DoD's $36M SAIT Contract with Leidos: R&D in Physical Sciences Faces Scrutiny
Contract Overview
Contract Amount: $36,019,831 ($36.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-30
End Date: 2022-03-13
Contract Duration: 2,721 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF - SENSOR ANALYSIS, INTEGRATION AND TEST (SAIT)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $36.0 million to LEIDOS, INC. for work described as: IGF::OT::IGF - SENSOR ANALYSIS, INTEGRATION AND TEST (SAIT) Key points: 1. The contract awarded to Leidos, Inc. for Sensor Analysis, Integration, and Test (SAIT) totals $36,019,830.5. 2. This contract falls under NAICS code 541712, focusing on Research and Development in Physical, Engineering, and Life Sciences. 3. Awarded via Full and Open Competition, the contract type is Cost Plus Fixed Fee. 4. The contract duration was 2721 days, ending March 13, 2022. 5. No small business participation was reported.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns as the contractor is reimbursed for all allowable costs plus a fixed fee. Without detailed cost breakdowns, it's difficult to assess if the $36M price was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the CPFF structure might limit the price discovery benefits of competition if not managed tightly.
Taxpayer Impact: The total taxpayer impact is the full contract value of $36,019,830.5, plus any potential cost overruns inherent in the CPFF structure.
Public Impact
Research and Development spending in physical sciences is crucial for technological advancement. The Department of the Air Force's investment in sensor technology suggests a focus on enhancing military capabilities. The long duration of the contract (over 7 years) indicates a significant, ongoing project. The lack of small business involvement may limit opportunities for smaller, innovative firms in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of small business participation.
- Long contract duration without clear performance metrics.
- Limited transparency on cost breakdown and profit margins.
Positive Signals
- Awarded through full and open competition.
- Supports critical R&D in physical sciences.
- Contract awarded to a known entity (Leidos).
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Government spending in this area is vital for innovation but requires careful oversight due to the inherent uncertainties in R&D projects.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Leidos, Inc., did not subcontract with small businesses for this particular award, potentially missing opportunities to leverage specialized capabilities and foster economic growth.
Oversight & Accountability
Oversight for this contract would involve monitoring the contractor's cost expenditures against the fixed fee and ensuring that the research and development objectives are met. The CPFF structure necessitates robust auditing to prevent contractor inefficiencies from inflating costs.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of small business participation.
- Limited transparency on specific R&D outcomes.
- Long contract duration may not reflect current needs.
- Difficulty in benchmarking R&D costs.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.0 million to LEIDOS, INC.. IGF::OT::IGF - SENSOR ANALYSIS, INTEGRATION AND TEST (SAIT)
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 $36.0 million.
What is the period of performance?
Start: 2014-09-30. End: 2022-03-13.
What specific sensor technologies were developed or integrated under this contract, and what is their current operational status or impact?
The contract details do not specify the exact sensor technologies. Further investigation into contract performance reports and technical documentation would be required to identify the specific advancements made. Understanding the tangible outcomes and their contribution to the Department of Defense's mission is crucial for assessing the value derived from the $36M investment.
How were the 'allowable costs' defined and audited for this Cost Plus Fixed Fee contract to ensure taxpayer funds were used efficiently?
The effectiveness of cost controls in a CPFF contract hinges on rigorous auditing of allowable costs. The government contracting officer and auditors would typically review invoices and supporting documentation to ensure expenses align with contract terms and federal acquisition regulations. Without access to audit reports, it's difficult to ascertain the robustness of this oversight and whether potential inefficiencies were identified and addressed.
Given the long duration and CPFF structure, what mechanisms were in place to ensure the SAIT project remained aligned with evolving technological needs and strategic priorities?
Long-term R&D contracts, especially those using CPFF, require proactive management to adapt to technological shifts. Mechanisms likely included regular progress reviews, technical interchange meetings, and potential contract modifications to redirect efforts. However, the CPFF structure itself can sometimes disincentivize contractors from aggressively seeking more efficient solutions if costs are simply reimbursed, necessitating strong government program management.
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: 5
Pricing Type: COST PLUS FIXED FEE (U)
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: $36,864,382
Exercised Options: $36,864,382
Current Obligation: $36,019,831
Actual Outlays: $923,209
Subaward Activity
Number of Subawards: 90
Total Subaward Amount: $8,850,987
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-09-30
Current End Date: 2022-03-13
Potential End Date: 2022-03-13 00:00:00
Last Modified: 2022-04-02
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