DoD's $72M GPS SE&I Bridge Contract Awarded to Leidos, Inc. Under Sole Source
Contract Overview
Contract Amount: $72,285,459 ($72.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-03-06
End Date: 2015-09-03
Contract Duration: 546 days
Daily Burn Rate: $132.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: IGF::CT::IGF GLOBAL POSITIONING SYSTEM (GPS) SYSTEMS ENGINEERING AND INTEGRATION (SE&I) BRIDGE 4.0
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $72.3 million to LEIDOS, INC. for work described as: IGF::CT::IGF GLOBAL POSITIONING SYSTEM (GPS) SYSTEMS ENGINEERING AND INTEGRATION (SE&I) BRIDGE 4.0 Key points: 1. Leidos, Inc. secured a $72.3M contract for GPS SE&I services. 2. The contract was awarded on a sole-source basis, limiting competition. 3. The R&D sector for physical and engineering sciences is a key area for defense spending. 4. Potential risks include lack of competitive pricing and limited oversight due to sole-source award.
Value Assessment
Rating: questionable
The contract value of $72.3M for a 546-day duration appears high given the sole-source nature. Without competitive bids, it's difficult to benchmark pricing against similar SE&I contracts.
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: Taxpayers may have paid a premium due to the absence of competition, as the government did not leverage market forces to secure the best possible price.
Public Impact
The Department of Defense relies on GPS for critical operations, making SE&I services essential. Sole-source awards can raise concerns about fairness and efficient use of taxpayer funds. Transparency in sole-source justifications is crucial for public trust. The long-term implications of non-competitive contracts on innovation and cost control warrant attention.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential service for national security
- Experienced contractor
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) sector. Spending in this area is critical for advancing defense capabilities, but often involves complex, specialized services where competition can be challenging.
Small Business Impact
The data does not indicate any subcontracting opportunities for small businesses on this contract. Sole-source awards often bypass the typical avenues for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that the pricing is justified. The absence of competition makes robust government oversight even more critical.
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
- Sole-source award limits competition and price discovery.
- Potential for inflated costs due to lack of competitive pressure.
- Limited transparency regarding the justification for sole-source award.
- Absence of small business participation opportunities.
- Risk of contractor lock-in and reduced innovation.
Tags
research-and-development-in-the-physical, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.3 million to LEIDOS, INC.. IGF::CT::IGF GLOBAL POSITIONING SYSTEM (GPS) SYSTEMS ENGINEERING AND INTEGRATION (SE&I) BRIDGE 4.0
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 $72.3 million.
What is the period of performance?
Start: 2014-03-06. End: 2015-09-03.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without access to the specific justification document, it's impossible to detail the rationale. However, agencies are generally required to explore competitive options before resorting to sole-source procurement, suggesting that alternatives were either deemed unsuitable or not feasible for this particular GPS SE&I requirement.
How does the pricing of this sole-source contract compare to similar GPS SE&I services procured competitively by the DoD or other agencies?
Direct comparison is challenging without access to detailed cost breakdowns and market data for comparable contracts. However, sole-source contracts inherently lack the price pressure of competition. It is reasonable to assume that the pricing may be higher than if multiple bidders had competed, potentially impacting overall value for taxpayer dollars. A thorough cost analysis by the agency would be necessary to validate the pricing.
What are the long-term implications of relying on sole-source contracts for critical systems like GPS SE&I in terms of technological advancement and cost efficiency?
Long-term reliance on sole-source contracts can stifle innovation by reducing the incentive for contractors to offer cutting-edge solutions at competitive prices. It can also lead to escalating costs over time as the incumbent faces less pressure to optimize efficiency. This approach may hinder the adoption of new technologies and potentially make the government more dependent on a single provider, increasing long-term risk.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
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: $89,304,100
Exercised Options: $72,285,459
Current Obligation: $72,285,459
Subaward Activity
Number of Subawards: 118
Total Subaward Amount: $140,794,658
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2014-03-06
Current End Date: 2015-09-03
Potential End Date: 2015-09-03 00:00:00
Last Modified: 2015-07-24
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