DOJ's $18.2M Consulting Contract with Leidos Aspen Systems Corp: A Strategic Sourcing Peer Review

Contract Overview

Contract Amount: $18,241,057 ($18.2M)

Contractor: Leidos Aspen Systems Corp

Awarding Agency: Department of Justice

Start Date: 2007-05-21

End Date: 2010-09-30

Contract Duration: 1,228 days

Daily Burn Rate: $14.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: STRATEGIC SOURCING PEER REVIEW

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $18.2 million to LEIDOS ASPEN SYSTEMS CORP for work described as: STRATEGIC SOURCING PEER REVIEW Key points: 1. The contract awarded to Leidos Aspen Systems Corp for administrative management consulting services represents a significant investment by the Department of Justice. 2. Competition for this contract was competitive, indicating potential for good value, though the specific pricing mechanisms need further scrutiny. 3. The primary risk lies in the Time and Materials pricing structure, which can lead to cost overruns if not managed tightly. 4. The sector is administrative management and general management consulting, a common area for government outsourcing.

Value Assessment

Rating: fair

The Time and Materials pricing structure, while common, offers less price certainty compared to fixed-price contracts. Benchmarking against similar administrative management consulting contracts would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded via a competitive delivery order, suggesting that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competition, but the effectiveness depends on the specific solicitation and evaluation process.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure services at a reasonable cost. However, the Time and Materials pricing could still lead to higher-than-expected expenditures if not carefully monitored.

Public Impact

Taxpayers are impacted by the $18.2 million expenditure for consulting services, necessitating transparency in how these funds are utilized. The Department of Justice relies on these services to enhance administrative and general management functions, potentially improving operational efficiency. The duration of the contract (over 3 years) suggests a long-term need for these consulting services within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Administrative Management and General Management Consulting Services are crucial for government agencies to optimize operations and implement strategic initiatives. Benchmarks for this sector vary widely based on the complexity and duration of the services required.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The 'STRATEGIC SOURCING PEER REVIEW' designation suggests that this contract has undergone some level of internal review. However, the extent of ongoing oversight and accountability mechanisms for this specific contract is not detailed in the provided data.

Related Government Programs

Risk Flags

Tags

administrative-management-and-general-ma, department-of-justice, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $18.2 million to LEIDOS ASPEN SYSTEMS CORP. STRATEGIC SOURCING PEER REVIEW

Who is the contractor on this award?

The obligated recipient is LEIDOS ASPEN SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2007-05-21. End: 2010-09-30.

What specific deliverables and performance metrics were established to ensure the value and effectiveness of the consulting services provided by Leidos Aspen Systems Corp?

The provided data lacks specific details on deliverables and performance metrics. A thorough review would require access to the contract's statement of work and performance evaluation reports. Without these, assessing the true value and effectiveness of the $18.2 million expenditure is challenging, as it's difficult to quantify the impact of 'Administrative Management and General Management Consulting Services' without defined outcomes.

How effectively did the competitive delivery order process ensure the best possible pricing for these consulting services, given the Time and Materials structure?

While a competitive delivery order is a positive step, the Time and Materials (T&M) pricing structure inherently carries a risk of cost escalation. The effectiveness of price discovery depends heavily on the clarity of the base contract, the realism of estimated hours, and the agency's ability to monitor and control labor rates and hours. Without detailed bid analysis and ongoing cost tracking, it's difficult to confirm optimal pricing.

What is the anticipated long-term impact of these consulting services on the operational efficiency and effectiveness of the Office of Justice Programs?

The long-term impact is contingent on the specific recommendations implemented and the agency's capacity to adopt them. Consulting services in administrative management aim to streamline processes, improve resource allocation, and enhance strategic planning. The success of this $18.2 million investment will be measured by tangible improvements in the Office of Justice Programs' operational efficiency and its ability to achieve its mission objectives over time.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation ID: 2007Q0005

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,352,473

Exercised Options: $19,352,473

Current Obligation: $18,241,057

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0070J

IDV Type: FSS

Timeline

Start Date: 2007-05-21

Current End Date: 2010-09-30

Potential End Date: 2010-09-30 00:00:00

Last Modified: 2022-10-29

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