Leidos Inc. awarded $115.8M for IT services, with 5 bids received in a competitive environment
Contract Overview
Contract Amount: $115,775,174 ($115.8M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2004-04-14
End Date: 2008-08-31
Contract Duration: 1,600 days
Daily Burn Rate: $72.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT RELATED SERVICE/PRODUCT
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39522
Plain-Language Summary
General Services Administration obligated $115.8 million to LEIDOS, INC. for work described as: IT RELATED SERVICE/PRODUCT Key points: 1. The contract demonstrates a competitive landscape for IT facilities management services. 2. Pricing appears reasonable given the duration and scope of services. 3. Performance context suggests a stable, long-term engagement. 4. The sector positioning is within established IT infrastructure support. 5. Risk indicators are moderate, typical for large-scale IT service contracts.
Value Assessment
Rating: good
The contract's value of approximately $115.8 million over four years for IT facilities management services appears competitive. Benchmarking against similar large-scale IT support contracts suggests that the pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government. While specific performance metrics are not detailed here, the duration and competitive nature of the award imply satisfactory value delivery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through a full and open competition, with five bids received. The presence of multiple bidders indicates a healthy market for these services and suggests that the General Services Administration (GSA) was able to solicit a range of qualified vendors. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among vendors.
Public Impact
Federal agencies requiring IT facilities management services benefit from this contract. The contract supports the operational continuity of critical IT infrastructure. Geographic impact is likely nationwide, supporting federal IT operations across various locations. Workforce implications include employment opportunities for IT professionals and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed proactively.
- Dependence on a single large contractor for critical IT functions.
- Risk of scope creep if requirements are not clearly defined and managed.
Positive Signals
- Competitive award process suggests fair pricing and good market options.
- Long contract duration indicates a stable and reliable service provider.
- Firm-fixed-price contract provides cost predictability.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. This is a mature market segment with numerous providers, ranging from large system integrators to specialized IT support firms. The total federal spending on IT services is substantial, and contracts like this represent a significant portion of that expenditure, supporting the backbone of government operations.
Small Business Impact
The contract details do not indicate a specific small business set-aside. Given the large dollar value and the nature of the services, it is likely that the prime contractor, Leidos, Inc., is a large business. However, there may be opportunities for small businesses to participate as subcontractors to Leidos, contributing to the overall small business subcontracting goals, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the General Services Administration (GSA). Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements, though specific details of day-to-day oversight are not provided.
Related Government Programs
- IT Infrastructure Support Services
- Cloud Computing Services
- Cybersecurity Services
- IT Professional Services
Risk Flags
- Potential for vendor lock-in
- Risk of scope creep
- Performance degradation over time
- Technological obsolescence
Tags
it-services, facilities-management, leidos-inc, general-services-administration, competitive-delivery-order, firm-fixed-price, mid-size-contract, it-infrastructure, federal-acquisition-service, mississippi
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $115.8 million to LEIDOS, INC.. IT RELATED SERVICE/PRODUCT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $115.8 million.
What is the period of performance?
Start: 2004-04-14. End: 2008-08-31.
What is the track record of Leidos, Inc. in delivering similar IT facilities management services to the federal government?
Leidos, Inc. has a substantial track record as a major government contractor, including extensive experience in IT services and facilities management. They have held numerous large-scale contracts across various federal agencies, providing a wide range of IT solutions from infrastructure support to complex system integration. Their history includes managing critical IT operations, data centers, and end-user support. While specific performance metrics for this particular contract are not detailed, Leidos's overall presence and continued awards in the federal IT space suggest a generally positive performance history and capability to meet government requirements. Further analysis would involve reviewing past performance evaluations and any documented issues or commendations on similar contracts.
How does the awarded amount of $115.8 million compare to similar IT facilities management contracts awarded by the GSA or other agencies?
The awarded amount of approximately $115.8 million over a period of roughly four years (from April 2004 to August 2008) places this contract in the mid-to-large tier for IT facilities management services. Comparable contracts for similar scope and duration can vary significantly based on the specific services included (e.g., data center operations, network management, help desk support) and the agency's requirements. However, for a comprehensive IT facilities management solution provided by a large, established contractor like Leidos, this figure is generally in line with market rates and federal spending patterns for such services during that period. The competitive nature with five bids also suggests the price was aligned with market expectations.
What are the primary risks associated with a contract of this size and duration for IT facilities management?
Key risks for a contract of this magnitude and duration include vendor lock-in, where the government becomes overly dependent on a single provider, making future transitions difficult and potentially costly. There's also the risk of scope creep, where the services required expand beyond the original contract's definition without corresponding adjustments in price or timeline, leading to cost overruns. Performance degradation over time is another concern, as is the potential for technological obsolescence if the contractor does not keep pace with industry advancements. Furthermore, security vulnerabilities within the managed facilities or systems represent a significant risk, requiring robust security protocols and continuous monitoring.
How effective is the firm-fixed-price (FFP) contract type in managing costs for IT facilities management services?
The Firm-Fixed-Price (FFP) contract type is generally effective in managing costs for IT facilities management services when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, providing the government with budget certainty. For services with predictable operational requirements, like maintaining existing facilities or providing standard support, FFP works well. However, if the IT environment is highly dynamic or requires significant innovation and adaptation, an FFP contract might disincentivize the contractor from proposing more efficient or advanced solutions if they involve upfront investment, or it could lead to disputes if scope changes are necessary. In this case, for established facilities management, FFP likely provided good cost control.
What does the number of bidders (5) suggest about the market for computer facilities management services?
Receiving five bids for this contract suggests a moderately competitive market for computer facilities management services. This number indicates that there were several capable companies interested and able to bid on the requirement. It's sufficient to foster price competition and allow the government to select from a reasonable pool of qualified vendors. However, it's not indicative of an extremely crowded or hyper-competitive market, which might see ten or more bids for a highly sought-after service. The level of competition is generally considered healthy, providing a good balance between ensuring fair pricing and avoiding excessive administrative burden in evaluating a very large number of proposals.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10302 EATON PLACE, SUITE 150, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,160,173,240
Exercised Options: $1,160,173,240
Current Obligation: $115,775,174
Parent Contract
Parent Award PIID: GS07T00BGD0028
IDV Type: GWAC
Timeline
Start Date: 2004-04-14
Current End Date: 2008-08-31
Potential End Date: 2008-08-31 00:00:00
Last Modified: 2012-05-07
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