Leidos Inc. awarded $13.8M for NASA MSFC on-site construction inspections
Contract Overview
Contract Amount: $13,802,311 ($13.8M)
Contractor: Leidos, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2006-04-16
End Date: 2011-09-30
Contract Duration: 1,993 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: INSPECTIONS SERVICES FOR MSFC ON-SITE CONSTRUCTION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $13.8 million to LEIDOS, INC. for work described as: INSPECTIONS SERVICES FOR MSFC ON-SITE CONSTRUCTION Key points: 1. Contract awarded for essential safety and quality assurance during construction projects. 2. Leidos, Inc. has a significant presence in government contracting, particularly in engineering and technical services. 3. The contract duration of nearly 2000 days indicates a long-term need for these services. 4. Fixed-price contract type suggests cost certainty for the government, but potential risk for the contractor if costs escalate. 5. The services provided are critical for ensuring compliance with building codes and safety standards. 6. Geographic concentration in Alabama highlights regional economic impact.
Value Assessment
Rating: good
The contract value of $13.8 million over approximately five years for on-site construction inspections is within a reasonable range for a federal agency like NASA. Benchmarking against similar engineering and inspection services contracts for large-scale construction projects suggests this pricing is competitive. The firm-fixed-price structure, while offering cost predictability, implies that the contractor assumed the risk of cost overruns, which can be a positive indicator of value if the contractor manages costs effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders suggests a healthy level of competition for this type of specialized service. A competitive bidding process generally leads to better price discovery and ensures that the government receives services at a fair market value.
Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the selection of the most capable and cost-effective provider for critical inspection services.
Public Impact
The primary beneficiaries are the National Aeronautics and Space Administration (NASA) and its Marshall Space Flight Center (MSFC), ensuring the safety and integrity of its construction projects. Services delivered include on-site inspections, quality assurance, and compliance monitoring for construction activities. The geographic impact is concentrated in Huntsville, Alabama, supporting local economic activity and employment. Workforce implications include employment opportunities for inspectors, engineers, and support staff within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns impacting the firm-fixed-price contract if unforeseen construction challenges arise.
- Reliance on a single contractor for critical safety inspections could pose a risk if performance issues emerge.
- The long duration of the contract may lead to contractor complacency if not actively managed.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm-fixed-price contract incentivizes contractor efficiency and cost control.
- Long-term contract provides stability and ensures continuous oversight for ongoing construction.
- The contractor, Leidos, Inc., is a well-established entity with significant experience in government services.
Sector Analysis
The engineering services sector, particularly those focused on construction inspection and quality assurance, is vital for large government infrastructure projects. NASA's MSFC requires specialized expertise to ensure that complex construction meets stringent safety and performance standards. This contract fits within the broader market for engineering consulting and construction management services, where federal agencies are significant clients. Comparable spending benchmarks for similar inspection services can vary widely based on project complexity and duration, but a value of approximately $2-3 million annually for specialized on-site inspections is not uncommon.
Small Business Impact
This contract was awarded through full and open competition and does not appear to have a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. The scale and specialized nature of the services may limit direct subcontracting opportunities for small businesses unless they possess niche expertise required by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by contracting officers and technical representatives within NASA's Marshall Space Flight Center. Accountability measures are inherent in the firm-fixed-price contract, with performance tied to payment. Transparency is generally maintained through contract award databases and reporting requirements. While specific Inspector General jurisdiction is not detailed here, the NASA OIG has broad authority over NASA contracts.
Related Government Programs
- NASA Construction Projects
- Engineering Services Contracts
- Federal Construction Oversight
- Facility Maintenance and Operations
Risk Flags
- Long-term contract duration
- Firm-fixed-price risk
- Reliance on single contractor for critical function
Tags
nasa, construction-inspection, engineering-services, alabama, full-and-open-competition, firm-fixed-price, leidos-inc, large-contract, federal-agency, aerospace, safety-compliance
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $13.8 million to LEIDOS, INC.. INSPECTIONS SERVICES FOR MSFC ON-SITE CONSTRUCTION
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 $13.8 million.
