DoD's $57M task order for airborne reconnaissance systems operations and training awarded to Leidos, Inc
Contract Overview
Contract Amount: $56,892,489 ($56.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-23
End Date: 2013-11-06
Contract Duration: 1,140 days
Daily Burn Rate: $49.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TASK ORDER AWARD FOR "TASK FORCE OBSERVE, DETECT, IDENTIFY AND NEUTRALIZE AIRBORNE RECONNAISSANCE MULTI-SENSOR SYSTEMS OPERATIONS, MODERNIZATION, AND TRAINING"
Place of Performance
Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719
Plain-Language Summary
Department of Defense obligated $56.9 million to LEIDOS, INC. for work described as: TASK ORDER AWARD FOR "TASK FORCE OBSERVE, DETECT, IDENTIFY AND NEUTRALIZE AIRBORNE RECONNAISSANCE MULTI-SENSOR SYSTEMS OPERATIONS, MODERNIZATION, AND TRAINING" Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Task order duration of 1140 days indicates a significant, long-term need. 3. Awarded under Engineering Services NAICS code, aligning with technical support. 4. Leidos, Inc. is a large, established government contractor. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 6. Focus on 'Observe, Detect, Identify and Neutralize' highlights critical national security functions.
Value Assessment
Rating: fair
Benchmarking the value of this specific task order is challenging without comparable data on similar airborne reconnaissance system operations, modernization, and training contracts. The Cost Plus Fixed Fee (CPFF) contract type means the final cost could vary based on actual expenses incurred by Leidos, plus a fixed fee. While CPFF can be appropriate for research and development or uncertain scope, it offers less price certainty than fixed-price contracts. The total award amount of approximately $57 million over three years suggests a substantial investment in these specialized capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under a full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of bidders is not specified. Full and open competition generally promotes price discovery and allows the government to select the best value offering from a range of potential solutions.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation, leading to more cost-effective solutions for critical defense needs.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the Department of the Army, which will receive enhanced capabilities in airborne reconnaissance. Services delivered include operations, modernization, and training for multi-sensor systems crucial for intelligence, surveillance, and reconnaissance (ISR). The geographic impact is likely global, supporting military operations wherever deployed. Workforce implications include specialized technical roles for engineers, technicians, and trainers, potentially creating or sustaining high-skilled jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- The complexity of multi-sensor systems may present integration and operational challenges.
- Reliance on a single contractor for critical operations and modernization could pose long-term dependency risks.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- The contract addresses a critical national security need for advanced ISR capabilities.
- Leidos, Inc. has a significant track record in government contracting, suggesting experience in managing complex projects.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies. The market for defense-related engineering services, particularly in intelligence, surveillance, and reconnaissance (ISR), is substantial and highly specialized. Companies like Leidos are key players in this sector, providing critical support for military modernization and operational readiness. Comparable spending benchmarks would likely be found within broader defense procurement data for ISR systems and related technical services.
Small Business Impact
This contract was not set aside for small businesses and was awarded to Leidos, Inc., a large prime contractor. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the primary focus was on obtaining specialized capabilities from large, experienced firms. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
Oversight for this task order would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and performance. Transparency is generally maintained through contract awards databases and reporting requirements, though specific operational details may be classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Intelligence, Surveillance, and Reconnaissance (ISR) Systems
- Defense Engineering Services
- Military Training and Simulation
- Aerospace and Defense Technology Modernization
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Potential for contractor dependency on critical systems.
- Complexity of multi-sensor systems requires specialized expertise.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, airborne-reconnaissance, multi-sensor-systems, new-jersey, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.9 million to LEIDOS, INC.. TASK ORDER AWARD FOR "TASK FORCE OBSERVE, DETECT, IDENTIFY AND NEUTRALIZE AIRBORNE RECONNAISSANCE MULTI-SENSOR SYSTEMS OPERATIONS, MODERNIZATION, AND TRAINING"
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 Army).
What is the total obligated amount?
The obligated amount is $56.9 million.
What is the period of performance?
