Army Equipping Enterprise System (AE2S) Contract Awarded to Leidos for $48M
Contract Overview
Contract Amount: $48,006,615 ($48.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-13
End Date: 2013-03-15
Contract Duration: 1,828 days
Daily Burn Rate: $26.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ARMY EQUIPPING ENTERRISE SYSTEM (AE2S)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $48.0 million to LEIDOS, INC. for work described as: ARMY EQUIPPING ENTERRISE SYSTEM (AE2S) Key points: 1. Contract awarded to Leidos, Inc. for custom computer programming services. 2. Full and open competition was utilized for this definitive contract. 3. The contract duration was 1828 days. 4. The contract was awarded to a large business, not a small business. 5. The primary sector is Information Technology.
Value Assessment
Rating: fair
The contract value of $48M over approximately 5 years suggests a moderate annual spend. Benchmarking against similar custom computer programming services contracts would be necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically fosters competitive pricing. The impact on price discovery is generally positive when multiple qualified bidders participate.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging competitive bids.
Public Impact
Enhances Army's enterprise systems for equipping personnel and units. Supports critical operational capabilities through IT services. Potential for long-term impact on Army's logistical and readiness functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Lack of small business participation may limit innovation and potentially increase costs.
Positive Signals
- Full and open competition suggests a robust procurement process.
- Definitive contract provides a clear framework for service delivery.
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming. Spending benchmarks for similar large-scale enterprise system development and maintenance contracts are crucial for evaluating cost-effectiveness.
Small Business Impact
The contract was awarded to a large business (Leidos, Inc.) and did not involve small business participation. This indicates a missed opportunity to leverage small business capabilities and potentially achieve cost savings.
Oversight & Accountability
The use of a definitive contract and full and open competition suggests a structured oversight process. However, ongoing monitoring of the Cost Plus Fixed Fee structure is essential for accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- No small business participation noted.
- Specific performance metrics and outcomes are not detailed in the provided data.
- Potential for vendor lock-in with a large, single awardee over a long duration.
Tags
custom-computer-programming-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.0 million to LEIDOS, INC.. ARMY EQUIPPING ENTERRISE SYSTEM (AE2S)
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 $48.0 million.
What is the period of performance?
Start: 2008-03-13. End: 2013-03-15.
What was the final cost compared to the initial estimated cost for the AE2S project?
The provided data shows the awarded amount of $48,006,615.43. Without the initial cost estimates or a breakdown of expenditures throughout the contract's lifecycle, it's impossible to determine the final cost relative to projections. Further analysis would require access to the contract's financial history and any modifications.
What were the key performance indicators (KPIs) for this contract and how were they measured?
The data does not specify the Key Performance Indicators (KPIs) established for the AE2S contract. Understanding these metrics is crucial for assessing the contractor's performance and the overall effectiveness of the system. A review of the contract's statement of work and performance requirements would be needed to identify and evaluate these KPIs.
How did the competitive bidding process under 'full and open competition' influence the final price and service quality?
Full and open competition generally aims to drive down prices and improve service quality by allowing all responsible sources to submit bids. The fact that this contract was awarded under such a method suggests that multiple vendors likely competed, theoretically leading to a more favorable price for the government. However, the specific impact requires comparing the awarded price to pre-bid estimates and analyzing the quality of services delivered.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91WAW08R0013
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 10260 CAMPUS POINT DRIVE, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,567,148
Exercised Options: $49,567,148
Current Obligation: $48,006,615
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-03-13
Current End Date: 2013-03-15
Potential End Date: 2013-03-15 00:00:00
Last Modified: 2025-12-31
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)