DoD Awards $158.5M Logistics Contract for MRAP Support in Afghanistan and Kuwait to Leidos Inc
Contract Overview
Contract Amount: $158,502,854 ($158.5M)
Contractor: Leidos Inc
Awarding Agency: Department of Defense
Start Date: 2012-09-19
End Date: 2014-06-30
Contract Duration: 649 days
Daily Burn Rate: $244.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: THIS CONTRACT PROVIDES LOGISTICS SUPPORT ACROSS ALL CONFIGURATIONS OF THE MRAP FOV FOR THE MISSIONS IN OPERATION ENDURING FREEDOM (OEF). THE GEOGRAPHICAL BREADTH OF THIS EFFORT INCLUDES OVER 300 DEPLOYED PERSONNEL AT 10 SITES IN AFGHANISTAN AND THE MRAP SUSTAINMENT FACILITY (MSF) IN KUWAIT. THE BASE AWARD AMOUNT IS $82,142,479.00 AND INCLUDES 905,470 DIRECT LABOR HOURS TOTALING $24,650,686 AND MATERIAL, TRAVEL AND ODC'S TOTALING $57,491,793. THIS CONTRACT INCLUDES AN OPTION WHICH TOTALS $62,967,739 AND INCLUDES 709,794 DIRECT LABOR HOURS TOTALING $20,992,067 AND MATERIAL, TRAVEL AND ODC'S TOTALING $41,975,672.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $158.5 million to LEIDOS INC for work described as: THIS CONTRACT PROVIDES LOGISTICS SUPPORT ACROSS ALL CONFIGURATIONS OF THE MRAP FOV FOR THE MISSIONS IN OPERATION ENDURING FREEDOM (OEF). THE GEOGRAPHICAL BREADTH OF THIS EFFORT INCLUDES OVER 300 DEPLOYED PERSONNEL AT 10 SITES IN AFGHANISTAN AND THE MRAP SUSTAINMENT FACILITY (MSF)… Key points: 1. The contract covers extensive logistics support for MRAP vehicles across multiple sites in Afghanistan and Kuwait. 2. Leidos Inc. is the sole awardee, indicating a non-competitive procurement. 3. The total value includes a significant base award and an option period, totaling over $158 million. 4. The contract is for Process, Physical Distribution, and Logistics Consulting Services, a critical support function for military operations.
Value Assessment
Rating: fair
The total award of $158.5M for logistics support is substantial. Without specific benchmarks for MRAP sustainment, a direct pricing comparison is difficult. However, the significant portion allocated to labor hours suggests a focus on personnel-intensive services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, which limits price discovery and potentially leads to higher costs for taxpayers. The sole-source nature suggests a specific capability or relationship was prioritized over competitive bidding.
Taxpayer Impact: The lack of competition raises concerns about whether the government achieved the best possible price for these essential logistics services.
Public Impact
Ensures operational readiness of MRAP vehicles, crucial for personnel safety in combat zones. Supports over 300 deployed personnel across 10 sites, directly impacting mission effectiveness. Provides sustainment for a key military asset, contributing to ongoing operational capabilities. The contract's duration and scope suggest a long-term commitment to supporting forces in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Sole-source award
Positive Signals
- Critical support for deployed personnel
- Ensures operational readiness of vital equipment
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically logistics consulting. Spending in this area is often driven by complex operational needs and the requirement for specialized expertise, particularly in deployed environments.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests the prime contractor, Leidos Inc., is a large business, and any subcontracting opportunities for small businesses are not detailed in this award information.
Oversight & Accountability
The 'VA' and 'ST' fields suggest this contract may have undergone specific vetting or oversight processes, potentially related to its value or criticality. However, the lack of competition warrants scrutiny regarding the justification for a sole-source award.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs due to sole-source award
- Limited transparency on subcontracting opportunities
- High contract value requires rigorous oversight
Tags
process-physical-distribution-and-logist, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $158.5 million to LEIDOS INC. THIS CONTRACT PROVIDES LOGISTICS SUPPORT ACROSS ALL CONFIGURATIONS OF THE MRAP FOV FOR THE MISSIONS IN OPERATION ENDURING FREEDOM (OEF). THE GEOGRAPHICAL BREADTH OF THIS EFFORT INCLUDES OVER 300 DEPLOYED PERSONNEL AT 10 SITES IN AFGHANISTAN AND THE MRAP SUSTAINMENT FACILITY (MSF) IN KUWAIT. THE BASE AWARD AMOUNT IS $82,142,479.00 AND INCLUDES 905,470 DIRECT LABOR HOURS TOTALING $24,650,686 AND MATERIAL, TRAVEL AND ODC'S TOTALING $57,491,793. THIS CONTRACT INCLUDES AN OPTION WHICH TOTALS $62,967
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 $158.5 million.
What is the period of performance?
Start: 2012-09-19. End: 2014-06-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT COMPETED'. A sole-source award typically requires a justification, such as the existence of only one responsible source capable of providing the required services, or urgent and compelling circumstances. Without this justification, it's difficult to assess if the government acted appropriately in foregoing competition.
How does the per-labor-hour cost compare to industry benchmarks for similar logistics support services in a deployed environment?
The contract allocates $24.65M for 905,470 direct labor hours in the base award, equating to approximately $27.22 per labor hour. This rate needs to be benchmarked against similar DoD contracts for logistics support in high-risk, deployed areas to determine if it represents fair and reasonable pricing.
What mechanisms are in place to ensure cost control and performance monitoring given the cost-plus-fixed-fee (CPFF) contract type and sole-source nature?
As a Cost Plus Fixed Fee (CPFF) contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Oversight is crucial to ensure costs are reasonable and allocable. The lack of competition necessitates robust government oversight to prevent potential cost overruns and ensure performance meets contract requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV12R0346
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $158,502,854
Exercised Options: $158,502,854
Current Obligation: $158,502,854
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $161,570
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-09-19
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2019-09-03
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