DoD's $20.2M Army Contract with Leidos for Management Consulting Services Awarded in 2006
Contract Overview
Contract Amount: $20,237,878 ($20.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-04-14
End Date: 2011-10-31
Contract Duration: 2,026 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Other
Place of Performance
Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $20.2 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded to Leidos, Inc. for administrative management and general management consulting services. 2. Full and open competition was utilized for this contract. 3. The contract duration extends significantly beyond its initial award date. 4. No small business participation was noted in this award.
Value Assessment
Rating: fair
The contract value of $20.2 million over its extended period suggests a moderate level of spending. Benchmarking against similar administrative management consulting services contracts would be necessary to fully assess value for money, especially given the long duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the extended duration and potential for contract modifications over time could impact the initial competitive advantage.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for best value. The long-term nature of the contract warrants scrutiny to ensure continued cost-effectiveness.
Public Impact
Provides essential administrative and management consulting to the Department of the Army. Supports critical functions within the Department of Defense. The extended period of performance may indicate ongoing needs or a lack of competitive re-solicitation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration
- No small business participation
Positive Signals
- Full and open competition utilized
Sector Analysis
This contract falls under administrative management and general management consulting services, a common area of government spending. Benchmarks for similar services can vary widely based on scope and duration.
Small Business Impact
The absence of small business participation in this contract is notable. Future solicitations could explore opportunities to include small businesses to foster broader economic participation.
Oversight & Accountability
The extended period of performance from 2006 to 2011 (and potentially beyond with modifications) suggests a need for robust oversight to ensure continued alignment with agency needs and cost efficiency.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended period of performance raises questions about initial planning and potential for scope creep.
- Lack of small business participation may indicate missed opportunities for economic inclusion.
- Need for detailed review to confirm ongoing value for money given the contract's age.
- Potential for vendor lock-in if not managed carefully over its lifespan.
Tags
administrative-management-and-general-ma, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.2 million to LEIDOS, INC.. See the official description on USAspending.
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 $20.2 million.
What is the period of performance?
Start: 2006-04-14. End: 2011-10-31.
What specific management consulting services were provided, and how did they contribute to the Army's mission effectiveness?
The contract was for administrative management and general management consulting services (NAICS 541611). While the specific deliverables are not detailed, such services typically involve process improvement, organizational analysis, strategic planning, and operational support. The effectiveness would be measured by the Army's ability to achieve its objectives more efficiently or effectively due to these consulting inputs.
Given the contract's long duration, what measures were in place to ensure the pricing remained competitive and represented good value over time?
As the contract was awarded under full and open competition, initial pricing was subject to market forces. However, for long-duration contracts, agencies often employ mechanisms like periodic reviews, option periods with re-negotiation clauses, or performance-based metrics to ensure continued value. Without specific contract details, it's difficult to ascertain the exact measures employed.
How did the use of full and open competition impact the final negotiated price compared to other contracting methods?
Full and open competition generally leads to lower prices as multiple vendors compete, driving down costs to secure the award. This method allows the government to leverage the broadest possible market, increasing the likelihood of obtaining services at a competitive rate compared to sole-source or limited competition scenarios.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 22 ENTERPRISE PKWY, SUITE 200, HAMPTON, VA, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $725,998
Exercised Options: $725,998
Current Obligation: $20,237,878
Parent Contract
Parent Award PIID: DABK0103D0007
IDV Type: IDC
Timeline
Start Date: 2006-04-14
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2014-03-20
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