DoD's $34.6M contract for RDTE/Other Defense-Applied Research awarded to Science Applications International Corp

Contract Overview

Contract Amount: $34,577,994 ($34.6M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2000-07-12

End Date: 2007-12-26

Contract Duration: 2,723 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200012!9700!000451!ZD72 !DARPA CONTRACT MANAGEMENT DIR. !MDA97200C0053 !A!*!* !20000712!20010612!054781240!054781240!054781240!N!52302!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000000450000!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!U!2!002!E!* !Z!Y!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to LEIDOS, INC. for work described as: 200012!9700!000451!ZD72 !DARPA CONTRACT MANAGEMENT DIR. !MDA97200C0053 !A!*!* !20000712!20010612!054781240!054781240!054781240!N!52302!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!48376!059!51!MCLEAN !FAI… Key points: 1. Contract value of $34.6M over its life suggests a significant investment in research and development. 2. The 'FULL AND OPEN COMPETITION' indicates a broad solicitation, potentially leading to competitive pricing. 3. The contract type 'COST PLUS FIXED FEE' can incentivize cost control while allowing for flexibility in R&D. 4. Performance period of over 7 years (2723 days) suggests a long-term project with evolving requirements. 5. The 'RDTE/OTHER DEFENSE-APPLIED RESEARCH' category points to innovation and advanced technology development within the defense sector. 6. Awarded to Science Applications International Corp., a known entity in defense contracting, implying established capabilities.

Value Assessment

Rating: fair

The total award amount of $34.6 million for a contract spanning over 7 years (2723 days) requires careful benchmarking against similar R&D contracts. Without specific deliverables or performance metrics, assessing value for money is challenging. The 'COST PLUS FIXED FEE' structure means the government pays costs plus a negotiated fee, which can sometimes lead to higher overall costs if not managed tightly, but it also allows for flexibility in research and development. Comparing this to other defense R&D contracts of similar duration and scope would be necessary for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting that the solicitation was broadly advertised, allowing any interested and qualified vendor to submit a proposal. The presence of multiple bidders (indicated by 'no': 2, though this might represent the number of offers received rather than unique bidders) is typical for such competitions. This level of competition is generally expected to foster price discovery and potentially lead to more favorable pricing for the government compared to sole-source or limited competitions.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and thus potentially lowering the overall cost of the contract.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, receiving advanced research and development services. The contract supports the delivery of research, development, testing, and evaluation services crucial for national defense. The geographic impact is centered around the contractor's location in San Diego, CA, and potentially McLean, VA, with broader implications for national security. Workforce implications include employment opportunities for scientists, engineers, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not meticulously monitored.
  • The long performance period of over 7 years necessitates ongoing vigilance to ensure continued relevance and value.
  • Specific details on the R&D outcomes are not provided, making it difficult to assess the direct impact of the investment.
  • The 'RDTE/OTHER DEFENSE-APPLIED RESEARCH' category is broad, and the specific nature of the research could carry inherent risks.

Positive Signals

  • The use of 'FULL AND OPEN COMPETITION' suggests a robust procurement process aimed at achieving best value.
  • Awarding to a known entity like Science Applications International Corp. implies a level of confidence in their technical capabilities.
  • The contract's focus on R&D aligns with the DoD's need for technological advancement and innovation.
  • The fixed fee component in the contract type provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the Research, Development, Testing, and Evaluation (R&D) sector, specifically focusing on defense-applied research. The defense R&D market is characterized by significant government investment, driven by national security needs and technological competition. Companies like Science Applications International Corp. operate within this specialized sector, competing for contracts that advance military capabilities. Benchmarking this contract's value would involve comparing its total value and duration to other similar defense R&D efforts, considering the specific technological areas pursued.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting plans within the provided data. As a large contract awarded to a major contractor, it's possible that subcontracting opportunities may exist for small businesses, but this would depend on the contractor's specific subcontracting strategy and the nature of the work performed. Further investigation into the contractor's subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor compliance with contract terms, monitoring performance, and verifying costs. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

  • Defense Research and Development Programs
  • Advanced Technology Development Contracts
  • Science and Technology Support Services
  • Department of Defense Research Contracts

Risk Flags

  • Long contract duration requires sustained oversight.
  • Cost-plus-fixed-fee structure necessitates careful cost management.
  • Broad R&D category may obscure specific performance risks.
  • Limited competition (2 offers) could impact price discovery.

