Leidos Inc. awarded $62.7M for IT services, with performance across multiple DoD locations
Contract Overview
Contract Amount: $62,732,930 ($62.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-29
End Date: 2015-11-30
Contract Duration: 427 days
Daily Burn Rate: $146.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CL,CT::IGF NEXT GENERATION TECHNICAL SERVICES (NGTS) III PERFORMANCE LOCATIONS: WRIGHT PATTERSON AFB OH 45433; ABERDEEN PROVING GROUND MD 21005; STENNIS SPACE CENTER MS 39522; VICKSBURG MS 39181; LORTON VA 22079; BETHESDA MD 20817
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $62.7 million to LEIDOS, INC. for work described as: IGF::CL,CT::IGF NEXT GENERATION TECHNICAL SERVICES (NGTS) III PERFORMANCE LOCATIONS: WRIGHT PATTERSON AFB OH 45433; ABERDEEN PROVING GROUND MD 21005; STENNIS SPACE CENTER MS 39522; VICKSBURG MS 39181; LORTON VA 22079; BETHESDA MD 20817 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Services include computer systems design, indicating a focus on IT infrastructure and support. 3. Performance locations span several key military bases, highlighting broad geographic reach. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 5. The contract duration of 427 days suggests a medium-term project requirement. 6. No small business set-aside was utilized, indicating the primary contractor is not a small business.
Value Assessment
Rating: fair
The contract value of $62.7 million for computer systems design services over approximately 14 months appears within a reasonable range for large-scale IT support. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar large IT support contracts within the Department of Defense would provide a clearer picture of pricing efficiency. The Cost Plus Fixed Fee (CPFF) structure necessitates robust oversight to ensure costs remain controlled and that the fixed fee is justified by the complexity and risk involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value from a wide pool of potential contractors.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, potentially leading to cost savings and improved service delivery.
Public Impact
The Department of Defense benefits from enhanced computer systems design and technical support services. Military personnel and operations at Wright Patterson AFB, Aberdeen Proving Ground, Stennis Space Center, and other listed locations will receive IT support. The contract supports critical IT infrastructure necessary for defense operations. Workforce implications include potential employment opportunities for IT professionals within Leidos, Inc. and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
- The broad geographic distribution of performance locations could complicate oversight and management.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Leidos, Inc. is a large, established government contractor with significant IT experience.
- The contract addresses essential IT support needs for multiple critical defense installations.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting government operations. The total addressable market for IT services within the federal government is substantial, with agencies like the Department of Defense being major consumers. This contract represents a portion of the broader spending on IT modernization and support, aiming to ensure robust and efficient technological capabilities for national security.
Small Business Impact
The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This suggests that the primary focus was on securing services from a large, capable prime contractor. The absence of set-aside provisions means that opportunities for small businesses to directly participate as prime contractors were limited for this specific award, though they may still be involved as subcontractors.
Oversight & Accountability
The Cost Plus Fixed Fee contract type requires diligent oversight from the contracting agency to monitor costs, ensure compliance with the fixed fee, and verify that the services rendered meet the specified requirements. The Department of Defense has established oversight mechanisms, including contract officers and potentially Inspector General reviews, to ensure accountability and transparency. However, the effectiveness of this oversight depends on the resources and attention dedicated to monitoring the contractor's performance and expenditures.
Related Government Programs
- DoD IT Modernization Programs
- Information Technology Support Services
- Computer Systems Design and Related Services
- Defense Infrastructure Support Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
- Multiple performance locations may complicate contract management and oversight.
- Lack of specific performance metrics in the provided data hinders detailed value assessment.
Tags
it, department-of-defense, department-of-the-army, computer-systems-design-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, medium-contract-value, multiple-locations, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.7 million to LEIDOS, INC.. IGF::CL,CT::IGF NEXT GENERATION TECHNICAL SERVICES (NGTS) III PERFORMANCE LOCATIONS: WRIGHT PATTERSON AFB OH 45433; ABERDEEN PROVING GROUND MD 21005; STENNIS SPACE CENTER MS 39522; VICKSBURG MS 39181; LORTON VA 22079; BETHESDA MD 20817
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 $62.7 million.