Start: 2010-09-23. End: 2013-11-06.
What is Leidos, Inc.'s track record with similar Department of Defense contracts, particularly in airborne reconnaissance systems?
Leidos, Inc. has a substantial and extensive track record with the Department of Defense, frequently securing large contracts across various domains, including intelligence, surveillance, and reconnaissance (ISR). They are known for providing a wide range of services, from system integration and modernization to operations and support for complex platforms. Specifically concerning airborne reconnaissance, Leidos has been involved in projects related to sensor development, data processing, and platform integration for various military branches. Their history suggests a capacity to manage large-scale, technologically advanced projects, often involving multi-year efforts and significant budgets. Analyzing their past performance on similar CPFF contracts would provide further insight into their ability to manage costs and deliver on technical requirements within the defense sector.
How does the approximate $57 million award value compare to similar airborne reconnaissance system contracts awarded by the DoD?
Comparing the $57 million award value for this task order requires context regarding the scope, duration, and specific technologies involved. Airborne reconnaissance systems can range from relatively simple sensor packages on smaller platforms to highly sophisticated, multi-sensor suites on large, dedicated aircraft. This task order, covering operations, modernization, and training over approximately three years (1140 days), suggests a significant and ongoing requirement. While specific comparable contract values are difficult to ascertain without detailed scope matching, awards in the tens of millions for specialized ISR operations and modernization efforts are not uncommon within the DoD's annual budget. The value reflects the complexity and critical nature of maintaining and advancing these capabilities for national security.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced defense systems like airborne reconnaissance?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract for advanced defense systems lies in potential cost overruns and reduced incentive for the contractor to aggressively control expenses. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If costs escalate beyond initial projections due to unforeseen technical challenges, scope creep, or inefficient management, the total expenditure for the government can increase significantly. For the contractor, the risk is primarily related to accurately estimating costs to ensure the fixed fee remains profitable. For the government, the risk is paying more than anticipated and potentially not achieving the best value if cost efficiencies are not prioritized by the contractor.
How effective are multi-sensor systems in airborne reconnaissance for identifying and neutralizing threats, and what is the role of modernization and training?
Multi-sensor systems are highly effective in airborne reconnaissance because they combine data from various sources (e.g., electro-optical, infrared, radar, signals intelligence) to provide a more comprehensive and accurate picture of the operational environment. This fusion of data enhances the ability to detect, identify, and track potential threats, reducing ambiguity and improving situational awareness. Modernization is crucial to keep pace with evolving threats and technological advancements, ensuring systems remain capable of detecting new types of targets or operating in challenging conditions. Effective training is equally vital; personnel must be proficient in operating the complex sensor suites, interpreting the fused data, and integrating the intelligence gathered into actionable military operations. This task order's focus on these three aspects—operations, modernization, and training—underscores their interconnected importance for maximizing the effectiveness of airborne reconnaissance.
What has been the historical spending trend for airborne reconnaissance systems and related services by the Department of the Army?
Historical spending trends for airborne reconnaissance systems and related services by the Department of the Army have generally shown a consistent and significant investment, reflecting the enduring importance of intelligence, surveillance, and reconnaissance (ISR) capabilities. Over the past decade and beyond, the Army has continuously sought to modernize its ISR platforms and sensor technologies to maintain battlefield superiority and adapt to changing geopolitical landscapes. This includes investments in manned and unmanned aerial vehicles, advanced sensor payloads, data processing and dissemination systems, and the associated training and operational support. While specific figures fluctuate annually based on strategic priorities and budget allocations, the overall trend indicates sustained, substantial funding dedicated to enhancing and maintaining these critical capabilities, often involving multi-year procurement and service contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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
Offers Received: 2
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: $136,317,567
Exercised Options: $56,892,489
Current Obligation: $56,892,489
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DE405
IDV Type: IDC
Timeline
Start Date: 2010-09-23
Current End Date: 2013-11-06
Potential End Date: 2013-11-06 12:11:00
Last Modified: 2022-09-02
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