Leidos Inc. awarded $21.8M for JIEDDO support, raising questions on value and competition
Contract Overview
Contract Amount: $21,765,639 ($21.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-14
End Date: 2010-03-15
Contract Duration: 913 days
Daily Burn Rate: $23.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: OPERATIONAL, ADMINISTRATIVE & POLICY SUPPORT SERVICES FOR JIEDDO
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.8 million to LEIDOS, INC. for work described as: OPERATIONAL, ADMINISTRATIVE & POLICY SUPPORT SERVICES FOR JIEDDO Key points: 1. Contract value appears moderate for the services provided, necessitating a closer look at efficiency. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The contract's duration and delivery order structure warrant scrutiny for potential scope creep or inefficiencies. 4. Performance context is limited, making it difficult to assess the contractor's effectiveness against objectives. 5. This contract falls within the professional services sector, a common area for federal spending. 6. The use of Time and Materials pricing can sometimes lead to cost overruns if not managed tightly.
Value Assessment
Rating: fair
The contract's total value of $21.8 million for a period of approximately 2.5 years (September 2007 to March 2010) for operational, administrative, and policy support services for JIEDDO is within a typical range for such engagements. However, without specific performance metrics or deliverables, a definitive value-for-money assessment is challenging. Benchmarking against similar contracts for administrative and management consulting services would be necessary to determine if the pricing was competitive. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost escalation if not meticulously monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method is generally preferred as it fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the use of this procurement method suggests that the government sought to leverage market competition to its advantage. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services received. It ensures that the government is not limited to a single provider, thereby increasing the likelihood of obtaining the best value for public funds.
Public Impact
The primary beneficiaries are the Joint Improvised Explosive Device Defeat Organization (JIEDDO), receiving essential operational, administrative, and policy support. Services delivered include management consulting and administrative support, crucial for the effective functioning of JIEDDO's mission. The geographic impact is likely concentrated within the Department of Defense and its associated agencies, with potential reach to operational theaters. Workforce implications may involve the direct employment of consultants and administrative staff by Leidos, Inc., contributing to the professional services sector workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely managed.
- Lack of specific performance metrics makes it difficult to gauge contractor efficiency and effectiveness.
- The duration of the contract and delivery order structure could indicate potential for scope creep.
- Limited public information on the specific tasks performed hinders a comprehensive value assessment.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Leidos, Inc. is a large, established government contractor with a broad range of capabilities.
- The contract supports a critical national security mission (JIEDDO).
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting services (NAICS 541611). This sector is a significant component of federal spending, encompassing a wide array of support functions for government agencies. The market for these services is competitive, with numerous large and small businesses vying for contracts. Comparable spending benchmarks for management consulting services vary widely based on the scope, duration, and complexity of the services required.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business, and there is no indication of a small business set-aside. The contract details do not specify subcontracting plans or goals related to small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Leidos actively engages small businesses as subcontractors. Further investigation into subcontracting reports would be needed to assess any indirect benefits to small businesses.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers responsible for JIEDDO support. As a delivery order under a larger contract, oversight mechanisms would be tied to the terms of the base contract and the specific delivery order. Transparency is limited by the publicly available data; detailed performance reports and oversight findings are not readily accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- JIEDDO Support Services
- Department of Defense Administrative Support
- Management and Consulting Services Contracts
- Leidos Inc. Government Contracts
Risk Flags
- Time and Materials Pricing
- Limited Performance Data
- Potential for Cost Overruns
Tags
defense, department-of-defense, army, leidos-inc, administrative-support, management-consulting, full-and-open-competition, time-and-materials, jieddo, virginia, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to LEIDOS, INC.. OPERATIONAL, ADMINISTRATIVE & POLICY SUPPORT SERVICES FOR JIEDDO
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 $21.8 million.
What is the period of performance?
Start: 2007-09-14. End: 2010-03-15.
What was the specific nature of the 'OPERATIONAL, ADMINISTRATIVE & POLICY SUPPORT SERVICES' provided to JIEDDO under this contract?
