Defense Threat Reduction Agency awards $78.7M contract for RDTE/Services-Demo/Valid to Applied Marine Technology Inc
Contract Overview
Contract Amount: $24,762,495 ($24.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-01-03
End Date: 2011-01-07
Contract Duration: 1,830 days
Daily Burn Rate: $13.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200608!600696!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA106C0007 !A!N! !N! ! !20060103!20080102!786832824!786832824!786832824!N!APPLIED MARINE TECHNOLOGY INC !2900 SABRE ST STE 800 !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000002456883!N!N!000050000000!AD24!RDTE/SERVICES-DEMO/VALID !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !1! ! ! ! ! !99990909!B! ! !N!Z!D!U!U!1!001!N!1A!Z!N!Z! ! !N!B!N!N! !B!A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23452
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to LEIDOS, INC. for work described as: 200608!600696!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA106C0007 !A!N! !N! ! !20060103!20080102!786832824!786832824!786832824!N!APPLIED MARINE TECHNOLOGY INC !2900 SABRE ST STE 800 !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRG… Key points: 1. The contract, valued at $78.7 million, is for Research, Development, Test, and Evaluation (RDTE) services. 2. Leidos, Inc. is listed as a competitor, suggesting some level of market awareness. 3. The contract was not competed, raising potential concerns about price discovery and value for money. 4. The sector is primarily IT and R&D, with a focus on defense-related engineering services.
Value Assessment
Rating: questionable
The contract's total value is $78.7 million over approximately 5 years. Without specific unit costs or detailed service breakdowns, a direct pricing comparison is difficult. However, the lack of competition may have led to a higher price than could have been achieved through a competitive bidding process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning only one vendor was solicited. This limits price discovery and may not ensure the best value for the government. The justification for sole-source is not provided in the data.
Taxpayer Impact: The lack of competition for a contract of this size could result in taxpayers paying more than necessary for the services rendered.
Public Impact
Defense spending on specialized R&D services can impact the allocation of resources for other critical national security needs. The use of sole-source contracts, while sometimes necessary, can reduce transparency and public trust in government procurement. This contract supports a specific defense agency's mission, contributing to national security objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of detailed justification for sole-source
- Potential for overpayment due to lack of competition
Positive Signals
- Contract supports a critical defense agency
- Long-term contract provides stability for the vendor
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense research, development, testing, and evaluation. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or if this contract was set aside for small business participation. The primary awardee is Applied Marine Technology Inc., and competitor Leidos, Inc. is a large corporation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight would be beneficial to understand the justification for not competing the contract and to ensure accountability for the funds expended.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited transparency in procurement process
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to LEIDOS, INC.. 200608!600696!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA106C0007 !A!N! !N! ! !20060103!20080102!786832824!786832824!786832824!N!APPLIED MARINE TECHNOLOGY INC !2900 SABRE ST STE 800 !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000002456883!N!N!000050000000!AD24!RDTE/SERVICES-DEMO/VALID !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !1! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2006-01-03. End: 2011-01-07.
What was the specific justification for awarding this contract on a sole-source basis, and were any efforts made to explore competitive alternatives?
The provided data indicates the contract was 'NOT COMPETED' and awarded under 'SOLE SOURCE'. Without further documentation or agency records, the specific justification remains unclear. Typically, sole-source awards require a detailed justification citing reasons such as urgency, unique capabilities, or lack of other responsible sources. It is unknown if competitive alternatives were explored before this determination was made.
How does the cost of this sole-source contract compare to similar competitively awarded contracts for comparable R&D services?
A direct comparison is challenging without detailed service breakdowns and unit pricing from this contract and from competitively awarded contracts. However, sole-source contracts generally carry a higher risk of inflated pricing due to the absence of competitive pressure. A thorough cost analysis by the agency would be needed to determine if the price paid was fair and reasonable compared to market rates for similar services.
What is the expected impact of these RDTE/Services-Demo/Valid on the Defense Threat Reduction Agency's overall mission effectiveness?
The contract is intended to support the Defense Threat Reduction Agency's (DTRA) mission, likely involving research, development, demonstration, and validation of technologies or methodologies related to threat reduction. The specific impact on mission effectiveness depends on the nature of the services provided and their successful integration into DTRA's operational or strategic capabilities. The long duration suggests a significant role in ongoing efforts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 2929 SABRE ST STE 100, VIRGINIA BEACH, VA, 23452
Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-01-03
Current End Date: 2011-01-07
Potential End Date: 2011-01-07 00:00:00
Last Modified: 2025-03-28
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