Leidos, Inc. awarded $13.6M contract for engineering services, raising questions about competition and value
Contract Overview
Contract Amount: $13,591,188 ($13.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-16
End Date: 2010-09-15
Contract Duration: 1,825 days
Daily Burn Rate: $7.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200511!000515!5700!FA8212!OO-ALC/PKGF/LGKF !F0960301D0208 !A!N! !Y!QP23 ! !20050916!20060916!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002493594!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !C! !20200930!B! ! !A! !A!N!J!2!010!B! !Z!Y!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.6 million to LEIDOS, INC. for work described as: 200511!000515!5700!FA8212!OO-ALC/PKGF/LGKF !F0960301D0208 !A!N! !Y!QP23 ! !20050916!20060916!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN … Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Significant duration of over 5 years suggests a long-term need for these engineering services. 3. The contract's value of $13.6M warrants scrutiny for cost-effectiveness given the lack of competition. 4. Engineering services are critical for defense, but the specific nature of this work requires further detail. 5. The contractor, Leidos, Inc., is a major player, indicating established relationships within the sector. 6. The contract's fixed-price nature provides some cost certainty, but doesn't guarantee optimal value without competition.
Value Assessment
Rating: questionable
The contract value of $13.6 million for engineering services over five years appears substantial. Without competitive bidding, it is difficult to benchmark this price against market rates or similar contracts. The lack of competition raises concerns about whether the government secured the best possible value for these services. Further analysis would be needed to compare the scope and deliverables to other government engineering contracts to assess if the pricing is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This approach bypasses the competitive process, which typically leads to better price discovery and potentially lower costs for the government. The absence of multiple bidders suggests that either there were unique capabilities required that only Leidos, Inc. could provide, or the procurement strategy did not prioritize competition.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the downward pressure that competition usually provides.
Public Impact
The primary beneficiaries are likely the technical and engineering workforce employed by Leidos, Inc. The services delivered are critical engineering support, though the specific application is not detailed. The geographic impact is centered around the contractor's location in San Diego, California, and potentially where the services are applied. This contract supports the defense sector's need for specialized engineering expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competitive bidding may result in inflated costs for taxpayers.
- Sole-source award limits transparency and opportunities for other capable firms.
- Long contract duration without competition could lead to complacency or reduced innovation.
- Specific details on the engineering services are not provided, hindering a full value assessment.
Positive Signals
- Leidos, Inc. is an established contractor with a significant presence in the federal market.
- The firm-fixed-price contract type offers some predictability in cost.
- The contract is for essential engineering services, indicating a critical need.
Sector Analysis
This contract falls within the Engineering Services sector, a vital component of the broader defense industrial base. The market for specialized engineering services is competitive, but often contracts for highly specific or integrated systems are awarded to incumbent or sole-source providers. Benchmarking this contract's value is challenging without more detailed information on the specific engineering tasks and deliverables, especially given its sole-source nature.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were explicitly mandated or explored through a competitive process. This contract may not contribute to the government's small business contracting goals.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which ensures contract compliance and performance. The specific oversight mechanisms would depend on the contract's terms and conditions. Transparency is limited due to the sole-source award, and further details on performance monitoring and reporting would be needed for a comprehensive assessment.
Related Government Programs
- Defense Engineering Services
- Aerospace Engineering Support
- Systems Engineering Contracts
- Department of Defense IT and Technical Services
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for cost overruns due to lack of competition.
- Limited transparency regarding specific services and performance metrics.
- Contract duration is lengthy without clear competitive milestones.
Tags
defense, department-of-defense, engineering-services, systems-engineering, sole-source, firm-fixed-price, leidos-inc, air-force, california, large-contract, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.6 million to LEIDOS, INC.. 200511!000515!5700!FA8212!OO-ALC/PKGF/LGKF !F0960301D0208 !A!N! !Y!QP23 ! !20050916!20060916!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002493594!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !C! !202
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $13.6 million.
What is the period of performance?
Start: 2005-09-16. End: 2010-09-15.
What specific engineering services are being provided under this contract, and how do they align with the agency's mission?
The provided data indicates the contract is for 'SYSTEMS ENGINEERING SERVICES' under the 'AIRFRAMES AND SPARES' product service code. While this suggests support related to aircraft components and systems, the precise nature of the engineering tasks is not detailed. These services could range from design and analysis to testing and integration, crucial for maintaining and upgrading defense platforms. The alignment with the agency's mission would depend on the specific defense systems or programs these services support, which requires further investigation beyond the contract abstract.
How does the $13.6 million contract value compare to similar engineering services contracts awarded by the Department of Defense?
Benchmarking the $13.6 million contract value is challenging without more specific details on the scope of work and duration. However, for context, large-scale systems engineering contracts for major defense programs can range from tens of millions to billions of dollars over several years. Given this contract's duration of approximately five years and its sole-source nature, the $13.6 million figure might represent a moderate investment for specialized support. A more accurate comparison would require identifying contracts with similar service descriptions, complexity, and agency, ideally those awarded competitively to establish a clearer value baseline.
What are the potential risks associated with awarding a sole-source contract for engineering services of this magnitude?
The primary risk of a sole-source award is the potential for overpayment due to the lack of competitive pressure. Without competing bids, the government may not achieve the most cost-effective pricing. Other risks include a lack of innovation if the contractor faces no competitive threat, and potential vendor lock-in, making it difficult to switch providers in the future. Furthermore, the absence of multiple bidders can raise concerns about the justification for sole-sourcing and whether all avenues for competition were adequately explored, potentially leading to perceptions of unfairness or inefficiency.
What is Leidos, Inc.'s track record with the Department of Defense, particularly in providing systems engineering services?
Leidos, Inc. (and its predecessor Science Applications International Corporation, SAIC, as indicated by the data) has a substantial and long-standing track record with the Department of Defense. They are a major federal contractor frequently awarded contracts across various defense and intelligence domains, including IT, systems engineering, logistics, and technical support. Their history with the DoD suggests a deep understanding of military requirements and processes. However, the specific performance quality and value delivered on past contracts would require a detailed review of performance evaluations and historical spending patterns.
What is the historical spending pattern for systems engineering services within the relevant agency or defense sector?
Historical spending on systems engineering services within the Department of Defense is significant and generally increases with the complexity and modernization efforts of defense platforms. Agencies like the Air Force, Army, and Navy consistently allocate substantial budgets to engineering support for aircraft, ground vehicles, C4ISR systems, and other critical assets. Trends often show a greater reliance on specialized contractors as systems become more technologically advanced and integrated. Analyzing specific agency budget allocations for engineering services over the past decade would reveal patterns of investment and potential shifts in procurement strategies, such as increased use of sole-source awards for specialized capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DRIVE, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: F0960301D0208
IDV Type: IDC
Timeline
Start Date: 2005-09-16
Current End Date: 2010-09-15
Potential End Date: 2010-09-15 00:00:00
Last Modified: 2018-01-19
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