DOJ awards $20.6M IT services contract to Leidos, Inc. for FBI support
Contract Overview
Contract Amount: $20,596,293 ($20.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Justice
Start Date: 2020-09-30
End Date: 2026-04-29
Contract Duration: 2,037 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: STOR 227
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Justice obligated $20.6 million to LEIDOS, INC. for work described as: STOR 227 Key points: 1. Contract value represents a significant investment in IT infrastructure and services for a key law enforcement agency. 2. The use of Time and Materials pricing may introduce cost variability, requiring close monitoring. 3. The contract's duration of over 6 years suggests a long-term need for these services. 4. Competition was robust, potentially leading to better pricing and service quality. 5. The specific IT services procured are crucial for the FBI's operational capabilities. 6. This contract falls within the broader IT services sector, a major area of federal spending.
Value Assessment
Rating: good
The contract value of $20.6 million over approximately 6.7 years suggests an average annual spend of around $3 million. Benchmarking this against similar IT services contracts for federal law enforcement agencies indicates a moderate investment. The Time and Materials pricing structure, while flexible, necessitates careful oversight to ensure costs remain within reasonable bounds and do not escalate unexpectedly. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive nature of the award provides some assurance.
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 offers. The solicitation likely attracted multiple bidders, fostering a competitive environment. This level of competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. The FBI's approach suggests a commitment to leveraging the market to obtain the best possible services and value.
Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and a wider array of service options. Full and open competition increases the likelihood that the government is receiving fair market value for the services procured.
Public Impact
The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving critical IT support services. These services are essential for maintaining and enhancing the FBI's technological infrastructure and operational effectiveness. The contract's impact is primarily national, supporting the FBI's nationwide mission. The contract likely supports a workforce of IT professionals, both within the contractor organization and potentially requiring specialized skills.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing if not closely managed.
- Dependence on a single contractor for critical IT services over an extended period.
- Ensuring the contractor maintains adequate staffing levels and expertise throughout the contract duration.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Long contract duration indicates a stable, ongoing need for these services, allowing for strategic planning.
- The contractor, Leidos, Inc., is a large and established entity with significant federal contracting experience.
Sector Analysis
The federal IT services market is vast and highly competitive, with agencies across the government procuring a wide range of services from cloud computing to cybersecurity and software development. This contract, focused on 'Other Computer Related Services,' fits within this broad category. Comparable spending benchmarks for similar IT support contracts within law enforcement agencies would typically range from several million to tens of millions of dollars annually, depending on the scope and complexity of services required.
Small Business Impact
This contract was not specifically set aside for small businesses, and the awardee, Leidos, Inc., is a large business. There is no explicit indication of small business subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem may be limited unless Leidos actively engages small businesses as subcontractors for specialized services.
Oversight & Accountability
Oversight for this contract would typically be managed by the FBI's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- FBI IT Modernization Programs
- Department of Justice IT Services
- Federal Law Enforcement Technology
- IT Professional Services
- Computer Systems Design Services
Risk Flags
- Potential for cost creep with Time and Materials pricing.
- Long contract duration may lead to technology obsolescence.
- Dependence on a single large contractor for critical services.
Tags
it-services, department-of-justice, federal-bureau-of-investigation, delivery-order, full-and-open-competition, time-and-materials, computer-related-services, leidos-inc, maryland, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $20.6 million to LEIDOS, INC.. STOR 227
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $20.6 million.
What is the period of performance?
Start: 2020-09-30. End: 2026-04-29.
What is the historical spending pattern for similar IT services at the FBI?
Analyzing historical spending patterns for similar IT services at the FBI requires access to detailed contract databases beyond the provided summary. However, general trends indicate a consistent and increasing investment in IT services by federal law enforcement agencies to support evolving technological needs and combat sophisticated threats. The FBI, in particular, has undergone significant IT modernization efforts over the past decade, involving substantial expenditures on infrastructure, software, and related support services. Contracts for 'Other Computer Related Services' often encompass a broad range of support, from system maintenance and upgrades to specialized IT consulting. Without specific historical data for this particular service category or contract vehicle, it's difficult to provide precise figures, but it's reasonable to assume that annual spending in this area has been in the millions of dollars, reflecting the critical nature of IT to the Bureau's operations.
How does the pricing structure (Time and Materials) compare to other contract types for similar services?
Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change frequently, offering flexibility. However, they carry a higher risk of cost overruns compared to fixed-price contracts, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or labor rate. For IT services where requirements are well-defined, fixed-price contracts are generally preferred for better cost control. Other contract types like Cost-Plus-Fixed-Fee (CPFF) or Firm-Fixed-Price (FFP) offer different balances of risk and flexibility. The choice of T&M here suggests the FBI anticipated a need for adaptability in the IT services required, but it necessitates robust oversight to manage costs effectively and ensure fair pricing against market rates for labor and materials.
What is Leidos, Inc.'s track record with the FBI and other federal agencies for IT services?
Leidos, Inc. is a major government contractor with a substantial history of providing IT and technical services to various federal agencies, including the Department of Defense, Intelligence Community, and civilian agencies. Their track record with the FBI specifically would involve reviewing past contracts awarded to Leidos for IT support, system integration, cybersecurity, and other related services. Generally, Leidos is recognized for its capabilities in large-scale IT programs. Performance on previous contracts, including adherence to schedules, quality of deliverables, and cost management, would be key factors in their selection for this current contract. Agencies typically assess a contractor's past performance through formal evaluations, which influence future award decisions.
What are the potential risks associated with this contract's long duration (over 6 years)?
The primary risks associated with a long contract duration, such as this one extending over 6 years, include technological obsolescence, potential for contractor complacency, and difficulty in adapting to evolving requirements or market changes. Technology can rapidly become outdated, meaning the services or systems supported under the contract might not align with the latest advancements by the end of the term. A long-term relationship can sometimes lead to a decrease in competitive pressure, potentially impacting innovation or efficiency if not actively managed. Furthermore, significant shifts in agency priorities or budget constraints could make the contract's long-term commitment less feasible or desirable. Robust contract management, including regular performance reviews and potential for contract modifications, is crucial to mitigate these risks.
How does the NAICS code '541519 - Other Computer Related Services' define the scope of work?
The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category encompassing establishments primarily engaged in providing on-site or remote computer hardware or software consulting and integration services. This includes services such as IT support, network management, system administration, IT project management, and computer systems design services that do not involve the design of the computer hardware or software itself. It can also include disaster recovery services and computer facilities management. For this FBI contract, it implies a wide range of IT support functions essential for maintaining and operating the Bureau's complex technological infrastructure, beyond specialized software development or hardware manufacturing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 5, 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: $20,596,293
Exercised Options: $20,596,293
Current Obligation: $20,596,293
Actual Outlays: $16,008,095
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $4,129,001
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F116AA
IDV Type: FSS
Timeline
Start Date: 2020-09-30
Current End Date: 2026-04-29
Potential End Date: 2026-04-29 00:00:00
Last Modified: 2026-03-26
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