacity to meet contractual obligations. A deeper dive into past performance evaluations, contract awards, and any reported issues or successes would provide a more comprehensive view of their track record relevant to this specific award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 2200 SPACE PARK DR, SUITE 200, HOUSTON, TX, 77058
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,464,445
Exercised Options: $22,464,445
Current Obligation: $21,662,885
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2001-08-25
Current End Date: 2007-02-15
Potential End Date: 2007-02-15 00:00:00
Last Modified: 2020-02-27
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →