DoD's $8.28M contract for EMP testing awarded to Leidos, Inc. for system vulnerability assessments
Contract Overview
Contract Amount: $8,275,306 ($8.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-07-16
End Date: 2027-07-15
Contract Duration: 729 days
Daily Burn Rate: $11.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ELECTROMAGNETIC (EMP) ADVANCED TESTING AND TECHNICAL ASSISTANCE (T&TA) 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 $8.3 million to LEIDOS, INC. for work described as: ELECTROMAGNETIC (EMP) ADVANCED TESTING AND TECHNICAL ASSISTANCE (T&TA) FOR SYSTEM VULNERABILITIES AND ASSESSMENTS Key points: 1. Contract focuses on critical electromagnetic pulse (EMP) vulnerability testing, a key area for defense system resilience. 2. Awarded to a single large business, Leidos, Inc., indicating a focus on specialized technical capabilities. 3. The contract duration of approximately two years suggests a need for ongoing or phased testing and analysis. 4. This award falls under Research and Development, highlighting investment in advanced scientific and technical services. 5. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not closely managed, but allows flexibility for R&D. 6. The value of the contract is moderate, suggesting it addresses a specific, albeit important, set of testing requirements.
Value Assessment
Rating: good
The contract value of approximately $8.28 million for two years of specialized EMP testing and technical assistance appears reasonable given the niche and critical nature of the services. Benchmarking against similar R&D contracts for advanced threat assessment and system vulnerability testing would provide further context. However, the specific technical requirements and the complexity of EMP testing often command premium pricing. Without direct comparable contracts for EMP T&TA, a definitive value-for-money assessment is challenging, but the award to a known entity in the defense sector suggests a level of confidence in their capabilities and pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of two bids suggests a competitive process, though the exact number of interested parties and the rigor of the evaluation are not detailed. Full and open competition is generally expected to yield fair market prices and encourage innovation by allowing a broad range of contractors to participate.
Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a competitive process, which typically leads to better pricing and selection of the most capable vendor for this specialized defense requirement.
Public Impact
The Department of Defense, specifically the Defense Threat Reduction Agency, is the primary beneficiary, enhancing the resilience of its systems against EMP threats. Services delivered include advanced testing and technical assistance to identify and assess system vulnerabilities to electromagnetic pulses. The geographic impact is likely national, focusing on critical defense infrastructure and systems across various military branches. Workforce implications include the employment of highly skilled scientists, engineers, and technical specialists in the fields of physics, electrical engineering, and cybersecurity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher final costs if not managed diligently, requiring close oversight of expenditures.
- The specialized nature of EMP testing means a limited pool of contractors, potentially impacting future competition if expertise becomes concentrated.
Positive Signals
- Awarded under full and open competition, suggesting a robust and fair selection process.
- Leidos, Inc. is a well-established contractor with a significant presence in defense and R&D, indicating a track record of capability.
- The contract addresses a critical national security need related to system resilience against advanced threats.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to defense applications. The market for electromagnetic vulnerability testing and technical assistance is specialized, driven by government defense needs. Companies operating in this space often possess unique expertise and facilities. Comparable spending benchmarks would typically be found within broader R&D or specialized engineering services categories for defense agencies, where contracts can range from a few million to tens or hundreds of millions of dollars depending on scope and duration.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business, and there is no indication of a small business set-aside. Given the specialized nature of electromagnetic pulse testing, it is unlikely that small businesses would be the primary awardees for such a prime contract, though they may participate as subcontractors. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this award.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting of costs and progress. Transparency is typically maintained through contract reporting systems, though specific details of the testing methodologies and findings may be classified or sensitive. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- DoD Electromagnetic Spectrum Operations
- Defense Threat Reduction Agency Research and Development Programs
- System Vulnerability Assessment Contracts
- Advanced Technology Testing Services
- Electromagnetic Interference and Compatibility Testing
Risk Flags
- Potential for cost overruns due to CPFF structure in R&D.
- Limited competition pool for highly specialized EMP testing services.
- Need for stringent oversight to ensure technical efficacy and cost control.
