DOE awards $87.4M contract to Leidos for Office Administrative Services over 11 years
Contract Overview
Contract Amount: $87,421,269 ($87.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Energy
Start Date: 2002-12-24
End Date: 2013-05-31
Contract Duration: 3,811 days
Daily Burn Rate: $22.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE
Sector: Other
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99352
Plain-Language Summary
Department of Energy obligated $87.4 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded to Leidos, a major government contractor. 2. The contract type is Cost Plus Incentive, suggesting performance-based incentives. 3. Long duration of over 11 years may indicate a stable, ongoing need. 4. The specific NAICS code (561110) points to general office support services.
Value Assessment
Rating: fair
The contract value of $87.4M over 11 years averages to approximately $7.9M annually. Without specific benchmarks for office administrative services of this scale and duration, it's difficult to definitively assess pricing. However, the Cost Plus Incentive Fee structure implies potential for cost savings if performance targets are met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract is listed as 'COMPETITIVE DELIVERY ORDER'. This suggests it was part of a larger competitive vehicle, but the specific competition for this delivery order is not detailed. The pricing discovery mechanism is tied to the underlying contract's competitive nature and the incentive fee structure.
Taxpayer Impact: The competitive nature of the award, if robust, should lead to fair pricing. However, the long duration and cost-plus structure warrant scrutiny to ensure taxpayer funds are used efficiently.
Public Impact
Provides essential administrative support to the Department of Energy. Supports long-term operational needs of the agency. Potential for job creation within the administrative services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (11+ years)
- Cost-plus incentive fee structure
- Lack of detailed competition information for the delivery order
Positive Signals
- Competitive award mechanism
- Potential for performance-based cost savings
Sector Analysis
This contract falls under general administrative and support services, a broad sector crucial for government operations. Benchmarks for this specific type of service are highly variable based on scope and agency. The value suggests a significant operational support requirement.
Small Business Impact
The data indicates this contract was awarded to Leidos, Inc., a large business. There is no indication of small business participation in this specific award, suggesting opportunities may have been missed or were not applicable.
Oversight & Accountability
The long duration and cost-plus nature of the contract necessitate robust oversight from the Department of Energy to ensure performance standards are met and costs remain controlled. Regular reviews of incentive fee payouts are critical.
Related Government Programs
- Office Administrative Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Incentive Fee structure.
- Long contract duration may reduce flexibility and increase risk of obsolescence.
- Lack of transparency regarding specific competition for the delivery order.
- Dominance of a large contractor may limit opportunities for smaller, innovative firms.
Tags
office-administrative-services, department-of-energy, wa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $87.4 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 $87.4 million.
What is the period of performance?
Start: 2002-12-24. End: 2013-05-31.
What specific administrative services are included under this contract, and how do they align with the Department of Energy's core mission?
The contract covers general office administrative services (NAICS 561110). This typically includes functions like mail services, reception, recordkeeping, and general clerical support. While essential for agency operations, the direct alignment with DOE's core energy research and policy mission would depend on how these services are integrated and prioritized within the agency's strategic objectives.
How effectively does the Cost Plus Incentive Fee (CPIF) structure manage costs and incentivize performance for these administrative services over such a long period?
The CPIF structure aims to align contractor incentives with government objectives by allowing for fee adjustments based on performance against targets. For administrative services over 11 years, its effectiveness hinges on clearly defined, measurable performance metrics and realistic cost targets. Without insight into these specifics, it's hard to gauge if it truly drives efficiency or simply adds complexity.
What was the competitive landscape for this specific delivery order, and how did it influence the final pricing and terms?
While labeled a 'COMPETITIVE DELIVERY ORDER,' the details of the competition for this specific order are not provided. If it was competed among multiple qualified vendors under a broader contract vehicle, it likely contributed to fair pricing. However, the lack of transparency regarding the specific bidding process makes it difficult to assess the full impact on price discovery and overall value for taxpayers.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE (V)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $87,533,591
Exercised Options: $87,533,591
Current Obligation: $87,421,269
Actual Outlays: $-8,017
Parent Contract
Parent Award PIID: DEAM0402AL67954
IDV Type: IDC
Timeline
Start Date: 2002-12-24
Current End Date: 2013-05-31
Potential End Date: 2013-05-31 00:00:00
Last Modified: 2013-10-24
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