Leidos Inc. awarded $487M IT and Scientific Support contract by GSA, spanning over 3 years

Contract Overview

Contract Amount: $487,243,888 ($487.2M)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2000-05-24

End Date: 2003-10-20

Contract Duration: 1,244 days

Daily Burn Rate: $391.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY AND SCIENTIFIC SUPPORT

Place of Performance

Location: WINDOW ROCK, APACHE County, ARIZONA, 86515

State: Arizona Government Spending

Plain-Language Summary

General Services Administration obligated $487.2 million to LEIDOS, INC. for work described as: INFORMATION TECHNOLOGY AND SCIENTIFIC SUPPORT Key points: 1. Contract value of $487M represents significant investment in IT and scientific support services. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of over 3 years indicates a long-term need for these services. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. Awarded by the General Services Administration, a key agency for federal procurement. 6. Geographic scope includes Arizona, suggesting a regional focus for service delivery.

Value Assessment

Rating: good

The contract value of $487 million for IT and scientific support over approximately 3.5 years suggests a substantial investment. Benchmarking this against similar large-scale IT service contracts awarded by GSA or other agencies would provide a clearer picture of value for money. The firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. However, without specific performance metrics or comparisons to industry standards for similar services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically suggests a robust bidding environment with multiple potential offerors. The number of bidders is not specified, but the nature of the competition implies that the government sought the best value through a broad solicitation. This approach is generally expected to yield competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is designed to drive down prices through market forces and ensure the government receives competitive offers.

Public Impact

Federal agencies requiring IT and scientific support services are the primary beneficiaries. The contract facilitates the delivery of essential technology and research-related services to government operations. Services are likely to impact federal operations within Arizona, given the specified state. Potential for job creation within the IT and scientific support sectors, particularly in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broad Information Technology and Scientific Support sector, a critical area for government operations. The IT services market is vast and highly competitive, encompassing everything from software development to cloud computing and cybersecurity. Scientific support can range from research and development to data analysis and laboratory services. The $487 million award is a significant sum, placing it among larger federal IT and support contracts. Comparable spending benchmarks would involve looking at other large indefinite-delivery/indefinite-quantity (IDIQ) contracts or prime contracts for similar services awarded by agencies like the Department of Defense or NASA.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded under full and open competition, it is unlikely to have significant direct subcontracting opportunities specifically mandated for small businesses unless Leidos voluntarily pursues them. The primary impact on the small business ecosystem would be indirect, potentially through Leidos's own supply chain or by competing against small businesses for future opportunities. However, the scale of this contract suggests it is aimed at large, established prime contractors.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including performance monitoring and compliance checks. As a large contract, it would likely be subject to regular reviews by GSA contracting officers and potentially the GSA Office of Inspector General (OIG) for audits and investigations. Transparency is generally maintained through contract award databases like FPDS-NG, where basic contract information is publicly available. The firm fixed-price nature also provides a degree of accountability regarding cost.

Related Government Programs

Risk Flags

Tags

information-technology, scientific-support, general-services-administration, leidos-inc, firm-fixed-price, full-and-open-competition, arizona, large-contract, it-services, federal-acquisition-service

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $487.2 million to LEIDOS, INC.. INFORMATION TECHNOLOGY AND SCIENTIFIC SUPPORT

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $487.2 million.

What is the period of performance?

Start: 2000-05-24. End: 2003-10-20.

What was the specific nature of the IT and scientific support services provided under this contract?

The provided data categorizes the contract under 'INFORMATION TECHNOLOGY AND SCIENTIFIC SUPPORT' but does not detail the specific services. Typically, such contracts can encompass a wide range of activities including IT infrastructure management, software development and maintenance, cybersecurity, data analytics, scientific research support, technical consulting, and specialized engineering services. Without further details from the contract's statement of work (SOW), it's difficult to ascertain the precise deliverables. However, the broad categorization suggests a comprehensive support role for federal agencies requiring both technological and research-related expertise.

How does the $487 million contract value compare to similar IT and scientific support contracts awarded by the GSA or other federal agencies during that period?

The $487 million award for a contract spanning over three years (May 2000 to October 2003) was a substantial sum for IT and scientific support services during that era. To benchmark effectively, one would need to compare it against other large prime contracts awarded by agencies like the Department of Defense, NASA, or other civilian agencies for similar scope and duration. Federal procurement databases from that period would reveal the average contract size for IT services and scientific support. Given the full and open competition, it suggests the GSA sought competitive bids for a significant requirement, likely indicating a high demand for these services.

What were the key performance indicators (KPIs) or success metrics defined in the contract, and how was contractor performance evaluated?

The provided summary data does not include details on Key Performance Indicators (KPIs) or specific evaluation metrics for contractor performance. For a contract of this magnitude and duration, it is highly probable that a detailed Performance Work Statement (PWS) or Statement of Work (SOW) was included, outlining specific deliverables, quality standards, and timelines. Performance evaluations would typically be conducted by the Contracting Officer's Representative (COR) at regular intervals, assessing the contractor's adherence to these requirements. The firm fixed-price nature implies that meeting these defined performance standards was crucial for the contractor to achieve profitability.

What was the historical spending trend for IT and scientific support services by the General Services Administration prior to and during the period of this contract?

The provided data focuses solely on this individual contract and does not offer historical spending trends for the GSA in the IT and scientific support domain. To analyze historical spending, one would need access to GSA's budget allocations and contract award data over several fiscal years preceding and encompassing the contract period (2000-2003). GSA's role as a procurement facilitator means its spending in this area reflects the broader federal government's demand for IT and scientific services. Analyzing trends would involve looking at the growth or decline in IT modernization efforts, scientific research funding, and outsourcing of these functions by various federal agencies utilizing GSA's contracting vehicles.

What is the track record of Leidos, Inc. (and its predecessor entities if applicable) in delivering large-scale IT and scientific support contracts to the federal government?

Leidos, Inc. has a long and extensive track record as a major government contractor, particularly in the IT, defense, and intelligence sectors. Prior to its current form, Leidos evolved through various acquisitions and mergers, including significant portions of Lockheed Martin's Information Systems & Global Solutions business. The company has consistently been awarded large, complex contracts across numerous federal agencies, providing a wide array of services including IT modernization, cybersecurity, data analytics, mission support, and scientific research. Their history includes managing substantial programs similar in scope and value to the $487 million GSA contract mentioned, demonstrating a capacity for large-scale project execution and long-term federal engagements.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 9T0Z100A

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $487,275,083

Exercised Options: $487,243,888

Current Obligation: $487,243,888

Parent Contract

Parent Award PIID: GS09K99BHD0010

IDV Type: GWAC

Timeline

Start Date: 2000-05-24

Current End Date: 2003-10-20

Potential End Date: 2003-10-20 00:00:00

Last Modified: 2011-05-05

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