NOAA Awards $22.4M Technical Services Contract to Leidos Inc. Amidst Limited Competition
Contract Overview
Contract Amount: $22,421,451 ($22.4M)
Contractor: Leidos Inc
Awarding Agency: Department of Commerce
Start Date: 2011-07-01
End Date: 2012-12-31
Contract Duration: 549 days
Daily Burn Rate: $40.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BRIDGE CONTRACT FOR NOAA TECHNICAL SERVICES SUPPORT CT - CRITICAL FUNCTION
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Commerce obligated $22.4 million to LEIDOS INC for work described as: BRIDGE CONTRACT FOR NOAA TECHNICAL SERVICES SUPPORT CT - CRITICAL FUNCTION Key points: 1. Leidos Inc. secured a significant contract for NOAA's technical services, highlighting their role in critical government functions. 2. The contract's 'NOT COMPETED' status raises questions about potential price discovery and market competition. 3. With a duration of 549 days, the contract represents a substantial investment in NOAA's operational capabilities. 4. The sector is primarily Facilities Support Services, indicating a focus on infrastructure and operational maintenance.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and may not leverage the most cost-effective solutions available in the market.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for services that might be procured at a lower cost through a competitive process.
Public Impact
Ensures continuity of critical technical services for NOAA's operations. Potential for increased costs to taxpayers due to the non-competitive nature of the award. Highlights reliance on specific contractors for essential government functions. Impacts the broader market for technical support services by limiting opportunities for other firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- No small business participation noted
Positive Signals
- Ensures critical NOAA services are maintained
- Established contractor with experience
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing maintenance, operation, and management of government facilities. Benchmarks for this sector vary widely based on the specific services and scale.
Small Business Impact
The data indicates this contract did not involve small business participation. This is a missed opportunity to foster growth and innovation within the small business sector for government contracting.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny to ensure the government received fair value and that the justification for sole-sourcing was robust.
Related Government Programs
- Facilities Support Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Cost-plus contract type carries inherent risk of cost overruns.
- No indication of small business involvement.
- Potential for suboptimal value due to lack of competition.
Tags
facilities-support-services, department-of-commerce, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $22.4 million to LEIDOS INC. BRIDGE CONTRACT FOR NOAA TECHNICAL SERVICES SUPPORT CT - CRITICAL FUNCTION
Who is the contractor on this award?
The obligated recipient is LEIDOS INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $22.4 million.
What is the period of performance?
Start: 2011-07-01. End: 2012-12-31.
What was the specific justification for not competing this contract, and were alternative solutions explored?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. A thorough review would be needed to confirm if these criteria were met and if other potential vendors were considered.
How does the Cost Plus Fixed Fee structure impact cost control and potential for overruns in this specific NOAA contract?
The CPFF structure incentivizes the contractor to incur costs, as their fee is a fixed percentage of those costs. While it allows for flexibility, it can lead to cost overruns if the contractor does not manage expenses efficiently or if the scope of work expands significantly. Robust oversight is crucial to mitigate these risks and ensure value for taxpayer money.
What is the long-term strategy for ensuring competitive sourcing of NOAA's technical services to maximize value?
The long-term strategy should involve a proactive approach to market research and planning for future procurements. Agencies should aim to break down large requirements into smaller, competitively viable packages where possible, and regularly assess the market to identify potential new sources. This ensures ongoing competition and drives better value over time.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 2895 SCOTT ST, VISTA, CA, 92081
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,704,650
Exercised Options: $22,704,650
Current Obligation: $22,421,451
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-07-01
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2020-04-03
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