DoD Awards Leidos $130M for Software Sustainment Under SSES-NEXGEN Contract
Contract Overview
Contract Amount: $130,280,650 ($130.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-05-25
End Date: 2024-11-24
Contract Duration: 2,010 days
Daily Burn Rate: $64.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THIS TASK ORDER UNDER THE SSES-NEXGEN MULTIPLE AWARD INDEFINITE QUANTITY INDEFINITE DELIVERY CONTRACT IS TO PROVIDE THE SOFTWARE ENGINEERING CENTER'S C3T DIRECTORATE WITH POST DEPLOYMENT SOFTWARE SUSTAINMENT AND POST PRODUCTION SOFTWARE SUSTAINMENT FOR A PERIOD OF 12 MONTHS WITH FOUR ADDITIONAL 12 MONTH OPTION PERIODS.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $130.3 million to LEIDOS, INC. for work described as: THIS TASK ORDER UNDER THE SSES-NEXGEN MULTIPLE AWARD INDEFINITE QUANTITY INDEFINITE DELIVERY CONTRACT IS TO PROVIDE THE SOFTWARE ENGINEERING CENTER'S C3T DIRECTORATE WITH POST DEPLOYMENT SOFTWARE SUSTAINMENT AND POST PRODUCTION SOFTWARE SUSTAINMENT FOR A PERIOD OF 12 MONTHS WITH … Key points: 1. Significant contract value for ongoing software sustainment. 2. Leidos, Inc. is the incumbent contractor. 3. Risk of vendor lock-in and potential cost overruns. 4. IT sector spending on custom computer programming services.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee type, which allows for flexibility but requires careful monitoring of costs to ensure value. The total value of $130M over potentially 5 years suggests a reasonable price for sustained software engineering support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, indicating a competitive bidding process. This method generally leads to better price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential software sustainment services.
Public Impact
Ensures continued operation and maintenance of critical software for the Army's C3T Directorate. Supports the Software Engineering Center's mission through sustained development and support. Potential for future enhancements and upgrades to existing software systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in sustainment tasks.
- Reliance on a single vendor for critical software support.
Positive Signals
- Awarded under full and open competition.
- Experienced contractor with a history of performance.
- Clear definition of sustainment services.
Sector Analysis
This contract falls within the Information Technology sector, specifically Custom Computer Programming Services. Spending in this area is substantial as agencies rely on software for mission-critical operations and require ongoing maintenance and support.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct beneficiaries of this specific award, though they may be subcontractors.
Oversight & Accountability
The contract is a Delivery Order under an IDIQ, suggesting it has undergone initial oversight during the IDIQ award. Ongoing oversight will be crucial to manage costs and ensure performance objectives are met throughout the period of performance.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overruns due to CPFF structure.
- Potential for vendor lock-in.
- Scope creep in sustainment tasks.
- Dependence on a single contractor for critical systems.
- Cybersecurity risks associated with software sustainment.
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $130.3 million to LEIDOS, INC.. THIS TASK ORDER UNDER THE SSES-NEXGEN MULTIPLE AWARD INDEFINITE QUANTITY INDEFINITE DELIVERY CONTRACT IS TO PROVIDE THE SOFTWARE ENGINEERING CENTER'S C3T DIRECTORATE WITH POST DEPLOYMENT SOFTWARE SUSTAINMENT AND POST PRODUCTION SOFTWARE SUSTAINMENT FOR A PERIOD OF 12 MONTHS WITH FOUR ADDITIONAL 12 MONTH OPTION PERIODS.
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 $130.3 million.
What is the period of performance?
Start: 2019-05-25. End: 2024-11-24.
What is the projected cost per year for this sustainment effort?
The total award value is $130,280,649.53 over a potential 5-year period (1 initial year + 4 option years). This averages to approximately $26 million per year. However, the Cost Plus Fixed Fee structure means actual costs could vary, and the fixed fee component needs to be analyzed for reasonableness.
What are the key performance indicators (KPIs) for this software sustainment contract?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Effective oversight would require clearly defined KPIs related to software uptime, bug resolution times, security patch deployment, and user satisfaction to ensure the contractor meets performance expectations.
How will the government ensure cost-effectiveness given the Cost Plus Fixed Fee contract type?
The government will ensure cost-effectiveness through rigorous oversight of the contractor's incurred costs, regular audits, and by closely monitoring performance against the fixed fee. Benchmarking costs against similar contracts and ensuring the scope of work remains tightly controlled are also critical measures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1710 SAIC DR, MCLEAN, 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: $130,280,650
Exercised Options: $130,280,650
Current Obligation: $130,280,650
Actual Outlays: $13,612,196
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $15,403,104
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T12DE001
IDV Type: IDC
Timeline
Start Date: 2019-05-25
Current End Date: 2024-11-24
Potential End Date: 2024-11-24 12:11:00
Last Modified: 2025-09-30
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