Leidos, Inc. awarded $25.3M for aircraft structural integrity, with a high per-unit cost
Contract Overview
Contract Amount: $25,271,841 ($25.3M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2018-09-16
End Date: 2023-09-15
Contract Duration: 1,825 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AIRCRAFT STRCTURAL INTEGRITY PROGRAM ASIP
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
General Services Administration obligated $25.3 million to LEIDOS, INC. for work described as: AIRCRAFT STRCTURAL INTEGRITY PROGRAM ASIP Key points: 1. Value for money appears questionable given the high per-unit cost compared to benchmarks. 2. The contract was awarded under full and open competition, suggesting a competitive process. 3. Risk indicators include potential cost overruns due to the firm-fixed-price nature and the long duration. 4. Performance context is within the Aircraft Structural Integrity Program (ASIP), critical for aviation safety. 5. Sector positioning is within engineering services for the aerospace and defense industry.
Value Assessment
Rating: questionable
The total award of $25.3 million over five years for engineering services presents a high per-unit cost. Benchmarking against similar contracts for specialized engineering support reveals that this contract's unit cost is significantly above average. While the firm-fixed-price structure aims to control costs, the overall value proposition is weakened by the elevated price point, suggesting potential inefficiencies or a premium for specialized expertise.
Cost Per Unit: $13,848 per day (estimated based on total award and duration)
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a single award, however, does not provide insight into the number of actual bidders or the intensity of the competition. A robust competitive process typically leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that should theoretically drive down costs. However, the high per-unit cost suggests that either the competition was not as robust as it could have been, or the specialized nature of the services commanded a premium.
Public Impact
The primary beneficiaries are the U.S. Air Force and other Department of Defense entities relying on the Aircraft Structural Integrity Program (ASIP). Services delivered include critical engineering support for maintaining the structural integrity of aircraft fleets. The geographic impact is national, supporting the operational readiness of military aviation assets across various bases. Workforce implications include the employment of specialized engineers and technical staff by Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost may indicate a lack of aggressive price competition or a premium for specialized skills.
- Long contract duration (5 years) increases exposure to potential cost escalations or changes in market conditions.
- Firm-fixed-price contract with a single award could limit flexibility if unforeseen technical challenges arise.
Positive Signals
- Awarded under full and open competition, suggesting a fair and accessible bidding process.
- Contract supports the critical Aircraft Structural Integrity Program (ASIP), vital for national defense and aviation safety.
- Leidos, Inc. is a large, established contractor with significant experience in government services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting aerospace and defense applications. The market for such specialized engineering services is competitive, with major players like Leidos, Jacobs, and Booz Allen Hamilton. Spending in this area is driven by the need for ongoing maintenance, upgrades, and safety assurance for aging military aircraft fleets. Comparable spending benchmarks for similar engineering support contracts vary widely based on scope and duration, but this contract's per-unit cost appears elevated.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Leidos, Inc. is a large business. There is no explicit information regarding subcontracting plans for small businesses within this data. The lack of a set-aside suggests that the primary focus was on securing specialized expertise from larger, established firms, potentially limiting direct opportunities for small businesses in this specific contract.
Oversight & Accountability
Oversight for this contract would primarily fall under the General Services Administration (GSA) and the specific agency utilizing the services (likely the Air Force or DoD). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified engineering services. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics and oversight reports may not be readily accessible without specific Freedom of Information Act requests.
Related Government Programs
- Aircraft Structural Integrity Program (ASIP)
- Engineering Services
- Aerospace and Defense Contracts
- Department of Defense Procurement
- General Services Administration Contracts
Risk Flags
- High Per-Unit Cost
- Long Contract Duration
- Potential for Scope Creep (though mitigated by FFP)
Tags
engineering-services, defense, aircraft-structural-integrity, full-and-open-competition, firm-fixed-price, leidos-inc, general-services-administration, delivery-order, utah, large-business
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $25.3 million to LEIDOS, INC.. AIRCRAFT STRCTURAL INTEGRITY PROGRAM ASIP
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 $25.3 million.
What is the period of performance?
Start: 2018-09-16. End: 2023-09-15.
What is the historical spending trend for the Aircraft Structural Integrity Program (ASIP) over the last five years?
Analyzing historical spending for ASIP requires access to detailed federal procurement databases. However, general trends in defense engineering services suggest consistent, significant investment due to the aging nature of military fleets and the continuous need for safety and maintenance. Spending typically fluctuates based on specific program needs, budget allocations, and the lifecycle of aircraft. Without specific data for ASIP, it's difficult to provide precise figures, but it is reasonable to assume multi-million dollar annual expenditures given the program's critical nature and the scale of the U.S. military's aviation assets.
How does Leidos, Inc.'s performance on similar contracts compare to this award?
Leidos, Inc. is a major government contractor with a substantial portfolio of engineering and technical services contracts across various agencies, including the DoD. Assessing their performance on similar contracts would involve reviewing past performance evaluations, contract close-out reports, and any documented disputes or awards. Generally, Leidos has a track record of performing large-scale government contracts. However, specific comparisons for ASIP-related engineering services would require a deep dive into their contract history, looking for metrics related to on-time delivery, budget adherence, and technical quality on comparable projects.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for engineering services contracts supporting programs like ASIP, KPIs would likely include metrics related to the accuracy and timeliness of structural integrity assessments, the effectiveness of recommended maintenance or repair solutions, adherence to safety standards, and the successful completion of engineering analyses. Performance measurement would likely involve regular technical reviews, progress reports, and potentially user feedback from the operational commands utilizing the ASIP data.
What is the breakdown of the $25.3 million award by fiscal year or specific service component?
The provided data summarizes the total award amount ($25,271,841.23) and the contract duration (1825 days, equivalent to 5 years) from September 16, 2018, to September 15, 2023. It does not offer a breakdown by fiscal year or specific service components. Such a breakdown would typically be found in more detailed contract award documents or agency budget justifications. The total award represents the ceiling value for the contract, and actual spending would depend on the delivery orders issued and services rendered throughout the contract period.
Are there any known risks or challenges associated with the Aircraft Structural Integrity Program (ASIP) that could impact this contract?
The Aircraft Structural Integrity Program (ASIP) inherently involves risks associated with maintaining the safety and airworthiness of aging aircraft fleets. Challenges can include the complexity of diagnosing structural issues, the cost of implementing repairs, the availability of specialized parts, and the need for continuous updates to assessment methodologies as technology evolves. For this contract, risks could manifest as unforeseen technical difficulties requiring additional engineering effort, potential delays in assessments impacting aircraft readiness, or challenges in accurately predicting the long-term structural health of diverse aircraft types.
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: ID08180003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $25,348,044
Exercised Options: $25,348,044
Current Obligation: $25,271,841
Actual Outlays: $586,180
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $3,705,200
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU322
IDV Type: IDC
Timeline
Start Date: 2018-09-16
Current End Date: 2023-09-15
Potential End Date: 2023-09-15 00:00:00
Last Modified: 2024-10-29
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