Leidos awarded $79.6M NASA contract for CARGO MISSION CONTRACT 4 (CMC4) engineering services
Contract Overview
Contract Amount: $79,575,261 ($79.6M)
Contractor: Leidos, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-10-01
End Date: 2026-09-30
Contract Duration: 729 days
Daily Burn Rate: $109.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: CARGO MISSION CONTRACT 4 (CMC4)
Place of Performance
Location: WEBSTER, HARRIS County, TEXAS, 77598
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $79.6 million to LEIDOS, INC. for work described as: CARGO MISSION CONTRACT 4 (CMC4) Key points: 1. Contract awarded to a single, large business prime. 2. Definitive contract type suggests a long-term relationship. 3. Cost Plus Award Fee (CPA) structure incentivizes performance. 4. Services are engineering-focused, aligning with NAICS 541330. 5. Contract duration of 729 days indicates a significant project. 6. Awarded by NASA, a key agency for space exploration and research.
Value Assessment
Rating: good
The contract value of $79.6 million over approximately two years appears reasonable for complex engineering services supporting NASA's mission. Benchmarking against similar large-scale engineering support contracts for federal agencies would provide further context. The Cost Plus Award Fee (CPA) structure allows for flexibility and incentivizes contractor performance, which can lead to better value if managed effectively. However, CPA contracts can sometimes lead to higher costs if award fees are consistently maximized without commensurate performance gains.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive better pricing and innovation. The use of full and open competition is a positive signal for market responsiveness and fairness in the award process.
Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible services at the most advantageous price for the government.
Public Impact
This contract directly supports NASA's mission-critical cargo mission operations, likely involving the development, integration, and sustainment of systems for space cargo. The services provided will contribute to the success of space exploration and scientific research endeavors. The geographic impact is primarily at NASA facilities, with potential for broader implications in the aerospace industry supply chain. The contract will likely involve a skilled engineering workforce, contributing to employment in the aerospace and defense sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
- Reliance on a single large business prime may limit opportunities for smaller, specialized firms.
- The long-term nature of definitive contracts can sometimes reduce agility in adapting to changing technological needs.
Positive Signals
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- Cost Plus Award Fee structure incentivizes high performance and successful mission outcomes.
- Awarded to a reputable contractor with a track record in government services.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting engineering services for space missions. The market for such specialized engineering support is dominated by large, established government contractors. NASA's significant investment in space exploration and operations drives demand for these services. Comparable spending benchmarks would involve looking at other large engineering support contracts awarded by NASA and other federal agencies for complex mission systems.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the scope of work was deemed best suited for large prime contractors, or that competition among small businesses was not feasible for this specific requirement.
Oversight & Accountability
Oversight for this contract will be managed by NASA's contracting officers and program managers, who are responsible for monitoring performance, costs, and adherence to contract terms. The Cost Plus Award Fee structure implies performance metrics that will be evaluated to determine award fees. Transparency is generally maintained through contract award notices and reporting requirements, though specific oversight details are not publicly detailed.
Related Government Programs
- NASA Space Operations Mission
- Commercial Cargo Program
- Aerospace Engineering Services Contracts
- Definitive Contracts
- Cost Plus Award Fee Contracts
Risk Flags
- Cost Plus Award Fee contract type requires diligent oversight to ensure value for money.
- Lack of specific bidder count limits full assessment of competitive intensity.
- No explicit small business subcontracting goals mentioned.
Tags
nasa, engineering-services, definitive-contract, full-and-open-competition, cost-plus-award-fee, large-business, space-exploration, texas, aerospace, mission-support
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $79.6 million to LEIDOS, INC.. CARGO MISSION CONTRACT 4 (CMC4)
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $79.6 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What is Leidos's track record with NASA and similar large engineering contracts?
