Leidos Inc. contract for hosting services with EPA valued at $49.7M over 6.5 years
Contract Overview
Contract Amount: $49,661,256 ($49.7M)
Contractor: Leidos, Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2010-10-01
End Date: 2017-03-31
Contract Duration: 2,373 days
Daily Burn Rate: $20.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICES - HOSTING
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27711
Plain-Language Summary
Environmental Protection Agency obligated $49.7 million to LEIDOS, INC. for work described as: SERVICES - HOSTING Key points: 1. Contract awarded for hosting services, indicating a need for IT infrastructure support. 2. The contract duration of over 6 years suggests a long-term requirement for these services. 3. A firm fixed-price contract type aims to control costs and provide budget certainty. 4. The award was made under full and open competition, suggesting a competitive market. 5. The contract was awarded as a delivery order, implying it's part of a larger framework agreement. 6. The North Carolina location for performance might indicate specific data center or operational needs.
Value Assessment
Rating: good
The total value of $49.7 million over approximately 6.5 years averages to about $7.6 million annually. Without specific benchmarks for hosting services of this scale and complexity, it's difficult to definitively assess value for money. However, the firm fixed-price structure suggests an effort to manage costs. Comparing this to similar large-scale government hosting contracts would provide a clearer picture of its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 6 bidders, this suggests a reasonably competitive environment for these hosting services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
The Environmental Protection Agency (EPA) benefits from reliable IT infrastructure to support its mission. Essential hosting services are delivered, enabling the operation of critical EPA systems and applications. The contract's performance is located in North Carolina, potentially impacting the local IT workforce and economy. Federal agencies rely on such contracts to maintain secure and accessible data and operational platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration may lead to vendor lock-in if not managed carefully.
- Reliance on a single contractor for critical hosting services poses a potential risk.
- Scope creep could increase costs if not strictly managed under the fixed-price agreement.
Positive Signals
- Firm fixed-price contract provides cost certainty for the EPA.
- Full and open competition suggests a healthy market and potential for competitive pricing.
- Delivery order structure may offer flexibility within a broader IT services framework.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on IT infrastructure and hosting services. The market for government IT services is substantial, with agencies increasingly relying on cloud and managed hosting solutions. This contract represents a significant investment in maintaining the operational backbone for a key federal agency, aligning with broader trends of IT modernization and outsourcing within the federal government.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, Leidos, Inc. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.
Oversight & Accountability
The contract's oversight would typically fall under the EPA's contracting officers and program managers. As a delivery order, it might be subject to oversight within a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- EPA IT Infrastructure Support
- Federal Cloud Computing Services
- Government Data Center Operations
- IT Managed Services Contracts
Risk Flags
- Long contract duration may limit flexibility.
- Reliance on a single provider for critical infrastructure.
- Potential for cost increases if scope changes significantly.
Tags
it-services, hosting, environmental-protection-agency, leidos-inc, firm-fixed-price, full-and-open-competition, delivery-order, north-carolina, large-contract, it-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $49.7 million to LEIDOS, INC.. SERVICES - HOSTING
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $49.7 million.
What is the period of performance?
Start: 2010-10-01. End: 2017-03-31.
What is the track record of Leidos, Inc. in delivering similar IT hosting services to federal agencies?
Leidos, Inc. has a significant history of providing IT services to the federal government, including infrastructure management, cloud solutions, and cybersecurity. They have held numerous large contracts across various agencies such as the Department of Defense, NASA, and the Department of Homeland Security. Their experience often involves managing complex IT environments and ensuring high availability and security for critical government systems. Specific performance data for this EPA contract, such as on-time delivery, service level agreement adherence, and customer satisfaction, would be necessary for a complete assessment of their track record on this particular engagement. However, their general profile suggests they are a capable provider of such services.
How does the annual cost of this contract compare to industry benchmarks for similar hosting services?
The contract's total value of approximately $49.7 million over roughly 6.5 years equates to an average annual cost of about $7.6 million. Benchmarking this figure requires detailed knowledge of the specific services provided (e.g., dedicated servers, virtual private clouds, managed services, bandwidth, storage, security features) and the Service Level Agreements (SLAs) in place. Generally, large-scale government hosting contracts can vary widely in price depending on these factors. Without a precise comparison of service scope and performance metrics against market rates for comparable government or commercial hosting solutions, it is challenging to definitively state if this represents excellent or fair value. However, the firm fixed-price nature suggests an attempt to lock in costs.
What are the primary risks associated with this hosting services contract for the EPA?
Key risks include potential vendor lock-in due to the long contract duration, which could make transitioning to a new provider difficult or costly. There's also the risk of service disruptions if the contractor fails to meet performance standards or experiences outages, impacting the EPA's operations. Security vulnerabilities are another significant concern, as a breach of hosted data could have severe consequences. Furthermore, under a firm fixed-price contract, the risk of scope creep exists; if the EPA's needs evolve beyond the original scope, managing change orders and associated costs becomes critical to avoid budget overruns. Ensuring the contractor maintains adequate staffing and expertise throughout the contract term is also a consideration.
How effective has this contract been in meeting the EPA's IT hosting needs?
Assessing the effectiveness requires access to performance metrics, such as uptime percentages, response times, security incident reports, and user satisfaction surveys related to the hosted services. The fact that the contract was awarded and presumably fulfilled over its term suggests a baseline level of effectiveness. However, without specific performance data and comparison against the initial objectives and SLAs, a definitive judgment on its effectiveness is not possible. The duration and value indicate a sustained need, but the quality of service delivery and its alignment with evolving EPA requirements would determine true effectiveness.
What has been the historical spending pattern for IT hosting services by the EPA in the years preceding and during this contract?
To analyze historical spending patterns, one would need to examine EPA's IT procurement data for hosting and related infrastructure services over several fiscal years. This would involve looking at the total amount spent on such services, the number and value of contracts awarded, and the primary contractors utilized. Understanding these patterns can reveal trends in IT strategy, such as a shift towards cloud adoption, consolidation of data centers, or reliance on specific vendors. For instance, if EPA's spending on hosting has been consistently high or increasing, it might indicate a growing demand or a lack of cost-efficiency in their approach. Conversely, a decrease might signal successful consolidation or migration to more cost-effective solutions.
Were there any significant contract modifications or change orders issued during the life of this contract, and what was their impact?
Information regarding contract modifications and change orders would typically be available in contract databases or agency procurement records. Significant modifications could indicate evolving requirements, unforeseen issues, or scope adjustments. Analyzing these changes, their value, and their justification is crucial. For example, if numerous modifications were made to increase the contract value substantially, it might suggest initial underestimation of requirements or scope creep, potentially impacting the original value proposition. Conversely, minor adjustments might be routine. Without specific data on modifications, it's impossible to assess their impact on the contract's overall effectiveness and cost.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11955 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,850,964
Exercised Options: $50,850,964
Current Obligation: $49,661,256
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4461G
IDV Type: FSS
Timeline
Start Date: 2010-10-01
Current End Date: 2017-03-31
Potential End Date: 2021-10-01 00:00:00
Last Modified: 2021-09-30
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