DoD's $229M IT Services Contract Awarded to Leidos, Inc. with Full and Open Competition

Contract Overview

Contract Amount: $22,940,548 ($22.9M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-12-29

End Date: 2012-02-29

Contract Duration: 2,253 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200606!000153!97AS!SP0103!DEFENSE SUPPLY CENTER PHILADELPH!GS23F8006H !C!N! !N!SP010306FA024! !20051229!20060628!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000002668406!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !NOT DISCERNABLE !541512!E! !6! ! ! ! !C!20101228!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to LEIDOS, INC. for work described as: 200606!000153!97AS!SP0103!DEFENSE SUPPLY CENTER PHILADELPH!GS23F8006H !C!N! !N!SP010306FA024! !20051229!20060628!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!48376!059!51!MCLEAN !FAIR… Key points: 1. The contract value is substantial at $229 million, indicating a significant investment in IT services. 2. Leidos, Inc. secured this award through full and open competition, suggesting a competitive bidding process. 3. The contract duration is long, spanning from 2005 to 2012, which could pose risks related to technology obsolescence. 4. The primary sector is IT services, specifically 'Administrative Management and General Management Consulting Services', with a PSC code of 541512.

Value Assessment

Rating: fair

The contract value of $229 million over approximately 7 years suggests a significant but not exceptionally high annual spend. Benchmarking against similar large-scale IT service contracts would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, which typically leads to better price discovery and potentially more competitive pricing for the government. The specific details of the bidding process are not provided.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, although the total spend of $229 million represents a considerable investment.

Public Impact

Taxpayers are funding a large IT services contract for the Department of Defense. The contract supports critical defense logistics operations through IT system design and integration. The long contract duration could mean that the technology and services provided may become outdated before the contract ends.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (2005-2012) may lead to technology obsolescence.
  • Lack of specific performance metrics or outcomes makes it difficult to assess effectiveness.
  • The 'NOT DISCERNABLE' PSC description is vague and lacks clarity on the exact services procured.

Positive Signals

  • Awarded through full and open competition, indicating a competitive process.
  • Leidos, Inc. is a well-established government contractor.
  • The contract supports essential defense logistics functions.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on administrative management and general management consulting services. The value of $229 million is substantial for this type of service, especially for a long-duration contract.

Small Business Impact

The data indicates that this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The contract was awarded by the Defense Logistics Agency, a component of the Department of Defense, suggesting established oversight mechanisms. However, the limited detail on performance and specific deliverables makes a thorough oversight assessment challenging.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of Defense Contracting
  • Defense Logistics Agency Programs

Risk Flags

  • Potential for technology obsolescence due to long contract duration.
  • Lack of specific performance metrics to assess effectiveness.
  • Vague description of services procured (PSC 'NOT DISCERNABLE').
  • Limited insight into cybersecurity measures over the contract's lifespan.

Tags

administrative-management-and-general-ma, department-of-defense, md, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to LEIDOS, INC.. 200606!000153!97AS!SP0103!DEFENSE SUPPLY CENTER PHILADELPH!GS23F8006H !C!N! !N!SP010306FA024! !20051229!20060628!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000002668406!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !NOT DISCERNABLE !541512!E! !6! ! ! ! !C!201

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2005-12-29. End: 2012-02-29.

What specific IT systems and services were integrated or designed under this contract, and how did they improve defense logistics efficiency?

The contract description 'AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS' and PSC 541512 suggest a broad scope. Without detailed performance reports or system documentation, it's impossible to quantify the specific improvements in defense logistics efficiency. The value of the contract implies significant system development or integration occurred, but the precise impact remains undocumented in this data.

Given the contract's duration (2005-2012), what measures were in place to ensure the IT solutions remained current and effective against evolving cyber threats?

The provided data does not detail specific measures for ensuring technological currency or cybersecurity throughout the contract's lifespan. Long-term IT contracts, especially those awarded in the mid-2000s, often faced challenges in adapting to rapid technological advancements and emerging cyber threats. Without explicit contract clauses or performance reviews addressing these aspects, it's a significant risk.

How did the 'full and open competition' process translate into cost savings or superior service quality compared to other contracting methods for similar DoD IT services?

Full and open competition generally fosters a competitive environment that can lead to better pricing and service quality. However, without comparative data from sole-source or limited-competition contracts for similar services during the same period, it's difficult to definitively quantify the cost savings or service quality advantages realized in this specific instance. The $229 million value suggests a substantial investment regardless of the competition type.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 1710 SAIC DRIVE, ROOM #8031, MCLEAN, VA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,842,365

Exercised Options: $18,880,306

Current Obligation: $22,940,548

Parent Contract

Parent Award PIID: GS23F8006H

IDV Type: FSS

Timeline

Start Date: 2005-12-29

Current End Date: 2012-02-29

Potential End Date: 2012-02-29 00:00:00

Last Modified: 2014-06-11

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