DOJ's $203.5M ADP Facility Management Contract with Leidos Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $203,515,466 ($203.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Justice
Start Date: 2009-06-19
End Date: 2019-01-31
Contract Duration: 3,513 days
Daily Burn Rate: $57.9K/day
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: ADP FACILITY MANAGEMENT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530
Plain-Language Summary
Department of Justice obligated $203.5 million to LEIDOS, INC. for work described as: ADP FACILITY MANAGEMENT Key points: 1. Significant spending on IT facility management services. 2. Leidos, Inc. is the sole contractor, raising competition concerns. 3. Long contract duration (2009-2019) may indicate potential for price creep. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract's total value of $203.5 million over 10 years suggests a substantial investment. However, without detailed cost breakdowns or comparisons to similar contracts, assessing the value for money is difficult. The lack of competition further complicates this assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source, meaning there was no open competition. This significantly limits price discovery and potentially leads to higher costs for taxpayers. The rationale for sole-source award is not provided.
Taxpayer Impact: The absence of competitive bidding likely results in a higher cost to taxpayers than if multiple vendors had competed for the contract.
Public Impact
Taxpayers may be overpaying for IT facility management due to lack of competition. Government reliance on a single vendor could create risks if the vendor fails to perform. Limited opportunities for small businesses to participate in this large federal contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of small business participation
- Long contract duration
- Limited transparency on value
Positive Signals
- Consistent service delivery over a decade
Sector Analysis
The IT facility management sector involves the operation and maintenance of data centers and related infrastructure. Spending benchmarks vary widely based on the scope of services, but long-term sole-source contracts often warrant closer examination for cost-effectiveness.
Small Business Impact
This contract shows no indication of small business participation. Federal policy encourages the inclusion of small businesses in contracting, and the absence here suggests a missed opportunity for economic development and potentially more competitive pricing.
Oversight & Accountability
The sole-source nature of this award raises questions about the initial justification and ongoing oversight. Regular reviews should ensure the continued necessity and fair pricing of the services provided by Leidos.
Related Government Programs
- Computer Facilities Management Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- No small business participation
- Lack of transparency on performance metrics
- Long contract duration may mask inefficiencies
Tags
computer-facilities-management-services, department-of-justice, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $203.5 million to LEIDOS, INC.. ADP FACILITY MANAGEMENT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $203.5 million.
What is the period of performance?
Start: 2009-06-19. End: 2019-01-31.
What was the justification for awarding this contract on a sole-source basis, and has it been re-evaluated over the contract's lifespan?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. Without this information, it's impossible to assess the validity of the initial decision or whether it remained appropriate throughout the contract's 10-year duration.
How does the per-unit cost of these facility management services compare to industry benchmarks or other government contracts for similar services?
A direct per-unit cost comparison is not possible with the given data. The contract is based on 'LABOR HOURS' and lacks specific service deliverables or pricing structures. To assess value, a detailed analysis of labor rates, overhead, and the scope of services against market data would be required.
What performance metrics were used to evaluate Leidos's service delivery, and were there any penalties or incentives tied to performance?
The provided data does not contain information on performance metrics, penalties, or incentives. Effective contract management relies on clearly defined performance standards and mechanisms to ensure accountability. The absence of this detail makes it difficult to gauge the effectiveness of the service delivery and the contractor's adherence to requirements.
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
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $209,247,839
Exercised Options: $209,247,839
Current Obligation: $203,515,466
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DJJ07C1509
IDV Type: IDC
Timeline
Start Date: 2009-06-19
Current End Date: 2019-01-31
Potential End Date: 2019-01-31 00:00:00
Last Modified: 2018-09-26
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