Leidos Inc. awarded $12.5M contract for administrative management and general management consulting services by the Department of Energy
Contract Overview
Contract Amount: $12,489,676 ($12.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Energy
Start Date: 2000-03-15
End Date: 2011-07-30
Contract Duration: 4,154 days
Daily Burn Rate: $3.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87107
Plain-Language Summary
Department of Energy obligated $12.5 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded under a firm-fixed-price structure, indicating clear cost expectations. 2. The contract duration of over 11 years suggests a long-term need for these services. 3. Awarded to a single contractor, Leidos, Inc., raising questions about competition. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on management consulting. 5. The contract was awarded in New Mexico, potentially impacting local economic development. 6. The absence of small business set-aside indicates a focus on larger, established firms.
Value Assessment
Rating: fair
The contract value of $12.5 million over more than 11 years averages to approximately $1.1 million per year. Without specific deliverables or performance metrics, it is difficult to benchmark this value against similar contracts. The firm-fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value. However, the long duration and single award warrant further scrutiny to ensure competitive pricing was achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. However, the data indicates only one award was made to Leidos, Inc. The specific number of bids received is not provided, which limits the assessment of the competitive landscape. A robust competition typically leads to better pricing and service innovation for the government.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers. However, without knowing the number of bids, it's hard to definitively say if the government achieved optimal price discovery.
Public Impact
The Department of Energy benefits from expert administrative and management consulting services. The contract supports the operational efficiency and strategic planning of the agency. The geographic impact is primarily in New Mexico, where the contract was administered. The contract likely supports a team of consultants, contributing to employment in the professional services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 11 years) may reduce flexibility and opportunities for re-competition.
- Lack of specific details on the number of bidders received under 'full and open' competition limits transparency.
- Potential for vendor lock-in given the extended period of performance.
Positive Signals
- Firm-fixed-price contract structure shifts cost risk to the contractor.
- Awarded under full and open competition, theoretically allowing for broad market participation.
- Contractor, Leidos, Inc., is a large, established entity with significant government contracting experience.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting agencies across various functions. The market for management consulting services is competitive, with numerous firms offering specialized expertise. Benchmarking this contract's value requires comparison to similar consulting engagements within the federal government, considering the scope of work and duration.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small business participation may be limited unless Leidos, Inc. voluntarily includes them in their subcontracting efforts.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Energy. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to meet defined performance standards. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract awards, though detailed performance reports are often internal.
Related Government Programs
- Management and Consulting Services
- Professional Services Contracts
- Department of Energy Contracts
Risk Flags
- Long contract duration
- Single award under full and open competition
- Limited transparency on number of bidders
Tags
management-consulting, administrative-services, department-of-energy, leidos-inc, firm-fixed-price, full-and-open-competition, new-mexico, professional-services, long-term-contract, naics-541611
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $12.5 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 Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $12.5 million.
What is the period of performance?
Start: 2000-03-15. End: 2011-07-30.
What specific management and administrative services were provided under this contract?
The contract, identified by NAICS code 541611, pertains to Administrative Management and General Management Consulting Services. While the specific deliverables are not detailed in the provided data, such services typically encompass areas like organizational structure analysis, strategic planning, process improvement, policy development, and general management support. The Department of Energy likely utilized these services to enhance its operational efficiency, streamline administrative processes, or support specific program management initiatives. A deeper dive into the contract's statement of work (SOW) would reveal the precise nature and scope of the consulting activities performed.
How does the $12.5 million value compare to similar consulting contracts awarded by the Department of Energy?
Benchmarking the $12.5 million value requires comparing it to similar management consulting contracts awarded by the Department of Energy (DOE) or other large federal agencies. Given the contract's duration of over 11 years (from March 2000 to July 2011), the average annual spend was approximately $1.1 million. This figure needs to be contextualized by the complexity of the services, the level of expertise required, and the specific challenges the DOE aimed to address. Without access to a database of comparable contracts with detailed scope and performance data, a precise comparison is challenging. However, for long-term, broad-scope management consulting, an annual spend in the low millions is not uncommon for large federal agencies.
What is the track record of Leidos, Inc. in providing administrative and management consulting services to the federal government?
Leidos, Inc. is a major government contractor with a substantial history of providing a wide array of services, including management and consulting, to various federal agencies. Their track record generally indicates experience in large-scale, complex projects. For administrative and general management consulting, Leidos has likely engaged in numerous contracts similar to this one, leveraging their expertise in areas such as organizational efficiency, IT strategy, and program management support. A review of their past performance evaluations and other federal contracts would provide a more granular understanding of their specific successes and any potential areas of concern in delivering these types of services.
What were the primary risks associated with this contract, and how were they mitigated?
Key risks for a long-term consulting contract like this could include scope creep, cost overruns (though mitigated by firm-fixed-price), contractor performance issues, and misalignment with evolving agency needs. The firm-fixed-price (FFP) structure inherently mitigates financial risk for the government by capping the total cost. Mitigation for performance and scope risks would rely on robust contract oversight, clear performance metrics within the statement of work, regular progress reviews, and strong communication channels between the DOE and Leidos. The long duration also presents a risk of the contracted services becoming outdated; however, the FFP nature might incentivize the contractor to deliver efficiently within the agreed scope.
How did the 'full and open competition' process ensure value for taxpayers, given it resulted in a single award?
While 'full and open competition' theoretically maximizes the pool of potential bidders, a single award does not automatically imply a lack of value. It suggests that, among all the proposals received, Leidos, Inc.'s offer was deemed the best value by the Department of Energy based on the evaluation criteria outlined in the solicitation. This could be due to a combination of factors, including technical approach, past performance, and price. The value for taxpayers is realized if the selection process rigorously evaluated all bids to identify the most advantageous offer. However, without knowing the number of bids submitted and the specific evaluation criteria, it's difficult to definitively assess the extent of competition achieved and its impact on price.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DRIVE, ROOM #8031, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,465,398
Exercised Options: $13,465,398
Current Obligation: $12,489,676
Parent Contract
Parent Award PIID: GS23F8006H
IDV Type: FSS
Timeline
Start Date: 2000-03-15
Current End Date: 2011-07-30
Potential End Date: 2011-07-30 00:00:00
Last Modified: 2014-06-11
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