GSA awards $42.7M for UAS Ground Control Systems, with Leidos Inc. securing the contract
Contract Overview
Contract Amount: $42,758,241 ($42.8M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2019-09-20
End Date: 2022-10-31
Contract Duration: 1,137 days
Daily Burn Rate: $37.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: UNMANNED AIRCRAFT SYSTEMS GROUND CONTROL STATION VERSION 4
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
General Services Administration obligated $42.8 million to LEIDOS, INC. for work described as: UNMANNED AIRCRAFT SYSTEMS GROUND CONTROL STATION VERSION 4 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. Performance period spans over three years, indicating a significant, long-term need for these services. 4. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The specific North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component of system development. 6. The contract was awarded in Alabama, potentially impacting the local economy and workforce.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar UAS ground control system contracts. The Cost Plus Fixed Fee (CPFF) structure means the final cost could fluctuate based on actual expenses incurred by Leidos, Inc. While a fixed fee provides some predictability, the overall cost-effectiveness depends heavily on efficient execution and management of direct costs by the contractor. Further analysis would require comparing the contractor's labor rates, overhead, and material costs against industry standards for similar engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the actual number of bidders can vary significantly based on the specialized nature of the requirement and the pool of qualified contractors.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open solicitation. However, the actual savings realized depend on the number of bids received and the effectiveness of the evaluation process in selecting the most advantageous offer.
Public Impact
The primary beneficiaries are likely government agencies requiring Unmanned Aircraft Systems (UAS) capabilities for surveillance, reconnaissance, or operational support. The services delivered include the development, integration, and potentially sustainment of UAS Ground Control Station Version 4. The geographic impact is primarily focused on Alabama, where the contract was awarded, potentially creating or sustaining jobs in the engineering and defense sectors. Workforce implications may include employment opportunities for engineers, software developers, technicians, and project managers involved in the development and implementation of the ground control system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently.
- The specific details of 'Version 4' are not provided, making it difficult to assess the technological advancement or potential obsolescence.
- Limited information on the number of bidders (3) could indicate a niche market or potential barriers to entry for other firms.
Positive Signals
- Awarded under full and open competition, suggesting a robust and fair solicitation process.
- The contract is for a specific version (V4), implying an upgrade or modernization effort for critical UAS capabilities.
- The contractor, Leidos, Inc., is a well-established entity in the government contracting space, suggesting experience and capability.
Sector Analysis
The Unmanned Aircraft Systems (UAS) market is a rapidly growing sector within the aerospace and defense industry. This contract for a ground control station fits within the broader ecosystem of UAS development, which includes airframes, sensors, communication systems, and data analytics. Spending in this area is driven by increasing demand for intelligence, surveillance, and reconnaissance (ISR) capabilities across various government agencies. Comparable spending benchmarks would involve looking at other contracts for UAS platforms, command and control systems, and related software development.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the nature of engineering services for advanced systems like UAS ground control stations, it is common for prime contracts to be awarded to large businesses with specialized expertise. However, there may be opportunities for small businesses to participate as subcontractors to Leidos, Inc., contributing specific components, software modules, or specialized engineering support.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures are embedded within the Cost Plus Fixed Fee contract structure, requiring the contractor to justify costs and adhere to the fixed fee. Transparency is generally maintained through contract award databases and reporting requirements, though detailed cost breakdowns may be proprietary. The Inspector General for the GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Unmanned Aircraft Systems
- Command and Control Systems
- Aerospace Engineering Services
- Defense Software Development
- Federal IT Services
Risk Flags
- Cost Plus Fixed Fee contract type requires careful monitoring of costs.
- Limited number of bidders (3) may warrant further investigation into market accessibility.
- Specific details of 'Version 4' are not publicly available, hindering assessment of technological advancement.
Tags
uas, ground-control-station, leidos-inc, general-services-administration, engineering-services, cost-plus-fixed-fee, delivery-order, full-and-open-competition, defense, alabama, software-development, command-and-control
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $42.8 million to LEIDOS, INC.. UNMANNED AIRCRAFT SYSTEMS GROUND CONTROL STATION VERSION 4
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 $42.8 million.
