Transportation contract for engineering services awarded to Leidos, Inc. for over $55 million
Contract Overview
Contract Amount: $55,322,220 ($55.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Transportation
Start Date: 2006-10-18
End Date: 2010-06-30
Contract Duration: 1,351 days
Daily Burn Rate: $40.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: CLIN: N/A FUNDING FOR TASK 024B-004 SWIM PROGRAM MANAGEMENT SUPPORT. DTFA01-93-C-00017 - SAIC. SPEND PLAN: 7F3J1A09A0. NATIONAL PROJECT CODE: 21010101. POP: 03/19/07 - 09/30/07. PR EXPLANATION: TASK DOES NOT SUPPORT ASSETS BEING PROCURED.
Place of Performance
Location: WAKEFIELD, MIDDLESEX County, MASSACHUSETTS, 01880
Plain-Language Summary
Department of Transportation obligated $55.3 million to LEIDOS, INC. for work described as: CLIN: N/A FUNDING FOR TASK 024B-004 SWIM PROGRAM MANAGEMENT SUPPORT. DTFA01-93-C-00017 - SAIC. SPEND PLAN: 7F3J1A09A0. NATIONAL PROJECT CODE: 21010101. POP: 03/19/07 - 09/30/07. PR EXPLANATION: TASK DOES NOT SUPPORT ASSETS BEING PROCURED. Key points: 1. Contract value exceeds $55 million, indicating a significant investment in engineering services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is over three years, implying a long-term need for these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was made by the Federal Aviation Administration, highlighting its role in aviation infrastructure. 6. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services.
Value Assessment
Rating: fair
The contract value of over $55 million for engineering services is substantial. Benchmarking this against similar contracts for program management support within the FAA or other transportation agencies would be necessary for a precise value-for-money assessment. The Firm Fixed Price contract type suggests that the pricing was determined upfront, but without detailed cost breakdowns or comparisons to market rates for specific engineering tasks, it's difficult to definitively assess if the price represents excellent value. The duration of over three years also needs to be considered in relation to the scope of work to determine if it aligns with typical project lifecycles.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the actual number of bids received can influence the intensity of that competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. The fact that three bids were received suggests that taxpayers likely received a reasonably competitive price, though more bidders could have potentially driven prices lower.
Public Impact
The Federal Aviation Administration (FAA) is the primary beneficiary, receiving program management support for its SWIM program. The services delivered are engineering and program management, crucial for the development and maintenance of aviation systems. The contract is managed by the FAA, implying a national impact on aviation infrastructure and operations. The workforce implications are likely related to specialized engineering and project management roles within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The specific task (024B-004) is noted as not supporting assets being procured, raising questions about the alignment of this specific task with broader procurement goals.
- The contract period spans from March 2007 to September 2010, which is a considerable duration for program management support, potentially leading to scope creep or evolving requirements that may not have been fully anticipated at the outset.
Positive Signals
- The contract was awarded through full and open competition, indicating a robust and transparent procurement process.
- The Firm Fixed Price contract type provides cost certainty for the government, as the contractor assumes the risk for cost overruns.
- The contract is managed by the Department of Transportation's Federal Aviation Administration, a key agency responsible for national airspace safety and efficiency.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to aviation program management. The market for aviation engineering and program management services is substantial, driven by the continuous need for modernization, safety enhancements, and operational efficiency within the air traffic control and management systems. Comparable spending benchmarks would typically involve looking at other large-scale IT and engineering support contracts within the FAA and other federal agencies involved in complex infrastructure projects.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, Leidos, Inc., is a large business, and any subcontracting would be at their discretion, not mandated by a small business set-aside.
Oversight & Accountability
Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), the awarding agency. Accountability measures are embedded in the Firm Fixed Price contract type, which incentivizes the contractor to manage costs effectively. Transparency is generally facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- FAA Air Traffic Control Modernization Programs
- Federal Aviation Systems Engineering Support
- Department of Transportation IT and Management Support Contracts
- National Airspace System (NAS) Modernization Initiatives
Risk Flags
- Potential misalignment of task objective with asset procurement.
- Long contract duration may increase risk of scope creep or evolving requirements.
- Need for detailed benchmarking to confirm value for money.
Tags
transportation, federal-aviation-administration, engineering-services, full-and-open-competition, firm-fixed-price, program-management, large-contract, aviation-infrastructure, national-project, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $55.3 million to LEIDOS, INC.. CLIN: N/A FUNDING FOR TASK 024B-004 SWIM PROGRAM MANAGEMENT SUPPORT. DTFA01-93-C-00017 - SAIC. SPEND PLAN: 7F3J1A09A0. NATIONAL PROJECT CODE: 21010101. POP: 03/19/07 - 09/30/07. PR EXPLANATION: TASK DOES NOT SUPPORT ASSETS BEING PROCURED.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $55.3 million.
What is the period of performance?
Start: 2006-10-18. End: 2010-06-30.
