DoD Awards Leidos $112.8M for Biometric System Sustainment Under Alliant Contract
Contract Overview
Contract Amount: $112,794,818 ($112.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-06-30
End Date: 2022-12-31
Contract Duration: 2,010 days
Daily Burn Rate: $56.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: IGF::OT::IGF THIS TASK ORDER IS ISSUE ON A COST PLUS INCENTIVE FEE (CPIF), COST PLUS FIXED FEE (CPFF), AND COST REIMBURSABLE (CR)TERM BASIS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE GSA ALLIANT CONTRACT GS00Q09BGD0039. THE SOLICITATION NUMBER ASSOCIATED WITH THIS TASK ORDER IS W909MY-17-R-F001. THE PERFORMANCE WORK STATEMENT (PWS) TITLED "DEPARTMENT OF DEFENSE AUTOMATED BIOMETRIC IDENTIFICATION SYSTEM (DOD ABIS) SUSTAINMENT SERVICES AND SERVICE LIFE EXTENSION" APPLIES TO THIS TASK ORDER.
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $112.8 million to LEIDOS, INC. for work described as: IGF::OT::IGF THIS TASK ORDER IS ISSUE ON A COST PLUS INCENTIVE FEE (CPIF), COST PLUS FIXED FEE (CPFF), AND COST REIMBURSABLE (CR)TERM BASIS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE GSA ALLIANT CONTRACT GS00Q09BGD0039. THE SOLICITATION NUMBER ASSOCIATED WITH THIS TASK O… Key points: 1. Significant investment in critical defense technology infrastructure. 2. Leidos, a major government contractor, secured this large award. 3. Potential for cost overruns given CPIF/CPFF contract types. 4. IT sector spending on system sustainment and modernization.
Value Assessment
Rating: fair
The contract uses a mix of CPIF, CPFF, and CR terms, which can lead to less predictable final costs. Benchmarking against similar large-scale IT sustainment contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The task order was issued under full and open competition, indicating a competitive bidding process. However, the use of multiple cost-reimbursement contract types may limit price discovery and incentivize cost escalation.
Taxpayer Impact: Taxpayers bear the cost of sustainment services for a critical defense system, with potential for costs to exceed initial estimates due to contract types.
Public Impact
Ensures continued operation of a vital Department of Defense system for identifying individuals. Supports national security by maintaining biometric identification capabilities. Impacts personnel and operations requiring biometric verification. Long-term sustainment contract suggests ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract types increase risk of cost overruns.
- Long performance period (over 5 years) can lead to scope creep.
- Reliance on a single contractor for sustainment.
Positive Signals
- Full and open competition initially.
- Awarded to a reputable IT services provider.
- Addresses critical defense system sustainment needs.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and sustainment. Spending on defense IT modernization and sustainment is substantial, with contracts often involving complex IT infrastructure and long-term support.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the prime contractor, Leidos, is a large business. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The use of multiple cost-reimbursement contract types (CPIF, CPFF, CR) necessitates robust oversight to manage costs and ensure performance. The GSA Alliant contract vehicle itself implies a level of pre-qualification and oversight.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Overrun Potential
- Technological Obsolescence Risk
- Cybersecurity Vulnerabilities
- Contract Type Incentives
- Long-Term Dependency
Tags
computer-systems-design-services, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $112.8 million to LEIDOS, INC.. IGF::OT::IGF THIS TASK ORDER IS ISSUE ON A COST PLUS INCENTIVE FEE (CPIF), COST PLUS FIXED FEE (CPFF), AND COST REIMBURSABLE (CR)TERM BASIS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE GSA ALLIANT CONTRACT GS00Q09BGD0039. THE SOLICITATION NUMBER ASSOCIATED WITH THIS TASK ORDER IS W909MY-17-R-F001. THE PERFORMANCE WORK STATEMENT (PWS) TITLED "DEPARTMENT OF DEFENSE AUTOMATED BIOMETRIC IDENTIFICATION SYSTEM (DOD ABIS) SUSTAINMENT SERVICES AND SERVICE LIFE EXTENSION" APPLIES TO THIS TASK ORDE
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 $112.8 million.
What is the period of performance?
Start: 2017-06-30. End: 2022-12-31.
What is the projected cost efficiency of the sustainment services provided by Leidos, considering the mix of CPIF, CPFF, and CR contract types?
The mix of CPIF, CPFF, and CR contract types presents a challenge in assessing cost efficiency upfront. While CPIF offers incentives for cost savings, CPFF and CR can lead to higher costs if not tightly managed. Detailed cost breakdowns and performance metrics will be crucial for evaluating the true value and efficiency over the contract's life.
What are the primary risks associated with the long-term sustainment of the DoD ABIS, and how are they mitigated by this contract?
Key risks include technological obsolescence, cybersecurity threats, and potential performance degradation. This contract aims to mitigate these by funding sustainment and service life extension. However, the cost-plus nature requires diligent oversight to ensure the contractor remains incentivized to address risks proactively and efficiently, rather than simply incurring costs.
How effective is the chosen competition method (full and open) in ensuring the best value for taxpayer dollars on this critical IT sustainment task order?
Full and open competition is generally effective in driving competitive pricing. However, the subsequent use of cost-reimbursement contract types can dilute the initial price advantage if not managed rigorously. The effectiveness hinges on strong contract administration, performance monitoring, and clear deliverables to ensure the awarded price ultimately reflects good value for the essential services provided.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 5
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $145,944,003
Exercised Options: $145,944,003
Current Obligation: $112,794,818
Actual Outlays: $29,406
Subaward Activity
Number of Subawards: 136
Total Subaward Amount: $25,241,595
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0039
IDV Type: GWAC
Timeline
Start Date: 2017-06-30
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 12:12:00
Last Modified: 2024-02-15
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)