DoD's $19.3M Phalanx Griffon Integration Contract Awarded to Leidos for Air Force R&D
Contract Overview
Contract Amount: $19,271,540 ($19.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-02-24
End Date: 2027-02-23
Contract Duration: 729 days
Daily Burn Rate: $26.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PHALANX GRIFFON (PG) INTEGRATION SUPPORT DURING MAJOR RELEASE 2 (MR2). SERVICES TO INTEGRATE, TEST AND FIELD FEATURES THAT PRODUCE THE FINAL MR2, AND PDO CAPABILITY. EFFORT ALSO INCLUDES OPTIONS FOR CONTINUED INTEGRATION SUPPORT OF PG MAJOR RELEASES.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.3 million to LEIDOS, INC. for work described as: PHALANX GRIFFON (PG) INTEGRATION SUPPORT DURING MAJOR RELEASE 2 (MR2). SERVICES TO INTEGRATE, TEST AND FIELD FEATURES THAT PRODUCE THE FINAL MR2, AND PDO CAPABILITY. EFFORT ALSO INCLUDES OPTIONS FOR CONTINUED INTEGRATION SUPPORT OF PG MAJOR RELEASES. Key points: 1. Contract focuses on integrating, testing, and fielding features for Major Release 2 (MR2) of Phalanx Griffon. 2. Leidos, Inc. secured the $19.3M contract, indicating potential market concentration in this specialized R&D area. 3. The contract's duration of 729 days suggests a significant, multi-year effort for critical system development. 4. Research and Development in Physical, Engineering, and Life Sciences is a key sector for this expenditure.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts in R&D is challenging due to inherent uncertainties.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific nature of R&D integration support may limit the number of qualified bidders.
Taxpayer Impact: Taxpayer funds are being used for advanced research and development, aiming to enhance critical defense capabilities. The effectiveness of this investment will depend on the successful integration and fielding of the MR2 features.
Public Impact
Enhances critical defense capabilities through advanced software integration and testing. Supports the development of the Phalanx Griffon system, a key component for the Air Force. Investment in R&D aims to maintain technological superiority in defense systems. Potential for follow-on work if integration support for future major releases is exercised.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs.
- Long contract duration may lead to scope creep or evolving requirements.
- Limited information on specific performance metrics and success criteria.
- Potential for integration challenges in complex R&D projects.
Positive Signals
- Awarded under full and open competition.
- Supports critical Air Force R&D objectives.
- Clear definition of integration, testing, and fielding phases.
- Options for continued support suggest long-term program commitment.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541715). Spending in this sector is crucial for technological advancement but can be subject to high uncertainty and long development cycles.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for large-scale R&D integration efforts.
Oversight & Accountability
The contract is managed by the Department of the Air Force, a component of the Department of Defense. Oversight will likely involve program managers tracking progress against milestones and ensuring adherence to the CPFF terms.
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 (CPFF) contract type.
- Long contract duration (729 days).
- Research and Development (R&D) nature of the work.
- Potential for integration complexity.
- No explicit mention of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.3 million to LEIDOS, INC.. PHALANX GRIFFON (PG) INTEGRATION SUPPORT DURING MAJOR RELEASE 2 (MR2). SERVICES TO INTEGRATE, TEST AND FIELD FEATURES THAT PRODUCE THE FINAL MR2, AND PDO CAPABILITY. EFFORT ALSO INCLUDES OPTIONS FOR CONTINUED INTEGRATION SUPPORT OF PG MAJOR RELEASES.
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 $19.3 million.
What is the period of performance?
Start: 2025-02-24. End: 2027-02-23.
What is the projected return on investment for the Phalanx Griffon integration support, considering the R&D nature of the work?
Quantifying ROI for R&D is inherently difficult due to the long-term and often unpredictable nature of innovation. Success will be measured by the successful fielding of MR2 features and the enhanced capabilities they provide to the Air Force. The value lies in advancing defense technology and maintaining operational effectiveness, rather than immediate financial returns. The $19.3M investment aims to secure future operational advantages.
What are the primary risks associated with integrating and testing complex R&D features under a CPFF contract?
Key risks include potential cost overruns due to the CPFF structure, where contractor profit is fixed regardless of actual costs incurred. Integration challenges are also significant, as R&D often involves novel technologies with unforeseen technical hurdles. Delays in testing or fielding could impact operational readiness. Furthermore, evolving requirements during the long contract duration could lead to scope creep and increased costs, necessitating robust program management and oversight.
How effectively will the integration of Phalanx Griffon's MR2 features contribute to the Air Force's overall mission objectives?
The effectiveness hinges on the successful implementation of the features developed and tested under this contract. If the MR2 integration yields enhanced functionalities and improved performance for the Phalanx Griffon system, it will directly contribute to the Air Force's mission objectives by providing advanced capabilities. The contract's focus on integration, testing, and fielding suggests a direct link to operational deployment and utility, aiming to bolster the Air Force's technological edge.
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: 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: $116,594,774
Exercised Options: $55,305,466
Current Obligation: $19,271,540
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $619,469
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: 2025-02-24
Current End Date: 2027-02-23
Potential End Date: 2030-02-23 00:00:00
Last Modified: 2025-12-22
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