Leidos awarded $10.6M contract for computer systems design services to the Department of the Air Force
Contract Overview
Contract Amount: $10,591,259 ($10.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-02-01
End Date: 2006-09-30
Contract Duration: 606 days
Daily Burn Rate: $17.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96818
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $10.6 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded to a large, established prime contractor. 2. Services are essential for maintaining complex defense systems. 3. Contract duration of 606 days indicates a significant project. 4. Awarded under a Time and Materials pricing structure. 5. Geographic location in Hawaii may present logistical considerations. 6. No small business set-aside, suggesting a focus on large prime capabilities.
Value Assessment
Rating: fair
The contract value of $10.6 million for computer systems design services over approximately 20 months appears within a reasonable range for specialized IT support within the Department of Defense. However, without specific details on the scope of work, deliverables, and labor categories, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for complex systems design and integration would be necessary for a more definitive evaluation of pricing and overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for ensuring fair pricing and access to a broad range of capabilities, the low number of bids could warrant further investigation into potential barriers to entry or market concentration.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings. However, with only two bidders, the cost savings may not be as substantial as they could be with a more robust competitive landscape.
Public Impact
The Department of the Air Force benefits from specialized computer systems design and integration services. This contract supports the operational readiness and technological advancement of Air Force systems. Services are likely to impact personnel involved in managing and utilizing these systems. The geographic impact is concentrated in Hawaii, where the services will be performed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to cost overruns if not closely monitored.
- Limited competition (2 bidders) may reduce price pressure and innovation.
- The specific nature of 'Computer Systems Design Services' can be broad, requiring clear definition of work to avoid scope creep.
Positive Signals
- Awarded under 'Full and Open Competition' which is a positive signal for market access.
- The prime contractor, Leidos, Inc., is a large and experienced defense contractor, suggesting a high likelihood of successful performance.
- The contract is for a defined period, allowing for periodic re-evaluation of needs and competition.
Sector Analysis
The computer systems design services sector is a critical component of the broader IT and defense industries. This contract falls within the segment focused on specialized design, integration, and support for complex technological systems, often involving software development, network architecture, and hardware integration. The market is characterized by a mix of large prime contractors and specialized subcontractors, with significant government spending driven by national security and modernization efforts. Comparable spending benchmarks would typically involve analyzing other contracts for similar system design and integration services within the Department of Defense or other federal agencies.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor is a large business. This indicates that the requirement was likely deemed to be beyond the scope or capability of small business set-asides, or that the competition was structured to attract large prime contractors. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is neutral to potentially negative if opportunities that could have been set aside were not.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures would be tied to the contract's performance work statement (PWS) and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Technology Contracting
- IT Services for Federal Agencies
- Computer Systems Design and Related Services
- Department of Defense IT Modernization Programs
Risk Flags
- Time and Materials Pricing
- Limited Competition
- Geographic Concentration (Hawaii)
Tags
it, defense, department-of-the-air-force, leidos-inc, computer-systems-design-services, time-and-materials, full-and-open-competition, hawaii, large-business, it-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.6 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 Air Force).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2005-02-01. End: 2006-09-30.
What specific computer systems were designed or modified under this contract, and what was the criticality of these systems to Air Force operations?
The provided data does not specify the exact computer systems involved. 'Computer Systems Design Services' is a broad category that can encompass a wide range of activities, from developing new software architectures to integrating hardware components or designing network infrastructure. The criticality of these systems to Air Force operations is also not detailed. However, given the Department of Defense context, it is reasonable to infer that these systems likely support mission-critical functions, such as command and control, intelligence, surveillance, reconnaissance, logistics, or personnel management. Without more granular information on the Statement of Work (SOW) or Performance Work Statement (PWS), it is difficult to ascertain the precise nature and importance of the systems.
How does the Time and Materials (T&M) pricing structure for this $10.6 million contract compare to industry best practices for similar IT services, and what are the inherent risks?
Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve. While they offer flexibility, they carry inherent risks for the government, primarily related to cost control. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, making them susceptible to cost overruns if not managed diligently. Best practices for T&M involve establishing clear labor categories with defined rates, setting a ceiling price, and implementing robust oversight to monitor hours worked and materials consumed. For a $10.6 million contract over approximately 20 months, the government would need strong project management and technical expertise to ensure that the labor hours and material costs are reasonable and directly related to the defined tasks. Benchmarking specific labor rates against market data for similar skill sets in Hawaii would be crucial for assessing value.
Given that Leidos, Inc. is a large, established contractor, what is the typical track record of this company in delivering complex IT services for the Department of Defense?
Leidos, Inc. is a well-established and significant player in the federal IT services market, particularly within the Department of Defense (DoD). The company has a long history of supporting complex defense programs, encompassing areas such as systems engineering, software development, cybersecurity, and enterprise IT modernization. Their track record generally includes the successful execution of large-scale contracts, often involving advanced technologies and mission-critical systems. Leidos is known for its extensive resources, technical expertise, and ability to manage intricate projects. However, like any large contractor, specific contract performance can vary, and detailed reviews of past performance on similar contracts would be necessary for a comprehensive assessment. Their size and experience suggest a high capacity to meet demanding DoD requirements.
What are the potential implications of awarding this contract in Hawaii, considering logistical challenges and the local IT labor market?
Awarding a significant IT services contract in Hawaii presents unique logistical considerations. Travel and shipping costs to and from the mainland United States can be higher, potentially impacting the overall cost of service delivery if personnel or equipment need to be frequently transported. Furthermore, the local IT labor market in Hawaii may differ in terms of availability of specialized skills and prevailing wage rates compared to continental US locations. If the contractor relies heavily on local talent, the availability and cost of skilled IT professionals in Hawaii would be a key factor. If the contractor brings in personnel from the mainland, travel and per diem costs would need to be carefully managed within the T&M structure. The specific performance location necessitates a thorough understanding of these regional economic and logistical factors.
How does the $10.6 million contract value compare to overall Air Force spending on computer systems design services over the past five years?
The provided data does not include historical spending figures for the Air Force on computer systems design services. To compare this $10.6 million contract, one would need to access historical contract databases (like FPDS or USAspending.gov) and aggregate spending for the relevant North American Industry Classification System (NAICS) code (541512) awarded by the Department of the Air Force over the last five fiscal years. This would provide context on whether this contract represents a typical, significant, or outlier investment in this service category. Without this historical data, it's impossible to benchmark this specific award against the Air Force's broader spending patterns in this domain.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DRIVE,, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F6460501D0001
IDV Type: IDC
Timeline
Start Date: 2005-02-01
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2009-06-04
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