DoD's $85.6M R&D Contract with Leidos, Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $85,601,666 ($85.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-12-20
End Date: 2008-01-31
Contract Duration: 772 days
Daily Burn Rate: $110.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 140
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $85.6 million to LEIDOS, INC. for work described as: Key points: 1. Significant investment in R&D by DARPA, focusing on physical, engineering, and life sciences. 2. Leidos, Inc. secured this substantial contract, indicating strong capabilities in the defense sector. 3. The contract's 'Cost Plus Fixed Fee' structure warrants scrutiny for cost control and efficiency. 4. Awarded under full and open competition, suggesting a robust market for these R&D services.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to higher costs if not managed tightly. Benchmarking against similar R&D contracts is difficult without specific deliverables, but CPFF generally carries a premium over fixed-price arrangements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive better pricing and value for the government.
Taxpayer Impact: Taxpayer funds are being utilized for advanced research and development, with the expectation of technological advancements that could benefit national security and innovation.
Public Impact
Advancement of critical research and development in physical, engineering, and life sciences. Potential for groundbreaking innovations with long-term implications for national security. Investment in a leading contractor, Leidos, Inc., supporting high-tech jobs and expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure requires diligent oversight to prevent cost overruns.
- Contract duration of over two years necessitates ongoing performance monitoring.
- Lack of specific Product Service Code (PSC) makes direct comparison challenging.
Positive Signals
- Awarded through full and open competition, ensuring market competitiveness.
- Significant investment in R&D signals commitment to technological advancement.
- Contract awarded to a reputable firm, Leidos, Inc.
Sector Analysis
This contract falls under the Research and Development sector, specifically within physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority and innovation, often characterized by high upfront investment and uncertain but potentially high returns.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation would be needed to determine if small businesses were involved in the supply chain or as subcontractors.
Oversight & Accountability
The 'VA' (Virginia) designation suggests potential state-level oversight or reporting requirements. The contract's duration and cost-plus nature necessitate robust oversight from DARPA to ensure efficient use of funds and achievement of research objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Cost Plus Fixed Fee pricing model.
- Long contract duration.
- Potential for cost overruns.
- Limited transparency on specific R&D deliverables.
- No explicit small business participation noted.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.6 million to LEIDOS, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $85.6 million.
What is the period of performance?
Start: 2005-12-20. End: 2008-01-31.
What specific R&D outcomes were achieved, and how do they align with DARPA's strategic goals?
The contract aimed at advancing research in physical, engineering, and life sciences. Without specific deliverables or final reports, it's challenging to quantify the exact outcomes. However, DARPA's mission is to make pivotal investments in breakthrough technologies for national security, implying that successful projects would yield significant advancements or new capabilities.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and ensure value for money?
The CPFF structure inherently carries a risk of cost escalation if not rigorously managed. Effective oversight by DARPA would involve close monitoring of expenditures, regular reviews of contractor performance, and ensuring that the fixed fee remained appropriate for the scope of work. Without detailed audit reports, assessing the precise cost control effectiveness is difficult.
Did the full and open competition truly foster the most innovative solutions at the best price, or were there limitations?
Full and open competition is generally the best mechanism for achieving competitive pricing and encouraging a broad range of innovative approaches. However, the specialized nature of DARPA's R&D might mean that only a few highly qualified firms could realistically compete. Assessing the true breadth of innovation would require examining the proposals received and the rationale for selecting Leidos.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 140
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-12-20
Current End Date: 2008-01-31
Potential End Date: 2008-01-31 00:00:00
Last Modified: 2017-09-29
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