Leidos Inc. awarded $59.9M for Submarine Training Systems, a contract with a 1,506-day duration
Contract Overview
Contract Amount: $59,892,627 ($59.9M)
Contractor: Leidos Inc
Awarding Agency: Department of Defense
Start Date: 2007-11-16
End Date: 2011-12-31
Contract Duration: 1,506 days
Daily Burn Rate: $39.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SUBMARINE TRAINING SYSTEMS
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $59.9 million to LEIDOS INC for work described as: SUBMARINE TRAINING SYSTEMS Key points: 1. Contract value of $59.9M over approximately four years suggests a moderate annual spend. 2. The 'Engineering Services' category indicates a focus on technical and design expertise. 3. A Cost Plus Fixed Fee (CPFF) contract type can present cost control challenges if not managed closely. 4. The contract was awarded under Full and Open Competition, implying a competitive bidding process. 5. The duration of 1,506 days (over 4 years) suggests a long-term need for these services. 6. The award to Leidos Inc. places it within the defense sector's complex supply chain.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more granular data on the scope of 'Submarine Training Systems'. However, the Cost Plus Fixed Fee (CPFF) structure, while common in complex defense projects, carries inherent risks of cost overruns if not meticulously managed. The total award of $59.9M over 1,506 days averages to approximately $39,769 per day, which needs to be assessed against the complexity and criticality of the training systems provided. Without comparable contract data for similar submarine training systems, a definitive value-for-money assessment is difficult, but the CPFF type warrants close monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding environment where multiple companies vied for the contract. The number of bidders is not specified, but the designation implies that the government sought the best possible offer through a competitive process, which should theoretically lead to more favorable pricing and terms for the government.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.
Public Impact
Naval personnel, specifically submariners, are the primary beneficiaries, receiving enhanced training capabilities. The services delivered likely include the development, maintenance, and/or upgrade of sophisticated training simulators and related systems for submarine operations. The geographic impact is primarily within the Department of the Navy's operational areas and training facilities. This contract supports specialized technical roles within the defense industry, potentially impacting engineers and technical specialists.
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 diligently.
- Lack of specific details on performance metrics makes it difficult to assess the effectiveness of the training systems.
- The long duration of the contract could lead to technological obsolescence if not actively managed and updated.
Positive Signals
- Awarded through Full and Open Competition, suggesting a competitive process that should yield good value.
- The contract addresses a critical need for submarine crew training, essential for national security.
- Leidos Inc. is a well-established defense contractor with significant experience in complex systems integration.
Sector Analysis
The defense sector, particularly naval operations, relies heavily on advanced training systems to ensure crew proficiency and mission readiness. Submarine training is a highly specialized area requiring complex simulations and realistic environments. Spending in this niche often involves significant R&D and long-term sustainment contracts. Comparable spending benchmarks would typically be found within other large-scale simulation and training programs for military platforms, often running into tens or hundreds of millions of dollars.
Small Business Impact
The provided 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 contract awarded to Leidos Inc., there may be opportunities for small businesses to participate as subcontractors, depending on Leidos's subcontracting plan and the specific needs of the project. The absence of a small business set-aside means the primary competition was likely among larger, established firms.
Oversight & Accountability
Oversight for this Department of the Navy contract would typically fall under the purview of the Naval Sea Systems Command (NAVSEA) and potentially the Department of Defense's Inspector General. Accountability measures would be defined within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is generally maintained through contract award databases and public reporting, though specific operational details of training systems may be sensitive.
Related Government Programs
- Naval Training Systems
- Submarine Warfare Systems
- Defense Simulation and Training
- Military Personnel Training
- Engineering Services Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Lack of specific performance metrics makes objective assessment of system effectiveness challenging.
- Potential for technological obsolescence over the contract's long duration.
Tags
defense, department-of-defense, department-of-the-navy, submarine-training-systems, engineering-services, full-and-open-competition, cost-plus-fixed-fee, leidos-inc, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.9 million to LEIDOS INC. SUBMARINE TRAINING SYSTEMS
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 Navy).
What is the total obligated amount?
The obligated amount is $59.9 million.
What is the period of performance?
Start: 2007-11-16. End: 2011-12-31.
What is the specific nature of the 'Submarine Training Systems' being provided under this contract?
The provided data is limited and does not specify the exact nature of the 'Submarine Training Systems.' However, given the 'Engineering Services' NAICS code (541330) and the context of submarine training, these systems likely encompass a range of capabilities. This could include advanced simulation hardware and software for navigation, combat systems, sonar operation, and emergency procedures. It might also involve the development of virtual reality or augmented reality training environments, maintenance of existing simulators, and potentially the creation of new training modules or curricula. The 'Cost Plus Fixed Fee' (CPFF) contract type suggests a project where the scope may evolve or involve significant research and development, common in complex technological systems.
How does the $59.9 million award compare to other submarine training system contracts?
Directly comparing the $59.9 million award for submarine training systems is difficult without access to a comprehensive database of similar contracts, including their specific scope, duration, and technological complexity. However, $59.9 million over approximately four years (1,506 days) represents a substantial investment. Large-scale defense training and simulation programs often range from tens to hundreds of millions of dollars. The value of this contract appears moderate within the broader landscape of major defense procurements, but its significance is tied to the critical nature of submarine operations and the specialized technology involved. Further analysis would require benchmarking against contracts for comparable simulation and training solutions across different military branches or allied nations.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for training systems?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Leidos Inc. for submarine training systems, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses, while the contractor's profit remains fixed. This can incentivize contractors to be less cost-conscious than in fixed-price contracts. Effective oversight, stringent cost controls, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value. Scope creep, where the project's requirements expand beyond the original agreement, is another significant risk that can inflate costs under a CPFF arrangement.
What is Leidos Inc.'s track record with similar defense training or simulation contracts?
Leidos Inc. has a significant track record in providing complex engineering, IT, and systems integration services to the Department of Defense and other government agencies. While specific details on their past submarine training system contracts are not provided in the data, the company has extensive experience in areas relevant to this award. This includes developing and integrating sophisticated simulation and training solutions, command and control systems, and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities for various military platforms. Their broad portfolio suggests a capacity to handle large, complex projects like the submarine training systems contract. A deeper dive into their contract history would reveal specific examples and performance metrics on similar programs.
How has federal spending on submarine training systems evolved over time?
Analyzing the historical spending trends specifically for 'Submarine Training Systems' requires access to detailed federal procurement data over multiple fiscal years. This single contract award from 2007-2011 provides a snapshot but does not illustrate broader trends. Generally, spending on advanced military training systems, including those for submarines, tends to fluctuate based on defense budgets, modernization priorities, geopolitical threats, and the lifecycle of existing platforms. Investments often increase during periods of naval expansion or when new submarine classes are introduced, requiring updated training protocols and technologies. Conversely, spending might decrease during budget austerity or when existing systems are deemed sufficient. Without broader historical data, it's impossible to determine if this $59.9M award represents an increase, decrease, or steady level of investment in this specific capability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002407R3258
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $159,295,891
Exercised Options: $159,295,891
Current Obligation: $59,892,627
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2007-11-16
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2016-02-16
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