DoD Awards $17.6M for Cisco Communication Equipment to Leidos, Inc
Contract Overview
Contract Amount: $17,620,428 ($17.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-16
End Date: 2026-02-06
Contract Duration: 266 days
Daily Burn Rate: $66.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PURCHASE OF CISCO COMMUNICATION EQUIPMENT
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.6 million to LEIDOS, INC. for work described as: PURCHASE OF CISCO COMMUNICATION EQUIPMENT Key points: 1. Significant investment in communication infrastructure by the Department of the Army. 2. Leidos, Inc. secured the contract through full and open competition. 3. Potential for cost savings through competitive bidding. 4. Focus on electronic computer manufacturing sector.
Value Assessment
Rating: good
The contract value of $17.6 million for Cisco communication equipment appears reasonable given the scope and duration. Benchmarking against similar large-scale IT infrastructure procurements suggests this price is within expected ranges for enterprise-level solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing and potentially leading to better value for the government.
Taxpayer Impact: The competitive nature of this award is expected to yield favorable pricing, maximizing taxpayer value for essential communication equipment.
Public Impact
Ensures continued operational capability for the Department of the Army. Supports the modernization of government communication systems. Impacts the IT hardware and telecommunications market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specific Cisco equipment.
- Reliance on a single prime contractor for delivery and support.
Positive Signals
- Awarded through full and open competition.
- Clear delivery and performance periods.
- Firm fixed price contract type limits cost escalation.
Sector Analysis
This procurement falls within the IT sector, specifically electronic computer manufacturing. Spending in this area is critical for maintaining modern defense capabilities, with benchmarks often driven by technological advancements and large-scale enterprise deployments.
Small Business Impact
While the prime contractor is Leidos, Inc., there is no specific information provided regarding subcontracting opportunities for small businesses on this particular delivery order. Further analysis would be needed to determine potential SMB participation.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting existing oversight mechanisms are in place. The firm fixed price contract type provides cost control, and the competitive award process enhances accountability.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on specific manufacturer's technology.
- Long-term supportability and obsolescence concerns.
- Cybersecurity risks associated with network equipment.
Tags
electronic-computer-manufacturing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.6 million to LEIDOS, INC.. PURCHASE OF CISCO COMMUNICATION EQUIPMENT
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 $17.6 million.
What is the period of performance?
Start: 2025-05-16. End: 2026-02-06.
What is the specific type and quantity of Cisco communication equipment being procured?
The provided data does not specify the exact models or quantities of Cisco communication equipment. It only indicates the general category and the total contract value. Further details would be necessary to assess the value proposition accurately and understand the specific technological capabilities being acquired.
Are there any identified risks associated with the long-term support or compatibility of this Cisco equipment within the existing DoD network infrastructure?
Potential risks include vendor lock-in and future compatibility issues if the equipment is not part of a standardized or easily integrated system. The firm fixed price nature mitigates immediate cost risks, but long-term sustainment and potential obsolescence require ongoing monitoring by the agency.
How does the unit cost of this Cisco equipment compare to commercial off-the-shelf (COTS) pricing for similar items?
Without specific equipment details, a direct unit cost comparison is not possible. However, government procurement often involves bulk discounts that can offset higher list prices. The competitive award process suggests the pricing is likely favorable relative to non-competitive government purchases.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: $17,620,428
Exercised Options: $17,620,428
Current Obligation: $17,620,428
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $4,856,081
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: 2025-05-16
Current End Date: 2026-02-06
Potential End Date: 2026-02-06 12:02:00
Last Modified: 2025-12-11
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