DoD's $30.6M IGF Contract to Leidos for Computer Facilities Management Raises Concerns
Contract Overview
Contract Amount: $30,582,917 ($30.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-08-22
End Date: 2018-06-30
Contract Duration: 312 days
Daily Burn Rate: $98.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: IT
Official Description: HQ INSCOM LABOR IGF::CT::IGF
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $30.6 million to LEIDOS, INC. for work described as: HQ INSCOM LABOR IGF::CT::IGF Key points: 1. Significant contract value of $30.6M for IT services. 2. Sole-source award to Leidos, Inc. limits competition. 3. Fixed Price Level of Effort contract type may not incentivize efficiency. 4. IT sector spending is substantial, but this specific award lacks transparency.
Value Assessment
Rating: questionable
The contract's fixed price level of effort structure, awarded at $30.6M, offers limited insight into true value for money. Benchmarking against similar IT facilities management contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $30.6M contract likely results in a higher cost to taxpayers than a competitively awarded contract.
Public Impact
Taxpayers may be overpaying for IT facilities management due to the sole-source award. Lack of transparency in the procurement process hinders public trust. The Department of the Army's reliance on a single vendor for critical IT services warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Fixed Price Level of Effort
- Limited transparency
Positive Signals
- Awarded to a known entity (Leidos)
- Contract duration is defined
Sector Analysis
The IT sector sees significant government spending, particularly in areas like facilities management. This contract falls within the broader IT services category, where competitive bidding is typically expected to ensure value.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on whether small businesses were considered as subcontractors.
Oversight & Accountability
The sole-source nature of this award raises questions about the oversight applied during the procurement process. Further review is needed to understand why competition was bypassed.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award bypasses competition.
- Potential for inflated costs due to lack of price discovery.
- Limited transparency in procurement justification.
- Fixed Price Level of Effort may not drive efficiency.
- No indication of small business participation.
Tags
computer-facilities-management-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.6 million to LEIDOS, INC.. HQ INSCOM LABOR IGF::CT::IGF
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 $30.6 million.
What is the period of performance?
Start: 2017-08-22. End: 2018-06-30.
What was the justification for awarding this significant IT contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT COMPETED' and is a 'SOLE-SOURCE' award. Without further documentation, the specific justification for bypassing full and open competition remains unclear. Agencies typically cite reasons like urgent need, unique capabilities, or lack of available sources, but these must be formally documented and justified to ensure proper use of taxpayer funds.
How does the $30.6M cost for Computer Facilities Management Services compare to industry benchmarks for similar services, especially given the sole-source nature?
Benchmarking this $30.6M contract is challenging due to its sole-source nature and the 'FIXED PRICE LEVEL OF EFFORT' type. Without detailed cost breakdowns or comparative bids from a competitive process, it's difficult to ascertain if the price reflects fair market value. Industry benchmarks for IT facilities management vary widely based on scope, location, and service level agreements.
What specific IT facilities management services were included in this contract, and how were performance metrics defined to ensure effectiveness and accountability?
The contract is classified under NAICS code 541513 for Computer Facilities Management Services. However, the specific deliverables, service level agreements (SLAs), and performance metrics are not detailed in the provided data. Understanding these aspects is crucial for assessing the effectiveness of the contract and holding Leidos accountable for service delivery.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W911W417R0024
Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
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: $35,133,558
Exercised Options: $35,133,558
Current Obligation: $30,582,917
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $907,411
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-08-22
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2018-09-04
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