Leidos awarded $17.9M for advanced optical beam control research, with a 4-year duration

Contract Overview

Contract Amount: $17,911,067 ($17.9M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-04-01

End Date: 2027-07-01

Contract Duration: 1,917 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BREAKTHROUGH OPTICAL BEAM CONTROL ADVANCED TECHNOLOGIES (BOBCAT)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to LEIDOS, INC. for work described as: BREAKTHROUGH OPTICAL BEAM CONTROL ADVANCED TECHNOLOGIES (BOBCAT) Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Research and Development focus in physical sciences, aligning with advanced technology initiatives. 3. Cost Plus Fixed Fee contract type may incentivize cost overruns if not closely monitored. 4. Performance period extends over four years, indicating a long-term research objective. 5. The contract's value is moderate within the R&D sector, requiring benchmarking. 6. No small business set-aside, indicating the primary awardee is likely a large business.

Value Assessment

Rating: fair

The contract value of $17.9 million over approximately four years for R&D in advanced optical beam control is a moderate investment. Benchmarking against similar contracts in specialized physical sciences research is crucial to assess value for money. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation if not managed with stringent oversight. Without specific performance metrics or comparable contract data, a definitive value assessment is challenging, but the duration suggests a significant research undertaking.

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 vendors had the opportunity to bid. The presence of four bidders (no=4) suggests a competitive environment for this specialized research area. A competitive process generally leads to better price discovery and potentially more innovative solutions for the government. The level of competition is a positive indicator for achieving value.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

Benefits the Department of Defense by advancing critical optical beam control technologies. Services delivered include research and development in advanced physical sciences. Geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include specialized scientific and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed effectively.
  • Long contract duration (over 4 years) requires sustained oversight to ensure continued alignment with evolving research needs.
  • Lack of specific performance metrics in the provided data makes it difficult to assess progress and value realization.
  • No small business set-aside may limit opportunities for smaller innovative firms in this specialized R&D area.

Positive Signals

  • Awarded through full and open competition, indicating a competitive bidding process.
  • The contract supports advanced technology development critical for national security.
  • The contractor, Leidos, Inc., is a large, established entity with significant R&D experience.
  • The research area (optical beam control) is highly specialized and potentially impactful.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced physical sciences. The NAICS code 541715 covers Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). The market for advanced optical technologies is driven by defense, telecommunications, and scientific instrumentation. Spending in this niche R&D area is often project-specific and tied to strategic technological advancements, making direct spending benchmarks challenging without more granular data on comparable projects.

Small Business Impact

The contract data indicates that this was not a small business set-aside (sb=false). Leidos, Inc. is a large defense contractor. While the primary contract may not involve small business set-asides, it is possible that Leidos may engage small businesses as subcontractors for specialized components or services. However, without explicit 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 contracting officer and the program office within the Department of the Air Force. As a Cost Plus Fixed Fee contract, rigorous financial oversight and progress monitoring are essential to control costs and ensure research objectives are met. Transparency may be limited due to the sensitive nature of defense R&D, but contract awards and basic details are publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Advanced Technology Development
  • Department of Defense Research Contracts
  • Optical Systems Research
  • Physical Sciences Research
  • Air Force R&D Programs

Risk Flags

  • Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
  • Long contract duration necessitates ongoing monitoring to ensure alignment with evolving research needs and objectives.
  • Specialized R&D area may present technical challenges and uncertainties.
  • Lack of detailed performance metrics in public data limits immediate assessment of value realization.

Tags

research-and-development, department-of-defense, air-force, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, optical-technologies, advanced-technologies, virginia, leidos-inc, physical-sciences, engineering

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to LEIDOS, INC.. BREAKTHROUGH OPTICAL BEAM CONTROL ADVANCED TECHNOLOGIES (BOBCAT)

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 $17.9 million.

What is the period of performance?

Start: 2022-04-01. End: 2027-07-01.

What is Leidos, Inc.'s track record with similar Cost Plus Fixed Fee R&D contracts for the Department of Defense?

