Leidos awarded $10.2M for support maintenance services, a contract with a 3-year duration

Contract Overview

Contract Amount: $10,200,997 ($10.2M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-11-23

End Date: 2010-04-30

Contract Duration: 889 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPORT MAINTENANCE SERVICE

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to LEIDOS, INC. for work described as: SUPPORT MAINTENANCE SERVICE Key points: 1. The contract's value of $10.2 million over approximately three years suggests a moderate annual spend. 2. Competition dynamics for this contract are not detailed, but the award type indicates a competitive process. 3. The firm-fixed-price contract type generally offers cost certainty for the government. 4. Performance context is limited to the service type: support maintenance. 5. This contract falls under administrative management and general management consulting services. 6. The contract was awarded to Leidos, Inc., a significant federal contractor.

Value Assessment

Rating: fair

Benchmarking this $10.2 million contract against similar support maintenance services is challenging without more specific details on the scope of work and deliverables. The annual value, approximately $3.4 million, appears moderate for a federal contract of this nature. However, without comparative data on per-unit costs or service levels, a definitive value-for-money assessment is difficult. The firm-fixed-price structure provides budget predictability, which is a positive aspect.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. While the number of bidders is not specified, this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought proposals from a wide range of potential contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is intended to drive down costs through market forces and encourage innovation among bidders.

Public Impact

The primary beneficiaries are likely Department of the Army personnel and operations requiring support maintenance services. The services delivered are crucial for the ongoing functionality and maintenance of specific systems or equipment. The geographic impact is centered within the Department of the Army's operational areas, likely within Virginia where the contractor is located. Workforce implications may include the employment of technical staff by Leidos to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of detailed performance metrics makes it difficult to assess service quality.
  • Limited information on the specific nature of 'support maintenance' could hide potential scope creep.
  • The contract duration of approximately three years may not align with long-term strategic needs.

Positive Signals

  • Awarded under full and open competition, suggesting a robust bidding process.
  • Firm-fixed-price contract provides cost certainty for the government.
  • Leidos, Inc. is an established contractor with experience in federal service delivery.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically under administrative management and general management consulting services. The federal market for IT support and maintenance is substantial, with numerous contracts awarded annually. Leidos, Inc. is a major player in this space, often competing for and winning large-scale government contracts. Benchmarking this specific award requires comparison to similar maintenance and support contracts within the defense sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The prime contractor, Leidos, Inc., is a large business, and the contract was competed broadly.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports are usually internal.

Related Government Programs

  • Defense Logistics Agency Support Contracts
  • Army IT Services Contracts
  • General Management Consulting Services
  • Maintenance and Repair Services

Risk Flags

  • Potential for undefined scope in 'support maintenance' under FFP.
  • Limited transparency on the number of bidders in the competitive process.
  • Lack of specific performance metrics makes outcome assessment difficult.

Tags

defense, department-of-the-army, support-maintenance, administrative-management-consulting, general-management-consulting, firm-fixed-price, full-and-open-competition, leidos-inc, virginia, moderate-value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to LEIDOS, INC.. SUPPORT MAINTENANCE SERVICE

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 $10.2 million.

What is the period of performance?

Start: 2007-11-23. End: 2010-04-30.

What is Leidos, Inc.'s track record with similar support maintenance contracts within the Department of Defense?

Leidos, Inc. has a significant history of performing support maintenance and related services for the Department of Defense and other federal agencies. Their portfolio often includes complex IT infrastructure, logistics, and operational support. Analyzing their past performance on similar firm-fixed-price contracts would involve reviewing contract histories for on-time delivery, quality of service, and any reported disputes or contract modifications. Their established presence suggests a capacity to handle such requirements, but specific performance on comparable contracts would provide a clearer picture of their reliability and efficiency in this domain.

How does the $10.2 million value compare to other support maintenance contracts awarded by the Department of the Army?

The $10.2 million total value for this contract, spanning approximately three years, translates to an average annual value of roughly $3.4 million. This figure is considered moderate within the context of large federal IT and support services spending. The Department of the Army awards numerous contracts, many of which are significantly larger, particularly those involving major system sustainment or large-scale IT infrastructure. However, numerous smaller, specialized support contracts also exist. To provide a precise comparison, one would need to analyze the scope and duration of other 'support maintenance' contracts awarded by the Army, filtering for similar service types and contract vehicles.

What are the primary risks associated with a firm-fixed-price contract for support maintenance?

The primary risk with a firm-fixed-price (FFP) contract for support maintenance lies in potential scope definition issues. If the scope of 'support maintenance' is not precisely defined, the contractor (Leidos) might face unforeseen work, potentially leading to requests for equitable adjustments or disputes. Conversely, the government risks receiving only the minimum required services if the SOW is too narrowly defined. For the contractor, underestimating the effort required for maintenance could lead to reduced profit margins. Effective risk mitigation relies on a clear, detailed Statement of Work (SOW) and robust contract administration.

How effective are 'full and open competition' awards in ensuring optimal value for taxpayer money in this service category?

Full and open competition is generally considered the most effective method for ensuring optimal value for taxpayer money, especially for services like administrative management and general management consulting. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This process helps ensure that the government receives the best possible combination of price and performance. While the number of bidders isn't specified here, the mechanism itself is designed to promote efficiency and cost-effectiveness, preventing sole-source situations that can lead to higher costs.

What is the historical spending trend for 'Administrative Management and General Management Consulting Services' by the Department of the Army?

Historical spending by the Department of the Army on 'Administrative Management and General Management Consulting Services' (NAICS 541611) has been substantial and generally increasing over the past decade, reflecting a growing reliance on external expertise for various operational and strategic functions. This category encompasses a wide range of services, including process improvement, organizational development, and management support. While specific annual figures fluctuate based on agency priorities and budget allocations, the overall trend indicates a consistent demand for these services. Analyzing detailed historical data would reveal peaks and troughs related to specific initiatives or budget cycles.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 1710 SAIC DRIVE, ROOM #8031, MCLEAN, VA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,288,178

Exercised Options: $10,200,997

Current Obligation: $10,200,997

Parent Contract

Parent Award PIID: GS23F8006H

IDV Type: FSS

Timeline

Start Date: 2007-11-23

Current End Date: 2010-04-30

Potential End Date: 2010-04-30 00:00:00

Last Modified: 2014-06-11

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