GSA Awards $816M C5ISR Systems Contract to Leidos, Inc. for 4 Years
Contract Overview
Contract Amount: $815,841,349 ($815.8M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2022-09-14
End Date: 2026-09-13
Contract Duration: 1,460 days
Daily Burn Rate: $558.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: THE PURPOSE OF THIS TO IS TO PROVIDE RESEARCH, DESIGN, DEVELOPMENT, INTEGRATION, T&E, INITIAL FIELDING AND OPERATION, LOGISTICS, MAINTENANCE, SUSTAINMENT, AND TRAINING FOR APPLICABLE C5ISR SYSTEMS.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $815.8 million to LEIDOS, INC. for work described as: THE PURPOSE OF THIS TO IS TO PROVIDE RESEARCH, DESIGN, DEVELOPMENT, INTEGRATION, T&E, INITIAL FIELDING AND OPERATION, LOGISTICS, MAINTENANCE, SUSTAINMENT, AND TRAINING FOR APPLICABLE C5ISR SYSTEMS. Key points: 1. Significant investment in C5ISR systems research, development, and sustainment. 2. Leidos, Inc. is a major defense contractor, indicating established capabilities. 3. Potential for long-term operational and maintenance costs beyond initial contract. 4. Engineering services sector sees substantial federal spending.
Value Assessment
Rating: good
The contract type is Cost Plus Award Fee, which allows for performance-based incentives. Pricing will be assessed against industry benchmarks for similar complex engineering and integration services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive price discovery. The use of a Delivery Order under an existing IDIQ contract structure is common.
Taxpayer Impact: Taxpayer funds are being used for critical defense technology development and sustainment, aiming for effective and efficient outcomes through competitive pricing.
Public Impact
Enhances national security capabilities through advanced C5ISR systems. Supports technological innovation in defense and intelligence sectors. Potential for job creation within the defense contracting industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to higher costs if not managed tightly.
- Long-term sustainment and maintenance costs are not fully detailed in this award.
- Dependence on a single contractor for critical systems integration.
Positive Signals
- Awarded through full and open competition.
- Includes research, design, development, and sustainment, indicating a comprehensive approach.
- Contract duration of 4 years allows for stable planning and execution.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on C5ISR systems. Federal spending in this area is substantial, driven by national security requirements and technological advancements.
Small Business Impact
The data indicates this contract was awarded to Leidos, Inc., a large business. There is no explicit mention of small business participation in this specific award, which warrants further investigation.
Oversight & Accountability
The General Services Administration (GSA) is overseeing this contract through its Federal Acquisition Service. Oversight will be crucial to ensure performance objectives are met and costs remain within reasonable bounds.
Related Government Programs
- Engineering Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost creep in Cost Plus Award Fee contracts.
- Long-term sustainment costs not fully defined.
- Lack of explicit small business participation noted.
- Dependence on a single large prime contractor.
Tags
engineering-services, general-services-administration, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $815.8 million to LEIDOS, INC.. THE PURPOSE OF THIS TO IS TO PROVIDE RESEARCH, DESIGN, DEVELOPMENT, INTEGRATION, T&E, INITIAL FIELDING AND OPERATION, LOGISTICS, MAINTENANCE, SUSTAINMENT, AND TRAINING FOR APPLICABLE C5ISR SYSTEMS.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $815.8 million.
What is the period of performance?
Start: 2022-09-14. End: 2026-09-13.
What is the projected total cost of ownership for these C5ISR systems, including sustainment and upgrades over their lifecycle?
The current award covers initial fielding and operation, logistics, maintenance, and sustainment for 4 years, totaling $816 million. However, the total cost of ownership over the system's entire lifecycle, including potential future upgrades and extended sustainment beyond this contract, is likely significantly higher and requires separate analysis.
How will the performance metrics for the Cost Plus Award Fee structure be defined and measured to ensure optimal value and mitigate cost overruns?
The effectiveness of the Cost Plus Award Fee structure hinges on clearly defined, measurable performance metrics tied to research, development, integration, and sustainment of C5ISR systems. Robust oversight by the GSA will be essential to ensure these metrics are objectively assessed and that award fees genuinely reflect superior performance rather than just cost incurrence.
What is the strategy for ensuring interoperability and avoiding vendor lock-in with these C5ISR systems, given the significant investment?
Ensuring interoperability and avoiding vendor lock-in requires a focus on open architecture standards and modular design principles during the research and development phases. The government should mandate adherence to relevant standards and potentially require competitive prototyping for future upgrades or replacements to maintain flexibility and leverage competition.
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
Solicitation ID: 47QFCA22R0060
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, 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: $1,510,241,755
Exercised Options: $927,805,223
Current Obligation: $815,841,349
Actual Outlays: $-14,456
Subaward Activity
Number of Subawards: 246
Total Subaward Amount: $251,462,696
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU122
IDV Type: IDC
Timeline
Start Date: 2022-09-14
Current End Date: 2026-09-13
Potential End Date: 2027-09-13 00:00:00
Last Modified: 2026-04-06
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