DoD's $31M EMP Testing Contract Awarded to Leidos, Inc. for System Vulnerability Assessments

Contract Overview

Contract Amount: $31,068,966 ($31.1M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-12

End Date: 2023-03-12

Contract Duration: 1,826 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ELECTROMAGNETIC PULSE (EMP) ADVANCED TESTING AND TECHNICAL ASSISTANCE FOR SYSTEM VULNERABILITIES AND ASSESSMENTS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to LEIDOS, INC. for work described as: ELECTROMAGNETIC PULSE (EMP) ADVANCED TESTING AND TECHNICAL ASSISTANCE FOR SYSTEM VULNERABILITIES AND ASSESSMENTS Key points: 1. Leidos, Inc. secured a significant contract for advanced EMP testing, highlighting the critical need for system vulnerability analysis. 2. The contract's value of $31 million over five years suggests a substantial investment in national security research and development. 3. Research and Development in Physical Sciences is a key sector for defense innovation, with this contract contributing to that area. 4. The use of a Cost Plus Fixed Fee contract type warrants scrutiny regarding cost control and potential for overruns.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed carefully, as the contractor is reimbursed for all allowable costs plus a fixed fee. Benchmarking CPFF contracts in R&D is challenging due to variability in scope and risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the CPFF structure are not detailed, which could impact the final cost efficiency.

Taxpayer Impact: Taxpayer funds are being utilized for critical defense research, aiming to enhance system security against electromagnetic pulse threats. The effectiveness of the spending will depend on the quality of the assessments and subsequent mitigation strategies.

Public Impact

Enhances national security by identifying and addressing vulnerabilities to electromagnetic pulse attacks. Supports technological advancement in defense systems and infrastructure resilience. Provides critical data for future research and development in hardening systems against EMP threats. Potential for spin-off technologies and applications in civilian sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type may lead to cost overruns.
  • Lack of detailed pricing benchmarks for similar EMP testing services.
  • Contract duration of five years could be subject to changing technological needs.

Positive Signals

  • Awarded under full and open competition.
  • Addresses a critical national security threat.
  • Contractor has a history in defense-related R&D.

Sector Analysis

This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector, specifically focusing on defense applications. Spending in this area is crucial for maintaining a technological edge, with benchmarks varying widely based on the specific research domain and complexity.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Department of Defense, through the Defense Threat Reduction Agency, is responsible for overseeing this contract. Standard oversight mechanisms for R&D contracts, including progress reports and technical reviews, would be expected to ensure accountability and effective use of funds.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Defense Threat Reduction Agency Programs

Risk Flags

  • Potential for cost overruns due to CPFF structure.
  • Lack of specific performance metrics for effectiveness.
  • Long contract duration may not align with rapidly evolving threats.
  • Limited transparency on pricing discovery within the competitive process.

Tags

research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to LEIDOS, INC.. ELECTROMAGNETIC PULSE (EMP) ADVANCED TESTING AND TECHNICAL ASSISTANCE FOR SYSTEM VULNERABILITIES AND ASSESSMENTS

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $31.1 million.

What is the period of performance?

Start: 2018-03-12. End: 2023-03-12.

What specific metrics will be used to evaluate the effectiveness of the EMP testing and technical assistance provided under this contract?

Effectiveness will likely be measured by the thoroughness of vulnerability assessments, the accuracy of identified system weaknesses, and the clarity of recommendations for mitigation. The final reports generated by Leidos, Inc. will be crucial in evaluating the quality and impact of the technical assistance, ensuring that the Department of Defense gains actionable insights to enhance system resilience against EMP threats.

How will the government ensure cost control and prevent potential overruns with a Cost Plus Fixed Fee contract for this R&D effort?

Cost control in a CPFF contract relies heavily on robust government oversight, including detailed review of contractor expenditures, adherence to pre-defined allowable costs, and regular performance evaluations. The fixed fee component provides some incentive for efficiency, but the government must actively manage the scope and monitor progress to mitigate risks of cost escalation and ensure the project remains within budgetary expectations.

What is the anticipated long-term impact of this contract on the Department of Defense's overall preparedness against electromagnetic pulse threats?

This contract is expected to significantly enhance the DoD's understanding of system vulnerabilities to EMPs, leading to improved hardening strategies and more resilient critical infrastructure. The advanced testing and technical assistance will provide a data-driven foundation for future investments in EMP protection technologies and operational planning, ultimately bolstering national security against this specific threat vector.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA112R0016

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $34,086,775

Exercised Options: $32,143,296

Current Obligation: $31,068,966

Actual Outlays: $12,398,542

Subaward Activity

Number of Subawards: 157

Total Subaward Amount: $30,469,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA114D0008

IDV Type: IDC

Timeline

Start Date: 2018-03-12

Current End Date: 2023-03-12

Potential End Date: 2023-03-12 00:00:00

Last Modified: 2025-07-14

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