DoD's $150M Saturn Arch Effort Contract Awarded to Leidos, Inc. for Technical Services

Contract Overview

Contract Amount: $149,942,681 ($149.9M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-17

End Date: 2016-04-07

Contract Duration: 933 days

Daily Burn Rate: $160.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF LETTER CONTRACT FOR THE DELIVERY OF THE SUPPLIES AND THE PERFORMANCE OF THE SERVICES FOR THE SATURN ARCH EFFORT.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $149.9 million to LEIDOS, INC. for work described as: IGF::CT::IGF LETTER CONTRACT FOR THE DELIVERY OF THE SUPPLIES AND THE PERFORMANCE OF THE SERVICES FOR THE SATURN ARCH EFFORT. Key points: 1. Leidos, Inc. secured a significant contract for the Saturn Arch Effort, highlighting their role in complex technical services. 2. The contract was not competed, raising questions about potential price discovery and value for taxpayer dollars. 3. The 'All Other Professional, Scientific, and Technical Services' sector is broad, making direct benchmarking challenging. 4. The firm fixed-price contract type aims to control costs, but the lack of competition limits price pressure.

Value Assessment

Rating: questionable

The contract value of $150M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar large-scale technical service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis ('NOT COMPETED'). This limits price discovery and may result in higher costs for the government compared to a fully competed procurement.

Taxpayer Impact: The lack of competition for a $150M contract could mean taxpayers are not receiving the best possible value, as market forces were not leveraged to drive down costs.

Public Impact

Significant taxpayer investment in the Saturn Arch Effort, a project with potentially critical defense implications. The sole-source award to Leidos, Inc. concentrates a large contract value within a single provider. Lack of transparency in the procurement process due to sole-source award may limit public understanding of the project's necessity and cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • High contract value

Positive Signals

  • Firm fixed-price contract type
  • Long-term engagement (933 days)

Sector Analysis

This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Spending in this sector can vary widely based on the specific nature of the services, but large sole-source awards warrant scrutiny.

Small Business Impact

The contract was not awarded to a small business, as indicated by 'sb': false. There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this award suggests a potential gap in competitive oversight. Further review would be needed to understand the justification for not competing the contract and ensure accountability.

Related Government Programs

  • All Other Professional, Scientific, and Technical Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Lack of competition may lead to inflated costs.
  • Sole-source award reduces transparency and accountability.
  • Potential for missed opportunities to engage small businesses.
  • Broad service category makes specific risk assessment difficult without further detail.

Tags

all-other-professional-scientific-and-te, department-of-defense, va, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $149.9 million to LEIDOS, INC.. IGF::CT::IGF LETTER CONTRACT FOR THE DELIVERY OF THE SUPPLIES AND THE PERFORMANCE OF THE SERVICES FOR THE SATURN ARCH EFFORT.

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 $149.9 million.

What is the period of performance?

Start: 2013-09-17. End: 2016-04-07.

What was the specific justification for awarding this $150M contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. For a contract of this magnitude, a thorough review of the justification is crucial to ensure it aligns with federal procurement regulations and that all reasonable efforts were made to foster competition, thereby maximizing value for taxpayers.

How does the performance and cost of this contract compare to similar technical services contracts awarded competitively?

Without competitive benchmarks, it is challenging to assess the value for money. A post-award analysis comparing Leidos's performance and cost against industry standards for similar services, even if procured differently, would be necessary to evaluate effectiveness and identify potential areas for cost savings in future procurements.

What are the specific deliverables and expected outcomes of the Saturn Arch Effort, and how will their achievement be measured?

Understanding the specific objectives and performance metrics of the Saturn Arch Effort is vital for assessing the contract's effectiveness. Clear, measurable outcomes and robust monitoring mechanisms are essential to ensure that the $150M investment yields the intended results and contributes to the Department of Defense's mission.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&DSPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ13R0037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 11951 FREEDOM DR, 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: $149,942,681

Exercised Options: $149,942,681

Current Obligation: $149,942,681

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $158,100,254

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2013-09-17

Current End Date: 2016-04-07

Potential End Date: 2016-04-07 12:04:00

Last Modified: 2016-10-11

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