DoD's $43.6M Consulting Contract with Leidos, Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $43,626,361 ($43.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-02-13
End Date: 2018-06-29
Contract Duration: 4,154 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SERVICES
Place of Performance
Location: TACOMA, PIERCE County, WASHINGTON, 98433
Plain-Language Summary
Department of Defense obligated $43.6 million to LEIDOS, INC. for work described as: SERVICES Key points: 1. Significant contract value of $43.6 million over 11 years. 2. Leidos, Inc. is a major government contractor, indicating established capabilities. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract spans a long duration, potentially impacting long-term strategy and cost-effectiveness.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar management consulting services is difficult without specific deliverables and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. However, the long duration and specific nature of administrative management services might limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value. The CPFF structure necessitates robust oversight to ensure costs remain reasonable and justified.
Public Impact
Ensures continued administrative and management support for the Department of the Army. Supports a major defense contractor, potentially impacting employment and industry growth. Long-term nature of the contract means sustained allocation of federal resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep due to CPFF structure.
- Long contract duration may not reflect current market needs or efficiencies.
- Limited transparency on specific performance metrics and outcomes.
Positive Signals
- Awarded through full and open competition.
- Leidos is a reputable and experienced contractor.
- Contract provides essential administrative support.
Sector Analysis
This contract falls under professional services, specifically administrative management and general management consulting. Spending in this sector is common across government agencies for operational efficiency and strategic planning. Benchmarks vary widely based on service scope and duration.
Small Business Impact
The data indicates the prime contractor is Leidos, Inc., a large business. There is no explicit information on subcontracting to small businesses within this award notice.
Oversight & Accountability
The long duration of the contract and the CPFF payment type necessitate strong government oversight to manage costs, ensure performance, and prevent potential waste or fraud. Regular reviews and audits would be crucial.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Overruns Potential (CPFF)
- Relevance Risk (Long Duration)
- Oversight Burden
- Limited Small Business Participation Indicated
Tags
administrative-management-and-general-ma, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.6 million to LEIDOS, INC.. SERVICES
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 $43.6 million.
What is the period of performance?
Start: 2007-02-13. End: 2018-06-29.
What specific administrative and management functions are being performed under this contract, and how do they align with current Army priorities?
The contract covers administrative management and general management consulting services. Without detailed statements of work, it's difficult to ascertain the precise functions. However, such services typically involve strategic planning, organizational efficiency improvements, policy development, and operational support. Alignment with current Army priorities would depend on the specific tasks outlined in the delivery orders issued against this contract.
How has the Cost Plus Fixed Fee (CPFF) structure impacted the final cost and efficiency of the services provided over the contract's lifespan?
The CPFF structure incentivizes contractors to incur costs, as a portion of their profit is tied to the fixed fee, not necessarily cost savings. Over an 11-year period, this could lead to higher overall expenditures if not rigorously managed. Assessing the impact requires comparing actual costs against initial estimates and evaluating the efficiency gains achieved relative to the investment.
Given the contract's significant duration (2007-2018), what mechanisms were in place to ensure the services remained relevant and effective in a changing operational environment?
Long-duration contracts typically rely on mechanisms like periodic reviews, contract modifications, and performance-based metrics to ensure relevance. For this contract, the effectiveness would depend on how well the Army adapted the scope through delivery orders and managed performance against evolving needs. The transition to new technologies or strategies might have been hindered or facilitated depending on contract flexibility.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 22 ENTERPRISE PKWY, SUITE 200, HAMPTON, VA, 23666
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $43,828,423
Exercised Options: $43,828,423
Current Obligation: $43,626,361
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DABK0103D0007
IDV Type: IDC
Timeline
Start Date: 2007-02-13
Current End Date: 2018-06-29
Potential End Date: 2018-06-29 00:00:00
Last Modified: 2017-07-28
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