Leidos Inc. awarded $27.2M for ammunition capability, with a significant portion for IT services

Contract Overview

Contract Amount: $27,208,393 ($27.2M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-02

End Date: 2024-01-25

Contract Duration: 2,155 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF NATIONAL LEVEL AMMUNITION CAPABILITY (NLAC)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to LEIDOS, INC. for work described as: IGF::OT::IGF NATIONAL LEVEL AMMUNITION CAPABILITY (NLAC) Key points: 1. Contract value indicates substantial investment in national ammunition capabilities. 2. The majority of the contract value is allocated to 'Other Computer Related Services', suggesting a strong IT component. 3. A single delivery order suggests a focused scope of work within the larger contract. 4. The contract duration of over 2000 days points to a long-term requirement. 5. Fixed-price contract type aims to control costs for the government. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: fair

The total award of $27.2 million over approximately six years for 'National Level Ammunition Capability' requires further breakdown to assess value for money. The primary NAICS code (541519) for 'Other Computer Related Services' suggests a significant IT services component, which can be benchmarked against similar IT support contracts. Without specific deliverables or performance metrics, a precise value assessment is challenging. The fixed-price nature of the contract is a positive indicator for cost control, but the overall value proposition depends heavily on the effectiveness and efficiency of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is the preferred method for ensuring the widest possible access to potential contractors and fostering competitive pricing. The data indicates one award, which could mean multiple bids were received and evaluated, or it could represent a single successful bid in a competitive process. The level of competition is not explicitly detailed beyond 'full and open', but this method generally leads to better price discovery and value for the government.

Taxpayer Impact: Full and open competition maximizes the opportunity for taxpayers to benefit from competitive pricing and innovative solutions, as a broad range of contractors are encouraged to bid.

Public Impact

The Department of the Army benefits from enhanced national-level ammunition capabilities. The contract likely supports the modernization and management of ammunition data and systems. Geographic impact is national, focusing on the strategic capabilities of the U.S. Army. Workforce implications may include IT specialists, logistics experts, and program managers involved in ammunition systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics makes it difficult to gauge the effectiveness of the 'ammunition capability' beyond IT services.
  • The broad NAICS code 'Other Computer Related Services' could encompass a wide range of activities, making it hard to pinpoint the exact nature of the IT support.
  • The contract's long duration could lead to scope creep or evolving requirements that may not be optimally managed under the current structure.
  • The absence of small business participation raises questions about opportunities for smaller, specialized firms in this domain.

Positive Signals

  • Awarded through full and open competition, suggesting a robust bidding process.
  • Fixed-price contract type provides cost certainty for the government.
  • The contract addresses a critical national capability related to ammunition.
  • The long duration indicates a sustained commitment to a vital function.

Sector Analysis

This contract falls within the Information Technology and Defense sectors. The IT services component, categorized under NAICS 541519, is broad and could include software development, system integration, or IT consulting. The 'ammunition capability' aspect places it within the defense industrial base, specifically supporting logistics and readiness. Comparable spending benchmarks would involve looking at other large-scale IT support contracts for defense agencies or contracts focused on defense logistics and supply chain management.

Small Business Impact

The contract data indicates that this was not set aside for small businesses (sb: false) and the prime contractor is Leidos, Inc., a large defense contractor. This suggests that the primary focus was on large-scale capabilities that may not have been suitable for small business set-asides, or that large businesses were deemed best positioned to meet the requirements. There is no explicit information on subcontracting plans, but for contracts of this nature and size, subcontracting to small businesses is often a component, though not mandated by a set-aside.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected. The specific oversight mechanisms would depend on the detailed terms and conditions within the contract.

Related Government Programs

  • Defense Logistics Agency (DLA) IT Support Contracts
  • Army Ammunition Procurement and Management Systems
  • Department of Defense Enterprise IT Services
  • National Ammunition Logistics Programs

Risk Flags

  • Lack of detailed performance metrics
  • Broad scope of IT services under NAICS 541519
  • Limited information on number of bidders

Tags

department-of-defense, department-of-the-army, it-services, ammunition-capability, full-and-open-competition, firm-fixed-price, delivery-order, leidos-inc, national-level, virginia, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to LEIDOS, INC.. IGF::OT::IGF NATIONAL LEVEL AMMUNITION CAPABILITY (NLAC)

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 $27.2 million.

