Leidos, Inc. awarded $171.4M for engineering and technical services by the Defense Threat Reduction Agency
Contract Overview
Contract Amount: $171,428,839 ($171.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-07-26
End Date: 2010-11-30
Contract Duration: 1,953 days
Daily Burn Rate: $87.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200511!502181!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA105D0002 !A!N! !N!0001 ! !20050726!20060731!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000023484685!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541990!E! !5!B!S! ! ! !20200930!B! ! !A! !A!U!R!1!002!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $171.4 million to LEIDOS, INC. for work described as: 200511!502181!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA105D0002 !A!N! !N!0001 ! !20050726!20060731!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!01000!510!51!ALEXANDRIA !ALEX… Key points: 1. Contract value of $171.4M over its period of performance. 2. Awarded through full and open competition, indicating a broad market search. 3. Contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 4. The contract spans over 4 years, suggesting a need for sustained support. 5. Services fall under 'All Other Professional, Scientific, and Technical Services', a broad category. 6. The contractor, Leidos, Inc., is a large, established entity in the federal contracting space.
Value Assessment
Rating: good
The contract value of $171.4M for over 4 years of engineering and technical services appears reasonable given the scope. Benchmarking against similar large-scale professional services contracts awarded by DoD agencies suggests this is within expected ranges. The Cost Plus Award Fee (CPAF) structure, while potentially leading to higher final costs than fixed-price contracts, allows for flexibility and incentivizes contractor performance on complex tasks. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates two bids were received, which is a relatively low number for a large contract. While full and open competition is generally preferred for maximizing price discovery, a low number of bidders could suggest market limitations, high barriers to entry, or a highly specialized requirement. This level of competition may not have driven the lowest possible price, but it did ensure a selection from multiple qualified entities.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it theoretically allows for a wider range of pricing and encourages contractors to offer competitive bids. However, with only two bids, the potential for significant cost savings may have been limited compared to a scenario with more robust competition.
Public Impact
The primary beneficiary is the Defense Threat Reduction Agency (DTRA), receiving critical engineering and technical support. Services delivered likely include research, analysis, program management, and technical expertise to support DTRA's mission. The contract's geographic impact is centered in Virginia, where the contractor's Alexandria office is located, and potentially extends to DTRA's primary locations. Workforce implications include employment opportunities for scientists, engineers, and technical professionals within Leidos and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) contracts can sometimes result in higher overall costs than fixed-price contracts if award fees are consistently maximized.
- The relatively low number of bids (2) in a full and open competition might indicate limited market interest or high barriers to entry for potential competitors.
- The broad 'All Other Professional, Scientific, and Technical Services' category makes it difficult to pinpoint the exact nature and efficiency of the services provided without further detail.
Positive Signals
- Awarded through full and open competition, suggesting an effort to maximize the pool of potential offerors.
- Leidos, Inc. is a large, established federal contractor with a significant presence and track record, implying a degree of reliability.
- The contract duration of over 4 years suggests a stable, ongoing need for these critical services by the agency.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, a significant area of federal spending. This sector encompasses a wide range of activities, from research and development to specialized consulting and engineering. The federal government is a major consumer of these services, particularly within defense and intelligence agencies, to augment in-house capabilities. Comparable spending benchmarks for large engineering and technical support contracts within the Department of Defense often run into hundreds of millions of dollars over multiple years, making the $171.4M award size consistent with similar large-scale requirements.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss=false, sb=false). As a large contract awarded to a prime contractor like Leidos, Inc., there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in this award data. Without specific subcontracting plans or reporting, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often necessitate some level of subcontracting to meet diverse needs.
Oversight & Accountability
Oversight for this contract would primarily reside with the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. As a Cost Plus Award Fee contract, performance monitoring and evaluation are crucial to determine award fee payments, ensuring the contractor meets or exceeds performance standards. The Department of Defense also has an Inspector General (IG) office that conducts audits and investigations into contract spending and performance, providing an additional layer of accountability. Transparency is facilitated through contract award databases, though detailed performance reports are typically not publicly available.
Related Government Programs
- Department of Defense - Research, Development, Test, and Evaluation
- Professional, Scientific, and Technical Services
- Defense Threat Reduction Agency - Support Services
- Large-scale Engineering and Technical Support Contracts
Risk Flags
- Low number of bids received under full and open competition.
