DoD Awards $37.6M for Computer Systems Design Services to Leidos, Inc
Contract Overview
Contract Amount: $37,641,873 ($37.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-12-02
End Date: 2017-11-13
Contract Duration: 712 days
Daily Burn Rate: $52.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: OPTION YEAR 4 DELIVERY ORDER 0010 IGF::OT::IGF
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $37.6 million to LEIDOS, INC. for work described as: OPTION YEAR 4 DELIVERY ORDER 0010 IGF::OT::IGF Key points: 1. Leidos, Inc. secured a significant contract for computer systems design services. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The duration of the contract is 712 days, spanning from December 2015 to November 2017. 4. The total award value is $37.6 million, with a Cost Plus Fixed Fee pricing structure.
Value Assessment
Rating: good
The Cost Plus Fixed Fee structure allows for flexibility but requires careful monitoring to ensure costs remain reasonable. The award value of $37.6M for 712 days suggests a moderate daily rate for complex IT services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically leads to competitive pricing and ensures the government receives the best value. This method allows any qualified vendor to bid, fostering a robust price discovery process.
Taxpayer Impact: Taxpayer funds are utilized efficiently through a competitive bidding process, aiming to secure cost-effective solutions for essential computer systems design services.
Public Impact
Ensures continued support for critical Department of the Army computer systems. Supports technological advancements and maintenance within the defense sector. Provides employment opportunities within the IT services industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Fixed Fee contracts if not managed diligently.
- Dependence on a single contractor for a critical service delivery period.
Positive Signals
- Awarded through full and open competition, maximizing potential for best value.
- Clear definition of services and fixed fee component provides some cost predictability.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is crucial for modernizing government operations and maintaining technological superiority. Benchmarks for similar contracts would typically consider the complexity of the systems, the duration, and the specific services required.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business. There is no indication in the provided data that small businesses were specifically subcontracted or involved in this particular award, which is common for large prime contracts.
Oversight & Accountability
The Department of Defense, specifically the Department of the Army, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms would be in place to ensure performance and financial accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long contract duration may indicate critical, ongoing need, but also potential for vendor lock-in.
- No explicit mention of small business subcontracting goals.
- Specific details of services rendered are not provided, limiting granular analysis.
Tags
computer-systems-design-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.6 million to LEIDOS, INC.. OPTION YEAR 4 DELIVERY ORDER 0010 IGF::OT::IGF
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 $37.6 million.
What is the period of performance?
Start: 2015-12-02. End: 2017-11-13.
What specific computer systems design services were included in this delivery order, and how do they align with the Army's current and future technological needs?
The data indicates 'Computer Systems Design Services' (NAICS 541512) were procured. This broad category could encompass a wide range of activities, from initial system design and architecture to integration, testing, and lifecycle support. Understanding the specific deliverables is crucial to assess their alignment with the Army's evolving technological roadmap and ensure the investment directly supports strategic objectives and operational readiness.
How was the fixed fee determined in this Cost Plus Fixed Fee contract, and what mechanisms are in place to prevent contractor inefficiencies from inflating costs?
The fixed fee in a CPFF contract is negotiated upfront and represents the contractor's profit. Its determination typically involves assessing the complexity, risk, and estimated effort. To prevent inefficiencies, the government employs oversight, performance metrics, and audits. The 'Cost Plus' aspect means the government reimburses allowable costs, but the fixed fee remains constant, incentivizing the contractor to manage costs effectively to maximize their profit margin.
What was the competitive landscape for this solicitation, and were there any specific factors that may have limited the number of bidders despite the 'full and open' designation?
While designated 'full and open,' the competitive landscape can still be influenced by factors like specialized technical requirements, security clearances, or past performance prerequisites that might narrow the pool of eligible bidders. Understanding the specific technical demands and any pre-qualification criteria used would clarify the actual level of competition experienced and whether any potential bidders were implicitly excluded, even within an open framework.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W900KK11R0002
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
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: $37,974,554
Exercised Options: $37,727,313
Current Obligation: $37,641,873
Subaward Activity
Number of Subawards: 105
Total Subaward Amount: $22,687,109
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK11D0006
IDV Type: IDC
Timeline
Start Date: 2015-12-02
Current End Date: 2017-11-13
Potential End Date: 2017-11-13 00:00:00
Last Modified: 2025-04-24
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