Leidos awarded $21.3M for Digital Infrastructure Network Management by the Air Force

Contract Overview

Contract Amount: $21,331,455 ($21.3M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-20

End Date: 2027-08-19

Contract Duration: 1,094 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DIGITAL INFRASTRUCTURE NETWORK MANAGER

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to LEIDOS, INC. for work described as: DIGITAL INFRASTRUCTURE NETWORK MANAGER Key points: 1. Contract focuses on critical R&D in physical and engineering sciences. 2. Full and open competition suggests a robust bidding process. 3. Contract duration of nearly three years indicates a significant, ongoing need. 4. The award type is a delivery order, implying it's part of a larger contract vehicle. 5. The specific NAICS code points to specialized research and development services. 6. The contractor, Leidos, Inc., is a major player in government contracting. 7. The contract value is substantial for a single delivery order. 8. The fixed-fee structure provides some cost control for the government.

Value Assessment

Rating: good

The contract value of $21.3 million for Digital Infrastructure Network Manager over approximately three years appears reasonable given the specialized R&D nature of the work. Benchmarking against similar R&D contracts in network management and digital infrastructure is challenging without more specific service details. However, the fixed-fee component suggests a degree of cost predictability for the government, which is a positive indicator of value.

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 fact that it was competed openly suggests a healthy market for these specialized digital infrastructure management services. While the number of bidders is not specified, open competition generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives a competitive environment, which typically results in more favorable pricing and a wider array of qualified contractors vying for the work.

Public Impact

The Department of the Air Force benefits from enhanced digital infrastructure management capabilities. Services delivered are critical for maintaining and improving the Air Force's network operations. The geographic impact is primarily within the operational areas of the Department of the Air Force, likely supporting military installations and personnel. Workforce implications include the potential for highly skilled technical and research personnel employed by Leidos, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in R&D projects if not tightly managed.
  • Reliance on a single large contractor for critical infrastructure management.
  • The fixed-fee structure might disincentivize extreme cost-saving measures by the contractor if not structured with performance incentives.

Positive Signals

  • Award to a reputable contractor with a strong track record in defense and technology.
  • Full and open competition ensures a broad base of potential solutions and providers.
  • The contract duration suggests a stable and predictable need for these services.
  • The fixed-fee element provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The digital infrastructure management aspect is crucial for modern defense operations, which increasingly rely on robust and secure networks. Comparable spending in this niche R&D area can vary widely, but significant investments are typical for maintaining technological superiority in defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a large business, Leidos, Inc. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this delivery order.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics and reporting requirements. Transparency is generally maintained through contract award databases and public reporting, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Department of Defense IT Modernization Programs
  • Air Force Network Operations and Sustainment
  • Research and Development in Advanced Technologies
  • Digital Transformation Initiatives

Risk Flags

  • Potential for R&D project delays
  • Complexity of digital infrastructure management
  • Reliance on contractor expertise

Tags

research-and-development, department-of-defense, air-force, network-management, digital-infrastructure, full-and-open-competition, delivery-order, cost-plus-fixed-fee, leidos-inc, virginia, large-business

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to LEIDOS, INC.. DIGITAL INFRASTRUCTURE NETWORK MANAGER

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 $21.3 million.

What is the period of performance?

Start: 2024-08-20. End: 2027-08-19.

What is Leidos, Inc.'s track record with the Department of Defense, particularly in R&D and network management contracts?

Leidos, Inc. has a substantial and well-documented track record with the Department of Defense (DoD) across a wide array of services, including IT, systems engineering, logistics, and research and development. They are a prime contractor on numerous large-scale programs for various branches of the military. Their experience in network management and digital infrastructure is extensive, often involving complex systems integration and modernization efforts. For R&D contracts, Leidos typically leverages its scientific and engineering expertise to address advanced technological challenges. A review of their past performance on similar DoD contracts would likely show a history of successful delivery, though like any large contractor, specific contract performance can vary. Their financial stability and established presence in the defense sector generally position them as a reliable partner for significant government procurements.

How does the $21.3 million value compare to similar R&D contracts for digital infrastructure management within the DoD?

The $21.3 million value for this specific delivery order, awarded over approximately three years, is a significant but not extraordinary amount for specialized R&D in digital infrastructure management within the Department of Defense. The DoD invests heavily in research and development to maintain technological superiority, and contracts for advanced network management, cybersecurity, and data infrastructure can range from millions to hundreds of millions of dollars. This particular award, under NAICS code 541715, suggests a focus on the physical and engineering sciences related to these systems. When compared to broader IT modernization efforts or large-scale system development, $21.3 million might represent a focused research initiative or a specific component of a larger program. Benchmarking requires detailed understanding of the specific deliverables, but the value aligns with the specialized and R&D-intensive nature of the work.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include the inherent uncertainties of research and development projects, potential for scope creep if project objectives are not clearly defined and managed, and the possibility of technical challenges arising from complex digital infrastructure. There's also a risk related to the contractor's ability to deliver on time and within budget, although Leidos's experience mitigates this to some extent. Mitigation strategies likely include robust project management, clearly defined milestones and deliverables, regular performance reviews, and strong government oversight. The Cost Plus Fixed Fee (CPFF) contract type, while providing cost certainty, also requires careful monitoring to ensure the contractor remains efficient and does not inflate costs unnecessarily. Government technical representatives will play a crucial role in guiding the R&D effort and managing any deviations from the original plan.

What is the expected program effectiveness and impact of this Digital Infrastructure Network Manager contract?

The expected program effectiveness hinges on the successful advancement of digital infrastructure management capabilities for the Department of the Air Force. This could translate into improved network performance, enhanced cybersecurity posture, greater operational efficiency, and the development of innovative solutions for future network challenges. The R&D aspect suggests the contract aims to explore new technologies or methodologies that could provide a long-term strategic advantage. The impact is likely to be felt in the reliability and security of critical Air Force communication and data systems, supporting mission readiness and operational effectiveness. Ultimately, the success will be measured by the tangible advancements in network management technology and its successful integration into Air Force operations.

How has the Department of the Air Force's spending on R&D for network management evolved over the past five years?

Analyzing the Department of the Air Force's (DAF) spending on R&D for network management over the past five years would reveal a trend of increasing investment, driven by the growing complexity of military operations and the critical reliance on secure, high-performance digital networks. As threats evolve and technology advances, the DAF continuously seeks R&D solutions to enhance network resilience, cybersecurity, data throughput, and interoperability across diverse platforms. Spending in this area is likely to have seen fluctuations based on specific modernization initiatives, emerging technological opportunities, and evolving strategic priorities. However, the overall trajectory is expected to be upward, reflecting the foundational importance of robust digital infrastructure to modern air and space power projection. Specific figures would require detailed budget analysis of relevant R&D appropriations.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA861224RB003

Offers Received: 2

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: $304,692,180

Exercised Options: $77,988,713

Current Obligation: $21,331,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA861220D0035

IDV Type: IDC

Timeline

Start Date: 2024-08-20

Current End Date: 2027-08-19

Potential End Date: 2029-08-19 00:00:00

Last Modified: 2026-01-14

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