Education Dept. Awards $140M for Computer Software Stores, Primarily to Leidos, Inc
Contract Overview
Contract Amount: $140,030,610 ($140.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Education
Start Date: 2003-03-03
End Date: 2009-09-30
Contract Duration: 2,403 days
Daily Burn Rate: $58.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: FUNDING TO SUPPORT CHANGES AND CURRENT REQUIREMENTS
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $140.0 million to LEIDOS, INC. for work described as: FUNDING TO SUPPORT CHANGES AND CURRENT REQUIREMENTS Key points: 1. Significant contract value of $140 million over six years. 2. Leidos, Inc. is the primary awardee, indicating potential market concentration. 3. Contract type is Time and Materials, which can pose cost control risks. 4. The sector is Computer and Software Stores, essential for government IT operations.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, coupled with a significant duration, raises concerns about potential cost overruns. Benchmarking against similar IT hardware and software procurements is difficult without more granular data on specific items and services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, suggesting multiple bids were considered. However, the specific competition details and the number of bidders are not provided, making it hard to assess the effectiveness of price discovery.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the Time and Materials pricing model could lead to higher-than-expected costs if not managed closely.
Public Impact
Ensures access to necessary computer hardware and software for government operations. Supports the Department of Education's mission by providing essential IT resources. Potential for long-term reliance on a single vendor, impacting future procurement flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Long contract duration
- Potential vendor lock-in
Positive Signals
- Competitive award process
- Essential IT support
Sector Analysis
This contract falls within the IT sector, specifically focusing on computer hardware and software procurement. Government spending in this area is substantial, with benchmarks varying widely based on the specific technologies and services required.
Small Business Impact
The data does not indicate any specific set-asides for small businesses, suggesting this large contract may not have directly benefited smaller enterprises in the IT sector.
Oversight & Accountability
The competitive delivery order mechanism implies some level of oversight, but the long duration and T&M pricing necessitate robust monitoring to ensure value for money and prevent cost creep.
Related Government Programs
- Computer and Software Stores
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific itemization makes value assessment difficult.
- Long contract duration may lead to outdated technology or vendor lock-in.
- Limited visibility into the competitive landscape beyond the awardee.
- No clear indication of small business participation.
Tags
computer-and-software-stores, department-of-education, va, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $140.0 million to LEIDOS, INC.. FUNDING TO SUPPORT CHANGES AND CURRENT REQUIREMENTS
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $140.0 million.
What is the period of performance?
Start: 2003-03-03. End: 2009-09-30.
What specific computer hardware and software were procured under this contract, and how do their prices compare to market rates?
The provided data lacks specifics on the exact hardware and software items. A detailed analysis would require reviewing the delivery orders issued against this contract to compare unit prices with commercial equivalents and other government contracts. Without this, assessing true value for money is challenging.
What were the key performance metrics and service level agreements (SLAs) established to manage the Time and Materials contract effectively?
Effective management of T&M contracts relies heavily on clearly defined performance metrics and SLAs. These would typically include response times, uptime guarantees, and quality standards for delivered hardware and software. Robust oversight is crucial to ensure Leidos, Inc. meets these requirements and that costs remain justified.
How did the competitive process ensure the best possible pricing and terms for the government, given the T&M structure?
While the contract was competitively awarded, the Time and Materials structure inherently shifts some pricing risk to the government. The competition likely focused on factors like proposed labor rates, management fees, and past performance. Effective price negotiation and ongoing monitoring are vital to realizing savings under this model.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DRIVE, ROOM #8032, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $140,030,611
Exercised Options: $140,030,610
Current Obligation: $140,030,610
Parent Contract
Parent Award PIID: GS35F4461G
IDV Type: FSS
Timeline
Start Date: 2003-03-03
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2014-03-29
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