Leidos Inc. awarded $21.6M for NASA administrative system support, a sole-source contract spanning six years

Contract Overview

Contract Amount: $21,662,885 ($21.7M)

Contractor: Leidos, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2001-08-25

End Date: 2007-02-15

Contract Duration: 2,000 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: FINANCIAL ADMINISTRATIVE SYSTEM SUPPORT.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77058

State: Texas Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $21.7 million to LEIDOS, INC. for work described as: FINANCIAL ADMINISTRATIVE SYSTEM SUPPORT. Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. Long contract duration (6 years) may not reflect current market needs or technological advancements. 3. Focus on administrative support suggests a stable, ongoing requirement rather than innovative solutions. 4. Awarded to a single vendor, Leidos, Inc., raising questions about market availability of alternatives. 5. The contract's value, while significant, needs benchmarking against similar IT support services. 6. Lack of competition is a key risk indicator for potential overpricing or suboptimal service delivery.

Value Assessment

Rating: fair

The contract value of $21.6 million over six years for administrative system support appears reasonable on an annual basis, approximately $3.6 million per year. However, without specific details on the scope of services, deliverables, and performance metrics, a direct comparison to similar contracts is challenging. The absence of competition suggests that pricing may not have been rigorously tested against market alternatives, which could indicate a fair, but not necessarily optimal, price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning NASA did not conduct a competitive bidding process. This approach is typically justified when only one vendor possesses the necessary capabilities or when urgency dictates. The lack of competition means that NASA did not benefit from multiple proposals, which could have driven down prices and spurred innovation. The decision to go sole-source warrants scrutiny to ensure it was indeed the most appropriate procurement strategy.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market forces to secure the best possible pricing for taxpayers. This can lead to higher costs compared to competitively awarded contracts.

Public Impact

NASA personnel benefit from the continuity and stability of essential administrative systems. The contract ensures the ongoing operation and maintenance of critical financial and administrative IT infrastructure. The primary geographic impact is within NASA facilities where these administrative systems are utilized. Workforce implications are primarily for Leidos, Inc. employees supporting the contract, and indirectly for NASA staff relying on the systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and support. The market for such services is vast and competitive, with numerous providers capable of offering administrative system support. NASA's spending on IT services is a significant portion of its overall budget, aimed at maintaining complex operational and administrative systems. Benchmarking this contract's value against other government or commercial contracts for similar IT support services would provide further insight into its cost-effectiveness.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Leidos, Inc., a large corporation. There is no indication of subcontracting plans for small businesses within the provided data. This means the contract does not directly contribute to the government's small business utilization goals and may not foster opportunities within the small business ecosystem for this specific requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by NASA's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the lack of publicly available detailed justifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Risk Flags

Tags

it-services, custom-computer-programming, nasa, national-aeronautics-and-space-administration, definitive-contract, sole-source, labor-hours, large-contractor, administrative-support, texas

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $21.7 million to LEIDOS, INC.. FINANCIAL ADMINISTRATIVE SYSTEM SUPPORT.

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $21.7 million.

What is the period of performance?

Start: 2001-08-25. End: 2007-02-15.

What specific administrative systems are covered under this contract, and what are their criticality to NASA's operations?

The provided data does not specify the exact administrative systems covered. However, given the contract title 'FINANCIAL ADMINISTRATIVE SYSTEM SUPPORT' and the North American Industry Classification System (NAICS) code 541511 (Custom Computer Programming Services), it likely encompasses systems related to financial management, human resources, procurement, and other core administrative functions. These systems are critical for the day-to-day operations of NASA, enabling efficient resource allocation, personnel management, and compliance with federal regulations. The continuity of these systems is paramount for NASA's mission execution.

What was the justification for awarding this contract on a sole-source basis to Leidos, Inc.?

The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. Federal procurement regulations typically require competitive bidding unless specific exceptions apply, such as the existence of only one responsible source, urgent and compelling needs, or specific statutory authorities. Without further documentation (e.g., a Justification for Other Than Full and Open Competition - JOFOC), the precise reason for the sole-source award to Leidos, Inc. remains unclear. It is possible that Leidos possessed unique capabilities, proprietary technology, or was the incumbent provider with deep institutional knowledge that NASA deemed essential and irreplaceable through competition within the given timeframe.

How does the $21.6 million contract value compare to historical spending on similar administrative IT support at NASA or other federal agencies?

The total contract value of $21.6 million over approximately six years (August 2001 to February 2007) averages to about $3.6 million annually. To assess its comparability, one would need to analyze historical spending data for similar administrative IT support contracts within NASA and across other federal agencies. Factors such as the scope of services, number of users supported, complexity of systems, and specific technologies deployed significantly influence contract values. Without access to a broader dataset of comparable contracts, it is difficult to definitively state whether this $3.6 million annual spend is high, low, or average for the services rendered.

What performance metrics or service level agreements (SLAs) were included in this contract to ensure effective service delivery by Leidos, Inc.?

The provided summary data does not include details on performance metrics or Service Level Agreements (SLAs) associated with this contract. Typically, contracts of this nature would outline specific performance expectations, such as system uptime, response times for issue resolution, data security standards, and user satisfaction levels. The effectiveness of Leidos, Inc.'s service delivery would be measured against these agreed-upon metrics. The absence of this information in the summary prevents a thorough assessment of the contract's performance outcomes and value realization.

What is Leidos, Inc.'s track record with NASA and other federal agencies for providing IT support services?

Leidos, Inc. is a major government contractor with a substantial history of providing IT and support services to various federal agencies, including NASA. Their track record generally involves large-scale system integration, IT modernization, and operational support. While specific performance details for this particular contract are not fully detailed in the summary, Leidos's continued engagement with government entities suggests a capacity to meet contractual obligations. A deeper dive into past performance evaluations, contract awards, and any reported issues or successes would provide a more comprehensive view of their track record relevant to this specific award.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

Address: 2200 SPACE PARK DR, SUITE 200, HOUSTON, TX, 77058

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,464,445

Exercised Options: $22,464,445

Current Obligation: $21,662,885

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2001-08-25

Current End Date: 2007-02-15

Potential End Date: 2007-02-15 00:00:00

Last Modified: 2020-02-27

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