DoD's $5.1M contract to Leidos aims to enhance THOR counter-drone system performance
Contract Overview
Contract Amount: $5,111,176 ($5.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-30
End Date: 2026-08-03
Contract Duration: 430 days
Daily Burn Rate: $11.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THE WORK PERFORMED ON THIS TASK ORDER WILL IMPROVE THE WEAPON PERFORMANCE OF THE TACTICAL HIGH POWER OPERATIONAL RESPONDER (THOR) COUNTER UNMANNED AERIAL SYSTEM DEMONSTRATOR.
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87107
Plain-Language Summary
Department of Defense obligated $5.1 million to LEIDOS, INC. for work described as: THE WORK PERFORMED ON THIS TASK ORDER WILL IMPROVE THE WEAPON PERFORMANCE OF THE TACTICAL HIGH POWER OPERATIONAL RESPONDER (THOR) COUNTER UNMANNED AERIAL SYSTEM DEMONSTRATOR. Key points: 1. Focus on R&D for advanced weapon systems, indicating a strategic investment in future defense capabilities. 2. Contract awarded via full and open competition, suggesting a robust market and potential for competitive pricing. 3. Performance period of over a year allows for thorough development and testing of system enhancements. 4. The project targets counter-unmanned aerial systems (C-UAS), a critical and growing area of military concern. 5. Awarded as a delivery order under a larger contract, implying a structured procurement process. 6. The contractor, Leidos, has a significant presence in defense and technology sectors.
Value Assessment
Rating: good
The contract value of $5.1 million for research and development in physical sciences is within a typical range for specialized defense technology projects. Benchmarking against similar contracts for counter-UAS system development would provide a more precise value assessment. However, the fixed-fee structure on a cost-plus award suggests an alignment of incentives to manage costs effectively while pursuing innovation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment is generally favorable for price discovery and ensures that the government can select the most capable and cost-effective solution. The specific number of bidders is not provided, but the method of competition suggests a healthy market for this type of specialized R&D.
Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by fostering a competitive environment that drives down costs and encourages innovation from multiple sources.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Air Force, which will receive enhanced counter-UAS capabilities. The services delivered involve research and development to improve weapon system performance. The geographic impact is primarily within the United States, with potential deployment to operational theaters. Workforce implications include specialized R&D roles for engineers and scientists, likely concentrated at the contractor's facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in R&D projects if not managed tightly.
- Dependence on contractor's proprietary technology and expertise.
- The evolving nature of drone technology may require continuous adaptation and further investment.
Positive Signals
- Focus on a critical defense capability (counter-UAS) addresses a significant national security threat.
- Award through full and open competition suggests a well-vetted process and potential for innovation.
- The contractor, Leidos, has a strong track record in defense and technology integration.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to defense applications. The market for counter-unmanned aerial systems (C-UAS) is rapidly expanding due to the proliferation of drone technology. Spending in this area is driven by the need to counter threats from both state and non-state actors. Comparable spending benchmarks would likely be found within other advanced weapons system development contracts.
Small Business Impact
The contract data indicates that small business participation is not a primary focus, as the award is not a small business set-aside. Subcontracting opportunities for small businesses may exist depending on Leidos's strategy, particularly for specialized components or services. However, the core R&D work is likely to be performed by the prime contractor, limiting direct impact on the broader small business ecosystem for this specific award.
Oversight & Accountability
Oversight will be provided by the Department of the Air Force, likely through contracting officers and technical representatives who will monitor progress, deliverables, and adherence to the contract terms. Accountability measures are embedded in the Cost Plus Fixed Fee (CPFF) structure, which incentivizes the contractor to manage costs within the fixed fee while pursuing the research objectives. Transparency is typically managed through regular reporting requirements and program reviews.
Related Government Programs
- Counter-Unmanned Aerial Systems (C-UAS) Programs
- Advanced Weapons System Development
- Department of Defense Research and Development Initiatives
- Tactical High Power Operational Responder (THOR) Program
Risk Flags
- R&D Project Complexity
- Evolving Threat Landscape (UAS)
- Technological Obsolescence Risk
Tags
research-and-development, department-of-defense, department-of-the-air-force, new-mexico, delivery-order, full-and-open-competition, cost-plus-fixed-fee, counter-uas, weapon-systems, leidos
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.1 million to LEIDOS, INC.. THE WORK PERFORMED ON THIS TASK ORDER WILL IMPROVE THE WEAPON PERFORMANCE OF THE TACTICAL HIGH POWER OPERATIONAL RESPONDER (THOR) COUNTER UNMANNED AERIAL SYSTEM DEMONSTRATOR.
