Leidos awarded $19.4M contract for Air Force's System Integration and Field Testing (SIFT) program
Contract Overview
Contract Amount: $19,425,489 ($19.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-04-05
End Date: 2026-01-05
Contract Duration: 2,467 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SYSTEM INTEGRATION AND FIELD TESTING (SIFT)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.4 million to LEIDOS, INC. for work described as: SYSTEM INTEGRATION AND FIELD TESTING (SIFT) Key points: 1. Contract focuses on R&D for physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 2. Awarded as a definitive contract with a cost-plus-fixed-fee payment structure. 3. Duration of 2467 days indicates a long-term research and development effort. 4. The contract was awarded under full and open competition. 5. Leidos, Inc. is the sole contractor for this specific SIFT program. 6. The contract is managed by the Department of the Air Force within the Department of Defense.
Value Assessment
Rating: fair
Benchmarking the value of this $19.4 million contract is challenging without specific deliverables or performance metrics. The cost-plus-fixed-fee structure allows for cost reimbursement plus a predetermined profit, which can incentivize cost control but also carries inherent risks if not managed diligently. Comparing it to similar R&D contracts in the physical and engineering sciences would require detailed analysis of scope and complexity. The duration suggests a significant undertaking, and the fixed fee component needs to be assessed against industry standards for similar long-term research projects to determine if it represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the open competition suggests a competitive environment that should theoretically drive better pricing and innovation. The process aims to ensure the government receives the best value by considering a wide range of potential contractors.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive marketplace, which can lead to more cost-effective solutions and prevent price gouging.
Public Impact
The primary beneficiaries are the Department of the Air Force and potentially other branches of the Department of Defense, receiving advanced research and development services. The services delivered are focused on system integration and field testing, crucial for advancing technological capabilities. The geographic impact is primarily within Virginia, where the contract is managed, but the technological advancements could have broader national security implications. Workforce implications include employment opportunities for researchers, engineers, and technical staff involved in the R&D process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored.
- The long duration of the contract (2467 days) may present challenges in adapting to evolving technological requirements.
- Sole contractor status for this specific SIFT program limits further competition on this particular effort.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Leidos, Inc. is a well-established contractor with significant experience in defense and technology sectors.
- The contract supports critical R&D for the Department of the Air Force, aligning with strategic defense objectives.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such R&D services within the defense industry is substantial, driven by the continuous need for technological superiority. Comparable spending benchmarks would involve analyzing other large-scale, long-term R&D contracts awarded by the DoD to companies specializing in systems integration and testing.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contractor, Leidos may engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are embedded in the cost-plus-fixed-fee structure and performance requirements. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details might be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Air Force Systems Engineering Contracts
- Advanced Technology Development Contracts
- Defense Research and Engineering Network (DRN)
Risk Flags
- Long contract duration may increase risk of obsolescence or changing requirements.
- Cost-plus-fixed-fee structure requires diligent oversight to manage costs.
- Sole contractor for this specific effort limits further competitive pressure on this task.
Tags
research-and-development, department-of-defense, department-of-the-air-force, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, systems-integration, field-testing, leidos-inc, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to LEIDOS, INC.. SYSTEM INTEGRATION AND FIELD TESTING (SIFT)
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 $19.4 million.
What is the period of performance?
Start: 2019-04-05. End: 2026-01-05.
What is Leidos, Inc.'s track record with similar Department of Defense R&D contracts?
Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing contracts for research, development, systems integration, and technical support across various military branches. Their portfolio often includes complex projects requiring advanced engineering and scientific expertise. For instance, they have been involved in large-scale efforts related to command and control systems, intelligence analysis platforms, and simulation technologies. Analyzing their past performance on cost-plus-fixed-fee R&D contracts, particularly those with long durations and similar technical scopes, would provide context for their capability to manage the SIFT program effectively and within projected costs. Their history suggests a capacity to handle such endeavors, but a detailed review of past performance metrics, including any past performance issues or successes, is crucial for a comprehensive assessment.
How does the $19.4 million value compare to similar R&D contracts for system integration and field testing?
The $19.4 million value for this System Integration and Field Testing (SIFT) contract, spread over approximately 2467 days (about 6.7 years), represents a moderate investment for a long-term R&D effort within the Department of Defense. Without specific details on the scope, complexity, and deliverables, direct comparison is difficult. However, R&D contracts in areas like advanced engineering, simulation, and integration can range from a few million to hundreds of millions of dollars. Given the 'Research and Development in the Physical, Engineering, and Life Sciences' classification (NAICS 541715), this contract appears to be focused on a specific, albeit potentially significant, technological advancement. Benchmarking would require identifying contracts with similar technical objectives, duration, and payment structures (Cost Plus Fixed Fee) awarded by the Air Force or other DoD entities to gauge if the overall value is commensurate with the expected outcomes and market rates for such specialized research.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially one with a long duration like the SIFT program (2467 days), revolve around cost control and scope creep. For the government, the risk is that actual costs could significantly exceed initial estimates, even though the fee is fixed. Inefficient performance or unforeseen technical challenges can inflate costs, and while the contractor's profit is capped, the overall expenditure can still be higher than anticipated. For the contractor, the risk lies in underestimating the costs required to complete the project within the fixed fee, potentially leading to reduced profit margins or even losses if costs escalate unexpectedly. The long duration amplifies these risks, as technological landscapes and project requirements can change substantially over several years, necessitating careful management and potential contract modifications to ensure the project remains relevant and cost-effective.
How does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification impact the contract's objectives?
The classification 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' (NAICS 541715) indicates that the SIFT contract's objectives are centered on scientific inquiry and technological innovation within these broad fields. This means the work likely involves experimentation, analysis, and the development of new or improved systems, processes, or materials. The exclusion of nanotechnology and biotechnology suggests a focus on more traditional engineering disciplines, advanced materials, physics-based systems, or biological applications not falling under those specific sub-fields. The contract's goals would therefore be geared towards advancing fundamental knowledge or applying scientific principles to solve complex engineering problems, ultimately aiming to enhance the capabilities of the Department of the Air Force through technological breakthroughs and validated system performance.
What are the implications of this contract being a 'Definitive Contract' awarded to a single entity?
A 'Definitive Contract' is a standard, long-term contract that specifies all the terms and conditions, unlike other contract types like indefinite-delivery/indefinite-quantity (IDIQ) contracts. Awarding it to a single entity, Leidos, Inc., for the SIFT program means that this specific company is solely responsible for fulfilling the contract's requirements. While this can streamline management and ensure continuity of effort, it also means that the government does not have the flexibility to solicit bids from other vendors for the same scope of work under this particular contract vehicle. The implications are that the government has determined Leidos is the best source for this specific R&D effort, likely based on its unique capabilities, past performance, or the nature of the research. This also means that competition for subsequent related work would depend on whether new solicitations are issued.
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: 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: $23,331,877
Exercised Options: $22,836,480
Current Obligation: $19,425,489
Actual Outlays: $1,248,752
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $4,497,278
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-04-05
Current End Date: 2026-01-05
Potential End Date: 2026-01-05 00:00:00
Last Modified: 2026-01-14
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