Leidos Awarded $1.01B for R&D in Physical, Engineering, and Life Sciences by DoD
Contract Overview
Contract Amount: $1,012,701,415 ($1.0B)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-05-29
End Date: 2013-12-15
Contract Duration: 1,661 days
Daily Burn Rate: $609.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: OTHER DIRECT COSTS-BASE BAGRAM, AFGHAN
Place of Performance
Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053
Plain-Language Summary
Department of Defense obligated $1.01 billion to LEIDOS, INC. for work described as: OTHER DIRECT COSTS-BASE BAGRAM, AFGHAN Key points: 1. Significant contract value of over $1 billion for R&D services. 2. Leidos, Inc. is the sole awardee, raising questions about competition. 3. Potential risks associated with long-term R&D contracts and cost-plus structures. 4. Spending falls within the Research and Development sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed effectively. Benchmarking is difficult without specific deliverables and comparable R&D contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive process. However, it is a delivery order, and the specific competition for this order is not detailed.
Taxpayer Impact: The impact on taxpayers depends on the efficiency and effectiveness of the R&D performed and the fixed fee negotiated.
Public Impact
Over $1 billion in federal funds allocated to a single contractor for research and development. Contract duration spans over 4 years, indicating a long-term commitment. The nature of R&D spending can be less predictable in terms of immediate public benefit.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Cost-plus contract type can incentivize spending.
- Long contract duration increases risk of cost overruns.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Supports critical R&D for the Department of Defense.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Federal spending in this sector is crucial for innovation but can be complex to track for direct ROI.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract.
Oversight & Accountability
Oversight by the Defense Contract Management Agency is in place, but the effectiveness of monitoring cost-plus, fixed-fee R&D contracts requires diligent review of expenditures and progress.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost-plus contract type.
- Long contract duration.
- Potential for scope creep in R&D.
- Limited transparency on specific R&D outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, nj, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.01 billion to LEIDOS, INC.. OTHER DIRECT COSTS-BASE BAGRAM, AFGHAN
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $1.01 billion.
What is the period of performance?
Start: 2009-05-29. End: 2013-12-15.
How effectively were the R&D objectives met within the allocated budget and fixed fee?
Assessing the effectiveness of R&D requires detailed review of project milestones, deliverables, and the ultimate impact of the research. Without specific performance reports, it's challenging to determine if the fixed fee adequately compensated Leidos for the value delivered or if taxpayer funds were used efficiently.
What were the key risks identified during the contract's lifecycle, and how were they mitigated?
Potential risks in R&D include technical feasibility, changing requirements, and cost overruns. Mitigation strategies would involve robust project management, regular technical reviews, and clear communication channels between the agency and Leidos to address challenges proactively and ensure alignment with DoD objectives.
Does the R&D performed align with current and future Department of Defense strategic priorities?
The alignment of R&D with strategic priorities is critical for ensuring taxpayer investment yields relevant technological advancements. Continuous assessment by the DoD is necessary to confirm that the research remains pertinent to evolving defense needs and contributes to national security.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9113M06R0014
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 3000 LINCOLN DR E, MARLTON, NJ, 08053
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,166,401,241
Exercised Options: $1,166,401,241
Current Obligation: $1,012,701,415
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9113M07D0006
IDV Type: IDC
Timeline
Start Date: 2009-05-29
Current End Date: 2013-12-15
Potential End Date: 2013-12-15 00:00:00
Last Modified: 2025-04-23
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