Leidos awarded $20.26M for R&D services, with a significant portion allocated to Alabama

Contract Overview

Contract Amount: $20,257,409 ($20.3M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-06-11

End Date: 2017-03-31

Contract Duration: 1,389 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: R&D

Official Description: TASK ORDER AWARD

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to LEIDOS, INC. for work described as: TASK ORDER AWARD Key points: 1. Contract value represents a substantial investment in research and development capabilities. 2. Fixed Price Level of Effort contract type suggests clear deliverables and cost controls. 3. Awarded by the Department of the Army, indicating a focus on defense-related research. 4. Performance period spans over three years, allowing for sustained project development. 5. The contract's geographic focus on Alabama may stimulate local economic activity and job growth. 6. Research and Development in Physical, Engineering, and Life Sciences is a critical area for technological advancement.

Value Assessment

Rating: good

The contract value of $20.26 million for a fixed-price, level-of-effort R&D task order appears reasonable given the scope and duration. Benchmarking against similar R&D contracts within the Department of Defense is challenging without more specific service details. However, the fixed-price nature provides a degree of cost certainty for the government. The duration of nearly four years suggests a complex or long-term research effort, which can justify a significant award amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to drive better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring the government receives the best value for its investment.

Public Impact

The Department of the Army benefits from advanced research and development capabilities. Services delivered likely contribute to technological advancements in physical, engineering, and life sciences. The contract has a geographic impact on Alabama, potentially creating or sustaining high-skilled jobs. Workforce implications include employment for researchers, engineers, and technical support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is crucial for national security and technological innovation. Spending in this area by the Department of Defense is substantial, often involving long-term projects to maintain a technological edge. Comparable spending benchmarks would depend on the specific sub-disciplines within R&D, but the $20.26 million award is a significant task order.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract, it may offer subcontracting opportunities for small businesses, but this is not explicitly detailed. The focus on R&D by a large prime contractor like Leidos typically involves specialized expertise that may not always align with typical small business capabilities, though specific subcontracting plans would need to be reviewed.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. The fixed-price level-of-effort structure implies defined milestones and deliverables that would be monitored. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Risk Flags

Tags

research-and-development, department-of-defense, department-of-the-army, fixed-price-level-of-effort, full-and-open-competition, alabama, large-contract, science-and-technology, defense-contracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to LEIDOS, INC.. TASK ORDER AWARD

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2013-06-11. End: 2017-03-31.

What is Leidos's track record with similar R&D contracts for the Department of Defense?

Leidos has a substantial history of performing research and development services for the Department of Defense across various domains. Their portfolio includes work in areas such as systems engineering, advanced analytics, cybersecurity, and scientific research. Analyzing their past performance on similar fixed-price, level-of-effort task orders would involve reviewing contract histories for on-time delivery, adherence to budget, and technical success. While specific details for this $20.26 million award are not provided, Leidos's general profile suggests they are a capable contractor for complex R&D requirements. Further investigation into their specific awards within NAICS code 541712 and related codes would provide a more granular understanding of their expertise and reliability in this specific R&D niche.

How does the $20.26 million value compare to typical R&D task orders of this nature?

The $20.26 million value for this task order is a significant but not extraordinary amount for a multi-year R&D effort within the Department of Defense. R&D contracts can range widely in value, from small, focused studies to multi-billion dollar programs. Task orders of this magnitude often support critical research initiatives that require substantial resources over an extended period, such as the nearly four-year performance period indicated here. To provide a precise comparison, one would need to benchmark against other task orders awarded under the same basic contract (if applicable), within the same NAICS code (541712), and for similar agencies (like the Army). However, generally, awards in the tens of millions for R&D are common for projects involving complex scientific inquiry or technological development.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract revolve around the inherent uncertainties of research and development. Technical risks include the possibility that the research objectives may not be met, or that unforeseen scientific challenges arise, potentially impacting project timelines and outcomes. Performance risks exist if Leidos, Inc. fails to deliver the required level of effort or quality of research, although the fixed-price contract structure provides some mitigation. Financial risks are generally lower due to the fixed-price nature, but cost overruns could still occur if the scope is not well-defined or managed. There's also a programmatic risk if the research outcomes do not align with the Army's evolving strategic needs. Finally, reliance on a single contractor for a critical R&D effort can pose a risk if their capabilities are overestimated or if they encounter internal issues.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' classification imply for the services rendered?

This classification (NAICS 541712) indicates that the contract supports research and development activities that are fundamental in nature or applied, focusing on advancements within the physical sciences (e.g., physics, chemistry, materials science), engineering disciplines (e.g., mechanical, electrical, civil, aerospace engineering), and life sciences (e.g., biology, physiology, environmental science), but specifically excluding biotechnology. This means the work could involve developing new materials, improving engineering processes, understanding complex physical phenomena, or researching biological systems unrelated to genetic engineering or pharmaceutical development. The services likely involve theoretical analysis, experimentation, prototyping, and data interpretation to push the boundaries of scientific and technical knowledge for potential military applications or broader scientific understanding.

How has federal spending in R&D, particularly within the Department of Defense, trended in recent years?

Federal spending in Research and Development (R&D), especially within the Department of Defense (DoD), has generally seen consistent or increasing investment in recent years, driven by national security priorities and the need to maintain technological superiority. The DoD is consistently one of the largest federal funders of R&D. Trends often show a focus on areas like artificial intelligence, cybersecurity, advanced manufacturing, hypersonics, and space technology. While overall R&D budgets fluctuate based on appropriations and strategic shifts, there is a sustained emphasis on innovation. Analyzing historical spending patterns for NAICS code 541712 and specific DoD components like the Army would reveal specific growth areas and funding priorities within the physical, engineering, and life sciences R&D domain.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 11951 FREEDOM DR, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,737,870

Exercised Options: $21,737,870

Current Obligation: $20,257,409

Subaward Activity

Number of Subawards: 52

Total Subaward Amount: $15,913,830

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W9113M10D0003

IDV Type: IDC

Timeline

Start Date: 2013-06-11

Current End Date: 2017-03-31

Potential End Date: 2017-03-31 00:00:00

Last Modified: 2025-12-31

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