Leidos Inc. awarded $15.3M for R&D services, with a significant portion allocated to a definitive contract
Contract Overview
Contract Amount: $15,312,460 ($15.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-06-13
End Date: 2010-03-20
Contract Duration: 645 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MOJAVE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.3 million to LEIDOS, INC. for work described as: MOJAVE Key points: 1. The contract value of $15.3 million for R&D services indicates a substantial investment in specialized research. 2. The definitive contract award suggests a need for long-term engagement and potentially evolving research requirements. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to highly technical and specialized services. 4. The contract duration of 645 days (approximately 1.7 years) suggests a project of moderate length and complexity. 5. The Cost Plus Fixed Fee (CPFF) contract type implies that costs are reimbursed, plus a fixed fee for profit, which can be suitable for R&D where costs are uncertain. 6. The absence of small business set-asides suggests the scope or nature of the work may not have been conducive to such provisions.
Value Assessment
Rating: fair
Benchmarking the value of this $15.3 million contract is challenging without specific details on the R&D scope. However, the Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not managed tightly, as it reimburses the contractor for incurred expenses plus a predetermined profit. Comparing this to similar R&D contracts within the physical, engineering, and life sciences sector would require access to a broader dataset of comparable projects to assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 4 bidders, this suggests a reasonable level of competition for the R&D services. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: Full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price and encourages innovation among potential contractors.
Public Impact
The primary beneficiaries are likely the Department of Defense, which will receive the results of the research and development. The services delivered are specialized R&D in physical, engineering, and life sciences, potentially leading to advancements in defense technology or capabilities. The geographic impact is primarily within Virginia, where the Defense Contract Management Agency (DCMA) is located, though the R&D itself could have broader national implications. Workforce implications may include employment for highly skilled researchers, engineers, and technical staff at Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can incentivize cost overruns if not closely monitored.
- The specific R&D outcomes and their ultimate utility are not detailed, posing a risk of investing in research that may not yield practical applications.
Positive Signals
- Full and open competition suggests a robust selection process.
- The award to Leidos, Inc., a known entity in defense contracting, may indicate a level of confidence in their capabilities.
- The definitive contract structure implies a commitment to the project's completion.
Sector Analysis
The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712 for Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). This sector is characterized by innovation, intellectual property, and often long development cycles. Spending in this area by the Department of Defense is crucial for maintaining technological superiority. Comparable spending benchmarks would typically involve analyzing other large-scale R&D contracts awarded by defense agencies for similar scientific disciplines.
Small Business Impact
This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses within the provided data. This suggests that the primary contractor, Leidos, Inc., will likely perform the majority of the work, and the direct impact on the small business ecosystem may be limited unless Leidos proactively engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), given its role in contract administration for the Department of Defense. Accountability measures would be embedded within the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Engineering Services Contracts
- Physical Sciences Research Contracts
- Life Sciences Research Contracts
Risk Flags
- Cost Overrun Risk (CPFF)
- Research Outcome Uncertainty
- Technological Obsolescence
Tags
research-and-development, department-of-defense, leidos-inc, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, physical-sciences, engineering, life-sciences, virginia, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.3 million to LEIDOS, INC.. MOJAVE
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.3 million.
What is the period of performance?
Start: 2008-06-13. End: 2010-03-20.
What is the specific nature of the research and development being conducted under this contract?
The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. However, the specific research topics, objectives, or technological areas are not detailed. This level of specificity is typically found in the contract's statement of work, which is not publicly available in this abbreviated dataset. Understanding the precise R&D focus is crucial for assessing the contract's strategic importance and potential impact.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar R&D projects?
The CPFF structure is common for R&D where the scope and costs are not fully predictable at the outset. It reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but can lead to higher costs if the contractor's expenses are greater than anticipated. Cost-Plus-Incentive-Fee (CPIF) contracts, another alternative, tie profit more directly to performance targets, potentially offering better value. The choice of CPFF suggests a higher degree of uncertainty in the R&D effort.
What is Leidos, Inc.'s track record with similar R&D contracts for the Department of Defense?
Leidos, Inc. is a major government contractor with extensive experience across various sectors, including defense and R&D. While specific details of their past performance on similar R&D contracts are not provided here, their established presence suggests a significant history of undertaking complex research projects for the DoD. A deeper analysis would involve reviewing their past performance evaluations, contract history, and any reported issues or successes on comparable projects to gauge their reliability and expertise in this specific domain.
What are the potential risks associated with a definitive contract for R&D services?
A definitive contract, especially one awarded under full and open competition, generally implies a well-defined scope and commitment. For R&D, risks can include the inherent uncertainty of research outcomes, potential for cost overruns (particularly with CPFF), and the possibility that the developed technology may not meet evolving requirements or prove commercially viable. The long-term nature of definitive contracts also means that market or technological shifts could impact the relevance of the R&D before completion. Effective oversight and clear performance metrics are crucial to mitigate these risks.
How does the $15.3 million award compare to historical spending on R&D by the Department of Defense in this specific scientific area?
Without knowing the precise R&D focus within 'Physical, Engineering, and Life Sciences,' a direct comparison is difficult. However, the Department of Defense is a significant investor in R&D across these fields, with annual spending often in the tens of billions of dollars. A $15.3 million contract is a substantial award for a single project but represents a small fraction of the DoD's overall R&D budget. To assess its relative scale, one would need to compare it to other contracts awarded for similar research objectives or within the same sub-disciplines of physical, engineering, or life sciences.
What are the implications of the contract being awarded in June 2008 and ending in March 2010?
The award date of June 13, 2008, and an end date of March 20, 2010, indicate this was a contract executed over a decade ago. The duration of approximately 645 days (about 1 year and 9 months) is moderate for an R&D project. The implications are that the technology or research outcomes developed during this period may now be considered mature, superseded, or integrated into broader systems. Analyzing historical contracts like this provides insight into past R&D priorities and contractor performance trends, but its direct relevance to current technological needs is limited.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DRIVE, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,312,460
Exercised Options: $15,312,460
Current Obligation: $15,312,460
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-06-13
Current End Date: 2010-03-20
Potential End Date: 2010-03-20 00:00:00
Last Modified: 2016-07-11
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