DoD's $12.3M Missile Warning Contract Awarded to Leidos, Inc. for Engineering Services
Contract Overview
Contract Amount: $12,349,025 ($12.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-07-08
End Date: 2029-01-07
Contract Duration: 1,644 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: STATEMENT OF WORK (SOW) - MISSILE WARNING MISSILE TRACK (MWMT) ENHANCEMENT.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $12.3 million to LEIDOS, INC. for work described as: STATEMENT OF WORK (SOW) - MISSILE WARNING MISSILE TRACK (MWMT) ENHANCEMENT. Key points: 1. Contract focuses on enhancing missile warning and tracking capabilities. 2. Awarded under full and open competition, suggesting broad market engagement. 3. Leidos, Inc. has a significant presence in defense contracting. 4. The contract duration of over 1600 days indicates a long-term need. 5. Cost-plus incentive fee structure aims to balance contractor performance and cost control. 6. The specific engineering services required are critical for national security.
Value Assessment
Rating: good
The contract value of $12.3 million for engineering services related to missile warning and tracking appears reasonable given the scope and duration. Benchmarking against similar complex engineering contracts within the Department of Defense suggests that this pricing is within an expected range. The cost-plus incentive fee (CPIF) structure allows for adjustments based on performance, which can lead to better value if the contractor meets or exceeds targets. However, without detailed cost breakdowns, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of three bidders, as suggested by the 'no' field, points to a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and innovative solutions for the government compared to sole-source or limited competition awards.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive environment that can lead to lower prices and better quality services, ensuring that government funds are used efficiently.
Public Impact
The primary beneficiaries are the Department of Defense and national security apparatus, receiving enhanced missile warning and tracking capabilities. Services delivered include critical engineering support for advanced defense systems. The geographic impact is likely concentrated within defense installations and operational areas, with potential global implications for threat assessment. Workforce implications include specialized engineering roles within Leidos, Inc. and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee contracts can sometimes lead to cost overruns if not managed diligently.
- The complexity of missile warning systems introduces inherent technical risks.
- Long contract durations may require ongoing vigilance to ensure continued relevance and efficiency.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Leidos, Inc. is an established contractor with significant experience in defense and engineering.
- The incentive fee structure provides a mechanism for rewarding superior performance.
- The contract addresses a critical national security requirement.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced defense systems. The market for defense engineering services is substantial, driven by continuous modernization efforts and evolving threat landscapes. Comparable spending benchmarks for similar complex system enhancements within the Department of Defense would typically range in the tens to hundreds of millions of dollars over several years, depending on the scale and technological sophistication.
Small Business Impact
The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, there is potential for small businesses to participate as subcontractors to the prime contractor, Leidos, Inc. However, the extent of small business involvement will depend on Leidos's subcontracting strategy and the specific needs of the Statement of Work.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of the Air Force, a component of the Department of Defense. Accountability measures will be embedded within the Cost Plus Incentive Fee (CPIF) structure, linking contractor payment to performance metrics. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems
- Early Warning Systems
- Aerospace Engineering Services
- Department of Defense Research and Development
- Advanced Technology Development
Risk Flags
- Potential for cost overruns in CPIF contracts.
- Technical complexity of missile warning systems.
- Integration challenges with existing defense infrastructure.
Tags
defense, department-of-defense, air-force, engineering-services, missile-warning, missile-tracking, full-and-open-competition, cost-plus-incentive-fee, delivery-order, leidos-inc, colorado, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.3 million to LEIDOS, INC.. STATEMENT OF WORK (SOW) - MISSILE WARNING MISSILE TRACK (MWMT) ENHANCEMENT.
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 $12.3 million.
What is the period of performance?
Start: 2024-07-08. End: 2029-01-07.
What is Leidos, Inc.'s track record with similar missile defense or warning system contracts?
Leidos, Inc. has a substantial track record in supporting defense programs, including those related to command, control, communications, computers, and intelligence (C4I), as well as sensor systems and data analytics. While specific details on their involvement in missile warning and tracking system enhancements are not fully detailed in this summary, their broad expertise in complex defense engineering and integration suggests a capacity to handle such requirements. The company frequently partners with government agencies on critical national security initiatives, often securing large-scale contracts. A deeper dive into their contract history with the Department of Defense and other agencies would reveal the extent and success of their prior work on comparable systems, including performance metrics and any past issues.
How does the $12.3 million value compare to other missile warning system enhancement contracts?
The $12.3 million contract value for the Missile Warning Missile Track (MWMT) Enhancement is a moderate figure for a multi-year engineering services contract within the defense sector. Contracts for developing or significantly enhancing missile warning and tracking systems can vary widely, often ranging from tens of millions to hundreds of millions of dollars, especially when encompassing hardware development, full system integration, and extensive testing. This particular award, focused on 'enhancement' and awarded as a delivery order under a larger vehicle (implied by 'aw': 'DELIVERY ORDER'), suggests it might be a specific phase or component of a broader program. Compared to full-scale system development or acquisition contracts, $12.3 million is on the lower end, indicating a focused scope of engineering services rather than a complete system overhaul or new platform development.
What are the primary technical risks associated with this missile warning system enhancement contract?
The primary technical risks associated with this contract likely stem from the inherent complexity of missile warning and tracking systems. These systems rely on sophisticated sensor fusion, advanced algorithms for detection and trajectory prediction, and seamless integration with command and control networks. Risks include potential challenges in achieving the required detection ranges and accuracy, difficulties in distinguishing real threats from decoys or clutter, and ensuring real-time data processing and dissemination under high-stress operational conditions. Furthermore, integrating new enhancements with legacy systems can introduce compatibility issues. The cost-plus incentive fee (CPIF) structure aims to mitigate some financial risks by incentivizing performance, but technical hurdles in achieving specific performance thresholds remain a significant concern.
What is the expected program effectiveness or impact of these enhancements?
The expected program effectiveness of these Missile Warning Missile Track (MWMT) enhancements is to significantly improve the Department of Defense's ability to detect, track, and respond to missile threats. Enhanced capabilities could lead to earlier warning times, increased accuracy in threat identification and trajectory prediction, and better situational awareness for commanders. This directly contributes to national security by providing a more robust defense posture against ballistic and cruise missile attacks. The specific impact will depend on the nature of the enhancements, but generally, such upgrades aim to reduce the probability of successful enemy missile launches going undetected and increase the effectiveness of defensive countermeasures.
How has federal spending on missile warning and tracking systems evolved over the past five years?
Federal spending on missile warning and tracking systems has generally seen a consistent or increasing trend over the past five years, driven by evolving geopolitical threats and the need to modernize aging systems. While specific figures fluctuate annually based on program priorities and budget allocations, significant investments are continuously made across various branches of the military (Army, Navy, Air Force) and agencies like the Missile Defense Agency (MDA). This spending encompasses research and development, procurement of new platforms and sensors, sustainment of existing systems, and integration efforts. The $12.3 million award to Leidos represents a component of this broader, sustained investment in maintaining and enhancing critical early warning capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, 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: $51,443,982
Exercised Options: $51,443,982
Current Obligation: $12,349,025
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $8,040,880
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU122
IDV Type: IDC
Timeline
Start Date: 2024-07-08
Current End Date: 2029-01-07
Potential End Date: 2029-01-07 00:00:00
Last Modified: 2026-01-16
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