Leidos Inc. awarded $27.6M for Joint Interagency Task Force South Counterdrug Support

Contract Overview

Contract Amount: $27,633,472 ($27.6M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-22

End Date: 2025-09-21

Contract Duration: 1,825 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: JOINT INTERAGENCY TASK FORCE - SOUTH COUNTERDRUG SUPPORT/SYSTEMS AND SOFTWARE ENGINEERING

Place of Performance

Location: KEY WEST, MONROE County, FLORIDA, 33040

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $27.6 million to LEIDOS, INC. for work described as: JOINT INTERAGENCY TASK FORCE - SOUTH COUNTERDRUG SUPPORT/SYSTEMS AND SOFTWARE ENGINEERING Key points: 1. Contract focuses on critical counterdrug support and systems engineering. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Duration of 5 years indicates a long-term need for these services. 4. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee. 5. Performance is located in Florida, a key region for interagency operations. 6. No small business set-aside was utilized for this contract. 7. The NAICS code 541513 points to Computer Facilities Management Services.

Value Assessment

Rating: good

The contract value of $27.6 million over five years averages to approximately $5.5 million annually. Benchmarking this against similar IT support and systems engineering contracts for federal agencies requires detailed market analysis. However, the Cost Plus Fixed Fee structure can sometimes lead to higher costs if not managed tightly, but it also allows flexibility for evolving requirements. Without specific comparable contract data, a definitive value-for-money assessment is challenging, but the competitive award suggests a reasonable price was sought.

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 bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which is expected to drive down prices and improve service quality. The agency likely sought proposals from a wide range of qualified contractors to ensure the best possible solution was identified.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process. It ensures that government funds are used efficiently by encouraging multiple companies to offer their best pricing and technical solutions.

Public Impact

The primary beneficiaries are the agencies involved in counterdrug operations, receiving enhanced systems and software engineering support. Services delivered include critical IT infrastructure management and software development for operational effectiveness. Geographic impact is focused on Florida, supporting operations within the region. Workforce implications include potential employment opportunities for IT professionals and engineers in the Florida area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector, particularly within defense and national security, is characterized by high demand for specialized systems and software engineering. This contract falls under Computer Facilities Management Services, a segment that supports the operational backbone of many government functions. The market size for such services is substantial, with significant government spending allocated annually. This contract fits within the broader landscape of defense IT modernization and operational support, where agencies like DISA are key players in procuring these essential services.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. This means that opportunities for small businesses to directly participate in this specific contract are limited unless they are part of a larger prime contractor's team. The absence of set-aside provisions suggests that the primary focus was on securing the most capable large-scale provider through open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA), which is responsible for ensuring contractor performance and adherence to contract terms. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements, though specific performance metrics and oversight activities are often internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

it-services, computer-facilities-management, defense, department-of-defense, disa, full-and-open-competition, cost-plus-fixed-fee, counterdrug-support, systems-engineering, software-engineering, florida, joint-task-force

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to LEIDOS, INC.. JOINT INTERAGENCY TASK FORCE - SOUTH COUNTERDRUG SUPPORT/SYSTEMS AND SOFTWARE ENGINEERING

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $27.6 million.

What is the period of performance?

Start: 2020-09-22. End: 2025-09-21.

What is the track record of Leidos, Inc. in performing similar IT support and systems engineering contracts for the Department of Defense?

Leidos, Inc. has a substantial track record with the Department of Defense (DoD) and other federal agencies, frequently securing large contracts for IT services, systems engineering, and software development. They are a major defense contractor known for supporting complex operations, including intelligence, logistics, and command and control systems. Their past performance often involves managing large-scale IT infrastructure, cybersecurity solutions, and mission-critical software. While specific details of past performance on counterdrug support are not provided here, Leidos's general experience in similar technical domains and with large government contracts suggests a capacity to handle the requirements of this award. Agencies typically review a contractor's past performance history, including any past issues or commendations, as part of the source selection process.

How does the annual cost of this contract compare to similar IT support contracts awarded by DISA or other agencies?

The annual cost for this contract averages approximately $5.5 million ($27.6M / 5 years). To benchmark this effectively, one would need to compare it against contracts for Computer Facilities Management Services (NAICS 541513) or similar IT support and systems engineering services awarded by DISA or other agencies of comparable size and complexity. Factors such as the specific services included (e.g., hardware maintenance, software development, network management, cybersecurity), the level of security clearance required, the geographic location of performance, and the contract type (e.g., FFP, CPFF, T&M) significantly influence pricing. Without access to a detailed database of comparable contract values and scopes, a precise comparison is difficult. However, $5.5 million annually for comprehensive IT support and systems engineering for a joint task force is within a plausible range for federal contracts of this nature.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to a Firm-Fixed-Price (FFP) contract, as costs are reimbursed. The 'fixed fee' provides profit, but the contractor still benefits from higher costs if the fee is a percentage of total costs, or if the fee itself is substantial. This can lead to cost overruns if not managed diligently. Mitigation strategies include robust government oversight, detailed cost accounting and reporting requirements, regular audits, and clear performance metrics. The government must actively monitor expenditures, review invoices, and ensure that all costs incurred are reasonable, allocable, and necessary for contract performance. The fixed fee component does provide some predictability for the government regarding the contractor's profit margin.

What is the expected effectiveness of the systems and software engineering support for counterdrug operations?

The effectiveness of the systems and software engineering support is crucial for the success of the Joint Interagency Task Force South's counterdrug operations. This support is expected to enhance the task force's ability to collect, analyze, and disseminate intelligence related to drug trafficking, improve communication and coordination among participating agencies, and provide reliable IT infrastructure for operational planning and execution. Effective systems engineering ensures that the technology deployed is robust, secure, and meets the specific mission requirements. Well-developed software can automate processes, provide advanced analytical tools, and facilitate seamless data sharing. The ultimate effectiveness will depend on the quality of the engineering services provided by Leidos, the clarity of requirements from the task force, and the successful integration of new or improved systems into ongoing operations.

How has federal spending on counterdrug support and related IT services evolved over the past five years?

Federal spending on counterdrug support and related IT services has generally remained a significant priority, though specific allocations can fluctuate based on geopolitical factors, evolving threats, and administration priorities. The Department of Defense, through agencies like DISA, consistently invests in IT infrastructure and systems engineering to support its various missions, including counterdrug efforts. Over the past five years, there has been a continuous trend towards modernizing IT systems, enhancing cybersecurity, and leveraging data analytics for intelligence gathering and operational support across all federal agencies. While precise figures for 'counterdrug IT support' are difficult to isolate, overall federal IT spending has been substantial, with a growing emphasis on cloud computing, artificial intelligence, and advanced analytics. Spending in this specific contract category is likely influenced by the overall budget allocated to counterdrug interdiction efforts and the technological needs of the agencies involved.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Facilities Management Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC102818R0024

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 11951 FREEDOM DR FL 15, 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: $27,633,472

Exercised Options: $27,633,472

Current Obligation: $27,633,472

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $9,629,557

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HC102820D0001

IDV Type: IDC

Timeline

Start Date: 2020-09-22

Current End Date: 2025-09-21

Potential End Date: 2025-09-21 00:00:00

Last Modified: 2025-10-28

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