DoD's $13.9M JSF Engineering Services Contract Awarded to Leidos Under Full and Open Competition
Contract Overview
Contract Amount: $13,925,762 ($13.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-11-01
End Date: 2011-07-31
Contract Duration: 1,002 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING AND TECHNICAL SERVICES -JSF
Place of Performance
Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117
Plain-Language Summary
Department of Defense obligated $13.9 million to LEIDOS, INC. for work described as: ENGINEERING AND TECHNICAL SERVICES -JSF Key points: 1. Contract awarded to Leidos for engineering and technical services related to the Joint Strike Fighter (JSF) program. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 4. The award value is $13,925,762, with a duration of 1002 days.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost overruns. Without detailed cost breakdowns and robust oversight, it's difficult to assess if the fixed fee is reasonable compared to similar R&D service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing, but the CPFF structure still requires careful monitoring of actual costs.
Taxpayer Impact: Taxpayer funds are utilized for this contract. While competition is positive, the CPFF structure necessitates diligent oversight to ensure cost efficiency and prevent unnecessary expenditure.
Public Impact
Supports the critical Joint Strike Fighter (JSF) program, impacting national defense capabilities. The contract involves research and development, potentially leading to technological advancements. Awarded to a single contractor, Leidos, Inc., highlighting their role in this specific defense initiative.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize cost overruns.
- Long contract duration (1002 days) requires sustained oversight.
- Specific details on performance metrics and fee structure are not provided.
Positive Signals
- Awarded under full and open competition.
- Supports a key national defense program (JSF).
- Contractor has experience in engineering and technical services.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement but requires careful management due to its often complex and evolving nature.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The contract was awarded to Leidos, Inc., a large business. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires diligent oversight from the Department of the Air Force to ensure costs are reasonable and the fixed fee is justified. Regular audits and performance reviews are essential for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of specific performance metrics in the provided data.
- Long contract duration requires sustained oversight.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, nm, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.9 million to LEIDOS, INC.. ENGINEERING AND TECHNICAL SERVICES -JSF
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 $13.9 million.
What is the period of performance?
Start: 2008-11-01. End: 2011-07-31.
What specific engineering and technical services are encompassed by this contract, and how do they directly contribute to the JSF program's objectives?
The contract details are limited, but 'Engineering and Technical Services - JSF' suggests support for the design, development, testing, and integration of the Joint Strike Fighter aircraft. These services are crucial for ensuring the aircraft meets its performance specifications, operational requirements, and maintains technological superiority throughout its lifecycle.
Given the CPFF structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?
While the data doesn't specify, effective mitigation for CPFF contracts typically involves detailed cost accounting standards, regular audits, performance-based milestones, and clear limitations on allowable costs. The contracting officer must actively monitor expenditures against the fixed fee and the overall contract ceiling.
How does the performance of Leidos on this contract compare to industry benchmarks for similar R&D services, and what is the long-term value proposition?
Without performance data or specific deliverables, a direct comparison is challenging. However, the fact that the contract was awarded under full and open competition suggests Leidos offered a competitive proposal. The long-term value depends on the successful advancement of JSF capabilities and Leidos's ability to deliver within the negotiated parameters.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA704604R0005
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: $15,649,912
Exercised Options: $15,649,912
Current Obligation: $13,925,762
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA704605D0010
IDV Type: IDC
Timeline
Start Date: 2008-11-01
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2014-05-29
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