DoD's $23.4M contract for EMP testing awarded to Leidos, Inc. for system vulnerability assessments
Contract Overview
Contract Amount: $23,361,259 ($23.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-01
End Date: 2025-05-15
Contract Duration: 806 days
Daily Burn Rate: $29.0K/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 ADVANCE TESTING AND TECHNICAL ASSISTANCE FOR SYSTEMS VULNERABILITIES AND ASSESSMENTS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.4 million to LEIDOS, INC. for work described as: ELECTROMAGNETIC PULSE ADVANCE TESTING AND TECHNICAL ASSISTANCE FOR SYSTEMS VULNERABILITIES AND ASSESSMENTS Key points: 1. Contract focuses on critical research and development for national security systems. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Leidos, Inc. has a significant presence in defense contracting. 4. The contract duration of over two years indicates a substantial project scope. 5. This award falls under the R&D sector, crucial for technological advancement. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight.
Value Assessment
Rating: good
The contract value of $23.4 million for research and development services appears reasonable given the specialized nature of electromagnetic pulse (EMP) testing and technical assistance. Benchmarking against similar R&D contracts in the defense sector for system vulnerability assessments suggests this is within a typical range. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility for research, necessitates diligent oversight to ensure costs remain controlled and provide good value for the fixed fee component.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The open competition suggests the agency sought the best available technical capabilities and value.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions, ensuring the government receives optimal value for its investment in critical defense research.
Public Impact
The Department of Defense, specifically the Defense Threat Reduction Agency, benefits from enhanced understanding of system vulnerabilities to electromagnetic pulses. Services delivered include advanced testing and technical assistance to assess system resilience. The geographic impact is primarily national, focusing on the security of U.S. defense systems. Workforce implications include specialized roles for scientists, engineers, and technical analysts in the R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
- The specialized nature of EMP testing may limit the pool of truly competitive bidders despite open competition.
- Long-term reliance on a single contractor for critical R&D could pose future risks.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing and innovation.
- Leidos, Inc. is an established contractor with experience in defense and technical services.
- The contract addresses a critical national security need for system vulnerability assessment.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is vital for maintaining technological superiority in defense. Comparable spending in this area often involves significant investment in advanced materials, simulation, and testing to counter emerging threats. The market for specialized defense R&D is characterized by high barriers to entry due to technical expertise and security clearances required.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, Leidos, Inc., the primary impact on small businesses would likely be through subcontracting opportunities. The extent of small business participation will depend on Leidos's subcontracting plan and the availability of specialized small businesses capable of supporting EMP testing and analysis.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Threat Reduction Agency (DTRA) through contract officers and technical representatives. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to monitor expenditures against the fixed fee. Transparency is typically maintained through regular reporting requirements from the contractor. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Electromagnetic Pulse (EMP) Defense Research
- System Vulnerability Testing
- Defense Threat Reduction Agency Research Programs
- Advanced Technology Development Contracts
- National Security R&D Spending
Risk Flags
- Cost Overrun Risk (CPFF)
- Technical Complexity
- Limited Competition Pool (Specialized Field)
Tags
research-and-development, department-of-defense, defense-threat-reduction-agency, electromagnetic-pulse, system-vulnerability, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, virginia, national-security, technical-assistance, testing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to LEIDOS, INC.. ELECTROMAGNETIC PULSE ADVANCE TESTING AND TECHNICAL ASSISTANCE FOR SYSTEMS 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 $23.4 million.
What is the period of performance?
Start: 2023-03-01. End: 2025-05-15.
What is Leidos, Inc.'s track record with similar Department of Defense R&D contracts?
Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing large contracts across various R&D and technical services domains. They are known for their work in areas such as command and control, intelligence, surveillance, reconnaissance, and cyber security. Their experience often involves complex systems integration, advanced research, and technical support for military operations. Analyzing their past performance on similar CPFF contracts would reveal their ability to manage costs effectively and deliver on technical objectives within the defense sector. Publicly available contract databases and agency performance reports can provide further insights into their historical success rates and any past performance issues.
How does the $23.4 million value compare to other EMP-related R&D contracts?
The $23.4 million contract value for EMP advance testing and technical assistance appears to be within a moderate range for specialized defense R&D. Contracts in this field can vary significantly based on scope, duration, and the specific technologies or systems being assessed. Larger, multi-year programs involving the development of new EMP hardening technologies or comprehensive system-wide vulnerability analyses could easily exceed hundreds of millions of dollars. Conversely, smaller, focused studies or specific component testing might fall below this threshold. Without direct comparison data for identical EMP testing services, it's challenging to definitively benchmark, but the value suggests a significant, yet not unprecedented, investment in this critical area of defense research.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for EMP research?
The primary risk with a CPFF contract, especially in R&D, is the potential for cost overruns. While the contractor is paid their actual allowable costs plus a fixed fee, there's an incentive for the contractor to incur costs to ensure they meet the fixed fee target. If the scope of work expands or unforeseen technical challenges arise, the total cost to the government could exceed initial estimates, even though the fee remains fixed. Effective oversight is crucial to ensure that all costs incurred are reasonable, allocable, and necessary for the project's completion. The government must also ensure the contractor has robust internal controls to manage project expenses and report them accurately.
How effective is the Defense Threat Reduction Agency (DTRA) in managing R&D contracts for system vulnerabilities?
The Defense Threat Reduction Agency (DTRA) is a primary combat support agency responsible for countering weapons of mass destruction (WMD), including nuclear, biological, chemical, and emerging threats. Their mission inherently involves extensive R&D into system vulnerabilities and defenses, including those related to electromagnetic pulses. DTRA has a long history of managing complex research programs and contracts. Their effectiveness is generally considered high within their specialized domain, leveraging scientific expertise and rigorous program management. However, like any large organization, contract management effectiveness can vary project by project, influenced by factors such as funding stability, contractor performance, and the complexity of the research undertaken.
What is the historical spending trend for EMP-related research within the Department of Defense?
Historical spending on EMP-related research within the Department of Defense has generally been consistent, reflecting the persistent threat posed by EMP weapons and natural phenomena. While specific figures for 'EMP research' alone can be difficult to isolate due to its integration into broader system hardening, survivability, and electronic warfare programs, overall investment in these areas has seen steady growth. Factors driving this trend include advancements in potential adversary capabilities, the increasing reliance of military systems on electronics, and a greater understanding of the potential impact of EMPs. Budgets for R&D in defense are subject to shifting priorities and appropriations, but the strategic importance of EMP defense ensures continued focus and funding.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – 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: 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: $23,432,974
Exercised Options: $23,432,974
Current Obligation: $23,361,259
Actual Outlays: $6,162,615
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: 2023-03-01
Current End Date: 2025-05-15
Potential End Date: 2025-05-15 00:00:00
Last Modified: 2025-07-14
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