DoD's $75M SEIC Contract II Awarded to Leidos, Inc. for R&D Services
Contract Overview
Contract Amount: $74,959,259 ($75.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2024-12-31
Contract Duration: 730 days
Daily Burn Rate: $102.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: SYSTEM ENGINEERING INTEGRATION (SEIC) CONTRACT II
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $75.0 million to LEIDOS, INC. for work described as: SYSTEM ENGINEERING INTEGRATION (SEIC) CONTRACT II Key points: 1. Leidos, Inc. secured a significant contract for R&D services, indicating strong capabilities in systems engineering. 2. The contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector, a critical area for defense innovation. 3. Full and open competition suggests a robust price discovery process, though the Time and Materials pricing model warrants scrutiny. 4. The contract's duration of two years and substantial value highlight its importance to the Air Force's operational needs.
Value Assessment
Rating: fair
The Time and Materials (T&M) pricing structure can lead to cost overruns if not closely managed. Benchmarking against similar T&M contracts for systems engineering integration is difficult without detailed labor categories and rates, but the overall value suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the Time and Materials (T&M) pricing model, while flexible, can obscure true cost efficiency compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being utilized for critical R&D, with the potential for cost efficiencies gained through competition tempered by the T&M pricing structure.
Public Impact
Supports advanced research and development for the Department of the Air Force. Potential for technological advancements that could enhance national security. The contract's success relies on effective project management and oversight to control costs under the T&M model.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing model
- Lack of specific performance metrics in provided data
- Potential for scope creep
Positive Signals
- Full and open competition
- Awarded to a known entity (Leidos)
- Supports critical R&D mission
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) sector (NAICS 541712). Spending in this sector is crucial for technological advancement, particularly within defense agencies, and often involves significant investment due to the inherent uncertainties of research.
Small Business Impact
The provided data does not indicate any specific subcontracting goals for small businesses on this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight will be critical to manage the Time and Materials aspects of this contract, ensuring that costs remain within reasonable bounds and that the project delivers on its research and development objectives effectively.
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 Time and Materials pricing.
- Lack of defined fixed deliverables or milestones.
- Complexity of systems engineering integration can lead to unforeseen challenges.
- Dependence on contractor's expertise and resource allocation.
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 $75.0 million to LEIDOS, INC.. SYSTEM ENGINEERING INTEGRATION (SEIC) CONTRACT II
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 $75.0 million.
What is the period of performance?
Start: 2023-01-01. End: 2024-12-31.
What specific systems engineering integration challenges does this contract aim to address for the Air Force?
The contract likely addresses complex integration challenges within Air Force systems, potentially involving software, hardware, and network components. This could include ensuring interoperability between different platforms, enhancing cybersecurity, or developing new capabilities for advanced aircraft or communication systems. The 'SEIC' acronym suggests a focus on the overarching integration of various technical elements to achieve mission success.
How does the Time and Materials pricing structure mitigate or exacerbate risks associated with R&D projects?
T&M offers flexibility for R&D where scope can be uncertain, allowing adaptation to evolving requirements. However, it increases financial risk for the government, as costs are directly tied to labor hours and material expenses, potentially leading to budget overruns if not rigorously managed and monitored. This necessitates strong oversight to ensure efficiency and prevent scope creep.
What are the key performance indicators (KPIs) used to measure the effectiveness of this systems engineering integration contract?
Effectiveness is likely measured through a combination of technical milestones, successful integration of system components, adherence to project timelines, and meeting defined performance specifications. For R&D, success might also be gauged by the successful development of prototypes, proof-of-concept demonstrations, or the transition of developed technologies into operational use, alongside cost control within the T&M framework.
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: TIME AND MATERIALS (Y)
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: $92,530,903
Exercised Options: $78,290,021
Current Obligation: $74,959,259
Actual Outlays: $267,575
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $8,335,391
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: 2023-01-01
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-09-24
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