DoD's $282M R&D contract for advanced sensors awarded to Leidos, Inc. shows potential value concerns
Contract Overview
Contract Amount: $28,200,367 ($28.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-01-29
End Date: 2009-12-07
Contract Duration: 2,139 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200404!000098!5700!GR03 !AFRL/SNKR ATR/RF SENSORS BRANCH !FA865004C1609 !A!N! !N! ! !20040129!20071001!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DRIVE !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000950000!N!N!000018706295!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!007!E! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.2 million to LEIDOS, INC. for work described as: 200404!000098!5700!GR03 !AFRL/SNKR ATR/RF SENSORS BRANCH !FA865004C1609 !A!N! !N! ! !20040129!20071001!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DRIVE !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN … Key points: 1. The contract's total value of $282 million over its lifecycle raises questions about cost-effectiveness given the duration and type of contract. 2. Competition was initially full and open, but the final award details suggest a complex procurement history that warrants scrutiny. 3. The use of a Cost Plus Fixed Fee (CPFF) contract type can introduce risks of cost overruns if not managed stringently. 4. Performance context is limited, making it difficult to assess the true value delivered against the significant investment. 5. This contract falls within the broader Defense sector, specifically focusing on applied research for electronics and communication equipment. 6. The contract was awarded to a large business, with no explicit small business set-aside noted, impacting small business participation.
Value Assessment
Rating: questionable
The total award amount of $282 million for a contract spanning nearly a decade (2004-2009) requires careful benchmarking. While specific performance metrics are not detailed, the CPFF structure suggests that the final cost could fluctuate. Without comparable contracts for similar advanced sensor R&D, it's challenging to definitively assess value for money. However, the significant investment over an extended period necessitates a thorough review of deliverables and outcomes to ensure taxpayer funds were utilized efficiently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was initially competed under 'full and open competition after exclusion of sources,' indicating a broad initial solicitation. However, the specific details of the competition, such as the number of initial bidders and the reasons for excluding certain sources, are not fully elaborated in the provided data. The final award to Leidos, Inc. suggests that despite the open competition, the selection process led to a single primary awardee for this complex R&D effort.
Taxpayer Impact: While the initial full and open competition is positive for taxpayer value, the complexity of the procurement and the ultimate award to a single entity warrants further investigation to ensure optimal pricing and prevent potential cost inefficiencies.
Public Impact
The primary beneficiaries are likely the Department of Defense, specifically units requiring advanced sensor technology for national security purposes. The contract supports research and development in advanced sensor technologies, potentially leading to enhanced surveillance, reconnaissance, or targeting capabilities. The geographic impact is primarily within the United States, with the contractor based in San Diego, California, and the contracting activity in Virginia. Workforce implications include highly skilled R&D personnel in fields such as engineering, physics, and computer science.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns are a potential risk with Cost Plus Fixed Fee contracts if not rigorously managed.
- The extended duration of the contract could lead to scope creep or evolving requirements that inflate costs.
- Lack of detailed performance metrics makes it difficult to assess the return on investment for the $282 million expenditure.
Positive Signals
- The initial 'full and open competition' suggests an effort to maximize the pool of potential offerors.
- The contract supports critical research and development in advanced sensor technology, aligning with strategic defense objectives.
- Awarding to a known entity like Leidos, Inc. may indicate a level of confidence in their technical capabilities for this specialized R&D.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710). This category encompasses a wide range of scientific and technical services. The defense industry heavily invests in R&D for advanced technologies, including sensors, to maintain a technological edge. Comparable spending benchmarks in this specific niche of applied sensor research are difficult to ascertain without more granular data, but the overall R&D spending by the DoD is substantial.
Small Business Impact
The data indicates this contract was not set aside for small businesses (SB = false). As a large contract awarded to Leidos, Inc., a major defense contractor, the primary focus is likely on large-scale R&D capabilities. There is no explicit information regarding subcontracting plans for small businesses, which could represent a missed opportunity for small business participation in this significant defense R&D effort.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded within the contract's terms, including reporting requirements and performance milestones. Transparency is often limited in defense R&D contracts due to national security considerations, but the contract's existence and basic details are publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Advanced Sensor Technology Development
- Department of Defense Research and Development Programs
- Electronics and Communication Equipment Research
- Applied Research Contracts
- National Security Technology Innovation
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Extended contract duration requires diligent oversight to manage scope and prevent inefficiencies.
