Leidos Inc. awarded $21.1M in R&D contracts for physical, engineering, and life sciences from 2007-2011

Contract Overview

Contract Amount: $21,135,900 ($21.1M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-01-01

End Date: 2011-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BSA ASSESSMENTS 1 JAN 2007- 31 DEC 2007

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to LEIDOS, INC. for work described as: BSA ASSESSMENTS 1 JAN 2007- 31 DEC 2007 Key points: 1. Contract awarded to a single, large incumbent provider, raising questions about potential cost efficiencies. 2. The contract's duration of five years suggests a long-term need for these R&D services. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical but often complex sector for government oversight. 4. The 'NOT COMPETED' status indicates a sole-source award, potentially limiting price discovery and competitive pressure. 5. The contract type 'COST PLUS FIXED FEE' can incentivize cost overruns if not managed carefully. 6. Virginia is a significant hub for defense and technology contracting, influencing the local economic landscape.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparison to similar R&D efforts. The 'COST PLUS FIXED FEE' structure, while common for R&D, carries inherent risks of cost escalation. The awarded amount of $21.1 million over five years averages to approximately $4.2 million annually, which appears moderate for specialized R&D services, but its true value depends heavily on the specific research outcomes and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when urgency dictates a rapid award. The lack of competition means that taxpayers did not benefit from the price reductions that can arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is less pressure on the contractor to offer the most competitive bid. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are likely the research and development teams at Leidos, Inc., who will execute the scientific and engineering work. The services delivered are specialized research and development in physical, engineering, and life sciences, contributing to potential technological advancements. The geographic impact is centered in Virginia, where the contractor is located, potentially supporting local employment and economic activity in the R&D sector. Workforce implications include the employment of scientists, engineers, and support staff within Leidos to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pricing and potential cost savings for taxpayers.
  • Cost-plus contract type can lead to cost overruns if not rigorously managed.
  • Lack of transparency in the justification for sole-source award.
  • Potential for contractor lock-in due to specialized nature of R&D.
  • Limited visibility into the specific R&D projects funded by this contract.

Positive Signals

  • Leidos, Inc. is a known entity in government contracting, suggesting a degree of established capability.
  • The contract supports critical R&D in physical, engineering, and life sciences, which can drive innovation.
  • The fixed fee component of the contract provides some level of cost predictability.
  • The contract duration indicates a sustained need for these specialized services.

Sector Analysis

The Research and Development in Physical, Engineering, and Life Sciences sector (NAICS 541710) is a vital area for government investment, driving innovation and technological advancement. This contract falls within a broad category that encompasses a wide range of scientific inquiry. Comparable spending in this sector can vary significantly based on the specific sub-disciplines and the agency's strategic priorities. The market is characterized by a mix of large, established research institutions and smaller, specialized firms.

Small Business Impact

This contract was awarded to Leidos, Inc., a large business, and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award, it bypasses the typical competitive processes where small businesses might have opportunities to participate. The lack of specific small business provisions means this contract is unlikely to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency (Department of Defense) and potentially the Defense Contract Management Agency (DCMA). The 'COST PLUS FIXED FEE' structure necessitates close monitoring of expenditures and progress to ensure the fixed fee remains appropriate and costs are controlled. Transparency is limited due to the sole-source nature, and specific Inspector General (IG) involvement would depend on any reported issues or audits.

Related Government Programs

  • Department of Defense Research and Development Programs
  • National Science Foundation Grants
  • National Institutes of Health Research Contracts
  • NASA Research and Technology Development

Risk Flags

  • Sole-source award
  • Cost-plus contract type
  • Lack of competition

Tags

research-and-development, department-of-defense, leidos-inc, cost-plus-fixed-fee, sole-source, virginia, physical-sciences, engineering, life-sciences, definitive-contract, large-business

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to LEIDOS, INC.. BSA ASSESSMENTS 1 JAN 2007- 31 DEC 2007

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 $21.1 million.

What is the period of performance?

Start: 2007-01-01. End: 2011-12-31.

What specific research areas within physical, engineering, and life sciences were covered by this contract?

The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' However, it does not specify the precise research areas. This broad classification could encompass anything from materials science and advanced manufacturing to biotechnology and environmental engineering. To understand the specific focus, one would need to consult the contract's statement of work (SOW) or related documentation, which would detail the objectives, tasks, and expected outcomes of the research.

What was the justification for awarding this contract on a sole-source basis to Leidos, Inc.?

The justification for a sole-source award is typically documented in a Justification and Approval (J&A) document. Common reasons include the unique capabilities or proprietary technology of the contractor, the urgency of the requirement, or the lack of other responsible sources. Without access to the specific J&A for this contract, it's impossible to state the exact reason. However, for R&D contracts, it often relates to specialized expertise or ongoing work where transitioning to a new contractor would be inefficient or detrimental to progress.

How does the average annual spending of approximately $4.2 million compare to similar R&D contracts in the physical, engineering, and life sciences sector?

An average annual spending of $4.2 million for R&D in the physical, engineering, and life sciences sector is moderate. The total contract value of $21.1 million over five years places it within a common range for specialized research projects. However, 'similar' contracts can vary widely in scope, complexity, and duration. Larger, more foundational research initiatives or those involving extensive clinical trials or large-scale engineering projects could easily exceed this amount, while smaller, more focused investigations might be budgeted lower. Benchmarking requires comparing contracts with identical or very closely related NAICS codes, similar contract types, and comparable agency objectives.

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

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to cover all allowable costs plus a negotiated fixed fee. If the contractor's costs exceed estimates, the government still pays those costs. This structure can lead to cost overruns if not managed diligently through robust oversight, detailed cost tracking, and regular performance reviews. The fixed fee itself can also become disproportionately large if the initial cost estimates were significantly underestimated. For R&D, CPFF is often used because the scope and costs can be uncertain, but it requires careful management to ensure value for money.

What is Leidos, Inc.'s track record with Department of Defense R&D contracts?

Leidos, Inc. has a substantial track record with the Department of Defense (DoD) across various service and technology areas, including significant involvement in research and development. As a major government contractor, they frequently secure contracts for complex scientific, engineering, and IT services. Their history with the DoD suggests they possess the necessary clearances, infrastructure, and expertise to handle sensitive and advanced R&D projects. Specific performance metrics and past issues would require a deeper dive into contract databases and performance reports, but their continued presence indicates a generally accepted capability.

Were there any performance issues or contract disputes related to this specific $21.1M contract?

The provided data does not contain information regarding performance issues or contract disputes for this specific contract (BSA ASSESSMENTS 1 JAN 2007- 31 DEC 2007) awarded to Leidos, Inc. Identifying such issues would typically require accessing contract performance reports, payment histories, modification logs, or official dispute resolution records. Without these specific documents, it is not possible to ascertain if any problems arose during the contract's execution from 2007 to 2011.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (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: 10260 CAMPUS POINT DRIVE, SAN DIEGO, CA, 92121

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,045,788

Exercised Options: $26,353,240

Current Obligation: $21,135,900

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2007-01-01

Current End Date: 2011-12-31

Potential End Date: 2011-12-31 00:00:00

Last Modified: 2025-03-28

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