The company has held the enterprise IT-focused task order for two years and worked with the Social Security Administration for three decades. Leidos has lost $1 billion in work as part of the Trump administration’s purge of hundreds of government contracts under its DOGE initiative.
In January 2023, the company won a pair of task orders worth a combined $1.5 billion under the Social Security Administration’s IT Support Service Contract II vehicle. Work supports SSA’s deputy commissioner for systems and the office of systems operations and hardware engineering.
It appears that the Department of Government Efficiency is cancelling one of those task orders, which was worth up to $1 billion.
The task order covered support such as lifecycle software improvement, web interface design, planning, implementation, and enterprise IT infrastructure and application services. Leidos, CGI and Peraton are the prime contractors for ITSSC II.
The Social Security Administration is a 30-year customer of Leidos, the company said when it announced the award in early 2023 following a two-year protest delay.
DOGE’s database does not offer a reason for cancelling the order, but claims the move will save $231.9 million.
We have asked Leidos to comment on the impact of the cancellation and how many employees it might affect. We will update this story when we hear back.
Leidos is not alone in having a contract cancelled by DOGE.
A potential $1.9 billion IRS contract vehicle held by several companies has been cancelled, at least for two of the 11 winners of the Enterprise Program Project Integration Services vehicle also called EPPIS.
DOGE touted the cancellation of the contract held by Centennial Technologies. In searching the Federal Procurement Data System, we also found the EPPIS contracts held by Chevo Consulting and Deloitte cancelled.
Contracts held by Noblis, Pulsebyte, Harmonia, Integrated Systems, FedTec, Etelligent, 22nd Century Technologies and Accelgov appear to still be active on FPDS. There is likely a lag of several days from cancellation to registration on the government database.
The IRS awarded EPPIS in October, and not much work has flowed through the vehicle yet.
We are still analyzing the DOGE database of cancelled contracts and have identified nearly 200 cancellations of contracts valued at more than $4 million.
The U.S. Agency for International Development and Education Department top the listing of agencies with the most contract dollars saved.
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