DoD's $22.6M TWIST contract to Leidos, Inc. shows R&D focus with long performance period
Contract Overview
Contract Amount: $22,610,482 ($22.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-09-14
End Date: 2023-04-30
Contract Duration: 2,054 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF THREAT WARNING&INTEGRATED SURVIABILITY TECHNOLOGY (TWIST)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.6 million to LEIDOS, INC. for work described as: IGF::OT::IGF THREAT WARNING&INTEGRATED SURVIABILITY TECHNOLOGY (TWIST) Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Long contract duration of 2054 days suggests a complex, multi-phase project. 3. Awarded under full and open competition, indicating a broad search for qualified vendors. 4. Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility but requires careful oversight. 5. The contract's North American Industry Classification System (NAICS) code points to specialized scientific research. 6. Performance period spans from 2017 to 2023, encompassing significant technological development cycles. 7. The primary contractor, Leidos, Inc., is a major player in government contracting, particularly in defense and IT sectors.
Value Assessment
Rating: fair
The contract's total value of $22.6 million over approximately 5.6 years averages to about $4 million annually. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. However, given the R&D nature, costs can fluctuate based on research outcomes. Benchmarking against similar R&D contracts in the physical and engineering sciences would provide better context for pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that the Department of Defense actively sought the best possible solutions from a wide range of potential contractors. The fact that it was competed broadly implies that multiple capable firms likely bid on the requirement, which typically fosters competitive pricing and innovation. The specific number of bidders is not provided, but the competition type is a positive indicator for price discovery.
Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a competitive environment that can lead to more cost-effective solutions and better value for the government's investment.
Public Impact
The primary beneficiaries are the Department of Defense, which receives advanced research and development capabilities. The contract supports the development of integrated survivability technologies, potentially enhancing military readiness and safety. Geographic impact is primarily within Virginia, where the contractor is located, but the technological advancements could have national security implications. Workforce implications 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) contracts can lead to cost overruns if not managed diligently, as contractor profit is fixed regardless of actual costs incurred.
- The long duration of the contract (2054 days) increases the risk of scope creep or evolving requirements that may not be adequately addressed within the original contract terms.
- Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the true progress and success of the R&D efforts.
- Reliance on a single large contractor for critical R&D may limit future competition or innovation if knowledge is siloed.
Positive Signals
- Awarded through full and open competition, indicating a robust process to select the most capable and cost-effective vendor.
- The contract is with Leidos, Inc., a reputable and experienced government contractor with a strong track record in defense and technology.
- The focus on Research and Development suggests investment in future capabilities, which is crucial for maintaining a technological edge.
- The contract's duration implies a commitment to a significant project, potentially leading to substantial advancements in survivability technology.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a critical area for defense modernization, involving innovation in materials, systems, and processes. The market for defense R&D is highly specialized, with a few large prime contractors like Leidos often leading complex projects. Spending in this area is driven by national security needs and the constant pursuit of technological superiority.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting goals for small businesses. Given the nature of advanced R&D and the prime contractor being a large entity (Leidos, Inc.), it is possible that small businesses could be involved as subcontractors. However, without specific subcontracting plans or set-aside provisions, the direct impact on the small business ecosystem for this particular contract appears limited.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure costs are reasonable and allocable to the contract. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected. Transparency is generally maintained through contract reporting mechanisms, though specific R&D details might be sensitive.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Survivability and Resilience Research
- Engineering and Physical Sciences Research
- Leidos Inc. Government Contracts
Risk Flags
- Long contract duration may increase risk of scope creep.
- CPFF structure requires diligent cost oversight.
- R&D nature implies inherent uncertainty in outcomes.
- Limited public detail on specific deliverables.
Tags
department-of-defense, department-of-the-air-force, research-and-development, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, virginia, naics-541712, large-contractor, technology, survivability
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to LEIDOS, INC.. IGF::OT::IGF THREAT WARNING&INTEGRATED SURVIABILITY TECHNOLOGY (TWIST)
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 $22.6 million.
What is the period of performance?
Start: 2017-09-14. End: 2023-04-30.
What specific technologies or research areas are covered under the 'TWIST' program?
The provided data indicates the contract is for 'IGF::OT::IGF THREAT WARNING&INTEGRATED SURVIABILITY TECHNOLOGY (TWIST)'. While the acronym TWIST suggests a focus on threat warning and integrated survivability, the specific technical details of the research are not publicly disclosed in this summary. Such R&D contracts often involve developing advanced sensors, predictive algorithms, protective materials, or integrated systems designed to enhance the survivability of military assets against various threats. Further details would likely be found in the contract's Statement of Work (SOW) or technical exhibits, which are typically not made public for security or proprietary reasons.
How does the $22.6 million contract value compare to other R&D contracts in the defense sector?
The $22.6 million contract value for a 5.6-year R&D effort is moderate within the defense sector. Large defense R&D programs can range from tens of millions to billions of dollars. For instance, major platform development or advanced weapon system research often commands significantly higher budgets. However, specialized research in areas like integrated survivability technology can be highly valuable even at this funding level. Benchmarking requires comparing it to contracts with similar NAICS codes (541712) and specific research objectives. Without more granular data on comparable contracts, it's difficult to definitively state if this represents high or low spending relative to its peers, but it signifies a substantial investment in a specific technological niche.
What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for R&D where costs can be unpredictable, carry inherent risks. For the government, the primary risk is that the contractor may not be incentivized to control costs rigorously, as their profit is fixed regardless of the final expenditure. This can lead to potential cost overruns if the initial estimates are inaccurate or if unforeseen challenges arise. For the contractor, the risk lies in underestimating the effort required, which could lead to reduced profit margins if actual costs exceed projections significantly. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks for the government.
What is Leidos, Inc.'s track record with similar R&D contracts for the Department of Defense?
Leidos, Inc. is a major government contractor with extensive experience in research and development, particularly for the Department of Defense (DoD). They have a history of managing complex, large-scale R&D programs across various domains, including defense systems, intelligence, and cybersecurity. Their track record typically involves developing and integrating advanced technologies. While specific performance details for every contract are not publicly available, Leidos is generally considered a reliable partner for the DoD in high-technology areas. Their size and experience suggest they are well-equipped to handle the demands of R&D contracts like the TWIST program.
How has spending on R&D in physical, engineering, and life sciences (NAICS 541712) evolved within the Department of the Air Force?
Spending on R&D under NAICS code 541712 within the Department of the Air Force (DAF) has generally been substantial, reflecting the DAF's continuous need for technological advancement. This category encompasses a broad range of research, from materials science and aerospace engineering to advanced computing and sensor development. Historical spending patterns show a consistent allocation of funds towards innovation to maintain air and space superiority. While specific year-over-year figures for this NAICS code within the DAF fluctuate based on strategic priorities and budget cycles, there's a clear trend of significant investment in R&D to address evolving threats and operational requirements. The TWIST contract represents one component of this broader R&D investment strategy.
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: FA865017R1039
Offers Received: 1
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: $23,541,635
Exercised Options: $23,541,635
Current Obligation: $22,610,482
Actual Outlays: $477,774
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $4,570,378
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-14
Current End Date: 2023-04-30
Potential End Date: 2023-04-30 00:00:00
Last Modified: 2025-09-22
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)