DoD Awards $51.5M Engineering Services Task Order to Leidos, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $51,524,895 ($51.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-08-28
End Date: 2012-09-27
Contract Duration: 1,126 days
Daily Burn Rate: $45.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Engineering Services
Official Description: NEW TASK ORDER
Place of Performance
Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053
Plain-Language Summary
Department of Defense obligated $51.5 million to LEIDOS, INC. for work described as: NEW TASK ORDER Key points: 1. Leidos, Inc. secured a significant task order valued at $51.5 million. 2. The contract was awarded through full and open competition, indicating a competitive bidding process. 3. The primary risk appears to be the Time and Materials pricing structure, which can lead to cost overruns if not managed carefully. 4. The Engineering Services sector is broad, and this award falls within a common area of government contracting.
Value Assessment
Rating: good
The award value of $51.5 million for engineering services is substantial. Benchmarking against similar large-scale engineering contracts would be necessary to fully assess its pricing competitiveness, but the full and open competition suggests a reasonable price discovery process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing all eligible contractors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently through a market-driven price discovery mechanism.
Public Impact
Significant federal investment in engineering services, potentially impacting infrastructure or defense capabilities. Leidos, Inc., a major government contractor, benefits from this substantial award. The use of Time and Materials pricing warrants scrutiny to ensure cost control and prevent potential overspending. The duration of the contract (1126 days) indicates a long-term project with sustained federal expenditure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Long contract duration
Positive Signals
- Full and open competition
- Award to established contractor
Sector Analysis
This award falls within the Engineering Services sector, which encompasses a wide range of technical and design support for government projects. Spending in this sector is often tied to infrastructure development, defense systems, and research initiatives.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee, Leidos, Inc., is a large corporation, suggesting limited direct opportunity for small businesses on this specific prime contract.
Oversight & Accountability
The use of a Time and Materials contract requires robust oversight from the Department of the Army to monitor labor hours, material costs, and overall project expenditures to ensure accountability and prevent cost creep.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials pricing structure can lead to cost overruns.
- Lack of detail on specific services and strategic alignment.
- Potential for limited small business subcontracting opportunities.
- Long contract duration requires sustained oversight.
Tags
engineering-services, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.5 million to LEIDOS, INC.. NEW TASK ORDER
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 $51.5 million.
What is the period of performance?
Start: 2009-08-28. End: 2012-09-27.
What specific engineering services are being procured under this task order, and how do they align with the Department of the Army's strategic objectives?
The specific engineering services are not detailed in the provided data, only the NAICS code 541330 for Engineering Services. To assess alignment, one would need to review the Statement of Work (SOW) for this task order. Typically, such services could range from design and analysis to testing and technical support for military systems or infrastructure projects, directly contributing to operational readiness or modernization efforts.
Given the Time and Materials (T&M) pricing structure, what mechanisms are in place to control costs and mitigate the risk of budget overruns?
Effective management of T&M contracts relies on stringent oversight, including detailed tracking of labor hours, rates, and material costs. The government contracting officer and technical team must actively monitor performance, enforce contract limitations (such as ceiling prices), and conduct regular reviews to ensure the contractor's efforts are efficient and aligned with project milestones. Clear performance metrics and defined deliverables are crucial.
How does the $51.5 million award compare to typical spending for similar engineering services contracts awarded by the Department of the Army?
Without specific details on the scope and duration of the engineering services, a direct comparison is challenging. However, $51.5 million is a significant sum, suggesting a large-scale or long-duration project. Benchmarking against other large engineering services task orders or prime contracts within the Army, particularly those awarded through full and open competition, would provide context on whether this represents a competitive and reasonable investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 3000 LINCOLN DR E, MARLTON, NJ, 08053
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $61,917,039
Exercised Options: $51,524,895
Current Obligation: $51,524,895
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DE405
IDV Type: IDC
Timeline
Start Date: 2009-08-28
Current End Date: 2012-09-27
Potential End Date: 2012-09-27 12:09:00
Last Modified: 2022-09-06
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