Leidos awarded $19.6M contract for electro-optic sensing and electronic warfare systems by the Air Force
Contract Overview
Contract Amount: $19,604,613 ($19.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-12-22
End Date: 2026-12-18
Contract Duration: 1,457 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ELECTRO-OPTIC SENSING DEFENSIVE ELECTRONIC WARFARE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.6 million to LEIDOS, INC. for work described as: ELECTRO-OPTIC SENSING DEFENSIVE ELECTRONIC WARFARE Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. Performance period extends over 3 years, indicating a significant, ongoing need. 4. The North American Industry Classification System (NAICS) code 541715 points to research and development in physical sciences. 5. This award represents a moderate investment within the broader defense R&D sector. 6. The contractor, Leidos, Inc., is a major player in defense contracting.
Value Assessment
Rating: good
The contract value of $19.6 million for a 3-year R&D effort in advanced defense systems appears reasonable given the specialized nature of electro-optic sensing and electronic warfare. Benchmarking against similar complex R&D contracts within the Department of Defense suggests this award is within expected parameters. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, requires careful oversight to ensure costs remain controlled and the fixed fee provides adequate incentive for the contractor to manage expenses efficiently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a competitive process that should lead to fair market pricing. The Air Force's approach to full and open competition aims to leverage the widest possible range of technical solutions and ensure the government receives the best value.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation, leading to more cost-effective solutions for defense needs.
Public Impact
The primary beneficiaries are the Department of the Air Force and potentially other branches of the U.S. military requiring advanced sensing and electronic warfare capabilities. The contract will deliver research and development services for electro-optic sensing and defensive electronic warfare systems. The geographic impact is primarily within the United States, where the research and development activities will likely take place. This contract supports highly skilled jobs in the defense technology and R&D sectors, including engineers, scientists, and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- The duration of the contract (over 3 years) requires sustained oversight to ensure progress and value.
- Reliance on a single large contractor like Leidos may limit future competition for follow-on work.
Positive Signals
- Awarded through full and open competition, indicating a healthy market and potential for innovation.
- Leidos, Inc. is a well-established defense contractor with a track record in complex systems.
- The contract addresses critical defense capabilities in electronic warfare and sensing.
Sector Analysis
The defense sector, particularly the segment focused on research and development for advanced electronic warfare and sensing technologies, is characterized by high barriers to entry due to specialized knowledge, significant capital investment, and stringent security requirements. This contract fits within the broader landscape of defense modernization efforts, where the U.S. military seeks to maintain technological superiority. Comparable spending in this niche area can vary widely, but multi-million dollar R&D contracts are common for developing cutting-edge systems.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Leidos, Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Leidos's strategy and the specific requirements of the R&D effort. Analysis of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance metrics. Transparency is typically maintained through contract award databases and reporting requirements, though specific technical details of the R&D may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Advanced Electronic Warfare Systems
- Electro-Optical/Infrared (EO/IR) Systems
- Department of Defense Research and Development Programs
- Air Force Systems Command Contracts
- Defense Intelligence Agency Technology Development
Risk Flags
- Cost Overrun Risk
- Schedule Slippage
- Technical Feasibility Uncertainty
- Contractor Performance Risk
Tags
defense, department-of-defense, air-force, research-and-development, electro-optic-sensing, electronic-warfare, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, virginia, definitive-contract, fy2023
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to LEIDOS, INC.. ELECTRO-OPTIC SENSING DEFENSIVE ELECTRONIC WARFARE
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 $19.6 million.
What is the period of performance?
Start: 2022-12-22. End: 2026-12-18.
What is Leidos, Inc.'s track record with similar electro-optic sensing or electronic warfare contracts?
Leidos, Inc. has a substantial track record in defense contracting, including significant work in electronic warfare, command and control systems, and intelligence, surveillance, and reconnaissance (ISR) technologies. They have been involved in numerous large-scale defense programs, often serving as prime contractors. While specific details on electro-optic sensing R&D contracts are proprietary, their broad experience in complex defense systems suggests a strong capability to undertake this type of work. Past performance reviews and contract awards databases would provide more granular insights into their specific successes and challenges in related technological domains.
How does the $19.6 million value compare to other R&D contracts for similar technologies?
The $19.6 million contract value for a 3-year R&D effort in electro-optic sensing and electronic warfare is considered moderate within the defense sector. Larger, more mature programs or those involving extensive hardware development and testing can easily reach hundreds of millions or even billions of dollars. However, for focused R&D aimed at developing specific technological advancements or prototypes, this figure is within a typical range. The complexity, novelty, and maturity of the technology being researched significantly influence contract values. This award suggests a targeted investment rather than a full-scale production or system deployment.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks with a CPFF contract for R&D revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government reimburses allowable costs. If R&D proves more complex or expensive than initially estimated, costs can escalate, potentially exceeding the government's budget expectations. The risk for the contractor is that their actual costs might exceed the estimated costs, reducing their effective profit margin if the fixed fee is insufficient. For the government, the risk is paying higher-than-expected costs without a guaranteed proportional increase in delivered capability or performance, necessitating robust oversight to manage scope and expenditures.
How effective are full and open competitions in ensuring the best value for taxpayers in defense R&D?
Full and open competitions are generally considered the most effective method for ensuring the best value for taxpayers in defense R&D. By soliciting bids from all responsible sources, the government maximizes the pool of potential solutions and fosters a competitive environment. This competition drives innovation, encourages contractors to offer competitive pricing, and allows the government to select the proposal that best balances technical merit, cost, and risk. While the process can be more time-consuming and resource-intensive than other methods, it significantly reduces the risk of paying inflated prices or settling for suboptimal technology, ultimately serving taxpayer interests by promoting efficiency and technological advancement.
What is the typical duration for R&D contracts in advanced defense technologies like electronic warfare?
The typical duration for R&D contracts in advanced defense technologies can vary significantly based on the project's scope, complexity, and technological maturity. Early-stage research might last 1-2 years, focusing on feasibility studies or proof-of-concept demonstrations. More advanced development, prototyping, and system integration efforts, like those potentially involved in electro-optic sensing and electronic warfare, often span 3-5 years. Some highly complex, multi-phase R&D programs can extend even longer, potentially over a decade, especially if they involve fundamental scientific breakthroughs or iterative development cycles. The 1457-day duration (approximately 4 years) for this contract is well within the typical range for developing sophisticated defense systems.
What are the implications of the NAICS code 541715 for this contract?
The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that this contract is focused on scientific inquiry and experimentation to advance knowledge and understanding in these fields. For this specific contract, it means the work involves developing new technologies or improving existing ones related to physical sciences, engineering principles, and potentially life sciences, specifically applied to electro-optic sensing and electronic warfare. This classification suggests the contract is for innovative, forward-looking work rather than routine services or product manufacturing, and it helps categorize spending for economic analysis and benchmarking purposes.
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: FA865020S1119
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: $39,176,064
Exercised Options: $38,549,797
Current Obligation: $19,604,613
Actual Outlays: $217,632
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $7,858,962
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-12-22
Current End Date: 2026-12-18
Potential End Date: 2026-12-18 00:00:00
Last Modified: 2026-01-05
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