DoD's $95.5M R&D Contract for WMD Facility Detection Tech Awarded to Leidos, Inc

Contract Overview

Contract Amount: $95,469,142 ($95.5M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-04-28

End Date: 2023-04-27

Contract Duration: 1,825 days

Daily Burn Rate: $52.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNOLOGY DEVELOPMENT PROJECTS TO DEVELOP TECHNOLOGIES TO ENHANCE THE DETECTION, PHYSICAL AND FUNCTIONAL CHARACTERIZATION AND COMBAT DEFEAT ASSESSMENTS OF WMD FACILITIES, HARD AND DEEPLY BURIED TARGETS (HDBTS), AND UNDERGROUND FACILITIES (UGFS).

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $95.5 million to LEIDOS, INC. for work described as: TECHNOLOGY DEVELOPMENT PROJECTS TO DEVELOP TECHNOLOGIES TO ENHANCE THE DETECTION, PHYSICAL AND FUNCTIONAL CHARACTERIZATION AND COMBAT DEFEAT ASSESSMENTS OF WMD FACILITIES, HARD AND DEEPLY BURIED TARGETS (HDBTS), AND UNDERGROUND FACILITIES (UGFS). Key points: 1. Contract focuses on critical national security needs for WMD detection and defeat. 2. Leidos, Inc. has a significant presence in defense technology development. 3. The contract duration of 5 years suggests a long-term commitment to technology maturation. 4. Research and Development in Physical, Engineering, and Life Sciences is a key sector for innovation. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility in R&D but requires careful cost oversight. 6. This award falls under the broader category of defense threat reduction initiatives.

Value Assessment

Rating: good

The contract value of approximately $95.5 million over five years represents a substantial investment in advanced technology development. Benchmarking this against similar R&D contracts for WMD detection and defeat technologies is challenging due to the specialized nature of the work. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that costs are managed within a defined fee structure, which can be efficient for research where exact costs are uncertain. The pricing will depend heavily on the specific research tasks undertaken and the labor rates involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process aimed at securing the best value. This approach typically leads to more robust proposals and potentially better pricing as contractors vie for the award.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government explores a wide range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of Defense and national security agencies, who will receive advanced technologies to counter WMD threats. The services delivered include research and development to enhance detection, characterization, and combat defeat of WMD facilities, hard and deeply buried targets, and underground facilities. The geographic impact is primarily national, focusing on the development of capabilities that can be deployed globally. Workforce implications include employment for scientists, engineers, and technical personnel involved in advanced R&D within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost overruns are a potential risk with Cost Plus Fixed Fee contracts, especially in complex R&D projects.
  • The effectiveness of the developed technologies in real-world scenarios will require rigorous testing and validation.
  • Dependence on a single contractor (Leidos, Inc.) for this critical capability could pose a risk if performance falters.

Positive Signals

  • Awarding to a single, established contractor like Leidos, Inc. can ensure continuity and leverage existing expertise.
  • The focus on WMD threat reduction addresses a high-priority national security concern.
  • The long contract duration allows for sustained development and refinement of complex technologies.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on defense applications. The market for WMD detection and defeat technologies is highly specialized, driven by government funding and national security imperatives. Comparable spending benchmarks would likely be found within other defense R&D programs aimed at counter-proliferation and threat assessment. The size of this contract is significant for a single R&D project in this niche.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D effort awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified in the contract's statement of work. The primary focus is on advanced technological development, which typically involves larger, established prime contractors.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Defense Threat Reduction Agency (DTRA) within the Department of Defense. Accountability measures would be embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting on costs and progress. Transparency is generally limited for national security-related R&D contracts, but periodic reviews and milestone achievements would be assessed. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

  • Defense Threat Reduction Agency (DTRA) Programs
  • WMD Counter-Proliferation Initiatives
  • Advanced Technology Development Contracts
  • Department of Defense Research and Development

Risk Flags

  • Cost Overrun Potential
  • Technology Maturation Risk
  • Performance Measurement Complexity
  • National Security Sensitivity