What is the period of performance?
Start: 2014-09-29. End: 2015-11-30.
What is Leidos, Inc.'s track record with similar Cost Plus Fixed Fee IT services contracts within the Department of Defense?
Leidos, Inc. has a substantial history of performing IT services contracts for the Department of Defense, many of which have utilized various cost-reimbursement and fixed-fee structures, including Cost Plus Fixed Fee (CPFF). Their extensive experience in areas like systems integration, cybersecurity, and enterprise IT support for defense agencies suggests a familiarity with the complexities and oversight requirements inherent in CPFF arrangements. Analyzing past performance reviews, contract modifications, and any reported overruns or efficiencies on similar contracts would provide a more granular understanding of their performance in managing costs and delivering value under this specific contract type. Publicly available contract databases and agency performance reports can offer insights into their historical success rates and any challenges encountered.
How does the awarded amount compare to similar IT systems design contracts for the DoD?
The awarded amount of approximately $62.7 million for computer systems design services over roughly 14 months is a significant sum, indicative of a large-scale support or development effort. To benchmark this value, one would compare it against other contracts for similar services (e.g., NAICS code 541512) awarded by the DoD or other federal agencies during a comparable timeframe. Factors such as the number of performance locations, the complexity of the systems involved, the level of security clearance required, and the specific deliverables (e.g., software development, hardware integration, network management) heavily influence contract value. Without these specifics, a direct comparison is difficult, but this value suggests a substantial requirement for specialized IT expertise across multiple defense installations.
What are the primary risks associated with a Cost Plus Fixed Fee contract for IT services?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services revolve around cost control and potential for inefficiencies. While the fixed fee provides the contractor with an incentive to manage costs to maximize profit, the government bears the risk of cost overruns as all allowable costs are reimbursed. This structure can sometimes lead to less aggressive cost management by the contractor compared to fixed-price contracts, as the primary profit driver is the fee, not necessarily cost savings. For the government, effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable, and that the fixed fee adequately compensates the contractor for the risks and effort involved. Scope creep can also be a significant risk, as changes to requirements can increase costs without a corresponding adjustment to the fee, potentially leading to disputes or reduced value for the government.
How effective are the current oversight mechanisms for this contract, given its CPFF structure and multiple performance locations?
The effectiveness of oversight for this CPFF contract hinges on the diligence of the contracting officer and the assigned contract administration team. Given the multiple performance locations (Wright Patterson AFB, Aberdeen Proving Ground, etc.), oversight requires a coordinated effort, potentially involving contract specialists at each site or robust remote monitoring capabilities. Key oversight activities include regular audits of incurred costs, verification of performance against contract requirements, and management of any contract modifications. The Department of Defense typically employs established procedures for contract surveillance, but the sheer volume and complexity of its contracting activities mean that resources for oversight can be strained. The presence of an Inspector General's office provides an additional layer of accountability, conducting audits and investigations to detect fraud, waste, and abuse.
What is the historical spending trend for computer systems design services (NAICS 541512) within the Department of the Army?
Historical spending trends for computer systems design services (NAICS 541512) within the Department of the Army have generally shown a consistent and significant demand, reflecting the military's reliance on advanced IT infrastructure and support. Over the past decade, federal IT spending, including within the Army, has seen fluctuations driven by budget priorities, technological advancements, and specific modernization initiatives. While specific year-over-year data for the Army's spending on NAICS 541512 would require detailed analysis of federal procurement databases (like FPDS-NG or USASpending.gov), it is understood that this category represents a substantial portion of the Army's IT budget. Spending often increases during periods of heightened cybersecurity concerns or major system upgrades. The trend generally indicates a sustained need for these services to maintain and enhance operational capabilities.
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
Solicitation ID: W912DY14R0125
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
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: $83,931,151
Exercised Options: $83,931,151
Current Obligation: $62,732,930
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: GS00Q09BGD0039
IDV Type: GWAC
Timeline
Start Date: 2014-09-29
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2021-02-01
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