DoD's $25.8M Passive RFID Environment contract to Leidos, Inc. shows strong competition and long-term R&D focus
Contract Overview
Contract Amount: $25,788,630 ($25.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-09-30
End Date: 2026-09-30
Contract Duration: 3,652 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF - PASSIVE RADIO FREQUENCY IDENTIFICATION ENVIRONMENT - PRIDE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.8 million to LEIDOS, INC. for work described as: IGF::OT::IGF - PASSIVE RADIO FREQUENCY IDENTIFICATION ENVIRONMENT - PRIDE Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Long contract duration (10 years) suggests a sustained need for the services provided. 3. Research and Development focus aligns with evolving technological requirements. 4. Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs. 5. No small business set-aside indicates potential for large prime contractors. 6. High number of bidders (9) suggests significant market interest and potential for competitive pricing.
Value Assessment
Rating: good
The contract's value of $25.8 million over 10 years averages to approximately $2.58 million annually. Benchmarking this against similar R&D contracts in the physical sciences is challenging without more specific service details. However, the CPFF structure necessitates close oversight to ensure costs remain reasonable and do not escalate unnecessarily. The competitive award process provides some assurance of fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with nine bidders participating. This high level of competition is a positive indicator, suggesting that the market had sufficient interest and capability to bid on this requirement. The presence of multiple bidders generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the final price and encouraged efficient service delivery from the winning bidder.
Public Impact
The Department of Defense benefits from advanced passive radio frequency identification (RFID) technology. Services delivered likely include research, development, and implementation of RFID systems. Geographic impact is likely concentrated within DoD facilities and operations. Workforce implications may involve specialized engineers and technicians in R&D and logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can incentivize cost overruns if not managed diligently.
- Long-term nature of the contract requires ongoing performance monitoring to ensure continued value.
- Reliance on a single prime contractor (Leidos, Inc.) for a decade necessitates strong relationship management.
Positive Signals
- Awarded through full and open competition, indicating a healthy market and competitive pricing.
- The contract addresses a specific technological need within the DoD, suggesting strategic alignment.
- The long duration allows for sustained development and integration of the RFID environment.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The market for RFID technology is diverse, encompassing logistics, inventory management, and security applications across various industries. The Department of Defense is a significant investor in R&D for advanced identification and tracking systems to enhance operational efficiency and situational awareness. Comparable spending benchmarks would depend on the specific scale and complexity of the RFID environment being developed.
Small Business Impact
The contract was not awarded as a small business set-aside, and the prime contractor, Leidos, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that opportunities for small businesses may be limited to lower-tier subcontracts, if any, and that the primary focus is on large-scale R&D capabilities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Performance monitoring, cost reviews, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DoD Logistics and Supply Chain Management Systems
- Advanced Technology Development Programs
- Department of Defense Research and Development Spending
- Radio Frequency Identification (RFID) Technology Implementation
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Risk of technological obsolescence over the 10-year period.
- Need for continuous performance monitoring and adaptation to evolving requirements.
- Dependence on a single contractor for a decade.
Tags
department-of-defense, department-of-the-air-force, research-and-development, it-systems, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, large-contract, leidos-inc, virginia, passive-rfid, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to LEIDOS, INC.. IGF::OT::IGF - PASSIVE RADIO FREQUENCY IDENTIFICATION ENVIRONMENT - PRIDE
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 $25.8 million.
What is the period of performance?
Start: 2016-09-30. End: 2026-09-30.
What is the specific nature of the 'Passive Radio Frequency Identification Environment' being developed under this contract?
The contract, "IGF::OT::IGF - PASSIVE RADIO FREQUENCY IDENTIFICATION ENVIRONMENT - PRIDE," awarded to Leidos, Inc., likely pertains to the research, development, and potentially initial implementation of a passive RFID system. Passive RFID tags do not have their own power source and are activated by the radio waves from an RFID reader. This suggests the project could involve developing or enhancing the infrastructure, software, and protocols necessary for a widespread, efficient, and secure passive RFID network within DoD operations. This might include applications for asset tracking, inventory management, personnel identification, or supply chain visibility, aiming to improve operational awareness and reduce manual processes.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar R&D efforts?
Cost Plus Fixed Fee (CPFF) is a common contract type for research and development efforts where the scope of work may be uncertain or evolve significantly. It allows the contractor to recover all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers greater flexibility for the government to adapt the R&D scope without extensive contract modifications. However, it shifts cost risk to the government, making robust oversight crucial to prevent cost overruns. For R&D, it balances flexibility with contractor incentive, though it requires diligent cost monitoring to ensure value for money, unlike firm-fixed-price contracts which place cost risk on the contractor.
What are the potential risks associated with a 10-year contract duration for an R&D project?
A 10-year duration for an R&D project presents several risks. Firstly, technological obsolescence is a significant concern; the technology developed early in the contract could be outdated by the time the contract concludes. Secondly, market dynamics and DoD requirements can shift dramatically over a decade, potentially rendering the original objectives less relevant or requiring substantial scope changes. Thirdly, maintaining contractor performance and innovation over such a long period can be challenging. Finally, the long-term commitment ties up significant government resources that could otherwise be allocated to newer, potentially more promising technologies emerging during the contract's life. Effective risk mitigation would involve regular reviews and potential re-competition or adaptation clauses.
Given the 'full and open competition' and 9 bidders, what does this imply about the market for passive RFID R&D?
The fact that this contract was awarded under full and open competition with nine bidders suggests a mature and competitive market for passive RFID research and development. It indicates that multiple companies possess the necessary technical expertise, resources, and understanding of government contracting to bid on such a requirement. This level of competition is generally favorable for the government, as it increases the likelihood of receiving competitive pricing, innovative solutions, and a wider pool of qualified contractors. It also suggests that the requirement was well-defined enough to attract a broad range of interested parties, rather than being a niche or highly specialized need that only a few firms could address.
What is Leidos, Inc.'s track record with similar large-scale R&D or technology integration contracts for the DoD?
Leidos, Inc. has a substantial track record of performing large-scale research, development, and systems integration contracts for the Department of Defense and other federal agencies. They are known for their work in areas such as command and control systems, intelligence analysis, cybersecurity, and logistics modernization. While specific details on their passive RFID R&D history would require deeper investigation, their general experience with complex technological programs and large contract values suggests they possess the capability to manage and execute a contract of this nature. Their history often involves significant system engineering, software development, and integration efforts across various defense platforms.
How does the $25.8 million total contract value compare to typical annual R&D spending for the Air Force in this domain?
The total contract value of $25.8 million spread over 10 years equates to an average annual spend of approximately $2.58 million. This figure represents a moderate investment within the broader context of the Air Force's R&D budget, which can encompass billions of dollars annually across numerous scientific and technological domains. While specific benchmarks for passive RFID R&D are difficult to ascertain without more granular data, this annual figure suggests a focused effort rather than a massive, sweeping program. It is likely intended to fund specific advancements, system refinements, or targeted integration efforts within the passive RFID environment, rather than a complete overhaul of existing systems.
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
Solicitation ID: FA865016R1732
Offers Received: 9
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: $38,240,135
Exercised Options: $28,706,913
Current Obligation: $25,788,630
Actual Outlays: $520,073
Subaward Activity
Number of Subawards: 52
Total Subaward Amount: $10,229,145
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-30
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-11-25
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