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

State: New Jersey Government Spending

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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

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

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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