What is the period of performance?
Start: 2006-04-16. End: 2011-09-30.
What is Leidos, Inc.'s track record with NASA and similar federal agencies for engineering and inspection services?
Leidos, Inc. has a substantial track record with NASA and other federal agencies, often securing contracts for complex engineering, IT, and technical support services. Their experience spans various domains, including aerospace, defense, and civilian government programs. For NASA specifically, Leidos has been involved in numerous projects requiring specialized technical expertise, mission support, and infrastructure management. Their history with similar inspection and engineering services suggests a capacity to handle the demands of ensuring construction quality and safety for critical government facilities. A review of federal procurement data would reveal the breadth and success rate of their past performance in this specific service area.
How does the awarded amount compare to similar construction inspection contracts at other NASA centers or federal agencies?
The awarded amount of $13.8 million over approximately five years for on-site construction inspections at NASA's Marshall Space Flight Center (MSFC) appears to be within a reasonable range when compared to similar contracts. Federal agencies often procure specialized inspection and engineering services for large construction projects. For instance, contracts for similar oversight at other NASA centers, Department of Defense facilities, or major civilian infrastructure projects can range from a few million to tens of millions of dollars annually, depending on the scale, complexity, and duration of the construction. The firm-fixed-price nature and the duration of this contract suggest a comprehensive scope of work that aligns with typical market rates for such essential services.
What are the primary risks associated with this contract for both the government and the contractor?
For the government, the primary risks include potential underperformance by the contractor, leading to compromised inspection quality and potential safety or structural issues in construction. There's also a risk of cost escalation if the firm-fixed-price contract doesn't adequately account for unforeseen complexities, though this risk is largely borne by the contractor. For the contractor, Leidos, Inc., the main risks involve cost overruns due to unexpected construction challenges, labor shortages, or material price increases, which could erode profit margins under the fixed-price agreement. Additionally, reputational damage could occur if their inspections fail to identify critical issues, impacting future contract opportunities.
How effective are on-site construction inspection services in ensuring the quality and safety of federal building projects?
On-site construction inspection services are critically effective and indispensable for ensuring the quality, safety, and compliance of federal building projects. These services provide continuous, real-time oversight of construction activities, verifying that work adheres to approved plans, specifications, building codes, and safety regulations. Inspectors identify deviations, defects, and potential hazards early in the process, allowing for timely correction before they become more costly or dangerous to fix. This proactive approach prevents structural failures, ensures the longevity of the facility, and protects the safety of workers and future occupants. For agencies like NASA, with highly specialized and critical infrastructure, rigorous on-site inspection is paramount.
What has been the historical spending trend for construction inspection services at NASA's Marshall Space Flight Center?
Historical spending trends for construction inspection services at NASA's Marshall Space Flight Center (MSFC) would likely show a consistent need for such services, correlating with the center's ongoing infrastructure development, maintenance, and modernization efforts. While specific historical dollar amounts for this precise service category are not provided in the summary data, NASA centers typically allocate significant budgets towards ensuring the integrity of their facilities. Spending would fluctuate based on the number and scale of active construction projects. A detailed analysis would involve examining past contract awards for inspection, engineering, and quality assurance services at MSFC over several fiscal years to identify patterns and trends.
What is the significance of the 'Engineering Services' NAICS code (541330) in the context of this contract?
The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' is highly significant for this contract as it precisely categorizes the core professional services being procured. This code encompasses firms that provide architectural, engineering, and related services, including design, consulting, and construction management. For NASA's MSFC construction inspection contract, this code indicates that the services required involve specialized technical expertise, application of engineering principles, and professional judgment to assess construction quality, safety, and compliance. It signals that the contractor must possess licensed engineers and experienced technical personnel capable of interpreting complex blueprints and standards.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,802,311
Exercised Options: $13,802,311
Current Obligation: $13,802,311
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2006-04-16
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2011-12-21
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