SOCOM Awards $55.9M for IT Services to Leidos, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $55,893,039 ($55.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-07-15
End Date: 2018-03-14
Contract Duration: 2,068 days
Daily Burn Rate: $27.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: U.S. SOCOM SITEC SPECIALTY SERVICES
Place of Performance
Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $55.9 million to LEIDOS, INC. for work described as: U.S. SOCOM SITEC SPECIALTY SERVICES Key points: 1. Contract awarded to Leidos, Inc. for IT services. 2. Significant value of $55.9 million over its period of performance. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the 'Other Computer Related Services' NAICS code. 5. The award was a delivery order, indicating it's part of a larger contract vehicle.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar 'Other Computer Related Services' contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, which generally promotes competitive pricing. However, the specific pricing structure (Cost Plus Fixed Fee) requires diligent oversight to ensure value for money.
Taxpayer Impact: Taxpayers benefit from the competitive process, but the Cost Plus Fixed Fee structure necessitates strong oversight to prevent excessive costs.
Public Impact
Supports U.S. Special Operations Command's IT infrastructure and services. Leidos, Inc., a major defense contractor, is the awardee. The contract duration is substantial, spanning over 6 years. Services provided are crucial for national security operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific service details makes detailed value assessment challenging.
- Award was a delivery order, potentially masking underlying contract terms.
Positive Signals
- Full and open competition utilized.
- Awarded to a well-established contractor.
- Supports critical Special Operations Command needs.
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across the federal government, supporting a wide range of operational needs.
Small Business Impact
The awardee, Leidos, Inc., is a large business. There is no indication of small business participation in this specific award, which is a missed opportunity for subcontracting.
Oversight & Accountability
The use of a Cost Plus Fixed Fee contract type requires robust oversight from the Department of Defense to ensure costs are reasonable and allocable. Tracking performance against fixed fee milestones is critical.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed service description.
- No small business participation noted.
- Delivery Order award mechanism.
Tags
other-computer-related-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.9 million to LEIDOS, INC.. U.S. SOCOM SITEC SPECIALTY SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $55.9 million.
What is the period of performance?
Start: 2012-07-15. End: 2018-03-14.
What specific IT services were provided under this contract, and how did they align with SOCOM's mission requirements?
The contract falls under NAICS code 541519 (Other Computer Related Services). Without further details, it's difficult to ascertain the exact services. However, given the awardee and agency, these likely encompass a broad range of IT support, including system maintenance, network operations, cybersecurity, and potentially software development or integration, all critical for SOCOM's unique operational demands.
How effectively did the full and open competition process ensure competitive pricing for a Cost Plus Fixed Fee contract?
While full and open competition is a strong indicator of a competitive process, the Cost Plus Fixed Fee structure inherently carries risks of cost escalation. The effectiveness in ensuring competitive pricing depends heavily on the government's ability to negotiate a fair fixed fee and rigorously audit incurred costs. Without detailed pricing data and comparison, it's hard to definitively assess the price discovery achieved.
What is the long-term value proposition of this contract for SOCOM, considering its duration and cost structure?
The long-term value hinges on the sustained delivery of critical IT services that enable SOCOM's operations. The Cost Plus Fixed Fee structure, while flexible, requires continuous monitoring to ensure costs remain justified by performance and mission impact. If services are essential and delivered effectively, the contract provides significant value; however, potential cost inefficiencies could diminish this over its multi-year span.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: H9222210R0044
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,340,785
Exercised Options: $56,340,785
Current Obligation: $55,893,039
Subaward Activity
Number of Subawards: 75
Total Subaward Amount: $14,173,899
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9222211D0016
IDV Type: IDC
Timeline
Start Date: 2012-07-15
Current End Date: 2018-03-14
Potential End Date: 2018-03-14 00:00:00
Last Modified: 2018-09-05
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