Tags
defense, department-of-defense, defense-threat-reduction-agency, research-and-development, electromagnetic-pulse, vulnerability-assessment, technical-assistance, cost-plus-fixed-fee, full-and-open-competition, large-business, systems-testing, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.3 million to LEIDOS, INC.. ELECTROMAGNETIC (EMP) ADVANCED TESTING AND TECHNICAL ASSISTANCE (T&TA) 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 $8.3 million.
What is the period of performance?
Start: 2025-07-16. End: 2027-07-15.
What is Leidos, Inc.'s track record with similar electromagnetic pulse (EMP) testing contracts for the Department of Defense?
Leidos, Inc. has a substantial track record in providing advanced research, development, and technical support services to the Department of Defense and other government agencies. While specific contract details for EMP testing are often sensitive, Leidos has demonstrated capabilities in areas such as systems engineering, cybersecurity, threat assessment, and specialized testing. Their portfolio includes work on complex defense systems, electronic warfare, and signal intelligence. A review of historical contract awards and performance evaluations would be necessary to fully assess their specific experience and success rate in EMP-related T&TA. However, their general profile suggests they are a capable contractor for this type of specialized work.
How does the $8.28 million contract value compare to other EMP testing and technical assistance contracts awarded by the DoD?
The $8.28 million contract value for approximately two years of service is considered moderate for specialized R&D and technical assistance within the defense sector. Contracts for advanced testing, particularly those involving complex phenomena like EMP, can vary significantly. Some contracts might be smaller, focusing on specific component testing, while others, especially those involving extensive system-level analysis, simulation, and broad vulnerability assessments across multiple platforms, could easily reach tens or even hundreds of millions of dollars over longer periods. This particular award suggests a focused scope, possibly addressing a specific set of systems or a particular phase of vulnerability assessment, rather than a comprehensive, agency-wide EMP resilience program.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for EMP testing?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract structure, especially in R&D environments like EMP testing, is the potential for cost growth. While the 'Fixed Fee' component provides a defined profit margin for the contractor, the 'Cost Plus' aspect means the government reimburses the contractor's allowable costs. If the scope of work is not precisely defined, or if unforeseen technical challenges arise during testing (which is common in R&D), the total cost to the government can exceed initial estimates. Effective oversight, clear scope definition, and robust cost tracking are crucial to mitigate this risk and ensure the government receives good value. The contractor also faces risks if they cannot complete the work within reasonable cost parameters, potentially impacting their fee.
How effective is full and open competition in ensuring the best value for specialized R&D services like EMP testing?
Full and open competition is generally considered the most effective method for ensuring best value in government contracting, including for specialized R&D services. It allows a wide range of qualified contractors to submit proposals, fostering innovation and driving down prices through market forces. For EMP testing, this means that the Defense Threat Reduction Agency (DTRA) can solicit bids from all interested and capable firms, potentially uncovering novel approaches or more cost-effective solutions. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the actual number and quality of bids received. In highly specialized fields, the pool of truly capable contractors may be limited, potentially reducing the competitive intensity despite the 'full and open' designation.
What are the implications of awarding this contract to a single large business, Leidos, Inc., for the broader defense R&D ecosystem?
Awarding this contract to a single large business like Leidos, Inc. signifies a reliance on established prime contractors with extensive resources and specialized expertise for critical defense R&D. While this ensures capability and potentially faster execution, it can also concentrate expertise within large firms. This may limit opportunities for smaller, innovative companies to enter the market or gain experience in niche areas like EMP testing. It underscores the importance of robust subcontracting plans to ensure that smaller businesses can still participate and benefit from such awards, contributing to a more diverse and resilient defense industrial base in the long run.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: HDTRA125R0023
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST FL 10, 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: $45,017,372
Exercised Options: $9,464,795
Current Obligation: $8,275,306
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA124D0008
IDV Type: IDC
Timeline
Start Date: 2025-07-16
Current End Date: 2027-07-15
Potential End Date: 2030-07-15 00:00:00
Last Modified: 2025-12-18
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