What is the period of performance?
Start: 2019-09-20. End: 2022-10-31.
What is the specific role and capability of 'Unmanned Aircraft Systems Ground Control Station Version 4' within the broader DoD or GSA mission?
The 'Unmanned Aircraft Systems Ground Control Station Version 4' is a critical component for operating and managing unmanned aerial vehicles (UAVs). It serves as the central hub where human operators can monitor flight paths, control aircraft maneuvers, manage sensor payloads (like cameras or radar), and receive/transmit data. Version 4 likely represents an updated iteration, incorporating advancements in user interface design, data processing capabilities, network connectivity, and potentially enhanced security features compared to previous versions. Its specific role could range from tactical battlefield reconnaissance and surveillance to logistical support or even domestic security operations, depending on the end-user agency's requirements. The GSA's involvement suggests it might be a common-use system procured for multiple agencies or a foundational technology being standardized.
How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other pricing arrangements for similar engineering services in the defense sector?
The Cost Plus Fixed Fee (CPFF) contract is a common but complex pricing arrangement in the defense sector, particularly for research, development, and complex system integration where the scope of work may evolve. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee remains constant regardless of the final cost. However, it also places a significant burden on the government to meticulously audit and approve all incurred costs. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for evolving requirements but less cost certainty for the government. Compared to Cost Plus Incentive Fee (CPIF) contracts, CPFF lacks the explicit performance incentives tied to cost targets, potentially offering less motivation for aggressive cost reduction beyond the contractor's inherent profit interest.
What are the potential risks associated with Leidos, Inc. as the contractor for this specific system, considering their track record?
Leidos, Inc. is a large, established government contractor with extensive experience in defense, intelligence, and federal IT sectors. While their size and experience generally suggest capability, potential risks are not entirely eliminated. For this specific contract, risks could include potential cost overruns inherent in CPFF contracts if project management or cost tracking is not rigorous. There's also the risk of schedule delays if unforeseen technical challenges arise during the development or integration of 'Version 4'. Furthermore, as with any large contractor, there's a possibility of performance issues related to specific technical expertise required for advanced UAS systems, or challenges in adapting to evolving government requirements. A review of Leidos's past performance ratings on similar complex engineering or software development contracts would provide more specific insights into their risk profile for this project.
How does the $42.7 million award amount compare to historical spending on UAS ground control systems or similar engineering services by the GSA or other agencies?
The $42.7 million award for Unmanned Aircraft Systems Ground Control Station Version 4 represents a significant investment, but its comparability to historical spending requires context. This figure is for a specific delivery order, likely part of a larger IDIQ contract vehicle, meaning the total value of the underlying contract could be substantially higher. To benchmark effectively, one would need to compare it against other contracts for UAS command and control systems, advanced software development for defense applications, or engineering services for complex aerospace platforms. The GSA's Federal Acquisition Service often procures common-use systems or services for multiple agencies, so this amount could be considered moderate to high depending on the scope and duration. Without access to detailed historical spending data for precisely comparable systems, it's difficult to definitively state if this amount is high or low, but it indicates a substantial requirement.
What are the implications of this contract being awarded as a Delivery Order under a larger contract vehicle?
Awarding this contract as a Delivery Order (DO) under a larger contract vehicle, such as an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract, has several implications. Firstly, it suggests that the underlying IDIQ contract was previously competed and awarded, establishing pre-negotiated terms, conditions, and potentially labor rates. The DO then specifies the exact quantity, delivery schedule, and price for a particular order against that IDIQ. This approach allows for flexibility and rapid procurement of needed goods or services as requirements arise, without needing to recompete the entire requirement each time. For taxpayers, it can streamline acquisition processes and potentially leverage pre-negotiated competitive pricing. However, it also means that the competition for this specific $42.7 million award might have been limited to the pool of contractors already awarded the parent IDIQ, rather than a completely open market solicitation.
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: ID04180161
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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: $60,096,609
Exercised Options: $42,972,718
Current Obligation: $42,758,241
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $15,178,357
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: 2019-09-20
Current End Date: 2022-10-31
Potential End Date: 2024-01-23 00:00:00
Last Modified: 2024-09-05
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