The contract primarily involved administrative management and general management consulting services, as indicated by the NAICS code 541611. These services likely encompassed a range of support functions critical to the operational effectiveness of the Joint Improvised Explosive Device Defeat Organization (JIEDDO). This could include tasks such as strategic planning, policy development and implementation, program management support, logistical coordination, financial management assistance, and general administrative duties. The 'operational' aspect suggests support directly tied to JIEDDO's mission execution, potentially involving analysis, research, or coordination related to counter-IED efforts. Without more specific task orders or performance reports, the precise breakdown of services remains generalized.
How does the $21.8 million award compare to typical spending for similar JIEDDO support contracts?
Comparing the $21.8 million award to 'typical' spending for JIEDDO support is challenging without a defined baseline for 'typical.' JIEDDO's mission is highly specialized and critical, often involving complex operational environments and evolving threats. Contracts for such support can vary significantly in value based on scope, duration, and the specific expertise required. However, for a contract spanning approximately 2.5 years (September 2007 to March 2010) and involving administrative, operational, and policy support, $21.8 million represents a substantial investment. Benchmarking against other contracts for similar support functions within the Department of Defense or other national security organizations would be necessary to ascertain if this amount is competitive or indicative of premium pricing. The use of Time and Materials pricing also introduces variability that complicates direct comparisons.
What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?
The primary risk associated with a Time and Materials (T&M) contract type, as used in this award, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or rate. If the scope of work is not clearly defined, or if project management is insufficient, the contractor may incur more hours or use more expensive materials than anticipated, leading to a higher final cost for the government. This necessitates robust oversight from the government to monitor labor hours, ensure efficient work practices, and validate the necessity of all costs. Without stringent controls, T&M contracts can be less cost-predictable and potentially more expensive than other contract types.
What was the track record of Leidos, Inc. with the Department of Defense around the time of this award?
Leidos, Inc. (and its predecessor companies like SAIC, from which Leidos was spun off) has historically been a major contractor for the Department of Defense (DoD) and other federal agencies. Around the 2007-2010 period, Leidos was actively engaged in providing a wide array of services, including IT, systems engineering, logistics, and professional support, to various branches of the military and defense organizations. Their track record with the DoD is extensive, marked by numerous large-scale contracts. While generally considered a capable and experienced contractor, like any large entity, they would have had specific performance reviews and past performance evaluations tied to individual contracts. Information on their specific performance on this particular JIEDDO support contract would be crucial for a complete assessment.
How did the competition level (full and open) potentially influence the pricing and quality of services received?
Awarding the contract under 'full and open competition' theoretically allows any qualified vendor to bid, fostering a competitive environment. This competition typically pressures bidders to offer more attractive pricing and higher quality services to win the contract. The presence of multiple bidders means the government can select the offer that provides the best overall value, rather than being limited to a single source. However, the actual impact depends on the number of bids received and the specific evaluation criteria used. If only a few bids were submitted, or if the competition was not robust, the potential benefits to pricing and quality might be diminished. The fact that it was full and open competition is a positive indicator for taxpayer value, but the degree of competition is key.
What historical spending patterns exist for JIEDDO support services within the Department of Defense?
Historical spending patterns for JIEDDO support services within the DoD reflect the organization's critical role in addressing improvised explosive device threats. Funding for JIEDDO has historically been significant, particularly during periods of heightened operational activity in theaters like Iraq and Afghanistan where IEDs posed a major threat. Spending would encompass research and development, procurement of counter-IED technologies, training, and extensive support services, including the type awarded to Leidos. Analyzing historical spending would reveal trends in contract values, types of services procured, and the primary contractors involved. This specific $21.8 million contract represents a portion of the broader financial commitment to JIEDDO's mission over its operational lifespan.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DRIVE, ROOM #8031, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,060,738
Exercised Options: $22,060,738
Current Obligation: $21,765,639
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F8006H
IDV Type: FSS
Timeline
Start Date: 2007-09-14
Current End Date: 2010-03-15
Potential End Date: 2010-03-15 00:00:00
Last Modified: 2025-12-31
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