Interior's USGS awards $193.9M contract to Leidos for custom computer programming services
Contract Overview
Contract Amount: $193,899,324 ($193.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of the Interior
Start Date: 2002-10-15
End Date: 2008-03-31
Contract Duration: 1,994 days
Daily Burn Rate: $97.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Place of Performance
Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57198
Plain-Language Summary
Department of the Interior obligated $193.9 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded to a single large business, Leidos, Inc. 2. Full and open competition was utilized. 3. The contract type is Cost Plus Award Fee. 4. The contract duration is over 5 years, ending in 2008.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure can incentivize performance but may lead to higher costs if not managed carefully. Benchmarking against similar custom programming contracts is difficult without specific task order details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure requires diligent oversight to ensure cost-effectiveness.
Taxpayer Impact: Taxpayer funds were used for custom programming services. The effectiveness of the competition and contract management will determine the ultimate value for taxpayers.
Public Impact
Supports critical scientific data collection and analysis by the U.S. Geological Survey. Ensures the availability of specialized IT services for government operations. Potential for innovation and efficiency gains through award fee incentives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts require strong oversight to control costs.
- Contract duration is long, increasing risk of scope creep or obsolescence.
Positive Signals
- Full and open competition promotes market fairness.
- Award fee structure can drive contractor performance.
Sector Analysis
This contract falls under professional services, specifically custom computer programming. Spending in this sector is substantial across government, with benchmarks varying widely based on complexity and duration.
Small Business Impact
The data indicates this contract was awarded to a large business (Leidos, Inc.) and does not show any specific set-asides or participation for small businesses.
Oversight & Accountability
The Cost Plus Award Fee contract type necessitates robust oversight from the Department of the Interior to ensure performance objectives are met and costs are controlled effectively.
Related Government Programs
- Custom Computer Programming Services
- Department of the Interior Contracting
- U.S. Geological Survey Programs
Risk Flags
- Cost Plus Award Fee (CPAF) contract type requires diligent oversight.
- Long contract duration (over 5 years) increases risk.
- Lack of small business participation noted.
- Specific performance metrics and award fee details are not provided.
Tags
custom-computer-programming-services, department-of-the-interior, sd, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $193.9 million to LEIDOS, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (U.S. Geological Survey).
What is the total obligated amount?
The obligated amount is $193.9 million.
What is the period of performance?
Start: 2002-10-15. End: 2008-03-31.
What were the key performance metrics and award fee criteria used to manage this contract and ensure value for money?
The award fee criteria would have been tied to specific performance objectives outlined in the contract, such as meeting deadlines, quality of deliverables, and user satisfaction. The agency would have evaluated Leidos' performance against these metrics to determine the award fee, aiming to incentivize high performance while managing costs. Detailed records of these evaluations would be crucial for assessing value.
How did the full and open competition process ensure competitive pricing for custom computer programming services over the contract's lifespan?
Full and open competition theoretically allows all responsible sources to submit offers, fostering a competitive environment that should drive down prices. However, the Cost Plus Award Fee structure means the final price is not fixed upfront. Effective price discovery relies on the agency's ability to negotiate fair pricing for direct costs and establish realistic award fee targets.
What was the long-term impact of this contract on the USGS's IT capabilities and operational efficiency?
A contract of this duration (over 5 years) likely had a significant impact, potentially leading to deep integration of Leidos' services into USGS operations. This could have enhanced capabilities and efficiency if managed well, or conversely, led to vendor lock-in and challenges in adapting to new technologies if oversight was lacking.
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
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $193,899,324
Exercised Options: $193,899,324
Current Obligation: $193,899,324
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2002-10-15
Current End Date: 2008-03-31
Potential End Date: 2008-03-31 00:00:00
Last Modified: 2023-05-11
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