Leidos awarded $17.4M DHS contract for services, raising questions on competition and value

Contract Overview

Contract Amount: $17,440,129 ($17.4M)

Contractor: Leidos Government Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2007-04-22

End Date: 2008-03-21

Contract Duration: 334 days

Daily Burn Rate: $52.2K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NOT REQUIRED

Place of Performance

Location: LONDON, LAUREL County, KENTUCKY, 40744

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.4 million to LEIDOS GOVERNMENT SERVICES INC for work described as: NOT REQUIRED Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. Short contract duration (334 days) suggests a specific, potentially urgent need. 3. Firm Fixed Price contract type offers cost certainty but may not incentivize efficiency. 4. Awardee has a significant presence in government contracting, indicating established relationships. 5. Lack of competition raises concerns about whether the government secured the best possible value. 6. Limited data available on performance metrics or specific services rendered.

Value Assessment

Rating: questionable

The contract's value of $17.4 million for a less than one-year duration is difficult to benchmark without specific service details. Given the non-competitive nature of the award, it's challenging to assess if the pricing reflects market rates or if a more competitive process could have yielded better value. The firm fixed-price structure provides cost predictability, but the absence of competitive bids prevents a direct comparison to similar services procured through open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, meaning it was not openly competed. This approach is typically used when only one source is capable of meeting the requirement or in urgent situations. The lack of multiple bidders means there was no direct price comparison or negotiation against alternatives, potentially impacting the government's ability to secure the most favorable terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without competing bids, it's harder to ensure funds were used most efficiently.

Public Impact

The contract likely supported critical operations for U.S. Customs and Border Protection within the Department of Homeland Security. Services rendered would have directly contributed to border security and immigration enforcement efforts. The geographic impact is centered in Kentucky (ST: KY, SN: KENTUCKY), suggesting localized operational support. The contract may have supported a specific workforce or operational team within CBP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits transparency and potential cost savings.
Short contract duration may indicate reactive rather than strategic planning.
Lack of detailed service description hinders performance assessment.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Awardee (Leidos) is a large, established government contractor with extensive experience.

Sector Analysis

This contract falls within the broad category of government services, likely related to defense or public safety support. Leidos is a major player in the government contracting space, providing a wide range of IT, systems engineering, and support services to federal agencies. Spending in this sector is substantial, with agencies like DHS frequently outsourcing complex support functions.

Small Business Impact

The contract details do not indicate any small business set-aside provisions or subcontracting requirements. As a non-competitive award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal, unless Leidos engages small businesses as subcontractors, which is not specified here.

Oversight & Accountability

Oversight would typically be managed by the contracting officers and program managers within U.S. Customs and Border Protection. The firm fixed-price nature provides some cost control. However, the non-competitive award limits the typical oversight mechanisms associated with a robust competition, such as bid protests or detailed cost analysis of competing proposals. Transparency is limited due to the lack of public competition details.

Related Government Programs

Department of Homeland Security Contracts
U.S. Customs and Border Protection Services
Leidos Government Services Inc. Contracts
Non-Competitive Federal Awards

Risk Flags

Non-competitive award
Lack of transparency
Potential for overpayment
Limited performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.4 million to LEIDOS GOVERNMENT SERVICES INC. NOT REQUIRED

Who is the contractor on this award?

The obligated recipient is LEIDOS GOVERNMENT SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2007-04-22. End: 2008-03-21.

What specific services were provided under this $17.4 million contract?

The provided data does not specify the exact services rendered under this contract. However, given the awardee (Leidos Government Services Inc.) and the agency (Department of Homeland Security, U.S. Customs and Border Protection), the services likely pertained to operational support, IT services, logistics, or specialized technical assistance crucial for border security and enforcement activities. The contract's firm fixed-price nature suggests a defined scope of work, but without further details, the precise nature of the services remains undisclosed in the available information.

Why was this contract awarded on a non-competitive basis?

The data indicates this was a 'NON-COMPETITIVE DELIVERY ORDER'. Federal procurement regulations allow for non-competitive awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without additional context from the agency, the specific justification for bypassing full and open competition for this $17.4 million award to Leidos remains unclear. This could be due to unique technical requirements, proprietary solutions, or a critical, time-sensitive operational need identified by U.S. Customs and Border Protection.

How does the $17.4 million value compare to similar contracts for DHS services?

Benchmarking this $17.4 million contract is challenging without knowing the specific services provided. Leidos is a large contractor, and DHS procures a vast array of services, from IT support to logistics and security operations. Contracts of this magnitude are common within DHS. However, the non-competitive nature of this award means its value cannot be directly compared to competitively bid contracts for similar services, which might have resulted in lower prices due to market competition. A true value comparison would require detailed service scope and performance data.

What is Leidos Government Services Inc.'s track record with the Department of Homeland Security?

Leidos Government Services Inc. is a major federal contractor with a substantial history of working with the Department of Homeland Security (DHS) and its various components, including U.S. Customs and Border Protection (CBP). They have been awarded numerous contracts across a wide spectrum of services, including IT modernization, cybersecurity, intelligence analysis, and operational support. Their extensive experience and established presence suggest a strong working relationship and familiarity with DHS requirements, which may have influenced the decision for a non-competitive award in some instances.

What are the potential risks associated with a non-competitive award of this size?

The primary risk associated with a non-competitive award of $17.4 million is the potential for paying a higher price than could be achieved through competition. Without competing bids, the government lacks leverage to negotiate the best possible price and terms. There's also a risk that the chosen contractor may not be the most innovative or efficient solution available. Furthermore, non-competitive awards can sometimes raise concerns about fairness and equal opportunity for other capable vendors, potentially impacting the broader contractor ecosystem.

What does the short contract duration (April 2007 - March 2008) imply?

The contract duration of approximately 334 days (less than a year) suggests that this award was likely intended to fulfill a specific, short-term requirement or bridge a gap until a longer-term solution could be put in place. It could indicate an urgent operational need that required immediate fulfillment, or perhaps a pilot program. Such short durations often accompany non-competitive awards when a rapid response is necessary, and the time required for a full competitive solicitation process was prohibitive.

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 2339 ROUTE 70 W, CHERRY HILL, NJ, 08002

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,930,911

Exercised Options: $17,440,129

Current Obligation: $17,440,129

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4415G

IDV Type: FSS

Timeline