Leidos Inc. awarded $78.5M contract for Royal Saudi Air Force engineering services by the Department of the Air Force
Contract Overview
Contract Amount: $78,485,542 ($78.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-06-30
End Date: 2026-06-29
Contract Duration: 1,095 days
Daily Burn Rate: $71.7K/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 $78.5 million to LEIDOS, INC. for work described as: CONTRACTOR, ENGINEERING AND TECHNICAL SERVICES FOR THE ROYAL SAUDI AIR FORCE Key points: 1. Contract value of $78.5M over three years suggests a significant, ongoing need for specialized engineering support. 2. The firm fixed-price contract type indicates that cost risks are primarily borne by the contractor, Leidos, Inc. 3. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component of defense support. 5. The contract's duration of 1095 days (3 years) aligns with typical long-term defense support agreements. 6. The contract is categorized under the 'Engineering Services' sector, highlighting specialized technical expertise.
Value Assessment
Rating: good
The contract value of $78.5 million over three years for engineering and technical services for the Royal Saudi Air Force appears reasonable given the scope. Benchmarking against similar international defense support contracts is challenging without more specific service details. However, the firm fixed-price structure suggests Leidos, Inc. has committed to delivering services within a defined budget, which can be advantageous for the government if managed effectively. The award amount is within the expected range for complex, long-term engineering support for a major foreign military sale.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests that the Department of the Air Force sought the best value from a wide range of qualified contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages contractors to offer competitive pricing to win the award.
Public Impact
The primary beneficiaries are the Royal Saudi Air Force, receiving essential engineering and technical support to maintain and enhance their air capabilities. Services delivered include engineering and technical support, crucial for the operational readiness and effectiveness of military aircraft. The geographic impact is primarily focused on Saudi Arabia, where the Royal Saudi Air Force operates. Workforce implications may include the deployment of specialized engineering and technical personnel by Leidos, Inc. to support the contract's requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Geopolitical risks associated with international defense contracts could impact performance or continuity.
- Dependence on specific technical expertise may create single points of failure if not adequately mitigated.
Positive Signals
- Leidos, Inc. has a strong track record in defense contracting and complex engineering solutions.
- The firm fixed-price contract structure incentivizes contractor efficiency and cost control.
- Awarded under full and open competition, suggesting a thorough evaluation of multiple proposals.
Sector Analysis
This contract falls within the broader defense industry, specifically supporting foreign military sales. The market for specialized engineering and technical services in defense is substantial, driven by the need for advanced technological support for military platforms. Leidos, Inc. operates in a competitive landscape with other major defense contractors vying for similar international support agreements. Spending benchmarks for such services are highly variable, depending on the specific aircraft, systems, and duration of support required.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, Leidos, Inc., as a large prime contractor, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force, likely through program management offices responsible for foreign military sales and contractor performance. Accountability measures are embedded in the firm fixed-price contract terms, requiring Leidos, Inc. to deliver specified services within the agreed budget. Transparency is generally maintained through contract awards databases and reporting requirements, though specific operational details may be sensitive.
Related Government Programs
- Foreign Military Sales (FMS) Program
- Air Force Engineering and Technical Services
- Defense Contractor Support Services
- International Defense Cooperation
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Geopolitical instability impacting international defense agreements.
- Contractor performance risk in delivering complex engineering solutions.
- Dependence on specific technical expertise.
Tags
defense, engineering-services, foreign-military-sales, department-of-the-air-force, leidos-inc, firm-fixed-price, full-and-open-competition, royal-saudi-air-force, international-contract, technical-support, delivery-order, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.5 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 $78.5 million.
What is the period of performance?
Start: 2023-06-30. End: 2026-06-29.
What is Leidos, Inc.'s track record with similar international defense engineering contracts?
Leidos, Inc. has a substantial and well-established track record in providing engineering and technical services to various defense organizations, including international partners. They have been involved in numerous complex projects supporting military aircraft, command and control systems, and other defense platforms. Their experience often includes lifecycle support, sustainment, modernization, and training. For instance, Leidos has previously supported U.S. military branches and allied nations with similar engineering solutions. While specific details on contracts identical to this one for the Royal Saudi Air Force are not publicly detailed, their broad portfolio in defense systems integration and sustainment suggests a strong capability to handle such requirements. Their history indicates a capacity to manage large-scale, long-term contracts involving significant technical expertise and international coordination.
How does the $78.5 million contract value compare to similar engineering support contracts for foreign air forces?
Comparing the $78.5 million contract value requires context regarding the specific services, duration, and scope. Contracts for engineering and technical support for major air forces can range widely. For a three-year period, $78.5 million is a significant but not extraordinary amount for comprehensive support of a substantial air fleet, especially if it includes advanced systems, maintenance planning, technical data management, and specialized engineering expertise. For example, similar contracts for U.S. allies supporting platforms like the F-15 or F-35 can easily reach tens or hundreds of millions of dollars over several years. The value suggests a robust package of services is being provided, likely encompassing significant technical labor and program management, aligning with the needs of a major air force like Saudi Arabia's.
What are the primary risks associated with this contract for the Department of the Air Force?
The primary risks for the Department of the Air Force (DAF) in this contract revolve around ensuring effective performance and value for money, especially given the international context. One key risk is contractor performance; ensuring Leidos, Inc. consistently meets the technical and operational requirements of the Royal Saudi Air Force (RSAF) is crucial. Another risk is related to geopolitical factors and potential changes in international relations that could affect the contract's execution or continuation. Furthermore, managing the firm fixed-price nature requires diligent oversight to prevent cost overruns if unforeseen issues arise that are not clearly defined in the contract scope. There's also a risk of knowledge transfer and ensuring that the RSAF gains sufficient technical understanding to reduce long-term reliance on external support, although this is often a secondary objective.
How effective is the firm fixed-price contract type in managing costs for this type of engineering service?
The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For engineering and technical services, FFP shifts the primary cost risk to the contractor, Leidos, Inc. This incentivizes Leidos to control its own costs and operate efficiently to maximize profit. For the Department of the Air Force (DAF), this means greater cost certainty, as the total price is fixed. However, effectiveness hinges on the initial scope definition; if requirements evolve or unforeseen technical challenges emerge that were not anticipated, the contractor may seek change orders, potentially increasing costs. Robust contract management and clear initial requirements are essential for FFP to deliver its cost-control benefits in complex engineering services.
What is the historical spending pattern for engineering services provided to the Royal Saudi Air Force by the U.S. Department of Defense?
Historical spending patterns for engineering services provided to the Royal Saudi Air Force (RSAF) through U.S. Department of Defense (DoD) channels, particularly via Foreign Military Sales (FMS), have been substantial over the years. The RSAF operates a large and diverse inventory of U.S.-origin aircraft and associated systems, necessitating ongoing technical support, training, and maintenance services. While specific aggregated figures for 'engineering services' alone are not always publicly itemized, the overall FMS program with Saudi Arabia represents billions of dollars in defense articles and services. Contracts for sustainment, logistics, and technical support are recurring. This $78.5 million contract for Leidos, Inc. fits within this broader pattern of sustained U.S. support for RSAF's defense capabilities, reflecting a long-standing security cooperation relationship.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $108,094,086
Exercised Options: $92,501,006
Current Obligation: $78,485,542
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $19,785,419
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: 2023-06-30
Current End Date: 2026-06-29
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-11-24
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