Leidos Awarded $52.8M Engineering Services Contract for Royal Saudi Air Force by DoD
Contract Overview
Contract Amount: $52,783,554 ($52.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-10-30
End Date: 2023-06-30
Contract Duration: 1,339 days
Daily Burn Rate: $39.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACTOR ENGINEERING AND TECHNICAL SERVICES FOR THE ROYAL SAUDI AIR FORCE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $52.8 million to LEIDOS, INC. for work described as: CONTRACTOR ENGINEERING AND TECHNICAL SERVICES FOR THE ROYAL SAUDI AIR FORCE Key points: 1. Contract awarded to Leidos, Inc. for engineering and technical services. 2. Significant contract value of $52.8 million over nearly 4 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Services are for the Royal Saudi Air Force, indicating international defense support. 5. The contract falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: good
The contract value of $52.8 million for nearly 4 years of service appears reasonable given the scope of engineering and technical support for a foreign military. Benchmarking against similar international defense support contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to more competitive pricing and better value for the government. The price discovery mechanism is robust due to multiple bidders vying for the contract.
Taxpayer Impact: While this contract supports a foreign ally, the competitive nature of the award suggests efficient use of resources. Taxpayer impact is indirect, primarily through supporting allied defense capabilities.
Public Impact
Enhances the operational capabilities of the Royal Saudi Air Force through specialized engineering and technical support. Strengthens international partnerships and defense cooperation between the US and Saudi Arabia. Contributes to regional security and stability by ensuring the effectiveness of allied air assets. Supports high-skilled jobs in the engineering and defense sectors within the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term engineering support contracts.
- Geopolitical risks associated with supporting foreign military operations.
- Dependence on a single contractor for critical technical services.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Long-term contract provides stability and predictable support.
- Leidos is a well-established defense contractor with relevant expertise.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending in this sector is often driven by national security needs and international defense agreements. Benchmarks for similar international defense support contracts are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The prime contractor, Leidos, Inc., is a large business. There is no specific indication in the provided data whether small businesses were subcontracted for this particular award, which warrants further investigation for small business participation.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, is responsible for oversight. The contract's duration and nature suggest ongoing monitoring of performance and adherence to terms to ensure accountability and effective service delivery.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for geopolitical instability impacting contract execution.
- Risk of technology transfer to unauthorized entities.
- Dependence on foreign government cooperation for access and operations.
- Long-term sustainment costs may exceed initial projections.
- Cybersecurity risks associated with supporting foreign military networks.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.8 million to LEIDOS, INC.. CONTRACTOR ENGINEERING AND TECHNICAL SERVICES FOR THE ROYAL SAUDI AIR FORCE
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 $52.8 million.
What is the period of performance?
Start: 2019-10-30. End: 2023-06-30.
What is the specific nature of the engineering and technical services provided to the Royal Saudi Air Force, and how do they align with US foreign policy objectives?
The services likely encompass maintenance, upgrade, training, and logistical support for RSAF aircraft and related systems. This aligns with US foreign policy by bolstering a key regional partner's defense capabilities, enhancing interoperability, and contributing to shared security interests in the Middle East, thereby promoting stability.
What are the key performance indicators (KPIs) used to measure the effectiveness of Leidos's services, and how are they tracked to ensure value for money?
Effectiveness is likely measured through KPIs such as aircraft availability rates, mission success rates, response times for technical issues, and successful completion of maintenance and upgrade schedules. Performance is tracked via regular reporting, joint reviews, and potentially independent assessments to ensure services meet contractual obligations and deliver intended value.
What are the potential risks associated with providing advanced engineering and technical services to a foreign military, particularly concerning technology transfer and end-use monitoring?
Risks include unauthorized technology transfer, diversion of sensitive equipment, and potential misuse of services against unintended targets. Mitigation involves strict contractual clauses, robust end-use monitoring protocols, and adherence to international arms control agreements, ensuring technology serves its intended defensive purposes and aligns with US security interests.
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
Solicitation ID: FA873019R0032
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $160,862,977
Exercised Options: $123,995,272
Current Obligation: $52,783,554
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $8,146,960
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU322
IDV Type: IDC
Timeline
Start Date: 2019-10-30
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2023-11-17
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