Leidos Inc. awarded $67.3M for IT services, with performance across multiple DoD locations
Contract Overview
Contract Amount: $67,344,804 ($67.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-08-19
End Date: 2016-12-17
Contract Duration: 486 days
Daily Burn Rate: $138.6K/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) IV 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 $67.3 million to LEIDOS, INC. for work described as: IGF::CL,CT::IGF NEXT GENERATION TECHNICAL SERVICES (NGTS) IV 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 via full and open competition, suggesting a competitive bidding process. 2. Performance locations span several key military installations, indicating broad operational support. 3. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 4. This award represents a single delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The duration of the performance period is approximately 1.3 years. 6. The contract was awarded to a single contractor, Leidos, Inc.
Value Assessment
Rating: fair
The contract's value of $67.3 million for approximately 1.3 years of service appears moderate for complex IT support. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is difficult. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs if not managed diligently compared to fixed-price contracts. Benchmarking against similar large-scale IT support contracts within the Department of Defense would be necessary for a more definitive value assessment.
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 specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The use of an IDIQ contract vehicle likely means that this delivery order was competed among pre-qualified vendors on that vehicle.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers, potentially driving down costs.
Public Impact
The Department of Defense benefits from the provision of computer systems design services. Personnel at Wright Patterson AFB, Aberdeen Proving Ground, Stennis Space Center, Vicksburg, Lorton, and Bethesda will receive support. The services provided are critical for the operational readiness and technological infrastructure of these military installations. The contract supports the IT infrastructure and systems necessary for national defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to incur more costs to increase their fee, potentially leading to overspending if not closely monitored.
- The broad geographic distribution of performance locations may increase logistical complexity and oversight requirements.
- Lack of specific performance metrics in the provided data makes it difficult to assess contractor efficiency and effectiveness.
- The contract is a delivery order under a larger IDIQ, meaning the overall value and scope of the parent contract are not detailed here.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- The contractor, Leidos, Inc., is a well-established entity in the government contracting space, implying experience and capability.
- Performance at multiple key military installations indicates the contractor's ability to support diverse and critical operational needs.
- The contract supports essential IT services for the Department of Defense.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. This sector encompasses a wide range of services, including IT consulting, systems integration, and custom software development. The market for government IT services is substantial, with agencies like the Department of Defense being major consumers. Spending in this area is driven by the need for modernization, cybersecurity, and efficient data management. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded by DoD or other federal agencies for similar scope and duration.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside requirement. However, as a large prime contractor, Leidos, Inc. may engage small businesses as subcontractors to fulfill parts of the contract, depending on their internal policies and the specific needs of the services required. The absence of a small business set-aside means the primary competition was open to all eligible large and small businesses.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense contracting officers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure costs are reasonable and allocable. Performance monitoring would likely involve regular progress reports, site visits, and adherence to defined service level agreements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- DoD IT Modernization Programs
- NGEN (Navy/Marine Corps Next Generation Enterprise Network)
- IT Support Services Contracts
- Defense Information Systems Agency (DISA) Contracts
Risk Flags
- Cost Plus Fixed Fee contract type may lead to higher costs if not managed effectively.
- Broad geographic distribution of performance locations increases management complexity.
- Lack of detailed performance metrics in public data hinders assessment of contractor efficiency.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-army, cost-plus-fixed-fee, full-and-open-competition, delivery-order, leidos-inc, multi-location, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $67.3 million to LEIDOS, INC.. IGF::CL,CT::IGF NEXT GENERATION TECHNICAL SERVICES (NGTS) IV 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 $67.3 million.
What is the period of performance?
Start: 2015-08-19. End: 2016-12-17.
What is the track record of Leidos, Inc. in performing similar IT support services for the Department of Defense?
Leidos, Inc. has a significant track record as a prime contractor for the Department of Defense, providing a wide array of IT services including systems design, integration, cybersecurity, and enterprise IT support. They have held numerous large-scale contracts across various military branches and agencies. Their experience often involves managing complex projects with substantial budgets and geographically dispersed teams, similar to the scope suggested by this contract. While specific performance metrics for this particular delivery order are not detailed, Leidos's general history with DoD suggests a capability to execute such requirements. However, a deeper dive into past performance reviews, any contract disputes, or awards/penalties associated with their previous DoD IT contracts would provide a more granular assessment of their reliability and effectiveness in this domain.
How does the awarded amount of $67.3 million compare to similar IT support contracts for the DoD?
The awarded amount of approximately $67.3 million for a performance period of roughly 1.3 years (486 days) places this contract in the mid-to-large tier for IT support services within the Department of Defense. Large-scale enterprise IT support contracts for DoD can range from tens of millions to billions of dollars annually. For instance, major network modernization or comprehensive IT infrastructure management contracts often exceed this value significantly. However, this specific contract is a single delivery order under an IDIQ, meaning it represents a portion of a potentially larger contract vehicle. When compared to other single delivery orders for specialized computer systems design services, $67.3 million is a substantial sum, suggesting a significant scope of work. Benchmarking against contracts with similar service descriptions (e.g., systems design, integration, technical support) and duration would reveal if this represents a competitive price point for the services rendered.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for IT services is the potential for cost overruns and reduced incentive for efficiency. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This can incentivize the contractor to incur higher costs, as their fee (profit) is fixed regardless of the total cost. This contrasts with fixed-price contracts where the contractor bears the risk of cost overruns. For IT services, where scope can sometimes be fluid or unforeseen technical challenges arise, the CPFF structure can lead to the government paying more than anticipated if costs are not meticulously tracked and controlled. Effective oversight, detailed cost accounting, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.
What is the significance of the multiple performance locations for this contract?
The multiple performance locations (Wright Patterson AFB OH, Aberdeen Proving Ground MD, Stennis Space Center MS, Vicksburg MS, Lorton VA, Bethesda MD) indicate that this contract is intended to provide IT support services across a geographically dispersed set of critical Department of Defense facilities. This suggests the services are either standardized across these locations or are tailored to the specific needs of each site, requiring a contractor capable of managing distributed operations. The significance lies in the potential for economies of scale if standardized services are deployed, but also in the increased complexity of management, logistics, and oversight. It implies that the contractor must have robust systems and personnel to support operations across different time zones and potentially varying security requirements, ensuring consistent service delivery and effective communication throughout these diverse installations.
How does the 'Computer Systems Design Services' NAICS code (541512) define the scope of work for this contract?
The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' defines the primary scope of work for this contract. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate computer hardware, software, and communication technologies. These establishments analyze the needs and problems of potential users and design solutions that integrate computer systems. Services can include feasibility studies, systems analysis, design and development of customized software, systems integration services, and IT consulting. This implies the contract likely involves activities such as requirements gathering, architectural design, software development or customization, and ensuring the seamless operation of complex IT environments for the Department of the Army at the specified locations.
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: W912DY15R0039
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $116,258,487
Exercised Options: $116,258,487
Current Obligation: $67,344,804
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: 2015-08-19
Current End Date: 2016-12-17
Potential End Date: 2016-12-17 00:00:00
Last Modified: 2022-02-17
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