DoD's $18M IT Support Contract Awarded to Leidos Raises Questions on Value and Competition
Contract Overview
Contract Amount: $18,031,229 ($18.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-09-01
End Date: 2012-08-31
Contract Duration: 1,095 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: REGIONAL IT SUPPORT FOR NRSE AND DETACHMENTS
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $18.0 million to LEIDOS, INC. for work described as: REGIONAL IT SUPPORT FOR NRSE AND DETACHMENTS Key points: 1. Contract awarded to Leidos for $18M for regional IT support. 2. Full and open competition was used, but specific pricing details are limited. 3. Potential risks include cost overruns and effectiveness of services. 4. IT sector spending benchmarks suggest this is a moderate-sized contract.
Value Assessment
Rating: fair
The contract's total value of $18M over three years is substantial. Without detailed breakdowns of per-unit costs or service levels, it's difficult to definitively assess its value against industry benchmarks. The Time and Materials pricing model can sometimes lead to cost escalations if not tightly managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized full and open competition, which is a positive indicator for price discovery. However, the lack of detailed performance metrics and cost breakdowns makes it challenging to ascertain if the competition resulted in the most cost-effective outcome for the government.
Taxpayer Impact: Taxpayer funds are being utilized for IT support services. While competition was employed, the ultimate value for money and potential for cost efficiencies remain somewhat opaque without further data.
Public Impact
Ensures critical IT infrastructure and support for Navy personnel in Florida. Supports regional operations, potentially impacting readiness and efficiency. Leidos, a major government contractor, is providing the services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost-effectiveness analysis.
- Potential for cost creep with Time and Materials pricing.
- Limited insight into specific service delivery metrics.
Positive Signals
- Full and open competition utilized.
- Contract supports essential regional IT functions.
- Established contractor providing services.
Sector Analysis
This contract falls within the IT services sector, specifically computer facilities management. The $18M value over three years is a moderate expenditure for this type of service, with many similar contracts varying widely based on scope and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. This suggests larger, established companies like Leidos dominated the bidding process, potentially limiting opportunities for smaller, specialized IT firms.
Oversight & Accountability
Oversight would typically involve contract performance reviews and financial audits by the Department of the Navy. The effectiveness of this oversight in ensuring value and preventing waste is not detailed in the provided data.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed cost breakdown.
- Time and Materials pricing model risk.
- Limited performance metrics provided.
- No indication of small business participation.
Tags
computer-facilities-management-services, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to LEIDOS, INC.. REGIONAL IT SUPPORT FOR NRSE AND DETACHMENTS
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.0 million.
What is the period of performance?
Start: 2009-09-01. End: 2012-08-31.
What specific IT services are included under 'Computer Facilities Management Services' for NRSE and detachments, and how do their costs compare to industry standards?
The provided data lacks specifics on the exact services covered. 'Computer Facilities Management Services' typically includes hardware/software maintenance, network support, and data center operations. A detailed cost comparison against industry benchmarks is not possible without granular service descriptions and pricing breakdowns, making it difficult to ascertain true value for money.
Given the Time and Materials contract type, what mechanisms are in place to prevent cost overruns and ensure efficient service delivery?
Time and Materials contracts inherently carry a risk of cost escalation if not managed stringently. Effective oversight would involve setting clear labor rates, establishing cost ceilings, and implementing robust performance monitoring to ensure services are delivered efficiently and within budget. The provided data does not detail these specific control mechanisms.
How effectively did the 'full and open competition' process translate into competitive pricing and optimal service outcomes for the Department of Defense?
While 'full and open competition' is a positive procedural step, its effectiveness in achieving competitive pricing and optimal outcomes depends on the specific bids received and the government's negotiation strategy. Without access to bid details, cost analysis, and post-award performance metrics, it's challenging to definitively assess how well this competition served the DoD's interests.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
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: $25,893,604
Exercised Options: $25,893,604
Current Obligation: $18,031,229
Parent Contract
Parent Award PIID: GS07T00BGD0028
IDV Type: GWAC
Timeline
Start Date: 2009-09-01
Current End Date: 2012-08-31
Potential End Date: 2012-08-31 00:00:00
Last Modified: 2012-10-17
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