Leidos awarded $472.8M for aerial ISR systems and logistics support to the Army
Contract Overview
Contract Amount: $472,784,202 ($472.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-03-25
End Date: 2019-10-11
Contract Duration: 1,295 days
Daily Burn Rate: $365.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SENSOR SYSTEMS - AERIAL INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE OPERATIONS AND SUSTAINMENT AND CONTRACTOR LOGISTICS SUPPORT (CLS) FOR PRIMARY MISSION EQUIPMENT AND MISSION ESSENTIAL PACKAGES ON MANNED AIRCRAFT.
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $472.8 million to LEIDOS, INC. for work described as: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SENSOR SYSTEMS - AERIAL INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE OPERATIONS AND SUSTAINMENT AND CONTRACTOR LOGISTICS SUPPORT (CLS) FOR PRIMARY MISSION EQUIPMENT AND MISSION ESSENTIAL PACKAGES ON MANNED AIRCRAFT. Key points: 1. Contract provides critical intelligence, surveillance, and reconnaissance (ISR) capabilities for manned aircraft. 2. Sustains and provides contractor logistics support (CLS) for primary mission equipment. 3. Awarded under full and open competition, indicating a broad market search. 4. Contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control. 5. Duration of 1295 days suggests a long-term need for these services. 6. The contract value represents a significant investment in aerial ISR capabilities.
Value Assessment
Rating: good
The contract value of $472.8 million over approximately 3.5 years for aerial ISR systems and logistics support appears reasonable given the scope. While direct comparisons are difficult without specific details on system complexity and service levels, the Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement with a fixed fee, which can be efficient for complex, evolving requirements. Benchmarking against similar large-scale ISR sustainment contracts would provide further insight into value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 3 bidders indicates a competitive environment, which generally leads to better pricing and innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further clarify the effectiveness of the competition.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that drives down prices and encourages efficient service delivery.
Public Impact
The U.S. Army benefits from enhanced intelligence, surveillance, and reconnaissance capabilities. Services delivered include sustainment and contractor logistics support for critical aerial mission equipment. Geographic impact is likely global, supporting military operations wherever manned aircraft are deployed. Workforce implications include specialized technical and logistics support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can sometimes lead to cost overruns if not managed tightly.
- Sustaining complex aerial ISR systems requires continuous investment and adaptation to evolving threats.
Positive Signals
- Full and open competition suggests a robust market and potential for competitive pricing.
- The long contract duration indicates a stable, ongoing requirement for these essential services.
- Leidos, Inc. is a large, established government contractor with experience in similar domains.
Sector Analysis
The Intelligence, Surveillance, and Reconnaissance (ISR) sector is a critical component of national defense, encompassing a wide range of technologies and services. This contract falls within the broader Engineering Services (NAICS 541330) and likely intersects with aerospace and defense manufacturing. The market for ISR systems and support is substantial, driven by ongoing global security needs. Comparable spending benchmarks would involve analyzing other large-scale sustainment and system integration contracts within the defense sector.
Small Business Impact
This contract was not specifically set aside for small businesses, and the prime contractor, Leidos, Inc., is a large corporation. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Leidos engages small businesses for specialized support or components, which is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and any significant issues or fraud could be subject to Inspector General (IG) investigations.
Related Government Programs
- Intelligence, Surveillance, and Reconnaissance (ISR) Programs
- Aviation Systems Support
- Logistics and Sustainment Contracts
- Department of Defense Aircraft Procurement and Maintenance
Risk Flags
- Cost Overruns Risk (CPFF)
- Technological Obsolescence
- Supply Chain Disruptions
- Cybersecurity Vulnerabilities
Tags
defense, department-of-defense, department-of-the-army, aerial-isr, intelligence-surveillance-reconnaissance, logistics-support, sustainment, manned-aircraft, engineering-services, cost-plus-fixed-fee, full-and-open-competition, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $472.8 million to LEIDOS, INC.. IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SENSOR SYSTEMS - AERIAL INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE OPERATIONS AND SUSTAINMENT AND CONTRACTOR LOGISTICS SUPPORT (CLS) FOR PRIMARY MISSION EQUIPMENT AND MISSION ESSENTIAL PACKAGES ON MANNED AIRCRAFT.
