Leidos Inc. awarded $348.7M for IT Solution Services by the Department of Defense
Contract Overview
Contract Amount: $348,660,279 ($348.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2014-06-30
Contract Duration: 1,734 days
Daily Burn Rate: $201.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT SOLUTION SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22207
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $348.7 million to LEIDOS, INC. for work described as: IT SOLUTION SERVICES Key points: 1. Contract value represents significant investment in IT infrastructure and services. 2. Full and open competition suggests a robust bidding process. 3. Contract duration of over 4 years indicates a long-term need for these services. 4. The award falls within the Wired Telecommunications Carriers industry. 5. Delivery Order award type suggests it's part of a larger contract vehicle. 6. The contract was awarded by the Department of the Army, a major component of the DoD.
Value Assessment
Rating: good
The total award of $348.7 million over approximately 4.8 years averages to about $72.6 million annually. Benchmarking this against similar large-scale IT service contracts for defense agencies requires detailed analysis of scope and deliverables. However, the full and open competition suggests a competitive pricing environment, which generally leads to better value for the government. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive nature is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method typically fosters a competitive environment, driving down prices and encouraging innovation. The government's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions at competitive rates.
Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, leading to potentially lower prices and higher quality services through market forces.
Public Impact
The Department of the Army benefits from enhanced IT solutions and services. Military personnel and civilian staff likely experience improved operational efficiency through better IT. The contract supports the broader mission readiness of the U.S. Army. The geographic impact is likely nationwide, supporting various Army installations. The contract may support jobs within Leidos and its subcontractors in the IT sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Dependence on a single large contractor could pose risks if performance falters.
- Long contract duration may lead to technology obsolescence if not actively managed.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Leidos is a large, established government contractor with a significant track record.
- The contract duration suggests a stable, ongoing need for these IT services.
- The Department of the Army is a major client, implying established working relationships and processes.
Sector Analysis
This contract falls within the Information Technology sector, specifically related to telecommunications services. The IT services market for the federal government is substantial, with significant spending allocated annually to maintain and upgrade complex systems. Contracts like this are crucial for ensuring the operational effectiveness of defense agencies. Comparable spending benchmarks would involve looking at other large IT service contracts awarded to major defense contractors by agencies like the DoD, NASA, or DHS.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify small business set-asides. While Leidos, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on Leidos's subcontracting plan and the specific requirements of the IT solution services being provided.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General (IG) jurisdiction may apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Modernization Programs
- Army Network Modernization Efforts
- Telecommunications Infrastructure Contracts
- Information Technology Services for Federal Agencies
Risk Flags
- Contract Duration
- Large Contract Value
- Potential for Scope Creep
- Technological Obsolescence Risk
Tags
it-services, department-of-defense, department-of-the-army, full-and-open-competition, wired-telecommunications-carriers, time-and-materials, delivery-order, leidos-inc, large-contract, defense-sector, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $348.7 million to LEIDOS, INC.. IT SOLUTION 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 $348.7 million.
What is the period of performance?
Start: 2009-09-30. End: 2014-06-30.
What is Leidos, Inc.'s track record with the Department of Defense for similar IT services?
Leidos, Inc. has a substantial track record with the Department of Defense, having been awarded numerous contracts across various IT and support service domains. They are a major prime contractor for the DoD, involved in areas such as enterprise IT, cybersecurity, cloud migration, data analytics, and command and control systems. Their history includes significant work with different branches of the military, including the Army, Navy, and Air Force. This extensive experience suggests a deep understanding of DoD requirements, operational environments, and procurement processes. Analyzing their past performance on similar large-scale IT contracts would provide further insight into their capabilities and reliability in delivering complex solutions within the defense sector.
How does the $348.7 million award compare to other large IT contracts awarded by the Department of the Army?
The $348.7 million award to Leidos, Inc. for IT Solution Services is a significant but not unprecedented figure for the Department of the Army. The Army, like other major DoD components, frequently awards large, multi-year contracts for IT infrastructure, network modernization, software development, and cybersecurity. Annual IT spending by the Army often runs into the billions of dollars. This specific contract, valued over approximately 4.8 years, represents a substantial investment in a particular IT service area. To benchmark it effectively, one would compare its total value, annual average value, and scope against other major IT service contracts awarded by the Army or other DoD branches over similar timeframes, considering factors like the specific services procured and the competitive landscape at the time of award.
What are the primary risks associated with a contract of this size and duration?
Contracts of this magnitude and duration, such as the $348.7 million IT Solution Services award to Leidos, Inc., carry several inherent risks. A primary concern is the potential for scope creep, where project requirements expand beyond the original agreement, leading to cost overruns and schedule delays. Technological obsolescence is another significant risk; IT landscapes evolve rapidly, and a contract spanning several years could result in outdated solutions if not managed proactively with modernization plans. Contractor performance risk is also present; a large, complex project relies heavily on the contractor's ability to deliver consistently high-quality services. Furthermore, dependence on a single large contractor can create vulnerabilities if the contractor faces financial instability, organizational changes, or performance issues. Effective risk mitigation requires robust contract management, clear performance metrics, and agile adaptation to technological advancements.
How effective is full and open competition in ensuring value for taxpayer money in large IT contracts?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in large IT contracts. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, fostering a highly competitive environment. This competition drives down prices as contractors vie for the award, and it encourages them to offer the most innovative and cost-effective solutions. Furthermore, a wider range of bidders can lead to better quality and a greater likelihood of finding a contractor whose capabilities precisely match the government's needs. While the administrative effort to manage a full and open competition can be higher, the potential savings and improved outcomes typically outweigh these costs, leading to better overall value for taxpayers compared to sole-source or limited competition scenarios.
What are the potential implications of this contract on the IT services market and workforce?
A contract of this size ($348.7 million) awarded to a major player like Leidos, Inc. can have significant implications for the IT services market and workforce. It reinforces Leidos's position as a key provider of IT solutions within the federal sector, potentially influencing market dynamics and competitive strategies of other large contractors. For the workforce, it signifies sustained demand for skilled IT professionals, including network engineers, cybersecurity analysts, software developers, and project managers. This demand can lead to job creation and opportunities within Leidos and its potential subcontractors. Conversely, it might also concentrate talent within specific large firms, potentially impacting smaller businesses' ability to attract and retain top IT talent. The specific technologies and methodologies employed under the contract could also influence workforce skill development trends.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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: W91QUZ05R0004
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $361,485,400
Exercised Options: $361,485,400
Current Obligation: $348,660,279
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0017
IDV Type: IDC
Timeline
Start Date: 2009-09-30
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2017-03-09
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