Leidos Inc. awarded over $318M for wired telecommunications services by the Department of Defense
Contract Overview
Contract Amount: $318,364,798 ($318.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-05-01
End Date: 2014-12-09
Contract Duration: 3,144 days
Daily Burn Rate: $101.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: DISN GLOBAL SOLUTIONS
Place of Performance
Location: FALLS CHURCH, FALLS CHURCH (CITY) County, VIRGINIA, 22040
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $318.4 million to LEIDOS, INC. for work described as: DISN GLOBAL SOLUTIONS Key points: 1. Contract value suggests significant, long-term need for telecommunications infrastructure support. 2. Full and open competition indicates a potentially competitive bidding process. 3. Contract duration spans over 8 years, implying a stable but potentially lengthy commitment. 4. The award to a large prime contractor may have implications for small business participation. 5. Services likely support critical defense communication networks, highlighting national security relevance. 6. The 'Wired Telecommunications Carriers' NAICS code points to a specific, established industry segment.
Value Assessment
Rating: good
The total award of over $318 million for wired telecommunications services over an 8-year period appears to be within a reasonable range for large-scale defense telecommunications contracts. Benchmarking against similar contracts for network infrastructure and maintenance within the Department of Defense would provide a more precise value-for-money assessment. However, the duration and scope suggest a substantial investment in critical infrastructure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple bidders were likely invited to submit proposals. The presence of two bids indicates a degree of competition, though the exact number of bidders and the nature of their proposals would be needed for a comprehensive analysis. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through a competitive bidding environment, leading to potentially better value for the funds expended.
Public Impact
The Department of Defense benefits from reliable and robust wired telecommunications infrastructure. Services delivered likely include installation, maintenance, and support of critical communication networks. Geographic impact is likely widespread, supporting military bases and operations globally. Workforce implications include employment for telecommunications technicians, engineers, and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns on long-term, complex telecommunications projects.
- Reliance on a single large prime contractor could limit flexibility and innovation.
- Ensuring adequate cybersecurity measures for critical defense communication infrastructure.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Long contract duration indicates a stable and predictable service delivery.
- Contractor's experience in defense telecommunications likely ensures reliable service.
Sector Analysis
The wired telecommunications carriers sector is a mature industry focused on providing the physical infrastructure for voice and data transmission. This contract falls within the broader telecommunications services market, which is essential for government operations, particularly for defense agencies requiring secure and reliable communication networks. Spending in this sector for government contracts can range from millions to billions annually, depending on the scope and duration of services required.
Small Business Impact
The contract was not set aside for small businesses, and the 'sb' field is false, indicating no explicit small business set-aside. As a large prime contract awarded to Leidos, Inc., there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed here and would require further investigation to assess its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the contract terms, performance metrics, and payment schedules. Transparency is facilitated through contract databases like FPDS-NG, which record award details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Systems Network (DISN)
- Telecommunications Infrastructure Support Contracts
- Department of Defense IT Services
- Wired Network Services
Risk Flags
- Long contract duration increases risk of technological obsolescence.
- Time and Materials contract type can lead to cost overruns if not managed tightly.
- Potential for limited competition in future renewals if incumbent performance is satisfactory.
Tags
defense, department-of-defense, leidos-inc, wired-telecommunications-carriers, full-and-open-competition, time-and-materials, large-contract, information-technology, network-infrastructure, virginia, defense-information-systems-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $318.4 million to LEIDOS, INC.. DISN GLOBAL SOLUTIONS
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $318.4 million.
What is the period of performance?
Start: 2006-05-01. End: 2014-12-09.
What is the historical spending pattern for wired telecommunications services by the Department of Defense over the last decade?
Historical spending on wired telecommunications services by the Department of Defense has been substantial, reflecting the critical nature of these networks for global operations. While specific figures for 'wired telecommunications carriers' alone are difficult to isolate without detailed FPDS data filtering, overall DoD spending on telecommunications and IT services consistently runs into the tens of billions of dollars annually. This particular contract, awarded in 2006 and ending in 2014, represents a significant portion of spending within its specific category during that period. Trends indicate a move towards more integrated network services, cloud solutions, and cybersecurity, which may influence future spending patterns in wired infrastructure.
How does the awarded amount compare to other similar wired telecommunications contracts within the DoD?
The awarded amount of over $318 million for Leidos, Inc. positions this contract as a significant investment in wired telecommunications infrastructure. Comparing it to other similar contracts requires access to a broader dataset of DoD awards within the NAICS code 517110 (Wired Telecommunications Carriers) and related service categories. However, for large-scale, long-duration projects supporting critical defense networks, awards in the hundreds of millions are not uncommon. Contracts for network modernization, global connectivity, and base telecommunications often reach these figures. The 'full and open competition' aspect suggests that the government sought competitive bids, which typically helps in aligning costs with market rates for such substantial projects.
What are the key performance indicators (KPIs) typically associated with this type of telecommunications contract?
Key performance indicators (KPIs) for wired telecommunications contracts typically focus on network availability, uptime, latency, bandwidth provisioning, and response times for service outages or maintenance requests. For a defense contract, these KPIs are often stringent, requiring near-perfect uptime (e.g., 99.999%) and rapid resolution of issues to ensure mission-critical communications are uninterrupted. Other KPIs might include adherence to security protocols, successful implementation of network upgrades, and efficient management of infrastructure. The 'TIME AND MATERIALS' contract type suggests that performance might be monitored through the efficient use of labor hours and materials, alongside the technical performance of the network itself.
What is Leidos, Inc.'s track record with the Department of Defense for similar telecommunications services?
Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing large contracts across various IT and telecommunications domains. Prior to and following this specific award (2006-2014), Leidos has been a significant player in providing complex systems integration, network engineering, and telecommunications support to military branches and agencies. Their history includes managing large-scale network infrastructure, cybersecurity solutions, and command and control systems. This extensive experience suggests a deep understanding of DoD requirements, security protocols, and operational needs, making them a well-established incumbent for such critical services.
What are the potential risks associated with a long-duration (over 8 years) wired telecommunications contract?
Long-duration contracts, such as this 8-year award, carry several potential risks. Technological obsolescence is a primary concern; telecommunications technology evolves rapidly, and infrastructure installed at the beginning of the contract may be outdated by its end. This can lead to performance issues or the need for costly upgrades. Cost escalation is another risk, especially with 'Time and Materials' contracts, where unforeseen complexities or inefficiencies can drive up expenses beyond initial estimates. Furthermore, vendor lock-in can occur, making it difficult and expensive to switch providers if performance degrades or better solutions emerge. Finally, changes in government requirements or budget priorities over such a long period can necessitate contract modifications, potentially leading to disputes or reduced scope.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DRIVE,, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $323,954,970
Exercised Options: $323,954,969
Current Obligation: $318,364,798
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DCA20002D5001
IDV Type: IDC
Timeline
Start Date: 2006-05-01
Current End Date: 2014-12-09
Potential End Date: 2014-12-09 00:00:00
Last Modified: 2015-03-04
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