DoD's $19.1M Advanced Laser Tech Research Contract with Leidos Raises Questions on Value and Competition

Contract Overview

Contract Amount: $19,115,673 ($19.1M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-10-10

End Date: 2018-06-30

Contract Duration: 2,089 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED LASER TECHNOLOGY RESEARCH - HIGH POWER LASER RESEARCH

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to LEIDOS, INC. for work described as: ADVANCED LASER TECHNOLOGY RESEARCH - HIGH POWER LASER RESEARCH Key points: 1. The contract awarded to Leidos, Inc. for advanced laser technology research represents a significant investment in R&D. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not managed tightly. 4. The sector is Research and Development, a critical area for defense modernization.

Value Assessment

Rating: questionable

The contract's value of $19.1M for advanced laser research needs further scrutiny against similar R&D contracts. Without specific deliverables or performance metrics, assessing its value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific details of the bidding and selection process are needed to confirm if the best value was achieved.

Taxpayer Impact: The $19.1M spent on this contract represents taxpayer funds allocated to advanced research, with the ultimate benefit to national security and technological advancement yet to be fully realized.

Public Impact

Taxpayers are funding cutting-edge research in laser technology, potentially leading to future defense capabilities. The research could have dual-use applications, benefiting both military and civilian sectors. Long-term implications for technological superiority in defense are a key public interest.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize higher costs.
  • Lack of specific performance metrics makes value assessment difficult.
  • Long contract duration (2089 days) increases risk of scope creep or obsolescence.

Positive Signals

  • Awarded under full and open competition.
  • Focus on critical R&D for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences. Spending in this area is crucial for maintaining a technological edge, but often involves higher risk and longer payoff periods compared to procurement contracts.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

Oversight of this research contract would focus on ensuring progress aligns with stated objectives and that funds are used efficiently. The Department of the Air Force is responsible for monitoring performance and adherence to contract terms.

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

  • Potential for cost overruns due to CPFF structure.
  • Difficulty in measuring ROI for R&D contracts.
  • Risk of research becoming obsolete before application.
  • Lack of transparency on specific research outcomes.

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 $19.1 million to LEIDOS, INC.. ADVANCED LASER TECHNOLOGY RESEARCH - HIGH POWER LASER RESEARCH

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 $19.1 million.

What is the period of performance?

Start: 2012-10-10. End: 2018-06-30.

What specific technological advancements or milestones were achieved as a result of this $19.1M investment in advanced laser research?

The provided data does not detail the specific outcomes or deliverables of the advanced laser technology research. Further investigation into contract performance reports and technical documentation would be required to ascertain the precise advancements made and their impact on the Department of Defense's capabilities.

How did the Cost Plus Fixed Fee structure impact the final cost and efficiency of this research project compared to other contract types?

Cost Plus Fixed Fee contracts, while allowing for flexibility in research, can sometimes lead to higher costs if the contractor's overhead and profit margins are substantial. Without comparative data from similar projects under different contract types, it's challenging to definitively assess the efficiency impact here.

What is the long-term strategic value of this laser technology research to the Department of Defense's future operational effectiveness?

The strategic value lies in potential advancements in areas like directed energy weapons, advanced sensing, or secure communications. However, the long-term impact is contingent on successful research translation into deployable technologies and integration into existing or future defense systems.

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 DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $20,999,970

Exercised Options: $20,999,970

Current Obligation: $19,115,673

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $261,447

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-10-10

Current End Date: 2018-06-30

Potential End Date: 2018-06-30 00:00:00

Last Modified: 2019-03-28

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