Leidos awarded $6.2M contract for cyber physical sensor development by the Air Force
Contract Overview
Contract Amount: $6,235,385 ($6.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2027-08-16
End Date: 2028-03-31
Contract Duration: 228 days
Daily Burn Rate: $27.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CYBER PHYSICAL SENSOR DEVELOPMENT
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $6.2 million to LEIDOS, INC. for work described as: CYBER PHYSICAL SENSOR DEVELOPMENT Key points: 1. Contract focuses on R&D for advanced sensor technology, aligning with defense modernization efforts. 2. Competition was full and open, suggesting a robust market for this specialized capability. 3. The contract type (Cost Plus Fixed Fee) introduces potential for cost overruns if not managed closely. 4. Performance period extends over two years, allowing for phased development and testing. 5. This award fits within the broader landscape of defense R&D spending, particularly in cyber and sensor domains.
Value Assessment
Rating: fair
The contract value of $6.2M for a 22-month R&D effort appears within a reasonable range for specialized cyber physical sensor development. However, without specific benchmarks for comparable sensor development contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure necessitates careful oversight to ensure costs remain controlled and do not escalate beyond initial expectations. Benchmarking against similar R&D projects in the defense sector would provide a clearer picture of pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and allowed to bid. This approach generally fosters competitive pricing and encourages innovation by allowing the government to select the best technical solution at a reasonable cost. The presence of multiple bidders suggests a healthy market for cyber physical sensor development capabilities.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives the most advantageous offers available.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the Air Force, which will receive advanced sensor capabilities. The services delivered involve research and development, aiming to create new or improved cyber physical sensor technologies. The geographic impact is primarily within the United States, where the research and development activities will likely take place. Workforce implications include the potential for highly skilled R&D engineers, scientists, and technicians employed by Leidos and any potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not rigorously managed.
- The specific nature of 'cyber physical sensor development' may involve novel technologies with inherent R&D risks.
- Longer performance periods in R&D can sometimes indicate uncertainty in project timelines or scope.
Positive Signals
- Award to a large, established contractor like Leidos suggests a degree of reliability and experience.
- Full and open competition indicates a competitive environment, potentially leading to better value.
- The contract is for R&D, which is crucial for maintaining technological superiority.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced sensor technologies with cyber physical applications. The market for defense-related R&D is substantial, driven by the need for technological superiority. Comparable spending benchmarks would likely be found within the broader defense R&D budget, particularly in areas like intelligence, surveillance, and reconnaissance (ISR) systems, and electronic warfare capabilities. The market size for specialized sensor development is difficult to quantify precisely but is a critical component of the defense industrial base.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. As a large prime contractor, Leidos may engage small businesses for specialized components or services, but this is not explicitly mandated by the contract details. The impact on the small business ecosystem will depend on Leidos's subcontracting strategy.
Oversight & Accountability
Oversight for this contract will primarily be conducted by the Department of the Air Force contracting and technical officers. The Cost Plus Fixed Fee structure necessitates close monitoring of incurred costs against the fixed fee to ensure financial accountability. Transparency will be maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Advanced Research Projects Agency (DARPA) programs
- Air Force Research Laboratory (AFRL) initiatives
- Intelligence, Surveillance, and Reconnaissance (ISR) system development
- Cybersecurity R&D programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- R&D projects inherently carry technical risks and uncertainties.
- Scope definition and management are critical for success in R&D.
Tags
research-and-development, department-of-defense, air-force, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, sensor-technology, cyber-physical-systems, leidos-inc, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.2 million to LEIDOS, INC.. CYBER PHYSICAL SENSOR DEVELOPMENT
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 $6.2 million.
What is the period of performance?
Start: 2027-08-16. End: 2028-03-31.
What is Leidos's track record with similar R&D contracts, particularly in sensor development for the Department of Defense?
Leidos has a significant history of performing complex research and development contracts for the Department of Defense across various domains, including sensor technology, cyber, and intelligence systems. They have been involved in numerous large-scale programs requiring advanced technological solutions. While specific details on past sensor development contracts are not provided here, their extensive portfolio suggests a strong capability. Analyzing their past performance on similar Cost Plus Fixed Fee contracts would be crucial to assess their ability to manage costs and deliver on technical objectives effectively. Past performance reviews and contract close-out data from the government would offer deeper insights into their reliability and success rates in comparable R&D endeavors.
How does the $6.2M value compare to other cyber physical sensor development contracts awarded by the Air Force or DoD?
The $6.2 million award for cyber physical sensor development over approximately 22 months appears to be a moderate-sized contract for a research and development effort. Larger, more complex sensor system development programs can range from tens to hundreds of millions of dollars. Smaller, more focused R&D tasks or component developments might be in the low millions. Without access to a comprehensive database of all similar contracts, a precise benchmark is difficult. However, for a specific R&D project focused on developing new cyber physical sensor capabilities, this value suggests a focused scope rather than a full system integration or large-scale production effort. It aligns with typical funding levels for early-stage technology maturation or prototype development within the DoD's R&D budget.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract type for an R&D project like cyber physical sensor development is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a ceiling on their profit. If the project encounters unforeseen technical challenges, requires more resources than initially estimated, or experiences scope creep, the total cost to the government can increase significantly. The contractor has less incentive to control costs compared to fixed-price contracts, as their profit is fixed regardless of the final cost. Effective government oversight, rigorous cost tracking, and clear definition of work are critical to mitigate these risks and ensure the project stays within budget.
What is the expected impact of this contract on the advancement of cyber physical sensor technology?
This contract is expected to contribute to the advancement of cyber physical sensor technology by funding dedicated research and development efforts. Cyber physical systems integrate computational elements with physical processes, and advanced sensors are crucial for gathering accurate data from the physical world. The development funded by this contract could lead to enhanced capabilities in areas such as threat detection, environmental monitoring, autonomous systems, and improved situational awareness for military operations. The specific advancements will depend on the technical objectives outlined in the SOW, but the investment signifies a commitment to pushing the boundaries of sensor technology in a cyber-enabled context.
How has spending on R&D for sensor technology evolved within the Department of Defense over the past five years?
Spending on R&D for sensor technology within the Department of Defense has generally seen a consistent or increasing trend over the past five years, driven by strategic priorities such as maintaining technological superiority, enhancing intelligence, surveillance, and reconnaissance (ISR) capabilities, and supporting the development of advanced platforms like drones and autonomous systems. Key areas of investment include multi-spectral sensors, radar, electronic warfare sensors, and increasingly, sensors integrated into cyber physical systems. While specific figures fluctuate annually based on budget allocations and program priorities, the overall emphasis on advanced sensor R&D remains a high priority across military branches, reflecting its critical role in modern warfare and national security.
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: FA865021S1016
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: $11,238,872
Exercised Options: $11,238,872
Current Obligation: $6,235,385
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,638,001
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2027-08-16
Current End Date: 2028-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2026-01-08
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