DoD's $7.97M IT hardware contract to Leidos, Inc. awarded via full and open competition
Contract Overview
Contract Amount: $7,970,305 ($8.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-25
End Date: 2026-07-09
Contract Duration: 652 days
Daily Burn Rate: $12.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROCURE STRAIGHT POWER CABLE, APPLIANCE PROCESSOR, GIGABIT SWITCH, BATTER POWER SUPPLY, SOLID STATE DRIVE, TRANSIT CASE, RUGGED LAPTOP, AND COST FOR BONDAGE STORAGE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $8.0 million to LEIDOS, INC. for work described as: PROCURE STRAIGHT POWER CABLE, APPLIANCE PROCESSOR, GIGABIT SWITCH, BATTER POWER SUPPLY, SOLID STATE DRIVE, TRANSIT CASE, RUGGED LAPTOP, AND COST FOR BONDAGE STORAGE Key points: 1. Contract addresses critical IT hardware needs for the Department of the Army. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of 652 days allows for sustained hardware provision. 5. Leidos, Inc. is a large, established federal contractor with significant IT experience. 6. The contract's value is moderate within the broader IT procurement landscape.
Value Assessment
Rating: good
The contract value of $7.97 million for IT hardware appears reasonable given the scope and duration. Benchmarking against similar procurements for electronic computer manufacturing (NAICS 334111) would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when requirements are well-defined, as it caps the contractor's potential profit and transfers cost overrun risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bids received is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to meet the specified requirements.
Taxpayer Impact: Full and open competition is the preferred method as it maximizes opportunities for diverse vendors and typically results in the best value for taxpayers by driving down prices through market forces.
Public Impact
The Department of the Army will receive essential IT hardware, including computers, power supplies, and storage solutions. This procurement supports the operational readiness and technological infrastructure of military personnel. The contract's geographic impact is primarily within Virginia, where the contractor is located. The acquisition of these components will likely support IT roles within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific bid count prevents a definitive assessment of competitive intensity.
- No explicit mention of small business subcontracting goals or achievements.
- The specific performance metrics and quality assurance plan are not detailed here.
Positive Signals
- Firm fixed-price contract type aligns government cost expectations.
- Leidos, Inc. has a strong track record in federal IT contracting.
- Full and open competition is a positive indicator for market responsiveness.
Sector Analysis
The IT hardware sector is characterized by rapid technological advancements and a wide range of suppliers, from large manufacturers to specialized component providers. This contract falls under the Electronic Computer Manufacturing (NAICS 334111) category, which includes the production of electronic computers and related devices. Federal spending in this area is substantial, driven by the continuous need for updated and reliable technology across all government agencies. Comparable spending benchmarks would typically involve analyzing the average cost of similar hardware configurations and quantities procured by defense agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside benefits associated with this specific award. However, as Leidos, Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on Leidos's subcontracting plan and the specific components required. The absence of a set-aside suggests that the primary focus was on obtaining the best overall value through broad market competition.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated by the contract's public availability through federal procurement databases. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Technology Contracting Organization (DITCO) procurements
- General Services Administration (GSA) IT Schedule contracts
- Army Enterprise Software Program (AESIP)
- Command, Control, Communications, Computers, and Intelligence (C4I) systems
Risk Flags
- Potential for technology obsolescence given the contract duration.
- Dependence on a single large contractor (Leidos, Inc.) for critical hardware.
- Lack of specific bid count limits assessment of competitive intensity.
Tags
it, defense, department-of-the-army, virginia, firm-fixed-price, delivery-order, full-and-open-competition, electronic-computer-manufacturing, hardware-procurement, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.0 million to LEIDOS, INC.. PROCURE STRAIGHT POWER CABLE, APPLIANCE PROCESSOR, GIGABIT SWITCH, BATTER POWER SUPPLY, SOLID STATE DRIVE, TRANSIT CASE, RUGGED LAPTOP, AND COST FOR BONDAGE STORAGE
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 Army).
