DoD's $32.2M Wired Telecom Contract Awarded to Leidos Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $32,188,782 ($32.2M)
Contractor: Leidos Inc
Awarding Agency: Department of Defense
Start Date: 2012-02-27
End Date: 2013-11-08
Contract Duration: 620 days
Daily Burn Rate: $51.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BASE YEAR - VA CH33
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $32.2 million to LEIDOS INC for work described as: BASE YEAR - VA CH33 Key points: 1. Leidos Inc. secured a significant $32.2 million contract for wired telecommunications services. 2. The contract was awarded through full and open competition, indicating a competitive bidding process. 3. The award value is substantial, suggesting a critical need for these services within the Department of the Navy. 4. The fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $32.2 million for wired telecommunications services appears reasonable given the duration and the nature of the services provided to the Department of the Navy. Benchmarking against similar large-scale telecommunications infrastructure contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method typically drives competitive pricing and ensures the government receives the best value. The fixed-price nature further supports cost control.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on essential telecommunications infrastructure.
Public Impact
Ensures reliable communication infrastructure for naval operations. Supports critical data transmission and connectivity for military personnel. Contributes to the technological backbone of national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively long (620 days).
- No specific mention of small business participation.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the IT sector, specifically wired telecommunications. Spending in this area is crucial for government operations, supporting everything from basic communication to advanced data networks. Benchmarks for similar contracts vary widely based on scope and duration.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses, nor does it mention their participation in this contract. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
The award through full and open competition suggests a robust procurement process. However, ongoing oversight would be necessary to ensure contract performance and adherence to terms, especially given the fixed-price nature.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business participation noted.
- Contract duration could lead to potential obsolescence of technology.
- No specific details on performance metrics or service level agreements.
- Potential for cost overruns if scope significantly expands beyond initial fixed price.
Tags
wired-telecommunications-carriers, department-of-defense, sc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.2 million to LEIDOS INC. BASE YEAR - VA CH33
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 $32.2 million.
What is the period of performance?
Start: 2012-02-27. End: 2013-11-08.
What specific wired telecommunications services were included in this contract, and how do they align with the Department of the Navy's operational needs?
The contract, NAICS code 517110, covers wired telecommunications carriers. This typically includes services like local and long-distance voice and data services, internet access, and private line services. For the Department of the Navy, these services are fundamental for command and control, intelligence gathering, logistical support, and daily administrative functions, ensuring seamless communication across various naval installations and deployed units.
What were the key evaluation criteria used during the full and open competition, and how did they balance technical capability against price?
While specific evaluation criteria are not detailed, full and open competition typically involves assessing factors such as technical approach, past performance, management capability, and price. Agencies aim to award to the offeror providing the best value, which is a balance between technical merit and cost. The firm fixed-price structure suggests that price was a significant consideration, but technical compliance and performance reliability would also be paramount for critical naval communications.
How does the $32.2 million award compare to historical spending on similar telecommunications services by the Department of the Navy or other defense branches?
Without specific historical data for comparable contracts, a direct comparison is difficult. However, $32.2 million over approximately 20 months (based on the duration) represents a substantial investment in telecommunications infrastructure. This figure should be benchmarked against the agency's overall IT budget and the typical cost of large-scale, fixed-price telecommunications service contracts to assess its relative scale and efficiency.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,188,782
Exercised Options: $32,188,782
Current Obligation: $32,188,782
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $11,650,188
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0016
IDV Type: IDC
Timeline
Start Date: 2012-02-27
Current End Date: 2013-11-08
Potential End Date: 2013-11-08 00:00:00
Last Modified: 2017-05-16
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