Leidos Inc. contract for IT services valued at over $129 million by GSA
Contract Overview
Contract Amount: $129,098,647 ($129.1M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2002-10-15
End Date: 2012-09-30
Contract Duration: 3,638 days
Daily Burn Rate: $35.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: FAIRFAX, FAIRFAX (CITY) County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $129.1 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded to a large, established prime contractor with significant federal IT experience. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Duration of the contract was substantial, spanning nearly 10 years. 4. The North American Industry Classification System (NAICS) code indicates a focus on computer facilities management. 5. This contract represents a significant investment in IT infrastructure support for the government.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables and market rates for computer facilities management services during the 2002-2012 period. The total award of over $129 million over nearly a decade suggests a substantial, ongoing need. However, without detailed performance metrics or comparisons to similar contracts from that era, it's difficult to definitively assess value for money. The firm fixed-price nature provides cost certainty but could lead to overpayment if scope was not tightly managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a 'COMPETITIVE DELIVERY ORDER' under a larger indefinite-delivery indefinite-quantity (IDIQ) contract, suggesting a competitive process was followed. However, the specific number of bidders for this particular delivery order is not provided. A competitive award generally implies that multiple vendors had the opportunity to bid, which should theoretically lead to better pricing and terms for the government.
Taxpayer Impact: A competitive award process, even for a delivery order, is generally favorable for taxpayers as it allows for price discovery and potentially lower costs compared to sole-source procurements.
Public Impact
Federal agencies utilizing the General Services Administration's Federal Acquisition Service likely benefited from the IT infrastructure management services provided. The contract supported the operational continuity and efficiency of government IT systems. Geographic impact is likely nationwide, supporting federal agencies across various locations. The contract supported a workforce involved in IT facilities management and related services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor complacency or outdated technology if not actively managed.
- Lack of specific performance metrics makes it hard to gauge the true effectiveness and efficiency of the services rendered.
- Firm Fixed Price contracts can sometimes lead to contractors cutting corners on quality if not rigorously overseen.
Positive Signals
- Awarded through a competitive process, indicating potential for good value.
- Firm Fixed Price contract structure transfers cost overrun risk to the contractor.
- Long-term contract suggests a stable and reliable service provider was selected.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. This is a critical area for government operations, encompassing the maintenance, operation, and management of data centers and related infrastructure. The market for such services is large and competitive, with numerous large and small businesses offering solutions. This contract with Leidos, a major player in federal IT, represents a significant portion of spending within this niche.
Small Business Impact
The provided data indicates that small business participation (sb) was false, and it was not a small business set-aside (ss). This suggests that the prime contract was not specifically targeted towards small businesses. There is no information on subcontracting plans or actual subcontracting performance, making it difficult to assess the impact on the small business ecosystem for this specific contract.
Oversight & Accountability
Oversight for this contract would have been managed by the General Services Administration (GSA), likely through its Federal Acquisition Service. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. However, the effectiveness of performance oversight, quality assurance, and ensuring adherence to scope would depend on the specific contract administration efforts by GSA personnel. Transparency is generally facilitated by contract award databases, but detailed performance reporting is often internal.
Related Government Programs
- IT Infrastructure Management Services
- Data Center Operations
- Cloud Computing Services
- IT Support Services
- Managed Services Contracts
Risk Flags
- Long contract duration may lead to outdated technology or uncompetitive pricing over time.
- Lack of detailed performance metrics makes objective assessment of value difficult.
- Firm Fixed Price contracts can incentivize cost-cutting that may impact quality if not managed.
- Limited information on competition level for the specific delivery order.
Tags
it-services, facilities-management, leidos, general-services-administration, gsa, firm-fixed-price, competitive-award, large-contract, it-infrastructure, delivery-order, usa
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $129.1 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: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $129.1 million.
What is the period of performance?
Start: 2002-10-15. End: 2012-09-30.
What was the specific scope of 'Computer Facilities Management Services' under this contract?
The scope of 'Computer Facilities Management Services' (NAICS 541513) typically includes services related to the operation and maintenance of computer systems and related facilities. This can encompass activities such as managing data centers, server administration, network infrastructure support, hardware maintenance, system monitoring, and ensuring the availability and performance of IT infrastructure. For this specific $129 million contract awarded to Leidos by GSA, the precise deliverables would have been detailed in the contract's Statement of Work (SOW). Without access to the SOW, we can infer that it likely involved comprehensive management of critical IT facilities, ensuring their operational readiness and efficiency for the government agencies utilizing the services.
How does the $129 million award compare to other similar IT facilities management contracts during the 2002-2012 period?
Comparing the $129 million award to other similar contracts from the 2002-2012 period requires access to historical contract databases and market analysis reports from that era. However, as a contract spanning nearly 10 years (3638 days), the annual value would average around $12.9 million. This figure is substantial and indicative of a large-scale, long-term IT support requirement. Major IT service providers like Leidos often secure large contracts due to their established presence, broad capabilities, and ability to handle complex requirements. Without specific benchmarks for comparable contracts (e.g., by agency, scope, or duration), it's difficult to definitively state if this was high or low, but it certainly represents a significant investment in IT infrastructure management.
What were the primary risks associated with a nearly 10-year Firm Fixed Price contract for IT services?
A nearly 10-year Firm Fixed Price (FFP) contract for IT services presents several risks. For the government, the primary risk is that the fixed price may become uncompetitive over time as technology evolves and market rates change, potentially leading to paying above fair market value if the contract isn't re-competed or modified appropriately. There's also a risk that the contractor might reduce service quality or innovation to maintain profitability if oversight is lax. For the contractor, the risk lies in underestimating costs, scope creep, or unforeseen technological obsolescence, which could erode profit margins. Given the long duration, managing technological advancements and ensuring the services remain relevant and efficient throughout the contract term is a significant challenge for both parties.
What is Leidos's track record in providing IT facilities management services to the federal government?
Leidos, Inc. (and its predecessor companies like SAIC) has a long and extensive track record of providing IT services, including facilities management, to the federal government. They are a major government contractor with a significant presence across various agencies and departments. Their experience spans decades and covers a wide range of IT support functions, from infrastructure management and cybersecurity to software development and systems integration. The award of a nearly $130 million contract by the GSA for computer facilities management between 2002 and 2012 underscores their established capability and the government's confidence in their ability to deliver complex IT services. Their history generally indicates a capacity to handle large-scale, long-term contracts.
How did the 'COMPETITIVE DELIVERY ORDER' mechanism impact the pricing and selection of Leidos for this contract?
The designation 'COMPETITIVE DELIVERY ORDER' implies that this specific order was placed under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle that was itself awarded competitively. When a delivery order is issued competitively, it means that multiple vendors holding spots on the IDIQ contract were invited to submit proposals for this specific requirement. The government would then evaluate these proposals based on pre-defined criteria (often including price, technical approach, and past performance). This competitive process for the delivery order itself is intended to ensure that the government obtains the best value for that particular task. It allows for price discovery among qualified vendors for the specific services needed at that time, potentially leading to more favorable pricing than a sole-source award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10302 EATON PLACE, SUITE 150, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $129,104,111
Exercised Options: $129,104,111
Current Obligation: $129,098,647
Parent Contract
Parent Award PIID: GS07T00BGD0028
IDV Type: GWAC
Timeline
Start Date: 2002-10-15
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-05-07
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