What is the total obligated amount?
The obligated amount is $8.0 million.
What is the period of performance?
Start: 2024-09-25. End: 2026-07-09.
What is Leidos, Inc.'s historical performance record with the Department of the Army for similar IT hardware procurements?
Leidos, Inc. has a substantial history of contracting with the Department of the Army and other federal agencies, often securing large-value IT and systems integration contracts. Their performance record typically includes a wide range of services, from hardware provisioning to complex software development and cybersecurity solutions. While specific details on past performance for identical hardware configurations are not provided here, their extensive experience suggests a generally reliable track record. However, a deeper dive into past performance evaluations, contract award histories, and any reported disputes or terminations would be necessary for a comprehensive assessment of their suitability for this specific procurement.
How does the awarded price of $7.97 million compare to market rates for the specified IT hardware components?
A precise comparison of the $7.97 million award to current market rates requires detailed itemization of the procured components (power cables, processors, switches, drives, laptops, cases) and their quantities. Without this breakdown, a direct benchmark is challenging. However, the contract's classification under NAICS 334111 (Electronic Computer Manufacturing) and its award via full and open competition suggest that the pricing was subject to market forces. If the number of bids was robust, the price is likely competitive. Further analysis would involve comparing unit costs for specific items like rugged laptops or solid-state drives against commercial price lists or other government contracts for similar items.
What are the primary risks associated with this contract and how are they being mitigated?
Key risks include potential supply chain disruptions for specialized IT hardware, contractor underperformance, or obsolescence of technology within the contract's lifespan. Mitigation strategies are embedded in the contract structure and award process. The firm fixed-price (FFP) nature shifts cost overrun risk to Leidos, Inc. The full and open competition process aims to select a capable contractor, and the contract duration (652 days) allows for phased delivery, potentially mitigating obsolescence risk if managed well. Specific performance metrics and quality assurance surveillance plans, though not detailed here, would further define mitigation efforts.
What is the expected program effectiveness or impact of acquiring these IT hardware components?
The acquisition of these IT hardware components is expected to enhance the operational capabilities and readiness of the Department of the Army. Reliable power supplies, processors, switches, and storage are fundamental to modern military operations, supporting communication, data processing, command and control, and intelligence functions. The inclusion of rugged laptops and transit cases indicates a need for durable equipment suitable for potentially challenging field environments. Improved IT infrastructure can lead to more efficient data management, faster decision-making, and enhanced communication networks, ultimately contributing to mission success.
What are the historical spending patterns for similar IT hardware procurements by the Department of the Army?
The Department of the Army consistently spends significant amounts on IT hardware, reflecting its vast operational needs and reliance on technology. Historical spending patterns show a continuous demand for computing devices, networking equipment, and storage solutions, often procured through various contract vehicles including GSA schedules, direct solicitations, and large IDIQ contracts. Spending often fluctuates based on modernization initiatives, end-of-life replacements, and specific program requirements. The $7.97 million awarded here represents a moderate investment within the broader context of the Army's annual IT budget, which can run into billions of dollars for hardware and related services.
Are there any specific performance standards or key performance indicators (KPIs) outlined for this contract?
The provided data does not explicitly detail the specific performance standards or Key Performance Indicators (KPIs) for this contract. However, as a firm fixed-price contract awarded under full and open competition, it is reasonable to assume that the contract includes a Statement of Work (SOW) or Performance Work Statement (PWS) outlining the required specifications, delivery schedules, and quality requirements. The government typically employs quality assurance surveillance plans (QASPs) to monitor contractor performance against these standards. Failure to meet these implicit or explicit requirements could result in contract remedies, including potential withholding of payment or termination.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,970,305
Exercised Options: $7,970,305
Current Obligation: $7,970,305
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $11,042,298
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T23D0003
IDV Type: IDC
Timeline
Start Date: 2024-09-25
Current End Date: 2026-07-09
Potential End Date: 2026-07-09 12:07:00
Last Modified: 2025-12-23
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