Leidos awarded $39.8M contract for IT services, highlighting long-term support needs
Contract Overview
Contract Amount: $39,808,487 ($39.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-02-22
End Date: 2010-03-31
Contract Duration: 1,863 days
Daily Burn Rate: $21.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: INDIAN SPRINGS, CLARK County, NEVADA, 89018
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $39.8 million to LEIDOS, INC. for work described as: Key points: 1. Contract value suggests a significant, ongoing need for specialized IT support. 2. The firm-fixed-price structure aims to control costs over the contract duration. 3. Competition level indicates a potentially efficient market for these services. 4. Contract duration of over 5 years implies a stable, long-term relationship. 5. The specific IT services provided are crucial for operational continuity. 6. Geographic location in Nevada may point to specific facility or base support.
Value Assessment
Rating: good
The contract value of $39.8 million over approximately five years averages to roughly $8 million annually. Without specific service details or benchmarks for 'Other Computer Related Services' in Nevada, a direct per-unit cost comparison is difficult. However, the firm-fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price was competitive at the outset. Benchmarking against similar large-scale IT support contracts would be necessary for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a reasonable level of competition for this requirement. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are likely being used efficiently by driving down prices through market forces.
Public Impact
The Department of the Air Force benefits from sustained IT support, ensuring operational readiness. Services likely include maintenance, upgrades, and technical support for critical IT infrastructure. The geographic impact is centered in Nevada, potentially supporting a specific military installation or facility. Workforce implications may involve skilled IT professionals employed by the contractor to fulfill the service requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in given the long contract duration and specialized nature of IT services.
- Reliance on a single contractor for critical IT functions could pose risks if performance degrades.
- Ensuring continued innovation and adoption of new technologies within the contracted services.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a competitive pricing environment.
- Long-term contract allows for stable planning and execution of IT support.
Sector Analysis
This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services'. The IT services market is vast and highly competitive, with numerous companies offering a wide range of solutions. Contracts of this magnitude often involve complex system integration, maintenance, and support, requiring specialized expertise. Comparable spending benchmarks would typically be found within IT support services for government agencies, where long-term sustainment and operational continuity are paramount.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Leidos, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often have subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- IT Support Services
- Computer Systems Design Services
- Information Technology Professional Services
- Defense IT Modernization Programs
- Cloud Computing Services Contracts
Risk Flags
- Long contract duration may lead to technology obsolescence.
- Potential for vendor lock-in with specialized IT services.
- Need for robust performance monitoring to ensure quality over time.
Tags
it-services, computer-related-services, department-of-defense, department-of-the-air-force, firm-fixed-price, full-and-open-competition, large-contract, nevada, leidos-inc, it-support, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.8 million to LEIDOS, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $39.8 million.
What is the period of performance?
Start: 2005-02-22. End: 2010-03-31.
What is the specific nature of the 'Other Computer Related Services' provided under this contract?
The provided data indicates the North American Industry Classification System (NAICS) code is 541519, which covers 'Other Computer Related Services'. This broad category can encompass a wide range of IT activities not classified elsewhere, such as IT support, help desk services, network management, data recovery, IT consulting, and specialized software implementation or maintenance. Without further details specific to this contract (e.g., a detailed Statement of Work or Performance Work Statement), the exact services remain general. However, given the awarding agency (Department of the Air Force) and the contract duration, it likely involves critical operational support for existing IT systems, potentially including hardware maintenance, software updates, cybersecurity monitoring, and user support for personnel at a specific Nevada-based facility.
How does the awarded amount of $39.8 million compare to similar IT support contracts for the Department of Defense?
Comparing the $39.8 million contract value requires context regarding the scope, duration, and specific services. This contract spans approximately five years (1863 days), equating to an average annual value of roughly $8 million. The Department of Defense procures a vast array of IT services, ranging from large-scale enterprise solutions to niche support functions. Contracts for similar 'Other Computer Related Services' or broader IT support at major installations can easily reach tens or hundreds of millions of dollars over several years. Leidos, Inc. is a major defense contractor, and this award appears to be a significant but not exceptionally large contract within the DoD's overall IT spending portfolio. Benchmarking would necessitate identifying contracts with comparable service descriptions, duration, and geographic scope.
What are the key performance indicators (KPIs) likely used to evaluate Leidos's performance on this contract?
Key Performance Indicators (KPIs) for an IT support contract like this would focus on service delivery, system availability, and user satisfaction. Common KPIs include system uptime percentages (e.g., 99.9% availability for critical systems), response times for help desk tickets and issue resolution (e.g., critical issues resolved within 4 hours), patch management compliance rates, cybersecurity incident response times, and successful completion of scheduled maintenance. User satisfaction surveys might also be employed. The firm-fixed-price nature of the contract implies that meeting these KPIs is crucial for the contractor to achieve profitability, and failure to do so could result in penalties or contract termination, depending on the specific terms outlined in the Performance Work Statement (PWS).
What is the historical spending pattern for 'Other Computer Related Services' by the Department of the Air Force?
Historical spending on 'Other Computer Related Services' (NAICS 541519) by the Department of the Air Force (DAF) is substantial, reflecting the pervasive need for IT support across its vast operations. While specific aggregate figures for this NAICS code alone are not readily available without deep data mining, the DAF consistently ranks among the largest federal agencies for IT spending. This spending encompasses a wide range of services, including network operations and maintenance, cybersecurity, software development and sustainment, and end-user support. The trend over the past decade has been towards increased reliance on IT for mission-critical functions, driving consistent and often growing demand for these types of services. Contracts like the one awarded to Leidos are typical components of the DAF's overall IT budget, supporting specific installations or programs.
What are the potential risks associated with a long-term (5-year) IT support contract?
Long-term IT support contracts, such as this 5-year award, present several potential risks. Technological obsolescence is a primary concern; IT evolves rapidly, and a 5-year contract might lock the government into outdated systems or services if not managed proactively. Vendor lock-in is another risk, where the contractor becomes deeply embedded in the agency's infrastructure, making it difficult and costly to switch providers later. Performance degradation over time is also possible, as contractor motivation may wane or key personnel depart. Furthermore, the fixed-price nature, while offering cost certainty, could lead to the contractor cutting corners on quality if not rigorously overseen. Finally, the concentration of critical IT functions with one provider increases vulnerability to disruptions if the contractor faces financial instability or operational failures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-02-22
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2011-05-23
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