Leidos awarded $43.4M contract for R&D services, highlighting significant investment in physical and engineering sciences
Contract Overview
Contract Amount: $43,357,564 ($43.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-08-31
End Date: 2017-07-14
Contract Duration: 683 days
Daily Burn Rate: $63.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: R&D
Official Description: IGF::OT::IGF TO 1505 25AFOS
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78243
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $43.4 million to LEIDOS, INC. for work described as: IGF::OT::IGF TO 1505 25AFOS Key points: 1. Contract value of $43.4M indicates substantial investment in specialized research and development. 2. The fixed-price level-of-effort contract type suggests a focus on defined research outcomes. 3. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical sector for innovation. 4. The contract duration of 683 days points to a medium-term research project. 5. Awarded by the Department of the Army, this contract likely supports defense-related scientific advancements. 6. The geographic location of performance in Texas may indicate a concentration of relevant research facilities or expertise.
Value Assessment
Rating: good
The contract value of $43.4 million for a 683-day research and development effort appears reasonable within the context of specialized scientific services. Benchmarking against similar R&D contracts in physical and engineering sciences would provide a more precise value-for-money assessment. The fixed-price level-of-effort structure aims to control costs while ensuring the completion of defined research tasks, suggesting a degree of cost consciousness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive fair pricing and encourage the selection of the most capable contractor. The presence of multiple bidders suggests a healthy market for these specialized R&D services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.
Public Impact
The primary beneficiaries are likely the Department of the Army and potentially other defense agencies requiring advancements in physical and engineering sciences. The services delivered are focused on research and development, aiming to produce new knowledge, technologies, or methodologies. The geographic impact is concentrated in Texas, where the contractor, Leidos, Inc., will perform the work. Workforce implications include the employment of scientists, engineers, and technical staff in Texas to execute the research tasks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in R&D projects if not managed tightly.
- Reliance on specific technical expertise could pose a risk if key personnel depart.
- The long-term applicability and return on investment for R&D can be uncertain.
Positive Signals
- Leidos, Inc. is a large, established government contractor with a proven track record.
- Full and open competition suggests a robust selection process and potential for innovation.
- The contract's focus on R&D aligns with strategic national interests in scientific advancement.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a high-value, knowledge-intensive area critical for technological advancement and national security. The market for such services is competitive, with specialized firms and large defense contractors vying for significant government investments. Comparable spending benchmarks would typically be found within the broader R&D and defense procurement categories, where contracts can range from millions to billions of dollars depending on scope and duration.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business, and there is no indication of a small business set-aside. Given the nature of advanced R&D, subcontracting opportunities for specialized small businesses might exist, but the primary awardee is a prime contractor. The impact on the broader small business ecosystem would depend on the extent to which Leidos engages small businesses for specific components or expertise.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Performance monitoring, milestone reviews, and financial audits are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements, though the specifics of R&D findings may be subject to security or proprietary restrictions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Army Futures Command Initiatives
- Advanced Technology Development Contracts
- Scientific and Technical Services
Risk Flags
- Potential for R&D outcomes to be classified or have limited public dissemination.
- Contract duration may be subject to extensions based on research progress.
- Fixed-price level-of-effort contracts can sometimes lead to disputes over the definition of 'effort'.
Tags
research-and-development, department-of-defense, department-of-the-army, leidos-inc, fixed-price-level-of-effort, full-and-open-competition, physical-sciences, engineering-sciences, texas, mid-tier-contract, scientific-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.4 million to LEIDOS, INC.. IGF::OT::IGF TO 1505 25AFOS
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 $43.4 million.
What is the period of performance?
Start: 2015-08-31. End: 2017-07-14.
What is Leidos, Inc.'s track record with similar R&D contracts for the Department of Defense?
Leidos, Inc. has a substantial history of performing research and development contracts for the Department of Defense across various scientific and engineering disciplines. Their portfolio includes work on advanced materials, systems engineering, cybersecurity research, and simulation technologies. Analyzing their past performance on fixed-price level-of-effort contracts of similar magnitude would reveal their consistency in meeting technical objectives and managing budgets within defined research parameters. Publicly available contract databases and agency performance reports can offer insights into their success rates, any past performance issues, and their ability to deliver innovative solutions within the specified timelines and cost constraints.
How does the $43.4 million contract value compare to other R&D investments in physical and engineering sciences by the Army?
The $43.4 million contract value represents a significant, but not exceptionally large, investment within the broader R&D landscape of the Department of the Army. The Army invests billions annually in research and development, encompassing a wide spectrum of projects from basic science to applied engineering and prototype development. This specific contract's value places it in the mid-tier range for specialized R&D efforts. To provide a precise comparison, one would need to analyze the Army's R&D budget allocations for fiscal years 2015-2017, looking at the distribution of funds across different research areas and contract sizes. Contracts for major system development or large-scale scientific initiatives often exceed this amount considerably, while smaller, more focused research tasks would be valued lower.
What are the primary risks associated with this fixed-price level-of-effort R&D contract?
The primary risks associated with a fixed-price level-of-effort (FPLE) R&D contract include potential for scope creep if research directions are not clearly defined and managed, and the possibility of the contractor not achieving the desired research outcomes within the allocated effort. For the government, there's a risk that the fixed price might not accurately reflect the true cost of achieving the research objectives, especially if unforeseen technical challenges arise. For the contractor, the risk lies in underestimating the effort required, potentially leading to reduced profit margins or the need to absorb additional costs. Effective project management, clear communication, and robust technical oversight are crucial to mitigate these risks.
How effective is full and open competition in ensuring value for money in specialized R&D contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in specialized R&D contracts. By allowing all responsible sources to submit proposals, it fosters a competitive environment that drives innovation and encourages contractors to offer their best technical solutions at the most competitive prices. This process allows the government to compare diverse approaches and select the offer that provides the best overall value, considering technical merit, past performance, and price. While R&D inherently involves uncertainty, a well-structured competition with clear evaluation criteria helps mitigate risks and ensures that taxpayer funds are used efficiently to achieve critical research objectives.
What historical spending patterns exist for R&D in physical and engineering sciences by the Department of the Army?
The Department of the Army has consistently allocated significant portions of its budget to Research and Development (R&D) in physical and engineering sciences, reflecting its strategic importance for national defense and technological superiority. Historical spending patterns show a trend towards investing in areas such as advanced materials, robotics, artificial intelligence, cyber technologies, and aerospace engineering. Funding levels can fluctuate based on evolving threats, technological advancements, and budgetary priorities. Over the years, the Army has utilized various contract vehicles, including full and open competitions, sole-source awards for highly specialized work, and grants, to procure these R&D services. Analyzing spending data from previous fiscal years would reveal specific areas of focus and the typical contract values awarded.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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
Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,838,834
Exercised Options: $43,838,834
Current Obligation: $43,357,564
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $10,005,418
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W9113M10D0003
IDV Type: IDC
Timeline
Start Date: 2015-08-31
Current End Date: 2017-07-14
Potential End Date: 2017-07-14 00:00:00
Last Modified: 2025-12-31
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