Leidos Inc. awarded $24.1M for R&D in physical, engineering, and life sciences

Contract Overview

Contract Amount: $24,097,448 ($24.1M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-12-16

End Date: 2024-12-15

Contract Duration: 730 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENABLING TECHNOLOGIES FOR HIGH-SPEED OPERABLE SYSTEMS (ETHOS)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to LEIDOS, INC. for work described as: ENABLING TECHNOLOGIES FOR HIGH-SPEED OPERABLE SYSTEMS (ETHOS) Key points: 1. Contract focuses on research and development, indicating investment in future capabilities. 2. Full and open competition suggests a potentially competitive bidding process. 3. Cost Plus Fixed Fee contract type may present cost control challenges. 4. The contract duration of 730 days allows for sustained research efforts. 5. The NAICS code 541715 points to specialized scientific research services. 6. The award is managed by the Defense Contract Management Agency, implying a defense-related focus.

Value Assessment

Rating: fair

The contract value of $24.1 million for a two-year research and development effort appears within a reasonable range for specialized scientific services. However, without specific benchmarks for the 'Enabling Technologies for High-Speed Operable Systems (ETHOS)' project, a precise value-for-money assessment is difficult. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring to ensure costs remain controlled and that the fixed fee remains appropriate for the effort expended. Comparing this to similar R&D contracts within the Department of Defense would provide further context on its pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This method is generally preferred for maximizing competition and potentially achieving better pricing. The number of bidders is not specified, but the open competition indicates a broad search for the best technical solution and value. This approach aims to ensure that the government receives the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives a more rigorous bidding process, potentially leading to lower overall costs and a wider array of innovative solutions being considered.

Public Impact

The primary beneficiaries are likely the Department of Defense and its operational units, which will gain from advancements in high-speed operable systems. The services delivered involve cutting-edge research and development in physical, engineering, and life sciences. The geographic impact is primarily within the United States, supporting domestic research capabilities. Workforce implications may include highly skilled scientists, engineers, and researchers employed by Leidos, Inc. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to achieve the fixed fee, requiring robust oversight.
  • The specialized nature of R&D may lead to unforeseen challenges and cost overruns if not managed effectively.
  • Defining clear deliverables and performance metrics for R&D can be challenging, potentially impacting accountability.

Positive Signals

  • Awarded under full and open competition, suggesting a competitive environment that can drive value.
  • The contract duration allows for sustained effort and potential for significant research breakthroughs.
  • Leidos, Inc. is a large, established contractor with significant experience in government R&D, suggesting a capable partner.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization, aiming to develop advanced technologies that provide a strategic advantage. The market for such specialized R&D is competitive, with a mix of large prime contractors and smaller, specialized firms. Spending in this area is often driven by evolving threats and the need for technological superiority.

Small Business Impact

The contract does not indicate any specific small business set-aside. As a large contract awarded to a prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business involvement will depend on Leidos, Inc.'s subcontracting plan and the specific needs of the research project. Without explicit set-aside provisions, small business participation is not guaranteed.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting agency (Department of Defense) and potentially the Defense Contract Management Agency (DCMA). Accountability measures will be tied to the performance metrics and milestones outlined in the Cost Plus Fixed Fee contract. Transparency will depend on the agency's reporting practices regarding R&D expenditures and outcomes. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Advanced Research Projects Agency (ARPA) initiatives
  • Department of Defense Science and Technology Programs
  • National Science Foundation (NSF) Research Grants
  • Department of Energy (DOE) Research Programs

Risk Flags

  • Cost Plus Fixed Fee contract type requires careful monitoring to manage costs.
  • Research and Development projects inherently carry a risk of not achieving desired outcomes.
  • The specialized nature of the R&D may limit the pool of potential follow-on contractors.

Tags

research-and-development, department-of-defense, leidos-inc, cost-plus-fixed-fee, full-and-open-competition, defense-contract-management-agency, physical-engineering-life-sciences, high-speed-operable-systems, virginia, delivery-order

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to LEIDOS, INC.. ENABLING TECHNOLOGIES FOR HIGH-SPEED OPERABLE SYSTEMS (ETHOS)

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2022-12-16. End: 2024-12-15.

What is the specific technological focus of the 'Enabling Technologies for High-Speed Operable Systems (ETHOS)' project?

The provided data does not detail the specific technological focus of the 'Enabling Technologies for High-Speed Operable Systems (ETHOS)' project beyond its classification under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). This broad classification suggests the project could encompass a wide range of advanced research, potentially including areas like advanced materials, propulsion systems, high-speed computing, sensor technology, or novel operational methodologies. Further details would typically be found in the contract's statement of work or technical exhibits, which are not included in the provided summary data. Understanding the precise objectives is crucial for assessing the project's potential impact and value.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and cost control?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work can be uncertain. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure shifts some of the cost risk to the government, as the contractor is incentivized to control costs to protect their fee, but the government bears the ultimate cost burden if expenses exceed estimates. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for evolving R&D requirements but less cost certainty for the government. It is generally considered less risky for the contractor than FFP but requires robust government oversight to manage costs effectively and ensure the fixed fee remains appropriate for the effort.

What is Leidos, Inc.'s track record with similar Department of Defense R&D contracts?

Leidos, Inc. is a major government contractor with extensive experience across various defense and intelligence sectors, including significant involvement in research and development. While specific details on their track record with 'Enabling Technologies for High-Speed Operable Systems' are not provided, the company has a history of performing complex R&D, systems integration, and technology development for the Department of Defense. They have been awarded numerous contracts for advanced research, engineering services, and scientific support. Their financial stability and established infrastructure suggest a capacity to manage large-scale R&D projects. A deeper analysis would involve reviewing their past performance evaluations and the success rates of comparable projects they have undertaken.

What are the potential long-term implications of this R&D investment for national security?

Investments in R&D for enabling technologies, particularly those related to high-speed operable systems, can have significant long-term implications for national security. Advancements in this area could lead to enhanced military capabilities, improved operational effectiveness, and a strategic advantage over potential adversaries. This might include faster response times, more resilient systems, or novel operational concepts. The research could also spur innovation in related commercial sectors, indirectly benefiting the broader economy and technological base. Ultimately, successful R&D outcomes can contribute to maintaining technological superiority and ensuring national defense readiness in a rapidly evolving global landscape.

How does the $24.1 million award compare to historical spending on similar R&D categories by the Department of Defense?

The $24.1 million award for this specific R&D effort needs to be contextualized within the broader Department of Defense (DoD) R&D budget. The DoD consistently invests billions of dollars annually across various science and technology categories, including physical, engineering, and life sciences. While $24.1 million is a substantial sum for a single contract, it represents a small fraction of the total DoD R&D spending. For instance, the DoD's R&D budget often exceeds $100 billion annually. Therefore, this contract, while significant for the specific project, is one of many investments the DoD makes to advance its technological capabilities across numerous domains. Benchmarking against other contracts within NAICS 541715 or specific defense research programs would provide more granular comparisons.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA865017S2002

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: $24,097,448

Exercised Options: $24,097,448

Current Obligation: $24,097,448

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $9,374,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865023D2400

IDV Type: IDC

Timeline

Start Date: 2022-12-16

Current End Date: 2024-12-15

Potential End Date: 2024-12-15 00:00:00

Last Modified: 2025-06-03

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