Leidos contract for IT services valued at over $107.9 million, awarded by the FTC

Contract Overview

Contract Amount: $107,937,861 ($107.9M)

Contractor: Leidos Management Systems Designers, Inc.

Awarding Agency: Federal Trade Commission

Start Date: 2011-08-30

End Date: 2019-11-30

Contract Duration: 3,014 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SNS CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $107.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: SNS CONTRACT Key points: 1. The contract's value suggests a significant IT services requirement for the Federal Trade Commission. 2. Full and open competition was utilized, indicating a broad market solicitation. 3. The contract duration of over 8 years points to a long-term need for these services. 4. The fixed-price nature of the contract aims to provide cost certainty. 5. The award was made to a single entity, Leidos Management Systems Designers, Inc. 6. The contract falls under the 'Computer and Software Stores' product service code, suggesting hardware or software-related IT support.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more specific details on the services rendered. However, a contract of this magnitude over an 8-year period for IT services is substantial. Without comparable contract data for similar IT support services at the FTC or other agencies, it is difficult to definitively assess value for money. The firm fixed-price structure is a positive indicator for cost control, but the overall value is contingent on the effective delivery of services and meeting performance objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, potentially leading to better pricing and service offerings. The fact that it resulted in a single award to Leidos Management Systems Designers, Inc. implies that, despite the open competition, Leidos was the selected offeror based on the evaluation criteria. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential providers to compete, which can drive down costs and improve the quality of services received.

Public Impact

The Federal Trade Commission is the primary beneficiary, receiving IT services to support its operations. The services likely encompass a range of IT support, potentially including software, hardware, and network maintenance or development. The geographic impact is centered in the District of Columbia, where the FTC is headquartered. Workforce implications could include the direct employment of IT professionals by Leidos and potential impacts on internal FTC IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it difficult to assess if the full potential of the contract was realized.
The long duration of the contract could lead to vendor lock-in if not managed carefully.
Performance metrics and quality assurance details are not provided, hindering an assessment of contractor performance.
The absence of information on small business subcontracting raises questions about opportunities for smaller firms.

Positive Signals

The use of full and open competition suggests an effort to secure the best value through a broad market approach.
The firm fixed-price contract type provides cost predictability for the government.
The contract was awarded to a single entity, potentially indicating a streamlined management approach for the government.
The contract duration of over 8 years suggests a stable and ongoing need for these IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically related to computer and software stores. The IT services market is vast and highly competitive, with numerous companies offering a wide array of solutions. Contracts of this size are common for government agencies requiring sustained IT support. Comparable spending benchmarks would depend on the specific IT services procured, such as software licensing, hardware maintenance, or system integration, but a multi-million dollar, multi-year IT contract is typical for federal agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting goals for this contract is not provided. The fact that it was awarded under full and open competition and resulted in a single award to a large business (Leidos) suggests that small business participation may not have been a primary focus or requirement of this specific contract. Further investigation into subcontracting plans would be necessary to understand the impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. Typically, federal contracts are subject to oversight by the contracting agency (Federal Trade Commission in this case), potentially including program managers, contract officers, and inspectors general. Transparency would be enhanced by public reporting on performance metrics, expenditures, and any modifications to the contract. The effectiveness of accountability measures depends on the rigor of the FTC's contract management and oversight processes.

Related Government Programs

Federal IT Procurement
IT Services Contracts
Computer Hardware and Software Procurement
Information Technology Support Services

Risk Flags

Lack of detailed performance metrics
Limited information on competition intensity
Unspecified small business subcontracting
Absence of contract modification details

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $107.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. SNS CONTRACT

Who is the contractor on this award?

The obligated recipient is LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC..

Which agency awarded this contract?

Awarding agency: Federal Trade Commission (Federal Trade Commission).

What is the total obligated amount?

The obligated amount is $107.9 million.

What is the period of performance?

Start: 2011-08-30. End: 2019-11-30.

What specific IT services were provided under this contract?

The provided data indicates the contract falls under the Product Service Code (PSC) '443120' which corresponds to 'Computer and Software Stores'. This suggests the contract likely involved the procurement, installation, maintenance, or support of computer hardware and software. However, the exact nature of the services—whether it included system integration, network management, software development, cybersecurity solutions, or simply the provision of hardware and off-the-shelf software—is not detailed. Without a more granular description of the Statement of Work (SOW), it is difficult to ascertain the full scope of IT services delivered.

How does the value of this contract compare to similar IT contracts awarded by the FTC or other agencies?

The contract's total value of over $107.9 million over approximately 8 years is substantial for IT services. To benchmark this effectively, one would need to compare it against similar IT support or procurement contracts awarded by agencies of comparable size and mission to the FTC. For instance, comparing it to IT contracts for regulatory agencies or law enforcement bodies that require significant data management, case management systems, or cybersecurity infrastructure would provide a more relevant context. Without access to a database of comparable contracts with detailed service descriptions and pricing, a precise comparison is challenging. However, multi-million dollar, long-term IT contracts are not uncommon within the federal government.

What were the key performance indicators (KPIs) and how did Leidos perform against them?

The provided data does not include information on the key performance indicators (KPIs) established for this contract or Leidos's performance against them. Federal contracts typically outline specific performance standards, metrics, and evaluation criteria to ensure the contractor meets the government's requirements. These might include uptime percentages for systems, response times for support requests, successful software deployments, or adherence to security protocols. The absence of this information prevents an assessment of whether the contract delivered optimal value and met the Federal Trade Commission's objectives effectively.

What is the historical spending pattern for similar IT services at the Federal Trade Commission?

Analyzing historical spending patterns for similar IT services at the FTC would require access to historical procurement data beyond this single contract. This would involve identifying other contracts awarded by the FTC for IT support, software, hardware, and related services over several fiscal years. By aggregating and analyzing this data, one could identify trends in spending, average contract values, common service providers, and the evolution of IT needs within the agency. This contract, valued at over $107.9 million over 8 years, represents a significant portion of the FTC's IT budget during its performance period, suggesting a sustained investment in IT infrastructure and services.

Were there any contract modifications or change orders, and what was their impact?

The provided data does not specify whether this contract underwent any modifications or change orders. Federal contracts are often subject to modifications to adjust scope, timelines, or pricing based on evolving requirements or unforeseen circumstances. If significant modifications occurred, they could alter the original value, duration, or objectives of the contract. Analyzing these modifications would be crucial for a complete understanding of the contract's lifecycle, the reasons for the changes, and their financial implications for the government.

What is the track record of Leidos Management Systems Designers, Inc. with federal IT contracts?

Leidos Management Systems Designers, Inc. is a subsidiary of Leidos, a major government contractor. Leidos has a substantial track record of winning and performing on numerous federal IT contracts across various agencies. Their portfolio typically includes large-scale IT services, systems integration, cybersecurity, and data analytics. While this specific contract represents a significant award, Leidos's broader experience suggests they possess the capabilities and infrastructure to handle complex federal IT requirements. A deeper dive into their past performance ratings, any past performance issues, and the types of IT services they have successfully delivered to other federal entities would provide a more comprehensive view of their track record.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FTC-11-Q-1008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,937,861

Exercised Options: $107,937,861

Current Obligation: $107,937,861

Actual Outlays: $1,213,170

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $2,695,468

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4550G

IDV Type: FSS

Timeline