DARPA awards $11.45M contract to Leidos for hybrid quantum-classical communication network research

Contract Overview

Contract Amount: $11,449,108 ($11.4M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-08

End Date: 2027-07-04

Contract Duration: 1,213 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT TO DEVELOP A HYBRID QUANTUM-CLASSICAL COMMUNICATION NETWORK ARCHITECTURE TO ENABLE QUANTUM ENHANCEMENTS TO SECURITY AND COVERTNESS ON TODAY'S CLASSICAL NETWORKS.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to LEIDOS, INC. for work described as: DARPA RESEARCH PROJECT TO DEVELOP A HYBRID QUANTUM-CLASSICAL COMMUNICATION NETWORK ARCHITECTURE TO ENABLE QUANTUM ENHANCEMENTS TO SECURITY AND COVERTNESS ON TODAY'S CLASSICAL NETWORKS. Key points: 1. Focuses on advancing secure communication through quantum-classical integration. 2. Aims to enhance security and covertness of existing classical networks. 3. Contract duration extends over three years, indicating a phased research approach. 4. Leidos, Inc. selected for this advanced R&D initiative. 5. The project falls under physical sciences research, a critical area for future technology. 6. Potential for significant long-term impact on national security communications.

Value Assessment

Rating: good

The contract value of $11.45 million for a three-year R&D project in quantum communication appears reasonable given the cutting-edge nature of the research. Benchmarking against similar advanced technology development contracts, especially those involving quantum technologies, suggests this is within a typical range. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control, though detailed cost breakdowns would be needed for a more precise value assessment.

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. This competitive process is expected to yield a fair price and ensure the selection of a capable contractor. The presence of 18 bids suggests a robust interest in this specialized research area, which is a positive sign for price discovery and innovation.

Taxpayer Impact: A full and open competition for advanced research projects like this one generally benefits taxpayers by driving innovation and ensuring that the government receives the best possible solution at a competitive price.

Public Impact

The primary beneficiaries are national security agencies seeking enhanced communication security. Services delivered include research and development of novel communication architectures. Geographic impact is primarily within the United States, supporting domestic R&D capabilities. Workforce implications include specialized roles for quantum physicists, network engineers, and cybersecurity experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Complexity of quantum technology may lead to unforeseen development challenges and cost overruns.
  • Long lead times for quantum technology maturation could delay practical application.
  • Dependence on specialized talent pool may create workforce bottlenecks.
  • Potential for rapid obsolescence if breakthroughs occur elsewhere.

Positive Signals

  • Addresses a critical national security need for advanced communication security.
  • Leverages cutting-edge research with potential for significant technological leap.
  • Full and open competition suggests a well-vetted selection process.
  • Leidos has a strong track record in complex government R&D projects.

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on advanced research and development in quantum communications. The market for quantum technology is rapidly evolving, with significant investment from both government and private entities. This project aligns with broader trends in developing next-generation secure communication systems, aiming to stay ahead of potential adversaries in the quantum era. Comparable spending benchmarks are difficult due to the nascent nature of quantum communication networks, but R&D spending in advanced cybersecurity and networking is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Leidos, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Future analysis could explore whether Leidos intends to engage small businesses for specialized components or services related to this research.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA), a known entity for rigorous project oversight. The contract type (Cost Plus Fixed Fee) necessitates detailed financial reporting and performance monitoring. Transparency will be maintained through regular progress reports and milestone reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • DARPA Quantum Information Science Program
  • National Security Agency (NSA) Cryptographic Research
  • Department of Energy Quantum Information Science Initiatives
  • National Science Foundation (NSF) Quantum Computing Research

Risk Flags

  • Technology Maturity Risk
  • Integration Complexity
  • Workforce Availability
  • Long Development Cycle

Tags

r&d, defense, darpa, department-of-defense, leidos-inc, full-and-open-competition, definitive-contract, cost-plus-fixed-fee, quantum-communication, cybersecurity, virginia, advanced-technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to LEIDOS, INC.. DARPA RESEARCH PROJECT TO DEVELOP A HYBRID QUANTUM-CLASSICAL COMMUNICATION NETWORK ARCHITECTURE TO ENABLE QUANTUM ENHANCEMENTS TO SECURITY AND COVERTNESS ON TODAY'S CLASSICAL NETWORKS.