What is the period of performance?

Start: 2018-03-02. End: 2024-01-25.

What specific IT services are encompassed by NAICS code 541519 under this contract, and how do they contribute to the 'National Level Ammunition Capability'?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can include a wide array of IT functions such as IT consulting, systems integration, custom software development, and IT support services. For this contract, these services likely support the management, tracking, analysis, and potentially the modernization of ammunition data and logistics systems. This could involve developing or maintaining databases, creating analytical tools for inventory management, ensuring cybersecurity for sensitive ammunition-related information, or integrating various IT systems used in the ammunition supply chain. The specific contribution to the 'National Level Ammunition Capability' would be through enhancing the efficiency, accuracy, and accessibility of information critical for strategic planning, procurement, and deployment of ammunition.

How does the $27.2 million award compare to historical spending on similar ammunition management or IT support contracts within the Department of the Army?

Comparing the $27.2 million award requires context on the specific scope and duration of similar contracts. If this represents a six-year effort, the annual average is approximately $4.5 million. This figure needs to be benchmarked against other large-scale IT modernization or logistics support contracts within the Department of the Army, particularly those focused on weapon systems or supply chain management. For instance, contracts for enterprise resource planning (ERP) systems or major IT infrastructure upgrades within the Army often run into tens or hundreds of millions of dollars. Without more granular data on the specific deliverables and the timeframes of comparable contracts, it's difficult to definitively state if $27.2 million represents high, low, or average spending. However, for a national-level capability with a significant IT component over several years, this amount appears to be within a reasonable range for specialized support.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of Leidos, Inc. in fulfilling the 'National Level Ammunition Capability' requirements?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate Leidos, Inc.'s performance under this contract. Typically, for IT services and capability development contracts, KPIs might include system uptime and availability, data accuracy rates, response times for support requests, successful implementation of new features or system upgrades, cybersecurity compliance, and adherence to project timelines and budgets. The effectiveness of the 'National Level Ammunition Capability' would likely be assessed through metrics related to improved inventory visibility, reduced lead times in ammunition supply, enhanced data analytics for decision-making, and overall system reliability. The absence of this information in the summary data highlights a potential area for further inquiry into contract oversight and performance management.

Given the 'full and open competition' award type, how many bids were received, and what was the competitive landscape like for this specific contract?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION,' which signifies that the solicitation was made available to all responsible sources. However, the specific number of bids received is not provided in the summary data. While 'full and open competition' is the statutory preference, it does not guarantee a high number of bidders for every contract. Factors such as the specialized nature of the requirement, the complexity of the technical solution, or the contractor's existing relationship with the agency could influence the number of interested parties. A low number of bids, even under full and open competition, might warrant further investigation into potential barriers to entry or market concentration.

What is the track record of Leidos, Inc. in delivering similar IT services or defense logistics support contracts to the Department of Defense?

Leidos, Inc. has a substantial track record of delivering a wide range of IT services and defense logistics support to the Department of Defense (DoD) and other federal agencies. As a major government contractor, they are involved in numerous large-scale programs encompassing areas such as enterprise IT, cybersecurity, data analytics, cloud migration, and mission-critical systems support. Their experience often includes managing complex supply chains, modernizing legacy systems, and providing advanced technological solutions for military operations. While specific performance details for every contract are not publicly available, Leidos's continued success in winning significant DoD contracts suggests a generally positive performance history and capability in meeting the demanding requirements of defense clients.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W52P1J18Q0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1750 PRESIDENTS ST FL 5, 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: $27,208,393

Exercised Options: $27,208,393

Current Obligation: $27,208,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F116AA

IDV Type: FSS

Timeline

Start Date: 2018-03-02

Current End Date: 2024-01-25

Potential End Date: 2024-01-25 12:01:00

Last Modified: 2023-11-28

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