Leidos awarded $14.7M for Computer Systems Design Services by the Department of the Air Force
Contract Overview
Contract Amount: $14,694,596 ($14.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-01-23
End Date: 2006-09-30
Contract Duration: 250 days
Daily Burn Rate: $58.8K/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 $14.7 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded to a large, established prime contractor. 2. Services are for computer systems design, a common IT requirement. 3. Contract duration is relatively short, suggesting a specific project scope. 4. Award type is Time and Materials, which can carry cost risks if not managed. 5. The contract was awarded under full and open competition. 6. The base value is substantial, indicating a significant project.
Value Assessment
Rating: fair
The contract's base value of $14.7 million for computer systems design services appears reasonable for a project of this nature, especially considering the prime contractor's extensive experience. However, the Time and Materials (T&M) pricing structure warrants careful monitoring to ensure costs do not escalate beyond initial projections. Benchmarking against similar T&M contracts for complex system design would be beneficial to fully assess value for money. Without more granular data on labor categories and hours, a precise per-unit cost comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple offerors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this requirement. While full and open competition is generally preferred for maximizing price discovery, the limited number of bidders could suggest potential barriers to entry or a niche market for these specific services.
Taxpayer Impact: The full and open competition process is favorable for taxpayers as it encourages competitive pricing and potentially leads to better value. However, with only two bids, the full benefit of broad market competition might not have been realized.
Public Impact
The Department of the Air Force benefits from specialized computer systems design expertise. This contract supports the modernization or maintenance of critical Air Force IT infrastructure. The geographic impact is likely concentrated within the Air Force's operational areas. The contract supports a workforce skilled in computer systems design and integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely managed.
- Limited number of bidders (2) may indicate less competitive pressure than ideal.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- Prime contractor (Leidos) has significant experience in government contracting.
- Contract supports a critical government function (Air Force IT systems).
Sector Analysis
The Information Technology sector, specifically Computer Systems Design Services, is a large and dynamic market within federal procurement. This contract falls under the broad category of IT services, which consistently represents a significant portion of federal spending. The market is characterized by a mix of large prime contractors like Leidos and numerous smaller specialized firms. Comparable spending benchmarks for similar system design projects vary widely based on complexity and duration.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small business participation are dependent on the prime contractor's subcontracting strategy, which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- IT Services
- Computer Systems Design
- Department of Defense IT Contracts
- Air Force IT Modernization
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited competition (2 bidders) may not yield the best possible price.
- Short contract duration could indicate a need for future, potentially larger, contracts.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-air-force, time-and-materials, full-and-open-competition, large-business, leidos-inc, hawaii, it-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 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 $14.7 million.
What is the period of performance?
Start: 2006-01-23. End: 2006-09-30.
What is Leidos' track record with the Department of the Air Force and similar IT service contracts?
Leidos, Inc. is a major government contractor with a substantial history of performing IT services for the Department of Defense, including the Air Force. They have a broad portfolio of contracts ranging from complex system integration and cybersecurity to data analytics and cloud migration. Their track record with the Air Force includes numerous awards across various IT service categories. Analyzing their past performance on similar Time and Materials contracts would provide insight into their ability to manage costs and deliver effectively within defined scopes. Historically, Leidos has demonstrated capability in delivering large-scale IT solutions, but like any large contractor, specific project outcomes can vary.
How does the $14.7 million base award compare to other Air Force computer systems design contracts?
The $14.7 million base award for computer systems design services is a moderate-sized contract within the context of the Department of the Air Force's overall IT spending. The Air Force procures a wide range of IT services, from small, specialized projects costing hundreds of thousands of dollars to multi-billion dollar enterprise-wide modernization efforts. A $14.7 million contract for system design suggests a significant project, likely involving complex architecture, integration, or development phases. Benchmarking requires comparing it to contracts with similar scope, duration, and complexity, ideally also using a Time and Materials or similar flexible pricing model. Without more specific details on the system being designed, a precise comparison is challenging, but it falls within the typical range for substantial IT service engagements.
What are the primary risks associated with a Time and Materials (T&M) contract for system design?
The primary risk with a Time and Materials (T&M) contract for system design is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If the project scope is not well-defined, if requirements change frequently, or if contractor efficiency is low, the total cost can escalate significantly beyond initial estimates. For system design, which can be an iterative and exploratory process, T&M requires robust oversight, detailed tracking of labor hours and material usage, and strong change management controls to mitigate these risks and ensure the government receives good value.
What does the 'Computer Systems Design Services' NAICS code (541512) typically encompass in federal contracts?
The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. This includes activities such as analyzing and designing business and computer information systems, providing feasibility studies, and providing technical consulting on IT needs. Federal contracts under this code often involve requirements for system architecture, network design, software integration, IT infrastructure planning, and the development of custom IT solutions to meet specific agency needs. It's a broad category covering a wide spectrum of IT-related design and integration services.
How does the contract's start and end date (Jan 2006 - Sep 2006) reflect its scope and potential for follow-on work?
The contract's duration, spanning approximately nine months from January 2006 to September 2006, suggests a project with a defined, relatively short-term scope. This timeframe is typical for specific phases of larger IT projects, such as initial design, feasibility studies, or the development of a particular system component. A short duration like this often indicates that the work is either a standalone task or a discrete part of a larger, ongoing program. It may or may not lead to follow-on work; if the design is successful and meets Air Force needs, subsequent phases (development, implementation, maintenance) could be contracted separately, potentially with the same contractor if performance was satisfactory.
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: 2006-01-23
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2009-05-20
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