DoD's $148M contract for R&D weapons management support awarded to Science Applications International Corp
Contract Overview
Contract Amount: $14,447,657 ($14.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-04-25
End Date: 2008-07-01
Contract Duration: 798 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200607!000377!5700!FA7046!HQ AFOTEC/RMC !FA704605D0010 !A!N! !Y!0032 ! !20060425!20060930!148095086!148095086!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000001700000!N!N!000000000000!AC56!RDTE/WEAPONS-MANAGEMENT SUPPORT !S1 !SERVICES !000 !NOT DISCERNABLE !541710!E! !5!B!M! !A! !99990909!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: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117
Plain-Language Summary
Department of Defense obligated $14.4 million to LEIDOS, INC. for work described as: 200607!000377!5700!FA7046!HQ AFOTEC/RMC !FA704605D0010 !A!N! !Y!0032 ! !20060425!20060930!148095086!148095086!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!02000!001!35!ALBUQUERQUE !BERN… Key points: 1. Contract awarded via full and open competition, indicating a competitive bidding process. 2. The contract's value of $148M over its period of performance suggests a significant investment in R&D. 3. The 'Weapons Management Support' designation points to critical defense infrastructure and technology. 4. The contractor, Science Applications International Corp., has a substantial presence in the defense sector. 5. The contract duration of approximately 2 years implies a focused, project-based need. 6. The contract was awarded in 2006, providing historical context for current spending patterns.
Value Assessment
Rating: fair
The contract value of $148,095,086 for a period of roughly 2 years (798 days) averages to approximately $185,582 per day. Without specific performance metrics or comparable contracts for 'Weapons Management Support' in R&D, it is difficult to definitively benchmark value. However, the cost-plus-fixed-fee (CPFF) contract type suggests that costs were estimated and a fixed fee was added, which can sometimes lead to less price certainty than fixed-price contracts. The total obligated amount matches the total contract value, indicating full funding at the time of award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. The presence of 5 bidders indicates a moderate level of competition for this specialized R&D support service. While 5 bidders is not exceptionally high, it suggests that the market for this type of support is not entirely consolidated and that the government sought multiple proposals to ensure a competitive price and selection.
Taxpayer Impact: A competitive process, even with a moderate number of bidders, generally benefits taxpayers by driving down prices and encouraging innovation among contractors vying for the award.
Public Impact
The primary beneficiaries are the Department of Defense and the Air Force, receiving critical research and development support for weapons management. Services delivered include R&D and weapons management support, crucial for maintaining and advancing defense capabilities. The contract's performance location in Albuquerque, New Mexico, implies a direct impact on the local workforce and economy in that region. This contract supports specialized technical and scientific roles within the defense R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed tightly.
- The specific nature of 'weapons management support' in R&D may involve sensitive technologies requiring robust security protocols.
- Limited public information on the specific deliverables makes it challenging to assess performance outcomes comprehensively.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent procurement process.
- The contractor, Science Applications International Corp. (now part of Leidos), is a well-established entity in the defense and technology sector.
- The contract was fully funded at the time of award, indicating a clear commitment and budget allocation.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (NAICS code 541710). The defense R&D market is characterized by significant government investment, long development cycles, and a need for highly specialized expertise. Contracts like this are essential for maintaining technological superiority and developing next-generation defense systems. Comparable spending benchmarks would typically be found within other large-scale R&D contracts awarded by the Department of Defense for similar support services.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'N' for small business status. The prime contractor, Science Applications International Corporation (now Leidos), is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, though large prime contractors often engage small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a Department of Defense contract, it would also be subject to oversight from the Department of Defense Inspector General. Transparency is generally facilitated through contract award databases like FPDS, which provide basic details. However, specific performance reviews and detailed cost audits are usually internal to the agency and contractor, with summaries potentially released through Inspector General reports if significant issues arise.
Related Government Programs
- Defense Research and Development
- Weapons Systems Development
- Aerospace R&D Support
- Scientific and Technical Services
- Contractor Logistics Support
Risk Flags
- Cost-Plus-Fixed-Fee contract type may present cost control challenges.
- Contract duration is relatively short (approx. 2 years), potentially indicating a specific project phase rather than long-term sustainment.