Leidos, Inc. is a well-established government contractor with a significant history of supporting NASA and other federal agencies across various domains, including space, defense, and intelligence. They have a proven track record in providing complex engineering, IT, and mission support services. For NASA specifically, Leidos has been involved in numerous projects, ranging from mission operations and systems engineering to scientific research support and IT infrastructure. Their experience with large, definitive contracts and various contract types, including cost-reimbursement and award-fee structures, suggests they are well-equipped to handle the demands of the CMC4 contract. Analyzing their past performance ratings and any past performance issues on similar contracts would provide a more granular understanding of their suitability.
How does the value of this contract compare to similar NASA engineering support contracts?
The $79.6 million value for the CARGO MISSION CONTRACT 4 (CMC4) over approximately two years positions it as a substantial, but not unprecedented, engineering support contract for NASA. NASA frequently awards contracts in the tens to hundreds of millions of dollars for complex engineering services, mission operations, and system development. For instance, contracts supporting the International Space Station, Artemis program, or other major space science missions often fall within or exceed this range. To provide a precise comparison, one would need to identify contracts with similar scope (e.g., cargo mission support, systems engineering, integration) and duration awarded by NASA or other space agencies in recent years. The 'definitive contract' type and 'Cost Plus Award Fee' structure are common for long-term, complex service requirements.
What are the primary risks associated with a Cost Plus Award Fee (CPA) contract of this magnitude?
The primary risks associated with a Cost Plus Award Fee (CPA) contract of this magnitude ($79.6 million) revolve around cost control and the potential for contractor over-expenditure. While the award fee mechanism is designed to incentivize performance and efficiency, there's a risk that the contractor may maximize award fees without achieving truly exceptional value, leading to costs exceeding what might be achieved under a fixed-price contract. Another risk is the potential for scope creep, where the project's requirements expand beyond the initial agreement, driving up costs. Effective oversight by NASA is crucial to mitigate these risks, ensuring that award fees are tied to clearly defined, measurable performance metrics and that costs are reasonable and allocable. Contractor performance history and robust auditing mechanisms are key to managing these risks.
How does the 'full and open competition' award method impact taxpayer value for this contract?
The 'full and open competition' award method is generally considered beneficial for taxpayer value. It signifies that the government solicited proposals from all responsible sources, allowing for a wide range of potential contractors to compete. This broad competition typically drives down prices as contractors strive to offer the most competitive bids to win the contract. Furthermore, it encourages innovation and efficiency, as companies vie to differentiate themselves based on technical merit, past performance, and cost-effectiveness. For a contract of this size and complexity supporting NASA's critical cargo missions, full and open competition increases the likelihood that the government will secure high-quality services at a fair and reasonable price, thereby maximizing the value of taxpayer investment.
What are the implications of this contract being a 'definitive contract' for NASA's long-term strategy?
A 'definitive contract' is typically used for a specific quantity of supplies or services to be delivered over a period of time. For NASA, awarding a definitive contract for CARGO MISSION CONTRACT 4 (CMC4) suggests a commitment to a particular scope of work and a defined duration (729 days in this case). This implies that NASA has a clear, long-term requirement for these engineering services related to cargo missions. It provides stability for both the agency and the contractor, allowing for focused planning and resource allocation. This type of contract is suitable when the government has a reasonably well-defined need and anticipates a continuous requirement, aligning with NASA's ongoing efforts in space exploration and logistics.
What is the significance of the NAICS code 541330 (Engineering Services) for this contract?
The assignment of NAICS code 541330, 'Engineering Services,' indicates that the primary focus of this contract is on providing professional engineering expertise. This typically includes services such as design, development, testing, and analysis of systems, structures, or processes. For NASA's CARGO MISSION CONTRACT 4 (CMC4), this means Leidos will likely be engaged in activities related to the engineering aspects of cargo missions, which could encompass spacecraft design, launch vehicle integration, mission planning, systems engineering, and technical support. This code signifies a high level of technical skill and specialized knowledge required from the contractor, differentiating it from general support services or manufacturing.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80JSC024R0001
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 9737 WASHINGTONIAN BLVD STE 100, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $460,485,486
Exercised Options: $157,644,246
Current Obligation: $79,575,261
Actual Outlays: $55,394,615
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $116,840,129
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-30
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