Leidos awarded $21.6M R&D contract for physical, engineering, and life sciences research by the Air Force
Contract Overview
Contract Amount: $21,571,292 ($21.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-28
End Date: 2026-06-30
Contract Duration: 2,101 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ARDIS DOS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.6 million to LEIDOS, INC. for work described as: ARDIS DOS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. Performance period spans over 2100 days, indicating a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541715 points to a focus on physical, engineering, and life sciences research. 5. The contract is not set aside for small businesses, implying larger firms were likely the primary bidders. 6. The awardee, Leidos, Inc., is a significant player in government contracting, particularly in R&D and IT services.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging without detailed scope and deliverables. However, the award amount of $21.6 million over approximately 5.7 years suggests a moderate investment in research. The Cost Plus Fixed Fee (CPFF) pricing structure means the government reimburses costs plus a fixed fee, which can lead to cost overruns if not managed carefully. Comparing this to similar R&D contracts in physical, engineering, and life sciences would provide better context on whether the pricing is competitive for the expected outcomes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The Air Force's decision to use full and open competition suggests they sought the widest possible range of solutions and capabilities.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions being considered, ensuring the government receives the best value for its investment.
Public Impact
The primary beneficiaries are likely the Department of the Air Force and potentially other Department of Defense entities that will utilize the research findings. The contract supports research and development in physical, engineering, and life sciences, which could lead to advancements in various technological and scientific fields. The geographic impact is primarily within Virginia, where the contractor (Leidos) is located, but the ultimate impact of the research could be national or global. Workforce implications include employment opportunities for scientists, engineers, and support staff involved in the research activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can lead to cost overruns if not closely monitored.
- Long contract duration (2101 days) increases the risk of scope creep or changing research priorities.
- Lack of specific details on deliverables makes it hard to assess performance risks.
- The R&D nature of the contract inherently carries a risk of not achieving desired outcomes.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Leidos, Inc. has a significant track record in government contracting, implying experience and capability.
- The contract focuses on R&D, which is crucial for technological advancement and national security.
- The fixed fee component in CPFF provides some cost predictability for the contractor's profit.
Sector Analysis
The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541715). This sector is critical for innovation and technological advancement across various industries. Government spending in this area is substantial, supporting advancements in defense, healthcare, energy, and more. Leidos, Inc. is a major contractor in this space, often competing for large-scale R&D and IT contracts.
Small Business Impact
This contract was not set aside for small businesses, and the awardee, Leidos, Inc., is a large corporation. This suggests that small businesses were likely not the primary focus for direct award. However, there may be opportunities for small businesses to participate as subcontractors to Leidos, depending on the specific research needs and Leidos's subcontracting strategy. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and progress to ensure value for money. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development
- Air Force Science and Technology Programs
- Physical Sciences Research Contracts
- Engineering Research and Development
- Life Sciences Research Grants
Risk Flags
- Cost Plus Fixed Fee contract type requires careful cost monitoring.
- Long contract duration increases potential for scope changes or evolving requirements.
- R&D inherently carries a risk of not achieving desired outcomes.
- Lack of specific performance metrics in provided data makes outcome assessment difficult.
Tags
research-and-development, department-of-defense, air-force, cost-plus-fixed-fee, definitive-contract, full-and-open-competition, leidos-inc, physical-sciences, engineering, life-sciences, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.6 million to LEIDOS, INC.. ARDIS DOS
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 $21.6 million.
What is the period of performance?
Start: 2020-09-28. End: 2026-06-30.
What is Leidos, Inc.'s track record with similar Cost Plus Fixed Fee R&D contracts with the Department of Defense?
Leidos, Inc. has a substantial history of performing Cost Plus Fixed Fee (CPFF) contracts, particularly within the Department of Defense (DoD) and other federal agencies. Their portfolio includes a wide range of services, from IT modernization to complex systems engineering and research and development. Analyzing their past performance on CPFF R&D contracts would involve reviewing contract award data, performance evaluations (e.g., CPARS), and any reported cost overruns or efficiencies. Given Leidos's size and experience, they are generally considered capable of managing such contracts, but the specific success metrics would depend on the complexity and scope of each individual project. A deeper dive would require access to detailed contract performance reports and potentially Inspector General findings if any issues arose.
How does the awarded amount of $21.6 million compare to typical R&D spending in physical, engineering, and life sciences by the Air Force?
The awarded amount of $21.6 million over approximately 5.7 years for R&D in physical, engineering, and life sciences is a moderate-sized contract within the context of Air Force spending. The Air Force, like other branches of the DoD, invests billions annually in R&D across a broad spectrum of scientific and technological domains. Contracts of this magnitude are common for specific research projects or technology development efforts. Larger, more foundational research programs or major system developments would typically involve significantly higher dollar values. To provide a precise benchmark, one would need to analyze historical Air Force R&D spending data categorized by NAICS code 541715 and contract type, looking at the distribution of contract values over a relevant period.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?
The primary risks associated with a CPFF contract for R&D include potential cost overruns if the contractor's actual costs exceed estimates significantly, and the risk that the fixed fee may not adequately compensate the contractor for unforeseen challenges, potentially impacting motivation. For the government, the risk is paying more than anticipated if costs escalate. Mitigation strategies employed by the government include rigorous cost estimation during proposal evaluation, detailed work breakdown structures, robust progress monitoring, regular audits of contractor expenditures, and clear performance metrics. The fixed fee itself incentivizes the contractor to manage costs efficiently to maximize profit within that fee. Effective communication and a strong program management presence are crucial for mitigating these risks.
What is the expected impact of this contract on technological advancement in the specified R&D areas?
The expected impact of this contract on technological advancement hinges on the specific research objectives and the success of the R&D efforts undertaken by Leidos, Inc. Contracts in physical, engineering, and life sciences R&D are designed to push the boundaries of current knowledge and capabilities. Potential impacts could range from developing novel materials, improving engineering processes, creating new diagnostic tools, or enhancing understanding in fundamental scientific principles. The ultimate value will be realized if the research leads to breakthroughs that can be transitioned into practical applications, enhancing national security, economic competitiveness, or societal well-being. The long duration suggests a focus on potentially complex or foundational research.
How has federal spending in NAICS code 541715 (Physical, Engineering, and Life Sciences R&D) trended over the past five years?
Federal spending in NAICS code 541715, encompassing Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology), has generally shown a consistent or increasing trend over the past five years. This reflects the government's ongoing commitment to innovation and technological superiority across defense, health, energy, and other critical sectors. Agencies like the Department of Defense (including the Air Force), National Institutes of Health (NIH), and the National Science Foundation (NSF) are major contributors to this spending. While specific year-over-year fluctuations can occur due to budget cycles and shifting priorities, the overall trajectory indicates sustained investment in these vital R&D areas.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA865020R1143
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $22,882,551
Exercised Options: $22,882,551
Current Obligation: $21,571,292
Actual Outlays: $12,361
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $6,431,518
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-09-28
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-11-26
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