DoD awards $953.6M contract for management consulting services to Leidos, Inc
Contract Overview
Contract Amount: $95,360,812 ($95.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-08-12
End Date: 2007-02-28
Contract Duration: 565 days
Daily Burn Rate: $168.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: 200512!500957!2100!W911W4!HQ USAINSCOM, DIR OF CONTRACTING!W911W405C0005 !A!N! !N! ! !20050812!20060814!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!06536!061!51!BELVOIR !FAUQUIER !VIRGINIA !+000030435245!N!N!000030435245!AD26!RDTE/SERVICES-MANAGEMENT SUPPORT !S1 !SERVICES !000 !* !541611!E! !3! ! ! ! ! !20200930!B! ! !A! !D!U!U!1!001!N!1A!Z!N!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $95.4 million to LEIDOS, INC. for work described as: 200512!500957!2100!W911W4!HQ USAINSCOM, DIR OF CONTRACTING!W911W405C0005 !A!N! !N! ! !20050812!20060814!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!06536!061!51!BELVOIR !FAUQ… Key points: 1. Contract awarded to Leidos, Inc. for administrative and management consulting. 2. Significant value of $953.6 million over its period of performance. 3. Awarded on a 'not competed' basis, raising questions about competition. 4. Sector is professional services, specifically management consulting. 5. Contract duration of 565 days indicates a substantial project.
Value Assessment
Rating: questionable
The contract value of $953.6 million for a 565-day period is substantial. Benchmarking against similar management consulting contracts is difficult without more specific service details, but the high value suggests a significant scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had vied for the contract, impacting taxpayer value.
Public Impact
Taxpayers may not have received the best possible price due to the lack of competition. The significant contract value could represent a substantial investment in management consulting services. The 'not competed' status warrants further investigation into the justification for bypassing a competitive process. Leidos, Inc., a large government contractor, is the recipient of this substantial award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Potential for inflated pricing
Positive Signals
- Award to established contractor
- Clear service category
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. Government spending in this area is common for strategic planning, operational efficiency, and advisory services.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The 'not competed' nature of this award suggests a need for robust oversight to ensure the justification for sole-source procurement was sound and that the pricing is fair and reasonable.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- High contract value raises cost concerns
- Potential for sole-source abuse
- Limited transparency on service specifics
- Need for strong justification for non-competition
Tags
administrative-management-and-general-ma, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $95.4 million to LEIDOS, INC.. 200512!500957!2100!W911W4!HQ USAINSCOM, DIR OF CONTRACTING!W911W405C0005 !A!N! !N! ! !20050812!20060814!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!06536!061!51!BELVOIR !FAUQUIER !VIRGINIA !+000030435245!N!N!000030435245!AD26!RDTE/SERVICES-MANAGEMENT SUPPORT !S1 !SERVICES !000 !* !541611!E! !3! ! ! ! ! !202
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 $95.4 million.
What is the period of performance?
Start: 2005-08-12. End: 2007-02-28.
What was the specific justification for not competing this $953.6 million contract, and was it adequately documented and approved?
The justification for not competing a contract of this magnitude is critical for ensuring responsible use of taxpayer funds. Agencies must provide clear, documented reasons, such as the existence of a unique capability or urgent need, that meet regulatory requirements. Without this information, it's impossible to assess if the procurement process was appropriate and if value for money was pursued.
How does the pricing structure and overall cost of this contract compare to industry benchmarks for similar management consulting services, given its large value?
Benchmarking this $953.6 million contract against industry standards is challenging without detailed service descriptions. However, the substantial value and sole-source nature raise concerns about potential overpricing. A thorough review of the contract's labor rates, overhead, and profit margins against comparable government and commercial contracts would be necessary to assess cost-effectiveness.
What specific management and administrative support services were provided under this contract, and what measurable outcomes or efficiencies were achieved?
Understanding the precise services rendered is key to evaluating the contract's effectiveness and value. Were these services strategic, operational, or advisory? Documenting specific deliverables, performance metrics, and achieved outcomes (e.g., cost savings, process improvements, enhanced decision-making) is essential to determine if the $953.6 million investment yielded tangible benefits for the Department of Defense.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-08-12
Current End Date: 2007-02-28
Potential End Date: 2007-02-28 00:00:00
Last Modified: 2010-03-13
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