DoD Awards $409M for MRAP Joint Logistic Integrator Services to Leidos Inc
Contract Overview
Contract Amount: $409,077,816 ($409.1M)
Contractor: Leidos Inc
Awarding Agency: Department of Defense
Start Date: 2009-05-04
End Date: 2010-05-03
Contract Duration: 364 days
Daily Burn Rate: $1.1M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: MRAP JOINT LOGISTIC INTEGRATOR SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $409.1 million to LEIDOS INC for work described as: MRAP JOINT LOGISTIC INTEGRATOR SERVICES Key points: 1. Significant contract value of over $409 million for logistic integrator services. 2. Leidos Inc. is the sole contractor for this specific award. 3. Potential risks include vendor lock-in and the need for ongoing performance monitoring. 4. The sector is primarily Engineering Services within the Defense industry.
Value Assessment
Rating: fair
The contract value is substantial, but without specific performance metrics or comparable contracts, assessing value for money is difficult. The Time and Materials pricing structure can lead to cost overruns if not tightly managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this specific award is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where initial competition occurred.
Taxpayer Impact: The competitive award process aims to secure fair pricing, but the Time and Materials nature requires diligent oversight to ensure taxpayer funds are used efficiently.
Public Impact
Ensures operational readiness for MRAP vehicles through integrated logistics. Supports military personnel by maintaining critical vehicle availability. Impacts the defense industrial base through a large contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can inflate costs without strict controls.
- Lack of specific performance metrics makes value assessment challenging.
- Sole awardee for this delivery order may limit future competitive pressure.
Positive Signals
- Awarded under full and open competition.
- Addresses critical military vehicle logistics.
- Significant contract value indicates a substantial need.
Sector Analysis
This contract falls within the Engineering Services sector, supporting the Department of Defense's complex logistical needs for its Mine-Resistant Ambush Protected (MRAP) vehicles. Spending in this area is crucial for maintaining operational readiness and national security.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this particular delivery order. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of the Army awarded this contract, and standard federal procurement regulations would apply. Oversight would focus on contract performance, adherence to terms, and financial accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials pricing structure.
- Lack of specific performance metrics.
- Potential for vendor lock-in.
- Limited insight into small business participation.
Tags
engineering-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $409.1 million to LEIDOS INC. MRAP JOINT LOGISTIC INTEGRATOR SERVICES
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 $409.1 million.
What is the period of performance?
Start: 2009-05-04. End: 2010-05-03.
How does the total cost of this contract compare to similar logistic support contracts for other vehicle platforms within the DoD?
Benchmarking this $409 million contract against similar logistic support contracts for other vehicle platforms requires access to detailed cost data and contract specifics across the DoD. Factors like vehicle complexity, operational tempo, and service life significantly influence costs. Without this comparative data, it's difficult to definitively state if this contract represents a favorable or unfavorable cost relative to its peers.
What are the key performance indicators (KPIs) used to measure Leidos Inc.'s success in providing MRAP Joint Logistic Integrator Services under this contract?
The provided data does not specify the key performance indicators (KPIs) for this contract. Effective oversight would necessitate clearly defined KPIs related to response times, parts availability, maintenance turnaround, and overall vehicle readiness. The absence of this information in the award data makes it challenging to assess performance objectively and ensure accountability for the $409 million investment.
What is the projected long-term cost implication of relying on Leidos Inc. for MRAP logistic integration services, considering potential contract renewals or follow-on work?
The long-term cost implication depends heavily on the contract's structure, future competition, and the government's strategic decisions regarding MRAP sustainment. If this delivery order leads to sole-source follow-on contracts, costs could escalate without competitive pressure. Conversely, if the government actively seeks competitive re-procurement or transitions to newer platforms, long-term costs could be managed more effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $471,972,095
Exercised Options: $409,337,216
Current Obligation: $409,077,816
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV09A0003
IDV Type: IDC
Timeline
Start Date: 2009-05-04
Current End Date: 2010-05-03
Potential End Date: 2010-05-03 12:05:00
Last Modified: 2016-09-21
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