- Lack of detailed performance metrics hinders objective value assessment.
- Potential for cost growth due to the nature of R&D and evolving technological requirements.
Tags
defense, department-of-defense, air-force-research-laboratory, applied-research, rdte, electronics-and-communication-equipment, cost-plus-fixed-fee, definitive-contract, full-and-open-competition, large-business, science-and-technology, sensor-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.2 million to LEIDOS, INC.. 200404!000098!5700!GR03 !AFRL/SNKR ATR/RF SENSORS BRANCH !FA865004C1609 !A!N! !N! ! !20040129!20071001!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DRIVE !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000950000!N!N!000018706295!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $28.2 million.
What is the period of performance?
Start: 2004-01-29. End: 2009-12-07.
What specific advanced sensor technologies were developed under this contract, and what were their intended applications?
The provided data indicates the contract (FA865004C1609) was for 'RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA' with a Product Service Code (PSC) related to electronics and communication equipment. The specific advanced sensor technologies developed are not detailed in the summary data. However, given the context of applied research within the Air Force Research Laboratory (AFRL/SNKR ATR/RF SENSORS BRANCH), potential applications could include radio frequency (RF) sensors, radar systems, electronic warfare components, or advanced surveillance and reconnaissance technologies. The contract's focus on 'Applied Research' suggests a stage beyond basic research, aiming for practical implementation or demonstration of new capabilities relevant to Air Force operational needs.
How does the final cost of $282 million compare to the initial estimated value or budget for this R&D effort?
The provided data shows a 'base and all options' value ('a') of $282,003,666.70 and an 'awarded amount' ('aw') of $66,000. This significant discrepancy suggests that the $282 million figure represents the maximum potential value or ceiling of the contract, including all possible modifications and options, rather than the initially budgeted or obligated amount. The awarded amount of $66,000 likely represents the initial obligation or a specific task order value. Without further data on the obligated amounts over the contract's life and the specific details of exercised options, a direct comparison to an initial budget is not feasible. It is common for large R&D contracts to have high ceiling values that are not fully expended.
What was the performance history of Leidos, Inc. (and its predecessor, Science Applications International Corporation - SAIC) on similar defense R&D contracts prior to and during this period?
Leidos, Inc. (which acquired SAIC's government solutions business in 2013) and SAIC historically have a significant track record in defense R&D. Prior to and during the 2004-2009 period of this contract, SAIC was a major contractor involved in a wide array of scientific, engineering, and technical services for the Department of Defense. Their performance on similar contracts would generally be assessed through contract performance reports (CPARs) and other quality assurance metrics. While specific performance details for this particular contract are not provided, SAIC/Leidos's extensive experience in complex R&D suggests they possess the requisite capabilities. However, the CPFF nature of this contract implies that ongoing performance monitoring and cost control were critical to ensure value.
Were there any significant challenges or issues encountered during the contract's performance, and how were they resolved?
The provided data does not contain specific details regarding challenges or issues encountered during the performance of this contract (FA865004C1609). Contracts of this nature, especially those involving advanced R&D and utilizing a Cost Plus Fixed Fee (CPFF) structure, can face technical hurdles, requirement changes, or budget adjustments. Resolution of such issues typically involves formal contract modifications, technical reviews, and negotiations between the contractor (Science Applications International Corporation at the time) and the contracting officer. Without access to contract line item details, modification history, or performance reports, it is impossible to identify or analyze specific challenges and their resolutions for this particular award.
What is the historical spending trend for advanced sensor R&D within the Air Force Research Laboratory (AFRL) or similar DoD entities?
Historical spending trends for advanced sensor R&D within the Air Force Research Laboratory (AFRL) and the broader Department of Defense (DoD) are generally substantial and have been increasing, driven by evolving national security requirements and technological advancements. AFRL, as a key R&D entity, consistently funds research across various domains, including sensors, electronics, and communication systems. While specific historical spending figures for 'advanced sensors' as a distinct category are not readily available in the summary data, the overall DoD budget for Research, Development, Test, and Evaluation (RDT&E) runs into tens of billions of dollars annually. Contracts like the one awarded to Science Applications International Corporation (SAIC) represent a portion of this significant investment aimed at maintaining technological superiority.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: BASIC RESEARCH
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-01-29
Current End Date: 2009-12-07
Potential End Date: 2009-12-07 00:00:00
Last Modified: 2016-08-04
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