Dod's Strategic Systems Defense Program Awarded $36.9M to Leidos, Inc. for R&D

Contract Overview

Contract Amount: $36,949,665 ($36.9M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-30

End Date: 2025-12-02

Contract Duration: 2,286 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STRATEGIC SYSTEMS DEFENSE PROGRAM

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $36.9 million to LEIDOS, INC. for work described as: STRATEGIC SYSTEMS DEFENSE PROGRAM Key points: 1. Leidos, Inc. secured a significant contract for R&D services. 2. The contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The award value is substantial at $36.9 million over its duration.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and value for the government.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, benefiting taxpayers by ensuring the government receives value for its investment in R&D.

Public Impact

Supports critical defense research and development initiatives. Potential for technological advancements in strategic defense systems. Contract duration extends into late 2025, indicating long-term project commitment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
  • No indication of small business participation.

Positive Signals

  • Awarded under full and open competition.
  • Significant investment in strategic defense R&D.

Sector Analysis

This contract is in the Research and Development in Physical, Engineering, and Life Sciences sector, a critical area for national security. Spending benchmarks for this sector vary widely based on project scope and complexity.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were pursued or mandated.

Oversight & Accountability

The Department of Defense, specifically the Defense Threat Reduction Agency, is responsible for overseeing this contract. Standard oversight mechanisms for R&D contracts would apply.

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

  • Cost Plus Fixed Fee contract type.
  • No small business participation indicated.
  • Long contract duration (2286 days).
  • Specific R&D objectives not detailed.

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.9 million to LEIDOS, INC.. STRATEGIC SYSTEMS DEFENSE PROGRAM

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 $36.9 million.

What is the period of performance?

Start: 2019-08-30. End: 2025-12-02.

What specific research and development activities are encompassed by this contract, and how do they align with current strategic defense priorities?

The contract details are limited, but the 'STRATEGIC SYSTEMS DEFENSE PROGRAM' title suggests research into advanced weapon systems, countermeasures, or related technologies crucial for national security. Alignment with priorities would require examining the Defense Threat Reduction Agency's strategic goals and current threat assessments.

What are the key performance indicators (KPIs) for this Cost Plus Fixed Fee contract, and how will their achievement be measured to ensure value for money?

Specific KPIs are not provided in the data. However, for a CPFF contract, KPIs typically focus on technical milestones, research progress, and adherence to the fixed fee objectives. The Defense Threat Reduction Agency would establish these metrics and monitor them through regular reporting and technical reviews to ensure the contractor meets performance expectations.

Given the $36.9M value and CPFF structure, what is the projected cost ceiling and how is the fixed fee determined to ensure it reflects the contractor's risk and effort?

The data does not specify a cost ceiling or the methodology for determining the fixed fee. Typically, the cost ceiling is negotiated and represents the maximum the government will pay. The fixed fee is negotiated based on the complexity, risk, and anticipated profit for the contractor, aiming to incentivize efficient performance within the contract's scope.

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: $83,661,820

Exercised Options: $36,949,665

Current Obligation: $36,949,665

Actual Outlays: $11,833,610

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $469,333

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: 2019-08-30

Current End Date: 2025-12-02

Potential End Date: 2025-12-02 00:00:00

Last Modified: 2025-07-14

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