DoD's $58.7M DPAS Support Contract Awarded to Leidos, Inc. Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $58,659,636 ($58.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-01
End Date: 2024-02-14
Contract Duration: 1,261 days
Daily Burn Rate: $46.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 8507610281 - DPAS SUPPORT 12 MONTH BASE PERIOD
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $58.7 million to LEIDOS, INC. for work described as: 8507610281 - DPAS SUPPORT 12 MONTH BASE PERIOD Key points: 1. The contract's value of $58.7 million over 12 months warrants a closer look, especially given the 'Other Computer Related Services' NAICS code. 2. Leidos, Inc. is a major player in the federal IT and defense sectors, indicating significant competition may exist for such services. 3. The 'FIRM FIXED PRICE' contract type suggests price certainty, but the overall value and duration raise questions about potential overspending. 4. The 'Other Computer Related Services' category is broad, making it difficult to benchmark against specific, comparable contracts without more detail.
Value Assessment
Rating: questionable
The $58.7 million price tag for a 12-month base period seems high for 'Other Computer Related Services'. Benchmarking against similar IT support contracts awarded through full and open competition is crucial to assess if this represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While awarded under full and open competition, the specific details of the bidding process and the number of bidders are not provided. This lack of transparency makes it difficult to ascertain if the competition effectively drove down prices.
Taxpayer Impact: The substantial contract value suggests a significant allocation of taxpayer funds. Ensuring the services provided are essential and cost-effective is paramount for responsible fiscal management.
Public Impact
Taxpayers may be footing a significant bill for IT support services that could potentially be procured at a lower cost. The broad NAICS code '541519' could encompass a wide range of services, making it challenging for the public to understand the exact nature of the spending. The duration of the contract, including potential options, could extend the financial commitment, requiring ongoing public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for the specified service category.
- Lack of detailed service description for benchmarking.
- Potential for cost overruns if not managed tightly.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
The Department of Defense is a major consumer of IT services. Spending in this sector is often substantial, but benchmarks for 'Other Computer Related Services' can vary widely depending on the specific nature of the support provided.
Small Business Impact
The contract was awarded to Leidos, Inc., a large prime contractor. There is no indication of small business participation in this specific award, which could be an area for improvement in future contracting.
Oversight & Accountability
The Defense Logistics Agency (DLA) is responsible for this contract. Oversight should focus on ensuring the services delivered meet the stated requirements and that the pricing remains competitive throughout the contract's life.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- High contract value for a broad service category.
- Lack of detailed service description hinders value assessment.
- Potential for cost inefficiencies despite fixed price.
- Limited visibility into small business participation.
Tags
other-computer-related-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.7 million to LEIDOS, INC.. 8507610281 - DPAS SUPPORT 12 MONTH BASE PERIOD
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 $58.7 million.
What is the period of performance?
Start: 2020-09-01. End: 2024-02-14.
What specific 'Other Computer Related Services' are included under this $58.7 million contract, and how do they align with DLA's core mission requirements?
The contract's broad NAICS code '541519' necessitates a detailed breakdown of the services procured. Understanding if these services are mission-critical or administrative support is key to assessing value. Without this specificity, it's difficult to determine if the $58.7 million expenditure is justified and directly contributes to the Defense Logistics Agency's operational effectiveness.
Given the firm fixed price, what mechanisms are in place to ensure Leidos, Inc. is delivering high-quality services efficiently, and what are the penalties for underperformance?
A firm fixed price contract shifts most of the risk to the contractor, but effective oversight is still crucial. The DLA must have robust performance metrics and quality assurance procedures to monitor service delivery. Clear contractual clauses outlining remedies for non-performance or substandard service are essential to protect taxpayer interests and ensure the government receives the value it is paying for.
How does the $58.7 million award compare to industry benchmarks for similar IT support services procured through full and open competition by other federal agencies?
Benchmarking this contract against similar IT support services is vital for assessing value for money. A comprehensive analysis would involve comparing the per-unit costs, scope of services, and contract duration with awards made by agencies like GSA or other DoD components. If this contract's pricing significantly deviates upwards without clear justification, it suggests potential inefficiencies or a lack of competitive pressure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: SP470920Q1030
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 9737 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,659,636
Exercised Options: $58,659,636
Current Obligation: $58,659,636
Actual Outlays: $40,839,184
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $5,135,521
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470917D0018
IDV Type: IDC
Timeline
Start Date: 2020-09-01
Current End Date: 2024-02-14
Potential End Date: 2024-02-14 00:00:00
Last Modified: 2025-11-20
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 Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)