Leidos Inc. awarded $13.7M for Defense Program Support to Headquarters by Department of Energy

Contract Overview

Contract Amount: $13,692,543 ($13.7M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Energy

Start Date: 2004-10-30

End Date: 2007-04-29

Contract Duration: 911 days

Daily Burn Rate: $15.0K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: DEFENSE PROGRAM SUPPORT TO HEADQUARTERS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $13.7 million to LEIDOS, INC. for work described as: DEFENSE PROGRAM SUPPORT TO HEADQUARTERS Key points: 1. Contract awarded for administrative and management consulting services. 2. Significant duration of over 900 days indicates a long-term need. 3. Awarded as a non-competitive delivery order, raising questions about competition. 4. The contract's value is substantial for management consulting services. 5. Focus on headquarters support suggests strategic or administrative functions. 6. The contractor, Leidos, Inc., is a major player in government contracting.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables. However, the $13.7 million award over approximately 2.5 years for administrative management and general management consulting services suggests a significant investment. Given the non-competitive nature, it's difficult to assess if this represents optimal value for money compared to potentially more competitive bids. Further analysis would require understanding the scope of services and comparing them to industry standards for similar consulting engagements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order. This means that the Department of Energy did not solicit bids from multiple vendors. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), the lack of competition limits price discovery and may not yield the most cost-effective solution for the government.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. This could lead to higher overall costs for the services rendered.

Public Impact

The Department of Energy headquarters benefits from specialized program support. Services likely include strategic planning, administrative management, and operational consulting. The primary beneficiaries are the internal operations and decision-making processes of the agency. Workforce implications are likely minimal for the public, but internal staff may see process improvements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This is a broad category encompassing a wide range of advisory and assistance services. The federal government is a significant consumer of these services, particularly for strategic planning, organizational improvement, and program management. The market includes numerous large and small businesses. The value of this specific contract is substantial within this sector, especially given its non-competitive nature.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. Therefore, it is unlikely to directly benefit small businesses through set-aside awards. However, as a large prime contractor, Leidos, Inc. may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data. The impact on the broader small business ecosystem is likely indirect.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. As a delivery order under a larger contract vehicle, specific oversight mechanisms would be defined within that framework. Transparency is limited due to the non-competitive award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Risk Flags

Tags

defense-program-support, headquarters, leidos-inc, department-of-energy, administrative-management-consulting, general-management-consulting, non-competitive, delivery-order, district-of-columbia, labor-hours, federal-agency, management-consulting

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $13.7 million to LEIDOS, INC.. DEFENSE PROGRAM SUPPORT TO HEADQUARTERS

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 $13.7 million.

What is the period of performance?

Start: 2004-10-30. End: 2007-04-29.

What specific defense program support was provided under this contract?

The provided data indicates the contract was for 'DEFENSE PROGRAM SUPPORT TO HEADQUARTERS' under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the specific 'defense program' is not detailed, the nature of the services suggests it likely involved strategic planning, policy development, organizational analysis, or program management support related to defense initiatives within the Department of Energy. This could encompass areas like nuclear security, energy infrastructure defense, or related strategic planning functions. The 'Headquarters' designation implies support at a high organizational level, influencing agency-wide direction or operations.

How does the $13.7 million award compare to similar consulting contracts within the Department of Energy?

Comparing the $13.7 million award requires context on the duration and scope. This contract spanned approximately 2.5 years (October 2004 to April 2007). For management and consulting services, this value is substantial, particularly for a single delivery order. However, the Department of Energy, like other large federal agencies, awards numerous contracts for various support services. Without knowing the specific deliverables and the complexity of the 'defense program support,' a direct comparison is difficult. Generally, large-scale strategic consulting or program management support contracts can range from several million to tens of millions of dollars annually, depending on the agency's needs and the contractor's expertise.

What are the potential risks associated with a non-competitive delivery order of this magnitude?

The primary risk associated with a non-competitive delivery order of this magnitude is the potential for reduced value for money. Without competition, there is less incentive for the contractor to offer the lowest possible price, and the government may not benefit from the innovative solutions or efficiencies that multiple bidders might provide. Other risks include scope creep, where the project's objectives expand beyond the original intent without corresponding price adjustments, and a potential lack of robust performance monitoring if the agency becomes overly reliant on a single provider. Ensuring clear deliverables and strong oversight is critical to mitigate these risks.

What is Leidos, Inc.'s track record with the Department of Energy and similar agencies?

Leidos, Inc. (and its predecessor companies) has a long and extensive history of contracting with the Department of Energy and other federal agencies, particularly in areas related to defense, energy, national security, and IT services. They are a major government contractor known for handling complex, large-scale programs. Their track record with the DOE likely includes a variety of support services, research and development, and program management. Given their size and scope, they are a frequent awardee of significant contracts across multiple federal departments, indicating a generally established capability and relationship with government clients.

How has federal spending on administrative and management consulting services evolved since this contract was awarded?

Federal spending on administrative and management consulting services has generally increased significantly since this contract was awarded in the mid-2000s. Agencies continue to rely on external expertise for strategic planning, organizational efficiency, IT modernization, and program management. Factors driving this trend include the increasing complexity of government operations, the need for specialized skills not always available in-house, and the push for greater efficiency and accountability. While specific figures fluctuate annually based on budget appropriations and agency priorities, the overall demand for these services has remained robust, with significant portions often awarded through competitive vehicles, though sole-source awards still occur.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 10260 CAMPUS POINT DRIVE, SAN DIEGO, CA, 92121

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,382,918

Exercised Options: $16,382,918

Current Obligation: $13,692,543

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DEAM5205NA26035

IDV Type: IDC

Timeline

Start Date: 2004-10-30

Current End Date: 2007-04-29

Potential End Date: 2007-04-29 00:00:00

Last Modified: 2017-09-12

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