DoD's $29.7M R&D contract for advanced threat analysis tools awarded to Leidos, Inc

Contract Overview

Contract Amount: $29,717,556 ($29.7M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-01-14

End Date: 2025-12-02

Contract Duration: 1,783 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NUCLEAR, CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND HIGH EXPLOSIVE ANALYSIS TOOLSET

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to LEIDOS, INC. for work described as: NUCLEAR, CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND HIGH EXPLOSIVE ANALYSIS TOOLSET Key points: 1. Contract value represents a significant investment in national security research and development. 2. The award to Leidos, Inc. suggests a focus on established contractors with relevant expertise. 3. The duration of the contract indicates a long-term need for these specialized analytical capabilities. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code highlights the technical nature of the services. 5. The contract type (Cost Plus Fixed Fee) implies potential for cost overruns but allows for flexibility in research. 6. The delivery order structure suggests a phased approach to acquiring and implementing the toolset.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of directly comparable public data. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher final costs than fixed-price contracts, but it is often necessary for research where scope and costs are uncertain. Without detailed cost breakdowns or comparisons to similar government-funded R&D efforts in threat analysis, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a competitive landscape for this specialized R&D requirement. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of solutions and potentially lower prices through competitive pressure.

Public Impact

The Department of Defense benefits from enhanced capabilities in analyzing nuclear, chemical, biological, radiological, and high explosive threats. This contract supports the development of advanced analytical toolsets crucial for national security and defense. The geographic impact is primarily national, supporting defense readiness across the United States. Workforce implications include specialized R&D roles for scientists, engineers, and analysts within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • The CPFF contract type carries inherent risk of cost escalation if research proves more complex or time-consuming than initially estimated.
  • Limited public information on the specific performance metrics makes it difficult to assess the effectiveness and efficiency of the R&D progress.
  • The specialized nature of the threat analysis toolset means that the direct benefits to the public are indirect, primarily through enhanced national security.

Positive Signals

  • The award under full and open competition suggests a structured procurement process that considered multiple potential solutions.
  • The selection of Leidos, Inc., a known entity in defense contracting, implies a level of confidence in their technical capabilities and past performance.
  • The long contract duration (over 4 years) indicates a sustained commitment to addressing critical national security needs in threat analysis.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced threat analysis tools is specialized, serving government defense and intelligence agencies. Spending in this area is driven by evolving global threats and the need for sophisticated detection, identification, and response capabilities. Comparable spending benchmarks would typically be found within other large-scale DoD R&D procurements for advanced technology solutions.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of the R&D requirement and the prime contractor (Leidos, Inc.), it is likely that any small business involvement would be through subcontracting opportunities. The extent of small business participation will depend on Leidos's subcontracting plan and the availability of small businesses with the necessary expertise.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Threat Reduction Agency (DTRA) and potentially the Department of Defense's Inspector General. Accountability measures would be embedded within the contract's terms, including reporting requirements, milestone tracking, and performance evaluations. Transparency is generally limited for defense R&D contracts due to national security considerations, but contract awards and basic details are publicly available through federal procurement databases.

Related Government Programs

  • Defense Threat Reduction Agency (DTRA) Research and Development Programs
  • Department of Defense Advanced Research Projects Agency (DARPA) Initiatives
  • Chemical, Biological, Radiological, Nuclear (CBRN) Defense Programs
  • National Security Science and Technology Investments

Risk Flags

  • Cost Overrun Risk (CPFF Contract Type)
  • Performance Measurement Difficulty (R&D Nature)
  • Limited Public Transparency (Defense R&D)

Tags

research-and-development, department-of-defense, defense-threat-reduction-agency, leidos-inc, full-and-open-competition, cost-plus-fixed-fee, delivery-order, national-security, threat-analysis, virginia, scientific-research

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to LEIDOS, INC.. NUCLEAR, CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND HIGH EXPLOSIVE ANALYSIS TOOLSET

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 $29.7 million.

What is the period of performance?

Start: 2021-01-14. End: 2025-12-02.

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

Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing contracts for research and development, systems integration, and technical support across various defense domains. Their experience often includes work on advanced technologies, intelligence analysis, and command and control systems. While specific details on past R&D contracts related to nuclear, chemical, biological, radiological, and high explosive analysis toolsets would require deeper analysis of contract databases, Leidos is a recognized prime contractor with demonstrated capabilities in complex scientific and engineering endeavors for the DoD. Their history suggests they are well-positioned to handle the technical demands of this contract, though performance on any given contract can vary.

How does the $29.7 million value compare to other R&D contracts in the physical, engineering, and life sciences sector?

The $29.7 million value for this contract is moderate within the broader context of R&D spending in the physical, engineering, and life sciences sector, particularly for the Department of Defense. Large-scale R&D initiatives, especially those involving cutting-edge technologies or major system development, can easily reach hundreds of millions or even billions of dollars. However, for a specific toolset development within a defined research area like threat analysis, $29.7 million over approximately four years represents a significant and focused investment. It is not an outlier in terms of size for specialized R&D but indicates a substantial commitment to this particular capability.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and potential overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. If the research proves more complex, time-consuming, or requires more resources than initially anticipated, the total cost to the government can increase significantly beyond initial estimates, even though the fixed fee remains constant. This necessitates robust government oversight to ensure costs are reasonable and allocable. For R&D, where the scope can be inherently uncertain, CPFF is often used to incentivize contractor effort while allowing flexibility, but it places a greater burden on the government to manage and monitor expenditures closely to mitigate financial risks.

What is the expected program effectiveness or outcome based on the contract description?

Based on the contract description, the expected program effectiveness centers on the development and delivery of an 'NUCLEAR, CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND HIGH EXPLOSIVE ANALYSIS TOOLSET.' The ultimate outcome is to enhance the Department of Defense's capabilities in detecting, analyzing, and responding to threats involving these hazardous materials. This implies improved intelligence, faster decision-making, and more effective mitigation strategies in high-consequence scenarios. The success of the program will be measured by the toolset's accuracy, reliability, usability, and its ability to integrate with existing defense systems, thereby contributing to national security and force protection.

How has spending on similar threat analysis R&D by the Defense Threat Reduction Agency (DTRA) trended historically?

Analyzing historical spending trends for DTRA's threat analysis R&D requires access to detailed budget and contract data over multiple fiscal years. Generally, spending in this area is driven by perceived threats and technological advancements. Following major global events or the emergence of new adversarial capabilities, funding for threat analysis and countermeasure R&D tends to increase. DTRA's mission inherently involves significant investment in understanding and mitigating WMD threats, suggesting a consistent, albeit potentially fluctuating, level of R&D expenditure. Specific historical data would reveal patterns of investment in particular threat areas (e.g., increased focus on chemical threats following certain incidents) and the types of research prioritized.

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 DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA112R0016

Offers Received: 2

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: $41,756,092

Exercised Options: $37,345,037

Current Obligation: $29,717,556

Actual Outlays: $14,490,685

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $333,809

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: 2021-01-14

Current End Date: 2025-12-02

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

Last Modified: 2025-09-22

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