Leidos, Inc. has a substantial history of performing Cost Plus Fixed Fee (CPFF) Research and Development (R&D) contracts for the Department of Defense (DoD) and other federal agencies. As a large, established defense contractor, they frequently engage in complex, long-term research projects. Their track record typically involves managing intricate technical requirements and navigating the challenges inherent in CPFF agreements, which require careful cost tracking and reporting. While specific performance ratings for individual contracts are often not public, Leidos generally maintains a strong reputation for technical capability. However, the effectiveness and value derived from their CPFF contracts depend heavily on the specific program, the clarity of objectives, and the rigor of government oversight applied to each engagement. Analyzing past performance on similar projects would involve reviewing contract award histories, any publicly available performance evaluations, and the scope of work for those prior contracts to assess their success in meeting technical and budgetary goals.

How does the $17.9 million contract value compare to other advanced optical beam control research efforts?

The $17.9 million contract value for advanced optical beam control research, spanning approximately four years, represents a moderate investment in this specialized field. Direct comparisons are challenging without access to proprietary data or a comprehensive database of similar R&D efforts. However, within the broader defense R&D landscape, contracts for cutting-edge technologies can range from a few million to hundreds of millions of dollars, depending on the project's scope, technological maturity, and strategic importance. Optical beam control is a critical area for applications such as directed energy, advanced sensing, and satellite communications. Contracts in this domain often require significant investment due to the complexity of the physics, engineering, and materials science involved. This particular award suggests a focused research effort rather than a large-scale development or production program. Benchmarking would ideally involve comparing it to other contracts awarded by agencies like DARPA, AFRL, or ONR for similar technological objectives and phases of research.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D, such as the BOBCAT contract, revolve around cost control and contractor incentive. For the government, the main risk is cost overrun; since the contractor is reimbursed for all allowable costs plus a fixed fee, there is less inherent incentive for them to control expenses compared to fixed-price contracts. If the scope of work is not well-defined or if unforeseen technical challenges arise, costs can escalate significantly beyond initial estimates. For the contractor, the risk lies in accurately estimating the costs to perform the work, as the fixed fee does not increase if costs are higher than anticipated. This can lead to reduced profit margins or even losses if cost overruns are substantial. Effective mitigation requires robust government oversight, detailed cost tracking, clear definition of allowable costs, and regular progress reviews to ensure the research stays within budget and on track.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification imply for this contract's objectives?

The classification 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541715) indicates that this contract is focused on fundamental scientific inquiry and the application of scientific principles to create new or significantly improved products, processes, or services. For this specific contract concerning 'BREAKTHROUGH OPTICAL BEAM CONTROL ADVANCED TECHNOLOGIES (BOBCAT)', it implies the work will involve exploring novel concepts, conducting experiments, developing theoretical models, and potentially creating prototypes related to manipulating light beams with high precision. This could encompass areas like laser technology, adaptive optics, beam steering, or optical communication systems. The 'Physical and Engineering' aspects suggest a strong emphasis on the scientific principles governing light and matter, and the engineering challenges in designing and building systems that control optical phenomena. The 'Life Sciences' component is less likely to be a primary focus given the contract title, but could be relevant if the optical technologies have applications in areas like biomedical imaging or diagnostics.

How does the contract duration of 1917 days (approx. 4 years) influence the assessment of its strategic importance?

A contract duration of approximately four years (1917 days) for advanced R&D suggests a significant strategic investment by the Department of the Air Force in the 'BREAKTHROUGH OPTICAL BEAM CONTROL ADVANCED TECHNOLOGIES (BOBCAT)' program. Such a long timeframe indicates that the research objectives are complex, likely requiring multiple phases of investigation, experimentation, and potential refinement. It implies that the technology being developed is not expected to yield immediate, short-term results but is aimed at achieving a substantial technological advancement with long-term implications for national security or operational capabilities. This duration allows for deeper exploration of scientific principles, development of sophisticated prototypes, and rigorous testing. It signals that the government views optical beam control as a critical capability that requires sustained research effort to maintain a technological edge.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: FA945119S0007

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1750 PRESIDENTS ST, 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: $24,328,144

Exercised Options: $24,328,144

Current Obligation: $17,911,067

Actual Outlays: $119,969

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,011,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2022-04-01

Current End Date: 2027-07-01

Potential End Date: 2027-07-01 00:00:00

Last Modified: 2026-01-08

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