Leidos, Inc. awarded $21.7M for Beam Control Engineering and Analysis, a definitive contract with 3 bidders
Contract Overview
Contract Amount: $21,657,209 ($21.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-10-01
End Date: 2016-01-22
Contract Duration: 2,304 days
Daily Burn Rate: $9.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BEAM CONTROL ENGINEERING AND ANALYSIS (BCEA)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to LEIDOS, INC. for work described as: BEAM CONTROL ENGINEERING AND ANALYSIS (BCEA) Key points: 1. Contract awarded through full and open competition, indicating a competitive marketplace. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Contract duration of 2304 days suggests a long-term need for these specialized services. 4. Cost Plus Fixed Fee contract type may incentivize cost overruns if not closely monitored. 5. High value contract for R&D services, requiring specialized expertise. 6. Contractor Leidos, Inc. has a significant presence in government contracting. 7. Virginia location suggests potential for regional economic impact.
Value Assessment
Rating: fair
The contract value of $21.7 million over approximately 6.3 years for R&D services appears within a reasonable range for specialized engineering and analysis. Benchmarking against similar contracts for beam control engineering is challenging due to the niche nature of the service. However, the Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation if not managed with rigorous oversight. The fixed fee component provides some incentive for efficiency, but the primary cost driver is the cost of performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with three bidders participating. The presence of multiple bidders suggests a healthy level of competition for this specialized R&D service. This competitive process likely contributed to achieving a fair market price, although the specific pricing details are not publicly available. The number of bidders, while not exceptionally high, indicates that the requirement was accessible to a reasonable pool of qualified contractors.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which generally leads to more favorable pricing and encourages contractors to offer their best value. The competition helps ensure that public funds are used efficiently for these critical research and development activities.
Public Impact
The Department of the Air Force benefits from advanced beam control engineering and analysis capabilities, crucial for its technological advancements. Services delivered likely support the development and refinement of sophisticated defense systems. The geographic impact is primarily centered in Virginia, where the contractor is located, potentially creating or sustaining high-skilled jobs. Workforce implications include the employment of specialized engineers, scientists, and technical analysts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed diligently.
- The long contract duration (over 6 years) requires sustained oversight to ensure continued value and performance.
- Limited public information on specific performance metrics makes it difficult to assess effectiveness independently.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market and fair pricing.
- Contractor Leidos, Inc. is a large, established company with significant experience in government contracts.
- The contract supports critical R&D in a specialized engineering field for the Department of Defense.
Sector Analysis
The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a high-value, knowledge-intensive area critical for technological advancement, particularly in defense applications. The market for specialized engineering analysis, such as beam control, is often characterized by a limited number of highly qualified firms. Comparable spending benchmarks are difficult to establish precisely due to the niche nature, but R&D contracts of this magnitude are common within the defense sector.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. As a large contract awarded to a major defense contractor, the primary focus is likely on specialized capabilities rather than small business participation. This means the direct economic impact on the small business ecosystem for this specific award may be limited, unless Leidos, Inc. voluntarily engages small businesses for specific components or services.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee contract structure, requiring detailed cost reporting and performance reviews. Transparency is facilitated through contract award databases, but detailed performance data and cost breakdowns are often considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Contracts
- Air Force Advanced Technology Development
- Engineering and Technical Services Contracts
- Beam Technology Research
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Overrun Risk (CPFF Contract Type)
- Long Contract Duration Requires Sustained Oversight
- Potential for Limited Competition Due to Niche Expertise
Tags
research-and-development, department-of-defense, department-of-the-air-force, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, engineering-services, scientific-research, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to LEIDOS, INC.. BEAM CONTROL ENGINEERING AND ANALYSIS (BCEA)
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 $21.7 million.
What is the period of performance?
Start: 2009-10-01. End: 2016-01-22.
What is the track record of Leidos, Inc. in performing similar R&D contracts for the Department of Defense?
Leidos, Inc. has a substantial track record in performing a wide array of research and development, engineering, and technical services for the Department of Defense and other federal agencies. They are a major government contractor with extensive experience in complex projects, including those involving advanced technologies. While specific performance details for every contract are not always public, their consistent award of large-scale, high-value contracts suggests a generally positive performance history and capability to meet demanding requirements. Their portfolio often includes work in areas related to aerospace, C4ISR, cyber, and scientific research, making them well-suited for contracts like BCEA.
How does the $21.7 million contract value compare to other R&D contracts in beam control engineering?
Direct comparisons for 'beam control engineering and analysis' R&D contracts are challenging due to the highly specialized and niche nature of the field. Such contracts are not as common as broader engineering services. However, $21.7 million over approximately six years represents a significant investment in a specific technological area. Within the broader R&D landscape for defense, this value is substantial but not extraordinary, reflecting the complexity and long-term nature often associated with developing cutting-edge technologies. It suggests a focused effort on a critical capability rather than a large-scale, multi-faceted program.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. While the contractor is paid their actual allowable costs plus a predetermined fixed fee, the 'cost plus' element means the government bears the risk of increased expenses. If the R&D effort encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government can escalate significantly. The fixed fee provides a profit incentive, but it doesn't cap the total contract cost. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate these risks and ensure the government receives value for its investment.
How effective is the 'full and open competition' approach in ensuring value for money in specialized R&D contracts?
Full and open competition is generally considered the most effective method for ensuring value for money, even in specialized R&D contracts. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. For specialized fields like beam control engineering, this approach ensures that the government can identify and select from the most capable and cost-effective providers. While the number of bidders might be limited by the niche expertise required, the principle of open competition still applies, providing a benchmark against which proposals can be evaluated for technical merit and price.
What are the historical spending patterns for beam control engineering and analysis services by the Department of the Air Force?
Historical spending data specifically for 'beam control engineering and analysis' is not readily available in aggregated public databases, highlighting the specialized nature of this service category. However, the Department of the Air Force, along with other defense agencies, consistently invests significant funds in research and development for advanced technologies, including those related to directed energy, optics, and sensor systems, where beam control is a critical component. Spending in this area is likely project-driven and may fluctuate based on strategic priorities and technological advancements. This $21.7 million contract represents a notable, albeit specific, investment within the broader R&D budget.
What are the potential implications of this contract on future technological developments in beam control?
This contract has the potential to significantly advance technological developments in beam control. By funding specialized R&D through Leidos, Inc., the Department of the Air Force is investing in the foundational science and engineering required for next-generation systems. The outcomes of this research could lead to breakthroughs in areas such as laser systems, optical targeting, adaptive optics, and high-energy lasers, impacting fields from defense and aerospace to telecommunications and scientific instrumentation. The knowledge and innovations generated under this contract could pave the way for more precise, efficient, and powerful beam control technologies in the future.
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: BASIC RESEARCH
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,965,395
Exercised Options: $21,965,395
Current Obligation: $21,657,209
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-10-01
Current End Date: 2016-01-22
Potential End Date: 2016-01-22 00:00:00
Last Modified: 2016-08-24
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