Tags

defense, department-of-defense, dtra, research-and-development, wmd-detection, technology-development, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, national-security, virginia, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.5 million to LEIDOS, INC.. TECHNOLOGY DEVELOPMENT PROJECTS TO DEVELOP TECHNOLOGIES TO ENHANCE THE DETECTION, PHYSICAL AND FUNCTIONAL CHARACTERIZATION AND COMBAT DEFEAT ASSESSMENTS OF WMD FACILITIES, HARD AND DEEPLY BURIED TARGETS (HDBTS), AND UNDERGROUND FACILITIES (UGFS).

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 $95.5 million.

What is the period of performance?

Start: 2018-04-28. End: 2023-04-27.

What is Leidos, Inc.'s track record with similar defense R&D contracts, particularly in WMD detection?

Leidos, Inc. has a substantial history of performing complex R&D and technology integration for the Department of Defense and other government agencies. While specific details on WMD detection contracts are often classified or proprietary, Leidos's broad capabilities in areas such as intelligence analysis, sensor development, and systems engineering suggest a strong foundation for undertaking this type of work. Their portfolio includes numerous contracts related to national security, advanced analytics, and scientific research, indicating a capacity to manage large-scale, technically challenging projects. The company's experience in developing and integrating sophisticated systems positions them as a capable contractor for this critical mission.

How does the $95.5 million value compare to other WMD detection technology development contracts?

The $95.5 million value for this five-year R&D contract is significant, reflecting the specialized and critical nature of WMD detection and defeat technologies. Benchmarking against publicly available data for similar, highly specialized R&D efforts can be challenging due to classification and the niche market. However, this figure is consistent with major defense R&D investments aimed at developing cutting-edge capabilities. For context, other large-scale defense R&D programs, such as those for advanced weapon systems or cybersecurity, can range from tens to hundreds of millions of dollars over similar timeframes. The value here suggests a comprehensive effort to mature technologies rather than a single-point solution.

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

The primary risks with a CPFF contract for R&D revolve around cost control and scope creep. While the fixed fee provides the contractor with an incentive to manage costs efficiently to maximize their profit, the 'cost plus' element means the government ultimately reimburses allowable costs. If the R&D proves more complex or requires more resources than initially anticipated, costs can escalate significantly. There's also a risk that the contractor might be incentivized to incur costs to increase the base for future contracts, or that the government may not have sufficient visibility into the efficiency of the contractor's spending. Robust oversight and clear definition of milestones are crucial to mitigate these risks.

How effective are R&D contracts like this in delivering tangible WMD detection capabilities?

The effectiveness of R&D contracts in delivering tangible capabilities is inherently variable, as the nature of research involves uncertainty and potential for unforeseen challenges. Contracts like this aim to advance the state-of-the-art, which can lead to significant breakthroughs. However, not all research yields immediately deployable solutions. Success is often measured by the development of prototypes, proof-of-concept demonstrations, and the maturation of technologies to a point where they can be transitioned to acquisition programs. The long-term effectiveness depends on rigorous testing, validation, and successful integration into operational systems, which may occur under subsequent contracts.

What are the historical spending patterns for WMD detection R&D within the Department of Defense?

Historical spending patterns for WMD detection R&D within the Department of Defense have generally shown a consistent, albeit fluctuating, commitment driven by evolving threat landscapes. Agencies like the Defense Threat Reduction Agency (DTRA) are central to these investments. Spending often increases following perceived threats or global events related to WMD proliferation. Budgets are allocated across various research areas, including sensor development, intelligence analysis tools, and countermeasures. While specific figures vary year-to-year based on strategic priorities and available funding, there is a sustained investment in maintaining and advancing capabilities in this critical national security domain.

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: $103,968,331

Exercised Options: $101,020,987

Current Obligation: $95,469,142

Actual Outlays: $11,924,526

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: 2018-04-28

Current End Date: 2023-04-27

Potential End Date: 2023-04-27 00:00:00

Last Modified: 2025-09-18

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