Leidos Inc. awarded $34.4M for R&D in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $34,432,599 ($34.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-08-01
End Date: 2014-05-23
Contract Duration: 2,121 days
Daily Burn Rate: $16.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: GUARDIAN EAGLE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $34.4 million to LEIDOS, INC. for work described as: GUARDIAN EAGLE Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Research and Development focus indicates investment in future capabilities. 3. Long contract duration (2121 days) implies a significant, ongoing project. 4. Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed closely. 5. The contract was awarded by the Defense Contract Management Agency, indicating a defense-related objective. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.
Value Assessment
Rating: fair
The total award amount of $34.4 million over approximately 5.8 years for R&D services is difficult to benchmark without specific deliverables. The CPFF contract type carries inherent risk for cost control. While the contract value is substantial, its value for money depends heavily on the successful outcomes of the research and development activities, which are not detailed here. Compared to similar large-scale R&D contracts, the pricing structure warrants close monitoring to ensure costs remain aligned with project goals.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. The presence of four bids (no. 4) suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The agency's decision to use full and open competition implies confidence in the market's ability to provide qualified contractors.
Taxpayer Impact: Full and open competition typically results in better pricing for taxpayers by fostering a competitive environment among potential offerors.
Public Impact
The primary beneficiaries are likely the Department of Defense and its associated research arms, gaining advancements in physical, engineering, and life sciences. Services delivered include research and development activities, aiming to enhance technological capabilities or scientific understanding. The geographic impact is primarily within Virginia, where the contract was administered. Workforce implications may include employment for scientists, engineers, and research support staff at Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit.
- Long contract duration may increase the risk of scope creep or evolving requirements that are not adequately managed.
- Lack of small business participation could mean missed opportunities for innovation and economic inclusion.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- The contract is for Research and Development, suggesting investment in future technological advancements.
- The contractor, Leidos, Inc., is a large and established entity with significant experience in government contracting.
Sector Analysis
The contract falls within the Research and Development sector, specifically NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)). This sector is characterized by innovation and often involves long-term projects with uncertain outcomes. Spending in this area by the Department of Defense is crucial for maintaining technological superiority. Comparable spending benchmarks would require analysis of other R&D contracts within the defense sector for similar scientific disciplines.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary contract was awarded to a large business, Leidos, Inc. The absence of set-aside provisions means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially be involved as subcontractors if Leidos chooses to engage them.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Leidos Inc. Contracts
- Cost Plus Fixed Fee Contracts
- NAICS 541712 Contracts
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type may lead to cost overruns.
- Long contract duration increases potential for scope creep and requirement changes.
- Lack of small business participation noted.
Tags
research-and-development, department-of-defense, leidos-inc, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, defense-contract-management-agency, virginia, physical-engineering-life-sciences, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.4 million to LEIDOS, INC.. GUARDIAN EAGLE
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 $34.4 million.
What is the period of performance?
Start: 2008-08-01. End: 2014-05-23.
What specific research and development projects were undertaken under this contract?
The provided data does not specify the exact nature of the research and development projects. NAICS code 541712 indicates work in 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. This broad category could encompass a wide range of activities, from materials science and advanced manufacturing to cybersecurity research, aerospace engineering, or biomedical advancements. Without access to the contract's statement of work or project reports, the precise scientific or technological objectives remain unknown. Further investigation would require accessing detailed contract documentation or agency reports.
How does the $34.4 million award compare to other R&D contracts in the physical, engineering, and life sciences sector awarded by the DoD?
Benchmarking the $34.4 million award requires comparing it against a portfolio of similar contracts. The Department of Defense (DoD) invests billions annually in R&D across various scientific domains. A contract of this magnitude ($34.4M) is considered mid-to-large for a single definitive contract, especially one with a Cost Plus Fixed Fee structure. However, its relative size depends on the specific sub-discipline within physical, engineering, or life sciences, and the contract's duration (2121 days, approx. 5.8 years). To provide a precise comparison, one would need to analyze the average award values, contract types, and durations for contracts under NAICS 541712 awarded by the DoD over a similar timeframe, filtering for contracts with comparable scope and complexity.
What are the key performance indicators (KPIs) used to assess the success of this R&D contract?
Specific Key Performance Indicators (KPIs) for R&D contracts are often tailored to the unique objectives of the research. For this contract, KPIs would likely focus on achieving specific scientific milestones, developing prototypes, validating research findings, or demonstrating technological feasibility within defined parameters. Given the Cost Plus Fixed Fee (CPFF) structure, KPIs might also include adherence to budget projections and timelines, although the CPFF itself allows for cost flexibility. The Defense Contract Management Agency (DCMA) would typically monitor progress against these KPIs. Without the contract's statement of work, the exact KPIs remain undisclosed, but they would be designed to measure the advancement of knowledge or technology in the physical, engineering, or life sciences.
What is the historical spending trend for Leidos, Inc. with the Department of Defense in R&D?
Leidos, Inc. is a major government contractor with a significant history of receiving awards from the Department of Defense (DoD) across various service and R&D categories. Analyzing their historical spending trends with the DoD in R&D would involve examining contract databases over several fiscal years. This would reveal patterns in the types of R&D they specialize in, the average value and duration of their R&D contracts, and their success rate in competitive solicitations. Given their size and focus, it's probable that Leidos has consistently secured substantial R&D funding from the DoD, reflecting their capabilities in areas aligned with defense priorities. A detailed analysis would quantify this trend and identify specific R&D areas where they are most active.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Leidos, Inc., present specific risks, particularly in R&D contexts. The primary risk for the government is that the contractor has less incentive to control costs compared to fixed-price contracts, as they are reimbursed for allowable costs plus a fixed fee. If R&D efforts prove more complex or expensive than initially estimated, costs can escalate significantly, potentially exceeding initial projections. Conversely, the fixed fee provides the contractor with a guaranteed profit margin, which can sometimes reduce their motivation to innovate cost-saving measures. Effective oversight, detailed cost tracking, and robust performance metrics are crucial to mitigate these risks and ensure value for money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 4
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,440,708
Exercised Options: $34,440,708
Current Obligation: $34,432,599
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-08-01
Current End Date: 2014-05-23
Potential End Date: 2014-05-23 00:00:00
Last Modified: 2019-09-20
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