DoD's $29.1M Systems Engineering Contract for Air Force Planning Enterprise Shows Fair Value Amidst Limited Competition
Contract Overview
Contract Amount: $29,102,432 ($29.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-12-23
End Date: 2020-12-31
Contract Duration: 374 days
Daily Burn Rate: $77.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: SYSTEMS ENGINEERING&INTEGRATION CONTRACT II - INTEGRATION FOR SUPPLIES AND SUPPORT NECESSARY TO DEVELOP AND MAINTAIN THE US REQUIREMENTS OF THE MISSING PLANNING ENTERPRISE
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.1 million to LEIDOS, INC. for work described as: SYSTEMS ENGINEERING&INTEGRATION CONTRACT II - INTEGRATION FOR SUPPLIES AND SUPPORT NECESSARY TO DEVELOP AND MAINTAIN THE US REQUIREMENTS OF THE MISSING PLANNING ENTERPRISE Key points: 1. The contract awarded to Leidos, Inc. for $29.1M focuses on critical systems engineering and integration for the Air Force's planning enterprise. 2. While the contract type is Cost Plus Incentive Fee, the specific performance metrics and their impact on final cost are not detailed, posing a potential risk. 3. The sector is R&D, specifically within physical, engineering, and life sciences, which often involves complex and evolving requirements. 4. The limited competition aspect, despite being a delivery order under a larger contract, warrants scrutiny regarding price discovery and overall value for taxpayer dollars.
Value Assessment
Rating: fair
The Cost Plus Incentive Fee (CPIF) contract type suggests an attempt to align contractor incentives with government goals. However, without detailed performance metrics and benchmark data for similar integration contracts, assessing the true value and cost-effectiveness is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was awarded as a delivery order, implying it falls under a pre-existing contract vehicle. The limited competition nature, even if within a broader IDIQ, can restrict price discovery and potentially lead to higher costs compared to full and open competition.
Taxpayer Impact: The limited competition may result in a less optimal price for taxpayers, as robust market competition is curtailed. Further analysis of the base contract's competition is needed.
Public Impact
Ensures critical planning capabilities for the U.S. Air Force, impacting operational readiness and strategic planning. Supports advanced systems engineering and integration, crucial for complex defense systems. Potential for cost overruns due to the CPIF contract type if not managed tightly.
Waste & Efficiency Indicators
Waste Risk Score: 77 / 10
Warning Flags
- Limited competition for delivery order
- Cost Plus Incentive Fee contract type
- Lack of detailed performance metrics for CPIF
Positive Signals
- Supports critical Air Force planning enterprise
- Experienced contractor (Leidos, Inc.)
- Delivery order under a potentially larger, competitive vehicle
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) sector. Spending in this area is often characterized by high complexity, long development cycles, and significant investment in innovation. Benchmarks are difficult due to the specialized nature of R&D.
Small Business Impact
The data indicates the prime contractor is Leidos, Inc., a large business. There is no explicit information provided regarding small business participation or subcontracting goals for this specific delivery order.
Oversight & Accountability
Oversight would typically be managed by the Department of the Air Force contracting officers and program managers. The effectiveness of oversight depends on the clarity of contract terms, performance monitoring, and adherence to reporting requirements, especially with CPIF contracts.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type
- Limited competition may lead to suboptimal pricing
- Lack of detailed performance metrics for incentive fee
- Unclear long-term strategic benefits beyond operational support
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.1 million to LEIDOS, INC.. SYSTEMS ENGINEERING&INTEGRATION CONTRACT II - INTEGRATION FOR SUPPLIES AND SUPPORT NECESSARY TO DEVELOP AND MAINTAIN THE US REQUIREMENTS OF THE MISSING PLANNING ENTERPRISE
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 $29.1 million.
What is the period of performance?
Start: 2019-12-23. End: 2020-12-31.
What specific performance metrics are tied to the incentive fee in this CPIF contract, and how do they ensure optimal value for the Air Force's planning enterprise?
The provided data does not specify the performance metrics linked to the incentive fee. For a CPIF contract, these metrics are crucial for aligning contractor efforts with government objectives and ensuring cost efficiency. Without this information, it's difficult to ascertain if the incentive structure effectively drives desired outcomes or if it presents a risk of cost overruns without commensurate performance gains.
How does the limited competition for this delivery order impact the overall cost-effectiveness and risk profile compared to a full and open competition scenario for similar systems engineering service
Limited competition generally reduces price pressure, potentially leading to higher costs for the government. While this is a delivery order, suggesting it might be under a pre-existing contract, the lack of broad market engagement limits the government's ability to secure the most competitive pricing. This increases the risk of paying a premium and may reduce the incentive for the contractor to optimize costs.
What is the long-term strategic value and potential for technological advancement derived from this $29.1M investment in the Air Force's planning enterprise systems?
The contract aims to develop and maintain the U.S. requirements of the Air Force's planning enterprise, suggesting a direct impact on operational capabilities and strategic decision-making. The value lies in enhancing the effectiveness and efficiency of military planning. However, the specific technological advancements or long-term strategic benefits are not detailed, making it hard to quantify the return on investment beyond immediate operational support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $30,130,976
Exercised Options: $30,130,976
Current Obligation: $29,102,432
Actual Outlays: $8,700,157
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $4,484,373
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA873017D0004
IDV Type: IDC
Timeline
Start Date: 2019-12-23
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2024-09-10
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