Leidos Inc. awarded $24M for critical analysis and simulation efforts by the Air Force
Contract Overview
Contract Amount: $23,998,655 ($24.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-01-23
End Date: 2022-07-22
Contract Duration: 2,372 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF CRITICAL ANALYSIS AND SIMUALATION EFFORTS (CASE)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.0 million to LEIDOS, INC. for work described as: IGF::OT::IGF CRITICAL ANALYSIS AND SIMUALATION EFFORTS (CASE) Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Research and Development focus indicates investment in future capabilities. 3. Cost Plus Fixed Fee pricing structure may incentivize cost overruns. 4. Long duration of over 6 years suggests a complex, ongoing requirement. 5. Contractor Leidos, Inc. has a significant presence in federal contracting. 6. Virginia location may imply a concentration of related economic activity.
Value Assessment
Rating: fair
The contract's value of $24 million over six years for research and development services appears moderate for the scope. Benchmarking against similar R&D contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation if not managed tightly. The fixed fee component provides some predictability for the contractor's profit, but the overall cost to the government is variable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. This competitive process is generally expected to yield fair market prices and encourage innovation. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of interest from the market.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value solutions.
Public Impact
The Department of the Air Force benefits from advanced analytical and simulation capabilities. This contract supports research and development efforts, potentially leading to future technological advancements. The primary beneficiaries are likely Air Force operational and strategic planning units. Workforce implications may include specialized researchers, analysts, and simulation experts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
- Long contract duration (over 6 years) increases the risk of scope creep or evolving requirements becoming misaligned with initial objectives.
- Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess true value for money.
- The 'Research and Development' NAICS code is broad, and the specific nature of the 'critical analysis and simulation efforts' is not detailed, hindering a precise risk assessment.
Positive Signals
- Awarded through 'full and open competition,' suggesting a competitive market and potential for good value.
- The contractor, Leidos, Inc., is a large, established entity with significant experience in government contracting, implying a degree of reliability.
- The contract addresses 'critical analysis and simulation efforts,' indicating a focus on important, potentially high-impact defense capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation and long-term investment. Federal spending in R&D is crucial for maintaining technological superiority and addressing complex national security challenges. Comparable spending benchmarks would depend heavily on the specific nature of the analysis and simulation required, but R&D contracts can range from millions to billions.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor (Leidos, Inc.), there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Given the R&D nature and CPFF structure, rigorous oversight of costs, performance, and adherence to the Statement of Work would be critical. Transparency is often limited for specific R&D efforts due to national security sensitivities, but contract award details and basic performance reporting are usually available.
Related Government Programs
- Department of Defense Research and Development
- Air Force Simulation and Modeling Programs
- Advanced Analytics Services Contracts
- Leidos Inc. Federal Contracts
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing structure
- Long contract duration may lead to requirement misalignment
- Broad R&D NAICS code lacks specificity on deliverables
- Potential for cost overruns without stringent oversight
Tags
research-and-development, department-of-defense, air-force, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, virginia, large-contract, r&d-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.0 million to LEIDOS, INC.. IGF::OT::IGF CRITICAL ANALYSIS AND SIMUALATION EFFORTS (CASE)
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 $24.0 million.
What is the period of performance?
Start: 2016-01-23. End: 2022-07-22.
What is Leidos, Inc.'s track record with similar Cost Plus Fixed Fee R&D contracts within the Department of Defense?
Leidos, Inc. has a substantial history of performing on Cost Plus Fixed Fee (CPFF) contracts, particularly within the Department of Defense (DoD) and across various R&D and technical services categories. Their extensive portfolio includes work in areas such as command and control systems, intelligence analysis, and advanced engineering. While CPFF contracts offer flexibility for evolving R&D requirements, they also necessitate robust government oversight to manage costs effectively. Leidos's experience suggests they possess the infrastructure and expertise to manage such contracts, but the government's diligence in monitoring expenditures, progress, and adherence to the statement of work remains paramount to ensuring value for money. Specific performance metrics and past performance reviews on similar contracts would provide a clearer picture of their success rate and efficiency in managing taxpayer funds under this pricing structure.
How does the $24 million total award value compare to other Air Force R&D contracts for simulation and analysis?
The $24 million total award value for this contract, spanning over six years, represents a moderate investment for the Air Force in critical analysis and simulation efforts. Federal spending on Research and Development (R&D) is highly variable, with individual contracts ranging from a few million to hundreds of millions of dollars, depending on the complexity, duration, and strategic importance of the research. Contracts focused on advanced simulation and analysis, particularly those involving cutting-edge technology or extensive modeling, can command significant funding. Without knowing the precise scope and deliverables of this specific 'CASE' effort, a direct comparison is difficult. However, $24 million over six years averages to approximately $4 million per year, which is within the typical range for specialized R&D services supporting a specific agency's needs, rather than a large-scale, multi-year platform development program.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?
The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort is the potential for cost overruns. While the 'fixed fee' component ensures the contractor receives a predetermined profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If these costs exceed initial estimates, the total contract value can increase significantly beyond what was originally anticipated. For R&D, where requirements can evolve and unforeseen technical challenges arise, this risk is amplified. Effective risk mitigation requires stringent government oversight, including detailed cost monitoring, regular audits, and clear definition of allowable costs. Without robust management, CPFF contracts can become less cost-effective than other pricing structures, potentially leading to a lower value for taxpayer money.
How does the long contract duration (over 6 years) impact the assessment of program effectiveness and value?
The long contract duration of over six years for this R&D effort presents both opportunities and risks for assessing program effectiveness and value. On the positive side, it allows for sustained focus on complex research objectives, iterative development, and the potential for significant technological advancement that requires extended timelines. It can also provide stability for the contractor and foster deeper expertise. However, a long duration also increases the risk of requirements becoming outdated, technological obsolescence, or shifts in strategic priorities rendering the original objectives less relevant. Assessing effectiveness requires continuous monitoring and potential adjustments to the scope or deliverables throughout the contract's life. If the program's goals remain aligned with evolving needs and demonstrable progress is made, the long duration can be justified. Conversely, if the program stagnates or becomes misaligned, the extended timeline could represent a significant drain on resources without commensurate returns.
What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' NAICS code imply about the contract's scope?
The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' indicates that the contract's scope involves scientific inquiry and experimentation aimed at discovering or improving knowledge and products within these broad fields. This typically includes basic research, applied research, and experimental development. For the Air Force, this could encompass a wide range of activities such as developing new materials, improving sensor technologies, advancing computational modeling and simulation techniques, or exploring novel engineering solutions for aerospace applications. The exclusion of biotechnology suggests the focus is likely on non-biological sciences and engineering disciplines. The 'critical analysis and simulation efforts' mentioned in the contract title align well with this code, suggesting the work involves theoretical analysis, complex modeling, and testing of physical or engineered systems.
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: 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: $24,943,153
Exercised Options: $24,943,153
Current Obligation: $23,998,655
Actual Outlays: $668,955
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-01-23
Current End Date: 2022-07-22
Potential End Date: 2022-07-22 00:00:00
Last Modified: 2022-05-31
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