- Cost Plus Award Fee contract type carries inherent risk of cost escalation.
- Broad service category (541990) lacks specificity regarding deliverables and performance metrics.
- Potential for vendor lock-in due to contract size and duration.
Tags
defense, department-of-defense, defense-threat-reduction-agency, leidos-inc, professional-scientific-technical-services, engineering-services, cost-plus-award-fee, full-and-open-competition, delivery-order, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $171.4 million to LEIDOS, INC.. 200511!502181!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA105D0002 !A!N! !N!0001 ! !20050726!20060731!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000023484685!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541990!E! !5!B!S! ! ! !202
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $171.4 million.
What is the period of performance?
Start: 2005-07-26. End: 2010-11-30.
What is the specific nature of the 'Engineering Technical Services' provided under this contract?
The contract data classifies the service under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' While the specific tasks are not detailed in the provided summary, this broad category typically encompasses a wide array of support functions. For DTRA, these services could include areas such as threat assessment and analysis, weapons of mass destruction (WMD) consequence management support, policy development, scientific research consultation, program management support, and technical advisory services related to defense threat reduction. The 'Engineering Technical Services' title suggests a focus on applying engineering principles and technical expertise to solve complex problems or support agency operations, likely involving specialized knowledge in areas relevant to DTRA's mission.
How does the Cost Plus Award Fee (CPAF) structure impact the final cost and contractor performance?
A Cost Plus Award Fee (CPAF) contract reimburses the contractor for allowable costs incurred plus a fee that has a base amount (often fixed) and an award amount that is based on performance against specific criteria. This structure is typically used when the scope of work is not precisely defined or when performance incentives are critical. For taxpayers, CPAF contracts carry a risk of higher final costs compared to fixed-price contracts, as the contractor is incentivized to exceed minimum performance standards to earn the award fee. However, it can also drive better quality and more efficient outcomes by aligning contractor efforts with agency goals. Effective oversight and clearly defined performance metrics are essential to ensure that the award fee genuinely reflects superior performance and does not simply inflate costs.
What is Leidos, Inc.'s track record with the Defense Threat Reduction Agency and similar contracts?
Leidos, Inc. (and its predecessor entities) has a substantial history of contracting with the U.S. federal government, including significant work with the Department of Defense and its various agencies. While specific contract details beyond this award are not provided, Leidos is a major defense contractor known for providing a wide range of services including IT, systems engineering, logistics, and technical support. Their extensive experience suggests a familiarity with government contracting processes and agency requirements. A deeper analysis would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) on similar DTRA or DoD contracts to assess their historical performance, reliability, and ability to manage complex programs effectively.
What are the potential risks associated with a contract of this size and duration?
Contracts of this magnitude ($171.4M) and duration (over 4 years) inherently carry several risks. One primary risk is cost overrun, particularly with a CPAF structure, if performance targets are consistently exceeded without stringent cost controls. Scope creep is another risk, where the requirements may evolve beyond the initial contract scope, leading to increased costs and potential delays. Contractor performance risk exists; despite Leidos's size, there's always a possibility of underperformance, technical challenges, or key personnel turnover impacting service delivery. Furthermore, reliance on a single large contractor for critical services can create vendor lock-in and reduce future competition. Effective program management, robust oversight, and clear communication channels are vital to mitigate these risks.
How does this contract compare to other federal spending in the 'All Other Professional, Scientific, and Technical Services' category?
The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) represents a broad segment of federal procurement. Spending within this category can vary widely, from niche consulting services to large-scale technical support contracts. This $171.4M award to Leidos is a significant sum, placing it among the larger contracts within this classification, especially given its duration. Federal agencies frequently procure services under this NAICS code to obtain specialized expertise not readily available internally or to supplement existing workforce capabilities. Comparing this specific contract's value requires looking at the average contract size and total spending within 541990 across the government, which typically runs into billions of dollars annually, indicating that while substantial, this award is part of a larger trend of federal reliance on external technical expertise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HDTRA105D0002
IDV Type: IDC
Timeline
Start Date: 2005-07-26
Current End Date: 2010-11-30
Potential End Date: 2011-01-31 00:00:00
Last Modified: 2024-11-22
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