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 $5.1 million.
What is the period of performance?
Start: 2025-05-30. End: 2026-08-03.
What is Leidos's track record with similar R&D contracts for defense systems?
Leidos has a substantial track record in performing complex research and development for the Department of Defense and other federal agencies. They are known for their work in areas such as command and control, intelligence, surveillance, and reconnaissance (ISR), and advanced technology integration. Their experience often involves developing and enhancing sophisticated systems, including those related to electronic warfare and cyber capabilities. For counter-UAS systems specifically, Leidos has been involved in various projects, often focusing on system integration, sensor development, and electronic countermeasures. Their ability to manage large, technically challenging R&D efforts, as demonstrated by numerous past awards and successful program completions, suggests a strong capability to execute this THOR system enhancement contract effectively. Past performance reviews and contract closeouts would offer more granular insights into their success rates and adherence to schedule and budget on similar endeavors.
How does the $5.1 million value compare to other counter-UAS R&D efforts?
The $5.1 million contract value for enhancing the THOR counter-UAS demonstrator is a moderate investment within the broader landscape of defense R&D. Counter-UAS technology development is a rapidly evolving field, and contract values can vary significantly based on the scope of work, technological maturity, and the specific phase of development. Early-stage research and component development might range from a few million dollars, while full system integration, testing, and fielding of advanced capabilities can extend into tens or hundreds of millions. This particular award appears to be focused on improving an existing demonstrator, suggesting it's likely in a mid-stage development or enhancement phase. Compared to foundational research or large-scale production contracts, $5.1 million is a focused investment. However, it represents a significant commitment to advancing a specific aspect of counter-drone technology, aligning with the critical need for effective C-UAS solutions.
What are the primary risks associated with this contract?
The primary risks associated with this contract are inherent to research and development in cutting-edge defense technology. Technical risk is significant, as improving weapon system performance for counter-UAS applications involves complex engineering challenges and the potential for unforeseen technical hurdles. The effectiveness of the THOR system against evolving drone threats is not guaranteed and may require iterative development. Schedule risk exists due to the inherent uncertainties in R&D; achieving desired performance improvements within the specified timeframe (August 2026) may prove challenging. Cost risk, while mitigated by the Cost Plus Fixed Fee structure, remains a concern if development requires more resources than initially anticipated, potentially impacting the fixed fee earned by the contractor. Finally, there's a risk of technological obsolescence if drone technology advances faster than the counter-measures being developed.
How effective is the THOR system likely to be after these enhancements?
The effectiveness of the THOR system following these enhancements is projected to improve significantly, based on the contract's objective. The THOR system is designed as a counter-unmanned aerial system demonstrator, implying it's a platform for testing and validating advanced capabilities. Enhancing its 'weapon performance' suggests improvements in areas such as target detection, tracking, engagement effectiveness (e.g., accuracy, lethality, or non-lethal effects), and potentially system reliability or power efficiency. Given that this is a research and development effort, the specific metrics for 'improvement' will be defined by the contract's technical requirements. Successful completion of the R&D objectives should result in a more capable demonstrator, providing the Department of Defense with better data and potentially a more effective prototype for future counter-drone operations. The actual operational effectiveness will depend on further testing, integration into broader defense systems, and adaptation to specific threat environments.
What has been the historical spending trend for counter-UAS R&D within the DoD?
Historical spending trends within the Department of Defense for counter-unmanned aerial systems (C-UAS) R&D have shown a consistent and significant increase over the past decade. Driven by the proliferation of small, commercially available drones and their increasing use in military conflicts by adversaries, the DoD has prioritized C-UAS capabilities. Early spending focused on basic research and identifying potential solutions, often spread across various service branches and research laboratories. As the threat evolved, so did the investment, moving towards more applied research, system integration, and prototype development. Major defense budgets have allocated substantial funds towards developing a layered defense approach, encompassing electronic warfare, directed energy, kinetic defeat mechanisms, and C2 systems. This $5.1 million contract for the THOR system fits within this broader trend of sustained investment in advanced C-UAS technologies, reflecting the ongoing strategic importance of addressing this evolving threat.
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
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST FL 10, 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: $5,111,176
Exercised Options: $5,111,176
Current Obligation: $5,111,176
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA945125DX004
IDV Type: IDC
Timeline
Start Date: 2025-05-30
Current End Date: 2026-08-03
Potential End Date: 2026-08-03 00:00:00
Last Modified: 2026-01-09
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)