DoD's $42.8M Flight Services Contract with Leidos, Inc. Lacks Competition

Contract Overview

Contract Amount: $42,761,042 ($42.8M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-01-26

End Date: 2022-05-30

Contract Duration: 855 days

Daily Burn Rate: $50.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FLIGHT SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.8 million to LEIDOS, INC. for work described as: FLIGHT SERVICES Key points: 1. Significant spending on flight services by the Department of the Army. 2. Leidos, Inc. is the sole awardee, raising concerns about competition. 3. The contract utilized a Time and Materials pricing structure. 4. The contract duration was 855 days, ending in May 2022.

Value Assessment

Rating: questionable

The contract's Time and Materials pricing structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $42.8 million represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a $42.8 million contract likely resulted in a higher cost to taxpayers than if it had been competitively bid.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Department of the Army relied on a single vendor for critical flight services. Lack of transparency in pricing due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Time and Materials pricing
  • Lack of competition

Positive Signals

  • Contract completed within its period of performance.

Sector Analysis

Flight services fall under the broader 'Other Support Activities for Air Transportation' category. Spending in this sector can vary widely based on mission requirements, but competitive procurement is generally expected to ensure cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award further limits opportunities for small business participation.

Oversight & Accountability

The sole-source award raises questions about the adequacy of oversight in ensuring fair pricing and exploring competitive alternatives. Further review would be needed to assess specific oversight mechanisms employed.

Related Government Programs

  • Other Support Activities for Air Transportation
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award limits competition and price discovery.
  • Time and Materials pricing can lead to cost overruns without strong oversight.
  • Potential for taxpayer overpayment due to lack of competitive bidding.
  • Lack of transparency regarding the justification for sole-source award.

Tags

other-support-activities-for-air-transpo, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.8 million to LEIDOS, INC.. FLIGHT SERVICES

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 $42.8 million.

What is the period of performance?

Start: 2020-01-26. End: 2022-05-30.

What was the justification for awarding this contract on a sole-source basis?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as urgent and compelling needs, unique capabilities of a single provider, or when only one responsible source exists. Without this information, it's impossible to assess the validity of the non-competitive approach.

What specific flight services were procured under this contract?

The contract falls under the NAICS code '488190 - Other Support Activities for Air Transportation.' This broad category can encompass a range of services including air traffic control, airport operations, flight planning, weather services, and other support essential for air operations. The specific services would be detailed in the contract's statement of work.

Were there any performance metrics or quality standards defined in the contract?

The data provided does not include details on performance metrics or quality standards. However, for a Time and Materials contract, performance is often implicitly tied to the efficient use of labor hours and materials. Specific quality requirements would typically be outlined in the contract's statement of work or performance work statement.

Industry Classification

NAICS: Transportation and WarehousingSupport Activities for Air TransportationOther Support Activities for Air Transportation

Product/Service Code: PHOTO, MAP, PRINT, PUBLICATIONPHOTOGR, MAPPING, PRINTING, PUBLISH

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W900KK20R0015

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

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: $73,744,799

Exercised Options: $64,864,409

Current Obligation: $42,761,042

Actual Outlays: $286,909

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $16,840,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2020-01-26

Current End Date: 2022-05-30

Potential End Date: 2022-05-30 00:00:00

Last Modified: 2025-10-31

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