DoD's $50M Novel Explosives R&D Contract Awarded to Leidos, Inc
Contract Overview
Contract Amount: $49,895,865 ($49.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-06-01
End Date: 2026-06-13
Contract Duration: 1,838 days
Daily Burn Rate: $27.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION STUDIES OF NOVEL EXPLOSIVES FOR ADVANCED MULTI-PURPOSE MUNITIONS
Place of Performance
Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806
Plain-Language Summary
Department of Defense obligated $49.9 million to LEIDOS, INC. for work described as: RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION STUDIES OF NOVEL EXPLOSIVES FOR ADVANCED MULTI-PURPOSE MUNITIONS Key points: 1. Leidos, Inc. secured a significant contract for advanced munitions research. 2. The contract focuses on R&D for novel explosives, a critical defense capability. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The sector is R&D in physical, engineering, and life sciences, excluding nano/biotech.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking per-unit costs for R&D studies is difficult due to the unique nature of each project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific nature of R&D can limit direct price comparisons.
Taxpayer Impact: Taxpayer funds are being invested in advanced defense technology, with the potential for significant long-term security benefits, but also the risk of inefficient spending.
Public Impact
Enhances national security through development of advanced munitions. Supports innovation in materials science and chemical engineering. Potential for dual-use technologies with civilian applications. Creates high-skilled jobs in research and development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type risks overruns.
- R&D nature makes direct cost benchmarking challenging.
- Potential for scope creep in research projects.
Positive Signals
- Full and open competition.
- Focus on critical defense technology.
- Potential for technological breakthroughs.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences for defense applications. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure value.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business. There is no explicit indication of small business subcontracting goals within the provided data, which could limit opportunities for smaller innovative firms.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure the R&D objectives are met efficiently and effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Difficulty in benchmarking R&D costs.
- Potential for scope creep.
- Lack of explicit small business participation noted.
Tags
research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.9 million to LEIDOS, INC.. RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION STUDIES OF NOVEL EXPLOSIVES FOR ADVANCED MULTI-PURPOSE MUNITIONS
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 Air Force).
What is the total obligated amount?
The obligated amount is $49.9 million.
What is the period of performance?
Start: 2021-06-01. End: 2026-06-13.
How will the Cost Plus Fixed Fee structure be managed to ensure cost efficiency in this R&D project?
Effective management of a Cost Plus Fixed Fee contract for R&D requires robust oversight mechanisms. This includes detailed tracking of direct and indirect costs, regular performance reviews against milestones, and clear communication channels to address any deviations promptly. The agency must ensure that the fixed fee remains appropriate given the evolving scope and risks inherent in research.
What are the key performance indicators (KPIs) to measure the success of this novel explosives research?
Success metrics for this R&D contract would likely include the successful synthesis and characterization of novel explosive compounds meeting specific performance criteria (e.g., energy density, stability, sensitivity). Key indicators might also involve the successful integration of these materials into prototype munitions, successful testing results demonstrating enhanced capabilities, and adherence to safety and environmental standards throughout the research process.
What is the potential long-term impact of this research on future munitions development and national security?
This research has the potential to significantly advance munitions capabilities by developing explosives with superior performance characteristics, such as increased power, reduced collateral damage, or enhanced safety features. Such advancements could provide a critical technological edge, deter adversaries, and adapt to evolving battlefield requirements, thereby bolstering national security in the long term.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $54,906,115
Exercised Options: $54,906,115
Current Obligation: $49,895,865
Actual Outlays: $8,417,838
Subaward Activity
Number of Subawards: 77
Total Subaward Amount: $37,561,123
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA807518D0009
IDV Type: IDC
Timeline
Start Date: 2021-06-01
Current End Date: 2026-06-13
Potential End Date: 2026-06-13 00:00:00
Last Modified: 2025-12-29
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