State Department Spends $15M on Leidos Services Over 7 Years Under Full and Open Competition

Contract Overview

Contract Amount: $15,075,790 ($15.1M)

Contractor: Leidos, Inc.

Awarding Agency: Department of State

Start Date: 2007-01-08

End Date: 2014-01-16

Contract Duration: 2,565 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: REQUIREMENT FOR SERVICES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $15.1 million to LEIDOS, INC. for work described as: REQUIREMENT FOR SERVICES. Key points: 1. Total spending of $15.08M over 7 years indicates a significant, long-term engagement. 2. Leidos, Inc. secured the contract, highlighting their role in government services. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The service type is labor hours, which can be prone to cost overruns if not managed closely.

Value Assessment

Rating: fair

The total award of $15.08M over 7 years averages to approximately $2.15M annually. Without specific unit rates or comparison data, it's difficult to definitively assess value, but the duration and total amount suggest a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, which typically fosters competitive pricing. However, the labor hours contract type requires careful monitoring to ensure efficient use of taxpayer funds and prevent scope creep.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming for the best value. However, the labor hours structure necessitates robust oversight to ensure costs remain aligned with actual work performed.

Public Impact

Citizens benefit from services provided by the Department of State, facilitated by this contract. The use of a large contractor like Leidos suggests a reliance on specialized expertise for government functions. Transparency in the procurement process is maintained through the full and open competition method.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under general government services, likely IT or administrative support, common across many federal agencies. The spending benchmark for such services varies widely based on scope, but $15M over 7 years is a moderate investment for a department like State.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation would be needed to determine if small businesses were involved.

Oversight & Accountability

The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. Oversight would focus on the performance of Leidos and the management of the delivery order by the Department of State.

Related Government Programs

Risk Flags

Tags

department-of-state, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $15.1 million to LEIDOS, INC.. REQUIREMENT FOR SERVICES.

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2007-01-08. End: 2014-01-16.

What specific services were procured under this labor hours contract, and how did their performance align with the initial objectives?

The provided data lacks specifics on the services rendered. A labor hours contract implies payment based on the time and labor rates of personnel. Effectiveness would be measured by the successful completion of tasks, adherence to project timelines, and the quality of deliverables, all of which require detailed performance reports and agency assessments beyond the award data.

How did the competitive bidding process for this full and open contract ensure the best possible price for the government?

Full and open competition allows any interested and qualified vendor to submit a bid, fostering a competitive environment. The Department of State would have evaluated proposals based on predefined criteria, likely including price, technical approach, and past performance. The lowest priced, technically acceptable offer, or the best value offer, would typically be selected, ensuring a degree of price efficiency.

What mechanisms were in place to manage potential cost overruns inherent in a labor hours contract over its 7-year duration?

Effective management of labor hours contracts typically involves establishing clear task orders with defined scopes of work, setting ceilings on hours or costs, and implementing rigorous progress tracking and reporting. Regular reviews by the contracting officer's representative (COR) are crucial to monitor labor utilization, prevent scope creep, and ensure that expenditures remain justified and within budget.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $125,179,627

Exercised Options: $125,179,627

Current Obligation: $15,075,790

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS09K99BHD0010

IDV Type: GWAC

Timeline

Start Date: 2007-01-08

Current End Date: 2014-01-16

Potential End Date: 2014-01-16 00:00:00

Last Modified: 2019-03-29

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