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 $11.4 million.

What is the period of performance?

Start: 2024-03-08. End: 2027-07-04.

What is Leidos's track record in quantum research or advanced communication systems?

Leidos, Inc. has a substantial track record in complex government research and development, including areas related to advanced networking, cybersecurity, and high-performance computing. While specific public details on their direct involvement in quantum communication network architecture might be limited, their expertise in systems engineering, secure communications, and integration of novel technologies positions them well for this DARPA project. They have supported numerous defense and intelligence community programs requiring cutting-edge technological solutions. Their history suggests a capability to manage large, complex R&D efforts and deliver on challenging technical requirements, which is crucial for a project at the forefront of quantum technology.

How does the $11.45 million value compare to similar quantum communication R&D contracts?

The $11.45 million award for a three-year research project in hybrid quantum-classical communication networks is within a reasonable range for cutting-edge R&D initiatives. Quantum technology is a rapidly developing field, and contracts in this area often involve significant investment due to the specialized expertise and equipment required. While direct comparisons are challenging due to the novelty and specific focus of this project, similar DARPA or NSF-funded quantum information science projects can range from a few million to tens of millions of dollars over several years. The value reflects the complexity and potential impact of developing secure, quantum-enhanced communication systems.

What are the primary risks associated with this quantum communication research contract?

The primary risks associated with this contract stem from the inherent challenges of quantum technology development. These include the technical difficulty of integrating quantum and classical systems, the potential for unforeseen scientific hurdles, and the long timeline often required for quantum breakthroughs. There's also a risk of rapid technological obsolescence if competing research yields faster or more effective solutions. Furthermore, the reliance on a highly specialized workforce could pose recruitment and retention challenges. Finally, ensuring the security and reliability of a novel quantum-classical network architecture presents significant engineering and validation risks.

How effective is DARPA in managing advanced R&D projects like this one?

DARPA has a well-established and highly effective model for managing advanced R&D projects. Their approach typically involves identifying high-risk, high-reward research areas with the potential for transformative impact. DARPA program managers are often experts in their fields and are given significant autonomy to shape research directions and select contractors. They emphasize clear milestones, regular progress reviews, and adaptability, allowing projects to pivot as new discoveries are made. This model has historically led to numerous technological breakthroughs, making DARPA a leading agency for pioneering research in areas like quantum communication.

What are the historical spending patterns for DARPA in quantum information science?

DARPA has consistently invested in quantum information science (QIS) over the past decade, recognizing its potential for national security applications. Their spending in this area has grown as the field matures. Historically, DARPA has funded a diverse portfolio of QIS projects, including quantum computing, quantum sensing, and quantum communication. While specific annual totals fluctuate based on program initiatives, their commitment to QIS is evident through numerous awards across various research institutions and companies. This $11.45 million contract for hybrid quantum-classical communication networks aligns with their strategic focus on advancing QIS capabilities.

What is the potential impact of this research on future communication security standards?

This research has the potential to significantly impact future communication security standards by introducing quantum-enhanced security features into classical networks. If successful, the hybrid architecture could offer a pathway to more robust encryption, enhanced covertness, and improved resilience against future threats, including those posed by quantum computers. This could lead to the development of new protocols and standards that integrate quantum principles, setting a new benchmark for secure communications in critical infrastructure, defense, and intelligence applications. It represents a proactive step towards future-proofing communication security.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001123S0035

Offers Received: 18

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: $24,017,087

Exercised Options: $18,160,066

Current Obligation: $11,449,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2024-03-08

Current End Date: 2027-07-04

Potential End Date: 2028-06-07 00:00:00

Last Modified: 2025-12-23

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