DOGE cancels Leidos contract

EDITOR'S NOTE: After this story was published, DOGE amended Leidos' canceled contract, reducing the value of thecontract to $560,000. For the updated story, click here.

Leidos has lost a contract with $231.9 million in runway left after Trump administration's DOGE initiative cancelled the remaining work, according to the called DOGE Wall of Receipts.

In January 2023, Leidos 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, originally with a $1 billion ceiling.

According to the Federal Procurement Data System, Leidos has already received $803.5 million in work through the contract. DOGE's database does not offer a reason for cancelling the order, but claims the move will save $231.9 million, which is the difference between the ceiling amount and the obligations to date.

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.

A Leidos spokesman said that the company continues to support SSA. “Our work supporting the Social Security Administration, and the millions of Americans it serves, is on contract and ongoing.," the spokesman said. "We are committed to helping our customers in the U.S. government find ways to operate more efficiently.”

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.