DoD's $10.4M COSMO R&D Contract to Leidos, Inc. for Opto-Electronics Research Shows Fair Value
Contract Overview
Contract Amount: $10,413,895 ($10.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-04-09
End Date: 2026-11-27
Contract Duration: 3,154 days
Daily Burn Rate: $3.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF COMPACT SEMICONDUCTOR MID- AND LONG-WAVE OPTO-ELECTRONICS RESEARCH (COSMO)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to LEIDOS, INC. for work described as: IGF::OT::IGF COMPACT SEMICONDUCTOR MID- AND LONG-WAVE OPTO-ELECTRONICS RESEARCH (COSMO) Key points: 1. Contract awarded to Leidos, Inc. for opto-electronics research and development. 2. The contract has a duration of approximately 8.6 years, indicating a long-term investment in R&D. 3. The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The North American Industry Classification System (NAICS) code 541715 points to significant R&D activity. 6. The contract is managed by the Department of the Air Force, a key player in defense technology. 7. The base contract value is $3.3M, with potential for growth through other transaction authorities.
Value Assessment
Rating: good
The contract's value appears reasonable given the scope of research and development in advanced opto-electronics. While specific cost breakdowns are not provided, the Cost Plus Fixed Fee structure allows for adjustments based on research progress. Benchmarking against similar R&D contracts in specialized fields like opto-electronics is challenging due to the unique nature of the work, but the total award value of over $10M over nearly nine years suggests a commitment to a significant research endeavor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a degree of competition, which is generally favorable for price discovery and ensuring the government receives competitive offers. The specific details of the bidding process and the number of proposals received beyond the two are not detailed here, but the open competition framework is a positive indicator.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the most cost-effective solutions.
Public Impact
The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will receive advancements in opto-electronic technology. The contract supports research and development in mid- and long-wave opto-electronics, crucial for advanced sensing and imaging. The geographic impact is primarily within the United States, supporting domestic R&D capabilities. The contract implies a need for highly skilled scientists and engineers in the field of physics and electrical engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- The long duration of the contract requires sustained oversight to ensure progress and value.
- The specialized nature of opto-electronics R&D may present unique technical risks and challenges.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- The contract supports critical defense research and development, aligning with national security objectives.
- The contractor, Leidos, Inc., is a well-established entity with significant experience in government contracting and R&D.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The opto-electronics field is a critical component of advanced defense technologies, including sensors, communication systems, and imaging. The market for defense R&D is highly specialized, with significant government investment driving innovation. Comparable spending benchmarks are difficult to establish precisely due to the niche nature of opto-electronics, but overall defense R&D spending runs into billions annually.
Small Business Impact
The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The focus appears to be on larger, established contractors capable of undertaking complex R&D projects.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract would typically involve regular reviews of incurred costs, progress reports, and adherence to the fixed fee milestones by the Department of the Air Force. Accountability measures would be tied to the successful completion of research objectives and deliverables outlined in the contract. Transparency is generally maintained through contract databases and reporting requirements, though specific research findings may be classified or proprietary.
Related Government Programs
- Department of Defense Research and Development Programs
- Air Force Advanced Technology Development
- Opto-Electronics and Photonics Research Initiatives
- Semiconductor Research Contracts
Risk Flags
- Long-term R&D contract requires sustained oversight.
- Cost Plus Fixed Fee structure necessitates careful cost monitoring.
- Specialized R&D field may present unique technical risks.
Tags
research-and-development, department-of-defense, department-of-the-air-force, leidos-inc, opto-electronics, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, virginia, advanced-technology, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to LEIDOS, INC.. IGF::OT::IGF COMPACT SEMICONDUCTOR MID- AND LONG-WAVE OPTO-ELECTRONICS RESEARCH (COSMO)
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 $10.4 million.
What is the period of performance?
Start: 2018-04-09. End: 2026-11-27.
What is the track record of Leidos, Inc. in managing similar R&D contracts for the Department of Defense?
Leidos, Inc. has a substantial track record of managing complex research and development contracts for the Department of Defense and other federal agencies. They are known for their expertise in various scientific and engineering domains, including advanced electronics, systems integration, and information technology. Their experience often involves large-scale, long-term projects requiring significant technical acumen and project management capabilities. While specific details on past opto-electronics R&D contracts are not provided here, Leidos's general profile suggests they are well-equipped to handle the technical and logistical demands of the COSMO contract. Their history includes numerous successful awards and contract completions across different branches of the military, indicating a strong capability in delivering on government R&D objectives.
How does the $10.4M total award value compare to similar R&D contracts in opto-electronics?
Benchmarking the $10.4M total award value for the COSMO contract against similar opto-electronics R&D contracts is challenging due to the highly specialized nature of this field and the proprietary details often associated with R&D investments. However, for long-term, multi-year research initiatives in advanced technology areas, this figure represents a significant but not extraordinary investment. Contracts in defense R&D can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and technological complexity. Given that this contract spans nearly nine years and focuses on mid- and long-wave opto-electronics, the total value suggests a substantial commitment to advancing these specific technological capabilities for defense applications. It is likely within the expected range for such a focused, long-duration research effort.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) revolve around cost control and contractor incentive. For the government, the main risk is that costs could exceed initial estimates, as the contractor is reimbursed for allowable costs. While the fixed fee provides a ceiling for the contractor's profit, it doesn't cap the total project cost. This necessitates robust oversight to ensure that all incurred costs are reasonable, allocable, and necessary for the R&D effort. For the contractor, the risk lies in accurately estimating the costs to achieve the R&D objectives within the fixed fee. If costs are underestimated, their profit margin shrinks. Conversely, if costs are higher than anticipated, the government bears the burden. Effective management and clear definition of R&D milestones are crucial to mitigate these risks and ensure value for money.
How effective is full and open competition in ensuring value for taxpayer money in specialized R&D contracts?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, even in specialized R&D contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. In specialized fields like opto-electronics, where the number of capable contractors might be limited, open competition ensures that the government explores all viable options and selects the offer that provides the best overall value, considering technical merit, past performance, and price. While R&D inherently involves uncertainty, a competitive process helps establish a baseline for reasonable costs and encourages contractors to propose efficient approaches. The presence of multiple bidders, as indicated by the two bids received for this contract, further strengthens the likelihood of competitive pricing and a fair distribution of risk.
What are the historical spending patterns for opto-electronics R&D within the Department of Defense?
Historical spending patterns for opto-electronics R&D within the Department of Defense (DoD) show a consistent and significant investment driven by the need for advanced sensing, targeting, and communication capabilities. The DoD allocates substantial funds annually to research and develop technologies that provide a strategic advantage. Opto-electronics, encompassing areas like infrared detection, laser systems, and advanced imaging, is a critical component of this investment. Spending in this area fluctuates based on evolving threats, technological advancements, and strategic priorities, but it generally remains a high-priority research domain. Specific figures vary year to year and across different branches (Army, Navy, Air Force), but the overall trend indicates a sustained commitment to maintaining technological superiority through R&D in fields like opto-electronics, often through contracts with specialized research institutions and defense contractors.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
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: $13,486,636
Exercised Options: $13,486,636
Current Obligation: $10,413,895
Actual Outlays: $381,001
Subaward Activity
Number of Subawards: 37
Total Subaward Amount: $2,448,758
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-04-09
Current End Date: 2026-11-27
Potential End Date: 2026-11-27 00:00:00
Last Modified: 2026-01-15
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