DoD's $27M Mojave Phase II R&D Contract Awarded to Leidos, Inc. Lacks Competition

Contract Overview

Contract Amount: $27,007,062 ($27.0M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-04-08

End Date: 2015-02-28

Contract Duration: 1,422 days

Daily Burn Rate: $19.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MOJAVE PHASE II

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to LEIDOS, INC. for work described as: MOJAVE PHASE II Key points: 1. Leidos, Inc. secured a $27M contract for R&D services. 2. The contract was awarded under a 'NOT COMPETED' strategy. 3. This R&D falls under NAICS code 541712, focusing on physical, engineering, and life sciences. 4. The contract duration was 1422 days, ending in February 2015.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $27M price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may have resulted in a higher price than could have been achieved through a bidding process, impacting taxpayer value.

Public Impact

Research and Development funding allocated to a single contractor. Potential for increased costs due to non-competitive award. Limited transparency on the justification for sole-source procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Fixed Fee contract type
  • Potential for cost overruns

Positive Signals

  • Contract awarded to a known entity (Leidos, Inc.)
  • Specific R&D focus

Sector Analysis

This contract falls within the Research and Development sector, specifically physical, engineering, and life sciences. Spending in this area is crucial for innovation but requires careful oversight to ensure value for money, especially in non-competitive awards.

Small Business Impact

The contract was awarded to Leidos, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The 'NOT COMPETED' status raises questions about the oversight process and justification for bypassing competitive procedures. Further review of the justification documentation is warranted.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Lack of competitive bidding
  • Potential for inflated costs
  • Limited transparency on justification
  • Cost Plus Fixed Fee structure risks

Tags

research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to LEIDOS, INC.. MOJAVE PHASE II

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 $27.0 million.

What is the period of performance?

Start: 2011-04-08. End: 2015-02-28.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review of the contract file would be necessary to determine the specific justification (e.g., urgent need, unique capability) and assess its adequacy. Without this information, it's impossible to fully evaluate the necessity of a sole-source award and its potential impact on cost.

How was the 'fair and reasonable' price determined for this Cost Plus Fixed Fee contract without competitive bids?

Determining a fair and reasonable price for a sole-source Cost Plus Fixed Fee contract typically involves detailed cost analysis, benchmarking against similar services, and negotiation. The agency would need to scrutinize Leidos's proposed costs, including direct costs, indirect costs, and the fixed fee, to ensure they align with industry standards and the scope of work.

What were the key research and development outcomes achieved under the Mojave Phase II contract, and did they meet expectations?

The effectiveness of the R&D effort is not detailed in the provided data. Assessing the value requires examining project milestones, deliverables, and the ultimate impact of the research. Without performance reports or outcome assessments, it's difficult to gauge whether the $27M investment yielded the expected technological advancements or solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 11951 FREEDOM DR, 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: $27,007,062

Exercised Options: $27,007,062

Current Obligation: $27,007,062

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2011-04-08

Current End Date: 2015-02-28

Potential End Date: 2015-02-28 00:00:00

Last Modified: 2025-04-21

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