What is the track record of Leidos, Inc. (formerly SAIC) in performing similar engineering and program management services for the FAA or other federal agencies?
Leidos, Inc., and its predecessor SAIC, have a long and extensive history of providing complex engineering, IT, and program management services to the federal government, including significant work for the Department of Defense and the Department of Transportation's Federal Aviation Administration (FAA). For the FAA, they have been involved in major modernization efforts, including aspects of the Next Generation Air Transportation System (NextGen) and the System Wide Information Management (SWIM) program, which this contract supports. Their track record generally includes large-scale, mission-critical projects. However, like many large government contractors, they have also faced scrutiny and contract disputes on various programs. A detailed review of past performance evaluations and any significant contract issues would be necessary for a comprehensive assessment of their specific track record on this particular type of service.
How does the awarded amount of over $55 million compare to the estimated value or budget for similar FAA program management support contracts?
Comparing the awarded amount of over $55 million requires context regarding the specific scope, duration, and complexity of the services provided under CLIN: N/A TASK 024B-004 for SWIM Program Management Support. Without access to the original contract solicitation, detailed statement of work, and the government's independent cost estimate, a direct comparison is challenging. However, for large-scale, multi-year program management and engineering support for critical national infrastructure like the FAA's SWIM program, a contract value in the tens of millions of dollars is not uncommon. To benchmark effectively, one would need to analyze other FAA contracts for similar services, considering factors like the number of personnel, required expertise, and the criticality of the program. The duration of over three years suggests a significant, ongoing support requirement that justifies a substantial funding allocation.
What are the primary risks associated with a Firm Fixed Price contract of this magnitude and duration for engineering services?
The primary risk with a Firm Fixed Price (FFP) contract of this magnitude and duration is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. While FFP shifts cost risk to the contractor, it can incentivize them to minimize expenses, which might impact the thoroughness of engineering analysis or the robustness of program management. Another risk is that if the initial scope is poorly defined or unforeseen technical challenges arise, the contractor may struggle to deliver the full intended value within the fixed price, potentially leading to disputes or a less-than-optimal outcome for the government. For the government, the risk lies in ensuring the contractor has adequately priced the contract to cover all necessary work and that robust quality assurance measures are in place to monitor performance and deliverables.
How effective has the FAA's SWIM program been historically, and how does this contract contribute to its overall success?
The System Wide Information Management (SWIM) program is a cornerstone of the FAA's Next Generation Air Transportation System (NextGen) initiative, aiming to create a more collaborative and efficient air traffic management system by enabling seamless information sharing among stakeholders. Its effectiveness is measured by its ability to integrate disparate data sources, improve situational awareness, and facilitate more dynamic routing and decision-making. This contract for program management support is crucial for the ongoing development, implementation, and operationalization of SWIM. It provides the necessary expertise to manage the complexities of integrating various systems, coordinating stakeholder efforts, and ensuring the program stays on track with its objectives. The success of this contract directly contributes to the overall effectiveness of SWIM in achieving NextGen's goals of increased capacity, efficiency, and safety in the national airspace.
What are the historical spending patterns for engineering services by the Federal Aviation Administration, and how does this contract fit within that trend?
The Federal Aviation Administration (FAA) consistently invests significant funds in engineering services to support the modernization and maintenance of the National Airspace System (NAS). Historical spending patterns show a substantial allocation towards areas like air traffic control systems, communication and navigation technologies, and safety enhancements. Contracts for program management and engineering support, such as the one awarded to Leidos, Inc., are a regular component of this spending. This specific contract, valued at over $55 million and spanning over three years, represents a significant, but not necessarily anomalous, investment within the broader context of FAA's ongoing efforts to upgrade its infrastructure and operational capabilities. It aligns with the agency's trend of procuring specialized expertise to manage complex technological and systemic advancements.
Given the 'PR EXPLANATION' states 'TASK DOES NOT SUPPORT ASSETS BEING PROCURED,' what are the implications for the contract's alignment with strategic procurement goals?
The note 'TASK DOES NOT SUPPORT ASSETS BEING PROCURED' for this specific task (024B-004) raises a potential misalignment between the task's objective and the broader procurement strategy for the SWIM program or related assets. Program management support is typically intended to facilitate the acquisition, development, or integration of assets. If this task is purely administrative or advisory without direct linkage to current asset procurement, it could indicate a need for clearer definition of its contribution to strategic goals. It might suggest that the task focuses on overarching program strategy, policy development, or long-term planning rather than immediate acquisition support. However, without further clarification, it introduces a degree of ambiguity regarding the task's direct impact on tangible procurement outcomes and could warrant closer examination to ensure efficient use of funds.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 299 EDGEWATER DR, WAKEFIELD, MA, 06
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $69,809,985
Exercised Options: $55,452,220
Current Obligation: $55,322,220
Timeline
Start Date: 2006-10-18
Current End Date: 2010-06-30
Potential End Date: 2010-09-11 00:00:00
Last Modified: 2010-05-27
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