Tags

defense, r-and-d, department-of-defense, darpa, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, science-and-technology, applied-research, virginia, california, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to LEIDOS, INC.. 200012!9700!000451!ZD72 !DARPA CONTRACT MANAGEMENT DIR. !MDA97200C0053 !A!*!* !20000712!20010612!054781240!054781240!054781240!N!52302!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000000450000!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!U!

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $34.6 million.

What is the period of performance?

Start: 2000-07-12. End: 2007-12-26.

What specific research and development areas does this contract cover?

The contract falls under the PSC code '52302' and is categorized as 'RDTE/OTHER DEFENSE-APPLIED RESEARCH'. This broad classification suggests the contract supports a range of activities related to the research, development, testing, and evaluation of technologies and systems for defense applications. However, the specific technical focus areas, such as artificial intelligence, cybersecurity, materials science, or aerospace technologies, are not detailed in the provided data. Further analysis of the contract's statement of work or technical exhibits would be necessary to identify the precise R&D domains being pursued.

How does the $34.6 million award compare to other similar defense R&D contracts?

The $34.6 million total award value for a contract spanning over 7 years (2723 days) places it as a moderately sized R&D effort within the Department of Defense. To benchmark effectively, one would need to compare it against contracts with similar objectives, durations, and technological scopes. For instance, contracts focused on fundamental research might have different cost profiles than those aimed at developing specific prototypes. Without access to a comprehensive database of comparable defense R&D contracts, a precise comparison is difficult. However, the duration suggests a sustained investment in a particular research area.

What are the potential risks associated with a 'Cost Plus Fixed Fee' contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for R&D, carry inherent risks. The primary risk for the government is that the contractor may not be sufficiently incentivized to control costs, as their profit (the fixed fee) is predetermined. If actual costs exceed estimates, the government still pays those costs plus the agreed-upon fee. This can lead to higher overall expenditures than anticipated. Conversely, contractors might be tempted to cut corners on quality or scope to maximize their fee if cost overruns occur. Effective oversight and detailed cost tracking are crucial to mitigate these risks.

What is the track record of Science Applications International Corp. (SAIC) with similar DoD contracts?

Science Applications International Corp. (SAIC) is a well-established government contractor with a significant history of performing R&D and technical services for the Department of Defense and other federal agencies. They have a broad portfolio encompassing IT, engineering, and mission support. While specific performance details for this particular contract (MDA97200C0053) are not readily available in this dataset, SAIC's general track record suggests they possess the technical expertise and infrastructure to handle complex defense R&D projects. Past performance evaluations and contract award histories would provide a more granular view of their reliability and success rates on similar endeavors.

How has spending in the 'RDTE/OTHER DEFENSE-APPLIED RESEARCH' category evolved over time?

Spending in the 'RDTE/OTHER DEFENSE-APPLIED RESEARCH' category, which encompasses a wide array of advanced technology development for defense, has historically been substantial and subject to fluctuations based on geopolitical events, technological advancements, and budgetary priorities. The Department of Defense is consistently one of the largest government spenders in R&D. Trends often show increased investment during periods of perceived threat or rapid technological change, and shifts towards specific areas like AI, cyber, and space. Analyzing historical spending data for this specific category would reveal patterns of investment and highlight areas of strategic focus for the DoD over different fiscal years.

What does the '2' in the 'no' field signify regarding competition?

The 'no' field, indicated as '2', likely signifies the number of offers received for this contract solicitation. In the context of a 'FULL AND OPEN COMPETITION', receiving two offers suggests a moderate level of competition. While more than one offer is positive, a higher number of bids typically indicates broader market interest and can lead to more aggressive pricing and innovative solutions. The significance of '2' offers depends on the complexity and niche nature of the R&D required; for highly specialized requirements, two strong offers might represent robust competition. However, for more common R&D services, it might suggest limited market participation.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2000-07-12

Current End Date: 2007-12-26

Potential End Date: 2007-12-26 00:00:00

Last Modified: 2022-04-07

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