Leidos awarded $16.6M for custom computer programming services by the Department of the Air Force

Contract Overview

Contract Amount: $16,643,852 ($16.6M)

Contractor: Leidos Government Services Inc

Awarding Agency: Department of Defense

Start Date: 2006-03-31

End Date: 2008-05-31

Contract Duration: 792 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Place of Performance

Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to LEIDOS GOVERNMENT SERVICES INC for work described as: Key points: 1. Contract awarded to a single, large business prime contractor. 2. Services procured under labor hours, which can increase cost uncertainty. 3. Contract duration of 792 days suggests a medium-term project. 4. The NAICS code 541511 indicates a focus on software development and IT services. 5. Awarded by the Department of the Air Force, a major defense agency. 6. The contract was competed full and open, suggesting broad market participation.

Value Assessment

Rating: fair

The total award amount of $16.6 million for custom computer programming services over approximately two years appears to be within a reasonable range for complex IT projects of this nature. However, without specific details on the scope of work, deliverables, and the labor mix (e.g., skill levels, hours per role), a precise value-for-money assessment is challenging. Benchmarking against similar contracts for custom programming services would require access to more granular data on the specific technologies and expertise required. The use of labor hours, while flexible, introduces a risk of cost overruns if not managed diligently.

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. This approach generally fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the full and open nature suggests a robust competition was intended, which can lead to better pricing and innovative solutions. The agency's decision to use this procurement method implies confidence in the market's ability to provide qualified contractors.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it promotes a level playing field, drives down prices through market forces, and increases the likelihood of securing the best value for government services.

Public Impact

The Department of the Air Force benefits from specialized custom computer programming services to support its operational needs. The services delivered likely involve the development, modification, or enhancement of software systems critical to Air Force operations. The geographic impact is primarily within the Department of the Air Force's operational footprint, potentially supporting various bases or command centers. Workforce implications include the employment of skilled IT professionals, programmers, and analysts by the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Procurement using labor hours can lead to cost unpredictability if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the efficiency of service delivery.
The contract's scope is broad ('Custom Computer Programming Services'), potentially leading to scope creep if not well-defined.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contractor, Leidos Government Services Inc., is a large, established entity with significant experience in government contracting.
The contract is for a defined period, allowing for periodic review and potential re-competition.

Sector Analysis

The Information Technology sector, specifically custom computer programming services (NAICS 541511), is a critical component of government operations. This contract falls within a market segment characterized by rapid technological advancements and a high demand for specialized software development. The total federal spending on IT services is in the hundreds of billions annually, with a significant portion allocated to custom development and system integration. This contract represents a small fraction of that overall spending but is vital for the specific mission requirements of the Department of the Air Force.

Small Business Impact

This contract was awarded to Leidos Government Services Inc., a large business prime contractor, and there is no indication of a small business set-aside. Given the nature of custom computer programming services, it is possible that a large prime contractor would utilize small businesses for subcontracting opportunities to fulfill specialized needs or meet small business subcontracting goals. However, without specific subcontracting plans or reporting, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance or closeout.

Related Government Programs

Department of Defense IT Services
Air Force Software Development Contracts
Custom Computer Programming Services
Labor Hour Contracts
IT Services for National Security

Risk Flags

Labor Hours Contract Type Risk
Potential for Scope Creep
Limited Performance Data Available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to LEIDOS GOVERNMENT SERVICES INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is LEIDOS GOVERNMENT SERVICES 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 $16.6 million.

What is the period of performance?

Start: 2006-03-31. End: 2008-05-31.

What specific types of custom computer programming were performed under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' under NAICS code 541511. This broad category typically encompasses the design, development, and implementation of new software, as well as the modification of existing software to meet specific client requirements. Without access to the contract's Statement of Work (SOW) or task orders, the precise nature of the programming is unknown. It could range from developing new command and control systems, enhancing existing logistics software, creating data analytics platforms, or building specialized simulation tools for the Air Force. The use of 'Labor Hours' as the contract type suggests that the effort was primarily based on the time and expertise of personnel rather than fixed deliverables.

How does the $16.6 million award compare to similar custom programming contracts?

Comparing the $16.6 million award requires context regarding the contract's duration, scope, and the specific skill sets required. This contract spanned approximately 792 days (roughly 2 years). For complex IT projects, especially those involving specialized software development for a large organization like the Department of the Air Force, this figure can be considered moderate. Larger, multi-year enterprise-wide system overhauls or the development of highly classified systems could easily run into hundreds of millions. Conversely, smaller, short-term projects or those for less complex applications would be significantly less. Benchmarking would ideally involve comparing the average hourly rates paid to different labor categories against market rates and assessing the total effort in terms of person-hours against similar projects.

What are the primary risks associated with a 'Labor Hours' contract type for custom programming?

The primary risk associated with a 'Labor Hours' contract type, especially for custom programming, is cost uncertainty and potential for cost overruns. Unlike fixed-price contracts, where the contractor assumes more risk for delivering within a set budget, labor hour contracts pay for the time and materials used. This means the total cost is directly tied to the number of hours worked by personnel at specified hourly rates. If the project scope is not well-defined, if inefficiencies arise, or if the contractor's estimates of effort are inaccurate, the total cost can escalate beyond initial expectations. Effective oversight, detailed tracking of hours, and strong project management are crucial to mitigate these risks and ensure the government receives good value.

What is the significance of the NAICS code 541511 for this contract?

The North American Industry Classification System (NAICS) code 541511, 'Custom Computer Programming Services,' is significant because it precisely defines the primary nature of the work being procured. This code signifies that the contract is focused on the creation of original software or the significant modification of existing software, tailored to the unique needs of the Department of the Air Force. It distinguishes this contract from those for off-the-shelf software, IT infrastructure maintenance, or general IT consulting. This specificity helps in categorizing federal spending, understanding the types of services being acquired, and benchmarking against industry standards for software development firms.

How does the contractor's identity, Leidos Government Services Inc., influence the contract's execution?

Leidos Government Services Inc. is a major government contractor with extensive experience in IT services, systems integration, and defense sector support. Their established presence suggests they possess the resources, personnel, and project management capabilities necessary to undertake complex programming tasks for the Department of the Air Force. This experience can be a positive signal, potentially leading to smoother execution, better understanding of government requirements, and a lower risk of contractor-related performance issues. However, it also means the contract was awarded through full and open competition to a large business, rather than being set aside for small businesses, which has implications for market diversity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2339 ROUTE 70 W, CHERRY HILL, NJ, 01

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: GS35F4415G

IDV Type: FSS

Timeline