Leidos awarded $14.1M for computer systems design, highlighting a significant Defense contract

Contract Overview

Contract Amount: $14,117,246 ($14.1M)

Contractor: Leidos Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-06-01

End Date: 2009-04-30

Contract Duration: 333 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VA RETRO TAS::97 0100::TAS

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44199

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to LEIDOS GOVERNMENT SERVICES, INC. for work described as: VA RETRO TAS::97 0100::TAS Key points: 1. The contract value of $14.1 million represents a substantial investment in IT services for the Department of Defense. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, Leidos. 4. This award falls within the Computer Systems Design Services NAICS code, a common area for federal IT procurement. 5. The contract duration of 333 days indicates a focused, project-based need rather than long-term support. 6. The award was made to Leidos Government Services, Inc., a known entity in the federal contracting space.

Value Assessment

Rating: good

The contract value of $14.1 million for 333 days of service appears reasonable for complex computer systems design. Benchmarking against similar contracts for IT services within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the government has a clear understanding of the scope and has negotiated a price that transfers risk to the contractor, which is generally a positive indicator for cost control.

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 bids. The presence of multiple bidders, though not explicitly stated in the provided data, is implied by this competition type. This level of competition is generally expected to drive down prices and encourage innovation as contractors vie for the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can lead to more cost-effective solutions and better pricing for government services.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive enhanced computer systems design services. The services delivered are critical for the operational efficiency and technological advancement of defense systems. The geographic impact is likely concentrated within the operational areas of the Defense Finance and Accounting Service, potentially in Ohio where the contract was administered. Workforce implications include the direct employment of IT professionals by Leidos and potential indirect benefits to the broader IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined, leading to cost overruns despite fixed-price.
Dependence on a single contractor, Leidos, for critical systems design could pose a risk if performance falters.
Ensuring adequate technical expertise within the government to oversee contractor performance and validate deliverables.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type aligns incentives and transfers risk to the contractor.
Leidos Government Services, Inc. is an established contractor with experience in federal IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services. This sector is characterized by high demand from government agencies for support in developing, implementing, and maintaining complex technological infrastructures. Federal spending in this area is substantial, with agencies like the Department of Defense being major clients. Comparable spending benchmarks would involve analyzing other contracts for similar IT design and integration services awarded to large prime contractors.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Leidos Government Services, 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 into the contract's specific clauses and performance.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Finance and Accounting Service (DFAS) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, with penalties or non-payment for failure to meet terms. Transparency is facilitated by contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Defense IT Modernization Programs
DoD Enterprise IT Services
Computer Systems Design and Integration Services
Federal IT Consulting Contracts

Risk Flags

Contract awarded during a period of significant IT investment in defense.
Potential for cost overruns if scope was not precisely defined, despite fixed-price.
Reliance on a single vendor for critical systems design.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to LEIDOS GOVERNMENT SERVICES, INC.. VA RETRO TAS::97 0100::TAS

Who is the contractor on this award?

The obligated recipient is LEIDOS GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2008-06-01. End: 2009-04-30.

What is Leidos Government Services, Inc.'s track record with the Department of Defense for similar IT services?

Leidos Government Services, Inc. has a significant and established track record with the Department of Defense, frequently securing large contracts across various IT and technical service domains. Their history includes providing a wide range of services such as enterprise IT, cybersecurity, data analytics, and systems engineering. Analyzing their past performance on similar computer systems design contracts would involve reviewing contract databases for awards, performance ratings (if publicly available), and any documented issues or successes. This specific $14.1 million award in 2008-2009 is one data point within a larger portfolio of work, suggesting a continued relationship and demonstrated capability to meet DoD requirements.

How does the $14.1 million contract value compare to other full and open competition IT services contracts awarded by DFAS during that period?

The $14.1 million value for this 333-day computer systems design contract awarded in 2008-2009 is a substantial but not extraordinary amount for a federal IT services contract, especially within the Department of Defense. DFAS, being a major financial and accounting hub, often requires complex IT solutions. To benchmark effectively, one would compare this value against other firm-fixed-price contracts for similar NAICS codes (e.g., 541512) awarded by DFAS or other DoD components around the same timeframe. Factors like contract duration, specific deliverables, and the level of technical complexity would influence comparisons. Without access to a comprehensive database of all DFAS contracts from that period, a precise comparison is difficult, but the amount suggests a significant project.

What were the primary risks associated with this firm-fixed-price contract, and how were they mitigated?

The primary risks associated with a firm-fixed-price (FFP) contract, even with a reputable contractor like Leidos, revolve around potential contractor underperformance or unforeseen technical challenges. For the government, the risk is paying for services that do not meet requirements or are delivered late. For the contractor, the risk is absorbing cost overruns if the scope is underestimated or technical difficulties arise. Mitigation strategies typically include clearly defined performance work statements (PWS), robust government oversight by contracting officers and technical representatives, phased delivery schedules with acceptance criteria, and potentially performance bonds. Given this was a full and open competition, the government likely benefited from competitive pricing that reflected the contractor's assessment of these risks.

What was the expected program effectiveness or outcome of these computer systems design services for the Defense Finance and Accounting Service?

The expected program effectiveness for computer systems design services awarded to DFAS would generally focus on enhancing the efficiency, security, and functionality of their financial and accounting IT systems. This could involve designing new systems, upgrading existing ones, integrating disparate platforms, or developing custom software solutions to meet specific operational needs. Improved effectiveness might manifest as faster transaction processing, more accurate financial reporting, enhanced data security, better user interfaces for DFAS personnel, or increased system reliability and uptime. The goal is to ensure that DFAS can effectively manage the vast financial data and operations critical to the Department of Defense.

How has federal spending on computer systems design services (NAICS 541512) evolved since this contract was awarded in 2008?

Federal spending on computer systems design services (NAICS 541512) has generally seen a significant upward trend since 2008, driven by the increasing digitization of government operations, the need for cybersecurity enhancements, cloud migration initiatives, and the demand for data analytics and artificial intelligence capabilities. Agencies like the Department of Defense consistently represent a large portion of this spending. While specific figures fluctuate annually based on budget allocations and strategic priorities, the overall trajectory indicates a growing reliance on external expertise for complex IT system design and integration. This contrasts with the period around 2008, where spending might have been more focused on foundational IT infrastructure and less on advanced technologies that have since become prevalent.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 7375 EXECUTIVE PLACE, SEABROOK, MD, 20706

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,117,246

Exercised Options: $14,117,246

Current Obligation: $14,117,246

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: MDA22001D0002

IDV Type: IDC

Timeline