- Limited public detail on specific performance metrics and outcomes.
Tags
department-of-defense, department-of-the-air-force, research-and-development, weapons-management, science-applications-international-corp, cost-plus-fixed-fee, full-and-open-competition, new-mexico, albuquerque, large-business, technical-services, rdte
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.4 million to LEIDOS, INC.. 200607!000377!5700!FA7046!HQ AFOTEC/RMC !FA704605D0010 !A!N! !Y!0032 ! !20060425!20060930!148095086!148095086!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000001700000!N!N!000000000000!AC56!RDTE/WEAPONS-MANAGEMENT SUPPORT !S1 !SERVICES !000 !NOT DISCERNABLE !541710!E! !5!B!M! !A! !999
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 $14.4 million.
What is the period of performance?
Start: 2006-04-25. End: 2008-07-01.
What was the specific nature of the 'Weapons Management Support' provided under this contract?
The provided data indicates the contract was for 'RDTE/WEAPONS-MANAGEMENT SUPPORT' under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). While the exact deliverables are not detailed in the summary data, 'Weapons Management Support' in an R&D context typically involves activities related to the research, development, testing, evaluation, and lifecycle management of weapon systems. This could include technical analysis, system integration, performance assessment, logistics planning, and ensuring compliance with safety and operational requirements during the R&D phase. The support likely aimed to enhance the effectiveness, efficiency, and safety of developing and managing advanced weapon technologies for the Air Force.
How does the $148M contract value compare to similar R&D support contracts for weapons management?
Benchmarking this $148 million contract requires comparing it to similar R&D support services for weapons management within the Department of Defense. Contracts of this magnitude are substantial and typically awarded for complex, multi-year efforts. Without access to a detailed database of comparable contracts, a precise comparison is difficult. However, the value suggests a significant scope of work, likely involving a dedicated team of scientists, engineers, and technical staff over the contract's duration (approximately 2 years). The cost-plus-fixed-fee structure also implies that the government was willing to accept some cost variability in exchange for specialized expertise needed for R&D, which can influence overall contract value compared to fixed-price agreements.
What is the track record of Science Applications International Corporation (SAIC) in securing and performing on large DoD R&D contracts?
Science Applications International Corporation (SAIC), prior to its split and the subsequent formation of Leidos, was a major government contractor with a long history of performance on large-scale defense and technology contracts. SAIC consistently secured significant portions of its revenue from the Department of Defense, including numerous R&D and technical support contracts. Their track record generally involved complex systems engineering, IT services, and scientific research support. While specific performance metrics for individual contracts are not publicly detailed in this summary, SAIC's sustained presence and ability to win competitive bids valued in the tens and hundreds of millions of dollars indicate a generally positive track record in delivering services to the DoD, including in specialized R&D areas like weapons management.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?
Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to SAIC, carry specific risks for the government. The primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a predetermined fixed fee. If the contractor's actual costs exceed initial estimates, the government still pays those costs, potentially leading to a higher final price than anticipated. This structure can also lead to scope creep if not managed diligently, as the contractor may be incentivized to perform additional work if it is allowable and contributes to the fixed fee. Effective oversight, detailed cost tracking, and robust contract management are crucial to mitigate these risks and ensure value for taxpayer money.
How has spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (541710) sector evolved since this contract was awarded in 2006?
Spending in the R&D sector (NAICS 541710) has generally seen significant fluctuations since 2006, heavily influenced by defense budgets, national priorities, and technological advancements. Following the period of heightened activity in the early to mid-2000s, defense R&D spending has experienced various cycles of increase and decrease. More recently, there has been a renewed focus on R&D in areas like artificial intelligence, cyber security, hypersonics, and advanced materials, driven by geopolitical competition. While this specific contract was for weapons management support, the broader R&D landscape has shifted towards more agile development methodologies and emerging technologies. Overall, the demand for specialized R&D services remains strong, but the focus areas and funding levels have evolved considerably since 2006.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
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
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA704605D0010
IDV Type: IDC
Timeline
Start Date: 2006-04-25
Current End Date: 2008-07-01
Potential End Date: 2008-07-01 00:00:00
Last Modified: 2014-05-29
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