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $472.8 million.
What is the period of performance?
Start: 2016-03-25. End: 2019-10-11.
What is Leidos, Inc.'s track record with similar aerial ISR contracts for the Department of Defense?
Leidos, Inc. has a significant history of performing complex technical services and logistics support for the Department of Defense, including in the ISR domain. They have been involved in various aspects of intelligence gathering, data analysis, and platform sustainment across different military branches. While specific details on past aerial ISR contracts would require deeper research into their contract history, their overall profile as a major defense contractor suggests substantial experience. Analyzing their performance metrics on previous, comparable contracts, such as on-time delivery, budget adherence, and technical success rates, would provide a clearer picture of their capabilities and reliability in executing this specific task order.
How does the $472.8 million contract value compare to similar aerial ISR sustainment efforts?
Benchmarking the $472.8 million contract value requires comparing it to similar large-scale sustainment and logistics support contracts for aerial ISR platforms within the Department of Defense. Factors influencing cost include the specific types of aircraft, the complexity of the sensor systems, the scope of logistics support (e.g., spare parts, maintenance, training), and the contract duration. Given the contract's duration of approximately 3.5 years and its focus on primary mission equipment sustainment, the value appears substantial, reflecting the high cost of maintaining advanced ISR capabilities. A detailed comparison would involve identifying contracts with similar operational tempos, technological sophistication, and service level agreements to assess if the pricing is competitive and reflects fair market value.
What are the primary risks associated with sustaining aerial ISR systems and what mitigation strategies are in place?
Key risks in sustaining aerial ISR systems include technological obsolescence, the availability of specialized parts and expertise, cybersecurity threats to sensitive data, and the potential for operational disruptions due to maintenance issues. Mitigation strategies often involve robust supply chain management, proactive technology refresh plans, stringent cybersecurity protocols, and comprehensive contractor logistics support (CLS) agreements that ensure rapid response and repair. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, also carries a risk of cost escalation if not closely monitored. The government's oversight mechanisms, including performance reviews and audits, are crucial for managing these risks and ensuring the continued operational readiness of the ISR platforms.
How effective is the Cost Plus Fixed Fee (CPFF) contract structure for ensuring program effectiveness in ISR sustainment?
The Cost Plus Fixed Fee (CPFF) contract structure can be effective for ensuring program effectiveness in ISR sustainment, particularly when dealing with complex, evolving requirements where the final scope may not be fully defined at the outset. It allows the contractor to be reimbursed for allowable costs while earning a predetermined fixed fee. This structure incentivizes the contractor to manage costs efficiently to protect their fee, but it also requires strong government oversight to ensure costs are reasonable and allocable. For ISR sustainment, where technological advancements and operational needs can shift, CPFF provides flexibility. However, effectiveness hinges on rigorous government monitoring of costs, performance metrics, and adherence to technical specifications to prevent scope creep and ensure the delivery of critical ISR capabilities.
What are the historical spending patterns for aerial ISR systems and logistics support within the Department of the Army?
Historical spending patterns for aerial ISR systems and logistics support within the Department of the Army have generally shown a consistent and significant investment, reflecting the enduring importance of these capabilities. Budgets in this area often fluctuate based on geopolitical conditions, technological advancements, and specific operational requirements. The Army has historically relied on a mix of organic assets and contracted services for ISR, with increasing reliance on contractor logistics support for complex platforms. Analyzing past budgets and contract awards for similar systems (e.g., manned reconnaissance aircraft, sensor packages, data processing) would reveal trends in spending levels, contract types, and key service providers, indicating a sustained commitment to maintaining and enhancing aerial ISR capabilities over time.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 9737 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $732,647,365
Exercised Options: $732,647,365
Current Obligation: $472,784,202
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T10DD414
IDV Type: IDC
Timeline
Start Date: 2016-03-25
Current End Date: 2019-10-11
Potential End Date: 2019-10-11 00:00:00
Last Modified: 2025-04-24
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