Leidos awarded $13M for F-16 engineering support, with contract ending January 2026
Contract Overview
Contract Amount: $13,005,941 ($13.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2026-01-23
Contract Duration: 848 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-16 AIS/PSI ENGINEERING SUPPORT.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.0 million to LEIDOS, INC. for work described as: F-16 AIS/PSI ENGINEERING SUPPORT. Key points: 1. Contract value appears reasonable for specialized engineering services supporting a major defense platform. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Risk indicators are low given the firm-fixed-price structure and established contractor. 4. Performance context is tied to ongoing sustainment and modernization of the F-16 fleet. 5. Sector positioning is within defense engineering services, a critical area for military readiness.
Value Assessment
Rating: good
The contract value of $13 million for engineering support over approximately 2.5 years seems within a reasonable range for specialized defense services. Benchmarking against similar contracts for aircraft sustainment and engineering requires access to proprietary data, but the firm-fixed-price structure suggests cost control. The award to Leidos, a large defense contractor with a history in aerospace, indicates a level of expected value and performance.
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 number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions for the government. The Air Force's choice to use full and open competition suggests confidence in the market's ability to provide qualified contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring the government receives competitive pricing for essential services.
Public Impact
The primary beneficiaries are the U.S. Air Force and its F-16 fighter jet program. Services delivered include engineering support crucial for the sustainment, maintenance, and potential upgrades of the F-16 fleet. Geographic impact is primarily within the United States, supporting Air Force bases and operations. Workforce implications include employment for engineers and technical specialists within Leidos and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Reliance on a single contractor for critical engineering support could pose a risk if performance issues arise.
Positive Signals
- Firm-fixed-price contract structure helps control costs and provides budget certainty.
- Award to an experienced contractor like Leidos suggests a higher likelihood of successful performance.
- Full and open competition indicates a healthy market and potential for competitive pricing.
Sector Analysis
This contract falls within the defense engineering services sector, a vital component of the aerospace and defense industry. This sector supports the design, development, testing, and sustainment of military platforms. The market for such services is substantial, driven by ongoing modernization and maintenance needs of global defense forces. Comparable spending benchmarks would typically be found in broader defense procurement data for aircraft sustainment and engineering support contracts.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Leidos, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Leidos's strategy and the specific requirements of the engineering support tasks.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Air Force, likely through program managers and contracting officers. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- F-16 Sustainment Programs
- Air Force Engineering and Technical Services
- Defense Logistics Agency Support Contracts
- Aerospace Engineering Services
Risk Flags
- Potential for performance issues impacting F-16 readiness.
- Risk of contractor dependency for critical engineering knowledge.
- Need for vigilant oversight to prevent scope creep.
Tags
defense, air-force, engineering-services, f-16, leidos, full-and-open-competition, firm-fixed-price, delivery-order, virginia, aerospace, systems-engineering
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to LEIDOS, INC.. F-16 AIS/PSI ENGINEERING SUPPORT.
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 $13.0 million.
What is the period of performance?
Start: 2023-09-28. End: 2026-01-23.
What is Leidos's track record with similar Air Force engineering support contracts?
Leidos, Inc. has a significant history of performing engineering and technical support services for the Department of Defense, including the Air Force. They have been involved in various aspects of aircraft sustainment, modernization, and systems integration for numerous platforms, not limited to the F-16. Their experience often includes complex systems engineering, software development, and lifecycle support. Analyzing past performance reviews and contract awards for Leidos in similar categories would provide a more detailed picture of their reliability and capability in delivering on such requirements. Their established presence in the defense sector suggests a generally positive track record, though specific contract performance can vary.
How does the $13 million value compare to other F-16 engineering support contracts?
Direct comparison of the $13 million value for this specific delivery order is challenging without access to detailed, comparable contract data. However, the value appears moderate for specialized engineering support over an 848-day period (approx. 2.3 years). Larger, multi-year sustainment contracts for entire fleets can run into hundreds of millions or even billions of dollars. This $13 million likely represents a specific set of engineering tasks or support for a particular phase or component of the F-16 program. Factors influencing value include the scope of work (e.g., software, hardware, systems integration, testing), the level of expertise required, and the duration. Firm-fixed-price contracts aim for cost certainty, but the underlying value is determined by the market and the specific needs addressed.
What are the primary risks associated with this contract for the Air Force?
The primary risks for the Air Force in this contract revolve around performance and potential cost overruns if not managed tightly, despite the firm-fixed-price structure. Key risks include: 1) Technical Performance: Ensuring Leidos delivers the required engineering solutions that meet stringent Air Force specifications and timelines. Any delays or subpar quality could impact F-16 readiness. 2) Contractor Dependency: Over-reliance on a single contractor for critical engineering knowledge can be a risk if the contractor faces financial instability or decides to exit the market. 3) Scope Creep: While the contract is for a defined period, if the scope of work is not meticulously managed, requirements could expand, leading to potential disputes or the need for contract modifications. 4) Knowledge Transfer: Ensuring that critical knowledge gained during the contract period is adequately documented and transferable to government personnel or other contractors.
How effective is full and open competition in ensuring value for taxpayer money in defense engineering?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in defense engineering contracts. By allowing all qualified sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. This process typically results in multiple proposals, allowing the government to select the offer that provides the best overall value, considering both technical merit and cost. While it requires more upfront effort in solicitation and evaluation, the potential for significant cost savings and access to a wider range of capabilities often outweighs these initial investments. It also promotes transparency and reduces the risk of contractor collusion or complacency.
What is the historical spending trend for F-16 engineering support by the Air Force?
Historical spending on F-16 engineering support by the Air Force has been substantial and ongoing, reflecting the platform's long service life and continuous need for upgrades and maintenance. Over the decades, the Air Force has allocated significant funds towards sustainment, modernization, and avionics upgrades for the F-16 fleet. This includes contracts for systems engineering, software development, structural analysis, and technical data management. Spending patterns fluctuate based on specific program requirements, such as major upgrade initiatives (e.g., avionics modernization programs) or increased operational tempo. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in annual obligations, major contract awards, and the types of engineering services procured for the F-16.
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: FA825123RAS68
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR, 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: $13,005,941
Exercised Options: $13,005,941
Current Obligation: $13,005,941
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $12,199,433
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA825118D0017
IDV Type: IDC
Timeline
Start Date: 2023-09-28
Current End Date: 2026-01-23
Potential End Date: 2026-01-23 00:00:00
Last Modified: 2025-09-15
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