Department of Defense awards $148M for engineering technical services, with a 5-year base period
Contract Overview
Contract Amount: $30,889,500 ($30.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-08-26
End Date: 2012-07-31
Contract Duration: 2,531 days
Daily Burn Rate: $12.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200511!000638!5700!FA7046!HQ AFOTEC/RMC !FA704605D0010 !A!N! !Y!0017 ! !20050826!20100825!148095086!148095086!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!50400!003!32!NELLIS AFB !CLARK !NEVADA !+000000840000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !5!B!M! !C! !20200930!B! ! !A! !A!N!U!2!005!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: NELLIS AFB, CLARK County, NEVADA, 89191
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $30.9 million to LEIDOS, INC. for work described as: 200511!000638!5700!FA7046!HQ AFOTEC/RMC !FA704605D0010 !A!N! !Y!0017 ! !20050826!20100825!148095086!148095086!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!50400!003!32!NELLIS AFB !CLAR… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 5 years indicates a long-term need for these services. 3. The primary service category is 'Engineering Technical Services', aligning with R&D sector needs. 4. The awardee, Science Applications International Corporation (SAIC), has a significant contract history. 5. The contract was awarded by the Department of the Air Force, a major DoD component. 6. The contract type is Cost Plus Fixed Fee, which can present cost control challenges.
Value Assessment
Rating: fair
The total contract value is $148,095,086 over its full term. Benchmarking this against similar engineering and technical services contracts within the DoD is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not managed carefully, as the contractor is reimbursed for all allowable costs plus a fixed fee. This structure may not always represent the best value compared to fixed-price contracts if the scope is well-defined.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition', indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified in the provided data, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency sought proposals from a wide range of potential contractors.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government explores a broad market for the best available services.
Public Impact
The primary beneficiary is the Department of the Air Force, receiving critical engineering and technical support. Services delivered likely include research, development, testing, and evaluation support for Air Force programs. The contract is geographically focused on Nellis AFB in Nevada, suggesting direct support to that installation. The contract supports a workforce involved in specialized engineering and technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
- The long duration of the contract may reduce flexibility to adapt to changing technological needs.
- Limited information on the specific technical services provided makes a detailed value assessment difficult.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contract supports critical R&D functions for the Air Force.
- The contractor, SAIC, is a large, established company with significant experience in government contracting.
Sector Analysis
This contract falls within the Research and Development sector, specifically under the North American Industry Classification System (NAICS) code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is crucial for technological advancement and national security. Spending in this area often involves complex, long-term projects requiring specialized expertise. Comparable spending benchmarks would typically be found within broader DoD R&D budgets and specific Air Force research initiatives.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities specifically mandated for small businesses, although the prime contractor may engage them as part of their overall supply chain strategy. The focus is on large-scale technical services rather than small business set-aside goals.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure allowable costs are reasonable and allocable. Transparency is generally maintained through contract reporting systems, but detailed performance metrics and audits are often internal or subject to specific reporting requirements rather than broad public disclosure.
Related Government Programs
- Department of Defense Research and Development
- Air Force Engineering Services
- Aerospace Research and Development
- Technical Support Services Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
- Long contract duration may limit adaptability to rapidly evolving technological landscapes.
- Specific performance metrics and deliverables are not detailed, making direct value assessment challenging without further information.
Tags
department-of-defense, department-of-the-air-force, nellis-afb, nevada, engineering-technical-services, research-and-development, cost-plus-fixed-fee, full-and-open-competition, science-applications-international-corporation, large-contract, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.9 million to LEIDOS, INC.. 200511!000638!5700!FA7046!HQ AFOTEC/RMC !FA704605D0010 !A!N! !Y!0017 ! !20050826!20100825!148095086!148095086!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!50400!003!32!NELLIS AFB !CLARK !NEVADA !+000000840000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !5!B!M! !C! !202
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 Air Force).
What is the total obligated amount?
The obligated amount is $30.9 million.
What is the period of performance?
Start: 2005-08-26. End: 2012-07-31.
What is the historical spending pattern for Science Applications International Corporation (SAIC) with the Department of the Air Force for similar engineering technical services?
Analyzing SAIC's historical spending with the Department of the Air Force for similar engineering technical services requires access to comprehensive federal procurement databases. However, SAIC is a major defense contractor with a substantial portfolio of contracts across various agencies, including the Air Force. Their awards often span R&D, IT, and professional services. For this specific contract (FA704605D0010), the initial award was for $148,095,086. Without detailed historical data, it's difficult to pinpoint exact trends, but SAIC's consistent presence in large-scale federal contracts suggests a strong track record in securing and performing on such agreements. Further analysis would involve examining contract vehicles, task orders, and spending over multiple fiscal years to identify patterns in service types, dollar values, and contract durations.
How does the awarded amount of $148 million compare to the average value of similar engineering technical services contracts awarded by the Air Force?
The awarded amount of $148 million for this engineering technical services contract is substantial, reflecting a significant scope of work. To benchmark this against average values, one would need to query federal procurement data for contracts with similar NAICS codes (e.g., 541710) and service descriptions awarded by the Department of the Air Force over a comparable period. Contracts for R&D and specialized engineering support can vary widely in value depending on the specific technological domain, duration, and complexity. A $148 million contract over approximately 5 years suggests a high level of support, potentially involving multiple projects or a critical, long-term program. It is likely above the average for many smaller, task-order-based contracts but could be within the typical range for major system development or sustainment support contracts.
What are the key performance indicators (KPIs) used to assess the performance of SAIC under this contract?
The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, for engineering technical services contracts, particularly those under a Cost Plus Fixed Fee (CPFF) structure, KPIs typically focus on adherence to schedule, cost control (within the fixed fee and allowable costs), technical performance standards, quality of deliverables, and responsiveness to Air Force requirements. Performance might be measured against milestones, technical specifications, and the successful completion of research objectives or engineering analyses. The contracting officer's representative (COR) would likely monitor these KPIs, and performance evaluations would inform future contract awards and decisions.
What is the risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific engineering R&D service?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for engineering R&D services is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. While the fee is fixed, the total cost is variable. If the contractor's costs exceed initial estimates, the government bears the financial burden, provided the costs are deemed allowable and reasonable. This can lead to the contract exceeding its ceiling value. For R&D, where the scope can be inherently uncertain, CPFF is often used to incentivize contractor effort. However, it requires robust government oversight to manage costs effectively and ensure the contractor exercises cost-consciousness. The risk is mitigated by clear definitions of allowable costs and diligent monitoring by the government.
How has the spending on engineering technical services by the Department of the Air Force evolved over the past decade?
To accurately assess the evolution of spending on engineering technical services by the Department of the Air Force over the past decade, a comprehensive analysis of federal procurement data is necessary. This would involve filtering contracts by agency (Department of the Air Force), fiscal year, and relevant NAICS codes (such as 541710 for R&D, or others related to engineering services). Anecdotally, defense spending, including on R&D and technical services, can fluctuate based on geopolitical events, strategic priorities, and budget allocations. The Air Force consistently invests heavily in advanced technologies and engineering support to maintain its operational edge. Trends might show shifts towards cybersecurity, AI, space systems, or advanced materials, influencing the types and values of engineering contracts awarded. Analyzing spending trends would reveal whether this $148M contract represents a typical investment or a significant deviation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,037,914
Exercised Options: $31,037,914
Current Obligation: $30,889,500
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA704605D0010
IDV Type: IDC
Timeline
Start Date: 2005-08-26
Current End Date: 2012-07-31
Potential End Date: 2012-07-31 00:00:00
Last Modified: 2014-05-29
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