Navy ERP Program Support Contract Awarded to Leidos Inc. for $11.79 Million
Contract Overview
Contract Amount: $11,786,591 ($11.8M)
Contractor: Leidos Inc
Awarding Agency: Department of Defense
Start Date: 2006-03-12
End Date: 2010-02-16
Contract Duration: 1,437 days
Daily Burn Rate: $8.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: NAVY ENTERPISE RESOURCE PLANNING (ERP) PROGRAM SUPPORT
Place of Performance
Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29407, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $11.8 million to LEIDOS INC for work described as: NAVY ENTERPISE RESOURCE PLANNING (ERP) PROGRAM SUPPORT Key points: 1. Contract awarded to a single large business, Leidos Inc. 2. The contract falls under Engineering Services, a broad category. 3. Full and open competition was used, suggesting a competitive bidding process. 4. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight.
Value Assessment
Rating: fair
The contract was awarded in 2006 and completed in 2010. Without current market data or specific performance metrics, assessing the value against similar contracts is difficult. The Cost Plus Award Fee structure implies that pricing was tied to performance, but the ultimate cost-effectiveness is not immediately clear.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized full and open competition, which is generally a positive indicator for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it hard to definitively assess the extent of price competition achieved.
Taxpayer Impact: The $11.79 million awarded represents taxpayer funds allocated to support the Navy's ERP program. The effectiveness of this spending in achieving program goals would determine the ultimate taxpayer impact.
Public Impact
Supports a critical Navy Enterprise Resource Planning (ERP) system. Contract duration was over 3 years, indicating a significant project. Awarded by the Department of the Navy, a major defense agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
- Lack of specific performance data makes value assessment challenging.
- Small business participation is not indicated.
Positive Signals
- Utilized full and open competition.
- Awarded to a single, established contractor.
- Supported a critical defense program.
Sector Analysis
The contract falls under Engineering Services (NAICS 541330), which is common for large government IT and defense programs. Spending benchmarks for ERP support can vary widely based on scope and complexity, but $11.79 million for over three years of support suggests a focused or early-stage engagement.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (sb: false). This suggests the prime contractor, Leidos Inc., likely performed the work or subcontracted to other large businesses.
Oversight & Accountability
The Cost Plus Award Fee (CPA) contract type necessitates robust oversight to ensure performance targets are met and costs are reasonable. Without details on the award fee structure and the government's oversight mechanisms, it's difficult to assess the effectiveness of accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Award Fee contract type.
- No indication of small business subcontracting.
- Limited data on performance outcomes.
- Contract completed over a decade ago, limiting current relevance.
Tags
engineering-services, department-of-defense, sc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to LEIDOS INC. NAVY ENTERPISE RESOURCE PLANNING (ERP) PROGRAM SUPPORT
Who is the contractor on this award?
The obligated recipient is LEIDOS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $11.8 million.
What is the period of performance?
Start: 2006-03-12. End: 2010-02-16.
What were the specific performance metrics used to determine the award fee, and how did they align with the Navy's ERP program objectives?
The specific performance metrics for the award fee are not detailed in the provided data. Typically, for ERP support, these could include system uptime, user satisfaction, successful implementation of new modules, or adherence to project timelines. The alignment with Navy objectives would depend on how these metrics were defined and measured against the program's strategic goals.
Given the Cost Plus Award Fee structure, what was the government's strategy for mitigating potential cost overruns and ensuring fair pricing?
The government's strategy would likely involve establishing clear, measurable performance standards that directly influence the award fee. Effective oversight, regular audits, and a well-defined baseline for costs are crucial. The 'award' portion incentivizes efficiency, but the 'cost plus' element requires diligent monitoring to prevent unchecked spending.
How did the full and open competition process ensure the best value was obtained for the Navy's ERP program support?
Full and open competition theoretically maximizes the pool of potential bidders, fostering a competitive environment that drives down prices and encourages innovation. The government would have evaluated proposals based on a combination of technical merit and cost. The success in obtaining best value depends on the clarity of the solicitation and the rigor of the evaluation criteria used.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002407R3089
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $388,939,768
Exercised Options: $175,411,781
Current Obligation: $11,786,591
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2006-03-12
Current End Date: 2010-02-16
Potential End Date: 2010-02-16 00:00:00
Last Modified: 2016-02-16
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