Leidos awarded $35M contract for innovative tech development and execution for DoD

Contract Overview

Contract Amount: $34,978,350 ($35.0M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-10-30

End Date: 2026-10-29

Contract Duration: 1,095 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS TO PROVIDES INNOVATIVE, DESIGN, DEVELOPMENT, TESTING, AND EXECUTION OF INNOVATIVE AND EMERGING TECHNOLOGIES WHICH MEET DEPARTMENT OF DEFENSE (DOD) STANDARDS AND DES TRANSFORMATION OBJECTIVES.

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $35.0 million to LEIDOS, INC. for work described as: THIS TO PROVIDES INNOVATIVE, DESIGN, DEVELOPMENT, TESTING, AND EXECUTION OF INNOVATIVE AND EMERGING TECHNOLOGIES WHICH MEET DEPARTMENT OF DEFENSE (DOD) STANDARDS AND DES TRANSFORMATION OBJECTIVES. Key points: 1. Contract focuses on emerging technologies aligned with DoD's transformation goals. 2. Value-for-money assessment is pending further analysis of specific deliverables and performance metrics. 3. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 4. Risk indicators are moderate, typical for complex technology development contracts. 5. Performance context will be evaluated based on successful integration and testing of new technologies. 6. Sector positioning is within the defense information technology services market.

Value Assessment

Rating: fair

The contract value of approximately $35 million over three years for computer systems design services appears within a reasonable range for complex technology development. Benchmarking against similar contracts for emerging technology integration within the Department of Defense is necessary for a definitive value assessment. The firm-fixed-price structure provides cost certainty, but the ultimate value will depend on the successful delivery and adoption of the innovative technologies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages innovation by allowing the government to select the best value offering from a wide pool of qualified contractors.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it is expected to drive down costs through competitive pressure and ensure the government receives the most advantageous terms.

Public Impact

The Department of Defense is the primary beneficiary, receiving advanced technological solutions. Services delivered include design, development, testing, and execution of innovative and emerging technologies. The geographic impact is likely national, supporting DoD's broader transformation objectives. Workforce implications may include specialized roles in technology development and integration within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in emerging technology development.
  • Ensuring successful integration of novel technologies into existing DoD systems.
  • Measuring the true impact and effectiveness of 'innovative' solutions.

Positive Signals

  • Focus on emerging technologies aligns with future defense needs.
  • Firm-fixed-price contract provides cost predictability.
  • Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and the integration of emerging technologies for defense applications. The market for such services is highly competitive, driven by continuous advancements in technology and the evolving needs of government and commercial clients. Comparable spending benchmarks would involve analyzing other large-scale IT development and integration contracts within the defense sector, particularly those focused on R&D and modernization efforts.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside for this contract. As a large prime contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem is not immediately clear.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA) and relevant Department of Defense program offices. Accountability measures will be tied to the firm-fixed-price contract terms, delivery schedules, and performance milestones. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details may be sensitive.

Related Government Programs

  • DoD IT Modernization Programs
  • Defense Advanced Research Projects Agency (DARPA) Initiatives
  • Information Technology Services Contracts
  • Emerging Technology Research and Development

Risk Flags

  • Emerging Technology Risk
  • Integration Complexity
  • Performance Measurement Difficulty

Tags

defense, department-of-defense, leidos-inc, computer-systems-design-services, full-and-open-competition, delivery-order, firm-fixed-price, emerging-technologies, maryland, disa

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.0 million to LEIDOS, INC.. THIS TO PROVIDES INNOVATIVE, DESIGN, DEVELOPMENT, TESTING, AND EXECUTION OF INNOVATIVE AND EMERGING TECHNOLOGIES WHICH MEET DEPARTMENT OF DEFENSE (DOD) STANDARDS AND DES TRANSFORMATION OBJECTIVES.

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $35.0 million.

What is the period of performance?

Start: 2023-10-30. End: 2026-10-29.

What is the specific nature of the 'innovative and emerging technologies' to be developed?

The provided data does not specify the exact nature of the 'innovative and emerging technologies.' The contract description is broad, encompassing 'design, development, testing, and execution.' These technologies could range from artificial intelligence and machine learning applications, advanced cyber capabilities, secure communication systems, or novel data analytics platforms. Further details would likely be found in the detailed statement of work or technical exhibits associated with the contract, which are not publicly available in this summary.

How does the $35 million value compare to similar contracts for emerging technology development within the DoD?

A direct comparison of the $35 million value requires access to a database of similar DoD contracts for emerging technology development. However, for a three-year period, this value is substantial but not exceptionally large for a prime contract involving complex R&D and integration. It suggests a significant scope of work. Benchmarking would involve looking at contracts with similar North American Industry Classification System (NAICS) codes (like 541512) awarded by defense agencies for advanced technology solutions, considering factors like contract duration, specific technological focus, and the number of bidders.

What are the key performance indicators (KPIs) or milestones for this contract?

The provided summary does not detail the specific Key Performance Indicators (KPIs) or milestones for this contract. Typically, for technology development contracts, KPIs would relate to the successful completion of design phases, prototype development, rigorous testing outcomes (e.g., performance, security, reliability metrics), successful integration into existing systems, and adherence to delivery schedules. The firm-fixed-price nature implies that meeting these defined objectives is critical for the contractor to achieve full payment.

What is Leidos, Inc.'s track record with similar DoD technology development contracts?

Leidos, Inc. has a significant and established track record of performing large-scale IT and technology development contracts for the Department of Defense and other federal agencies. They are known for their work in areas such as systems integration, cybersecurity, data analytics, and command and control systems. While specific details of past performance on highly similar 'emerging technology' contracts would require deeper research into their contract history, their overall profile suggests they possess the capabilities and experience necessary to undertake such a project.

What is the potential risk associated with the 'execution' phase of these emerging technologies?

The 'execution' phase of emerging technologies carries inherent risks due to their novel nature. These risks can include unforeseen technical challenges during implementation, difficulties in integrating with legacy systems, potential cybersecurity vulnerabilities in new code or platforms, and the possibility that the technology may not perform as expected in real-world operational environments. The success of the execution phase heavily relies on thorough testing, robust risk management strategies, and close collaboration between the contractor and the DoD.

How does this contract contribute to the DoD's broader transformation objectives?

This contract directly supports the DoD's transformation objectives by focusing on the acquisition and implementation of 'innovative and emerging technologies.' These technologies are crucial for modernizing military capabilities, enhancing operational effectiveness, improving decision-making through data analytics, strengthening cybersecurity defenses, and maintaining a technological advantage over adversaries. By investing in these areas, the DoD aims to become more agile, resilient, and capable in a rapidly evolving global security landscape.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC104720R0014

Pricing Type: FIRM FIXED PRICE (J)

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: $44,827,322

Exercised Options: $34,978,350

Current Obligation: $34,978,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104722D0002

IDV Type: IDC

Timeline

Start Date: 2023-10-30

Current End Date: 2026-10-29

Potential End Date: 2028-10-29 00:00:00

Last Modified: 2025-12-29

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