Leidos, Inc. awarded $27.6M for Medium Displacement Unmanned Surface Vessel R&D by the Navy
Contract Overview
Contract Amount: $27,572,824 ($27.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-03-22
End Date: 2024-08-29
Contract Duration: 1,987 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 99
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MEDIUM DISPLACEMENT UNMANNED SURFACE VESSEL (MDUSV)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.6 million to LEIDOS, INC. for work described as: MEDIUM DISPLACEMENT UNMANNED SURFACE VESSEL (MDUSV) Key points: 1. Contract focuses on advanced research and development for unmanned maritime systems. 2. Competition was full and open, suggesting a robust market for these capabilities. 3. The contract type (Cost Plus Fixed Fee) indicates potential for cost overruns. 4. Performance period spans nearly 2000 days, allowing for extensive development. 5. This award aligns with broader defense modernization efforts in autonomous systems. 6. The value is moderate for a research and development contract of this scope.
Value Assessment
Rating: good
The contract value of $27.6 million for R&D in physical and engineering sciences appears reasonable given the scope of developing a Medium Displacement Unmanned Surface Vessel (MDUSV). Benchmarking against similar complex R&D efforts in naval technology suggests this is within an expected range. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates careful oversight to manage costs effectively. Without specific per-unit cost data for the vessel itself, a direct value-for-money assessment is challenging, but the overall investment in developing advanced unmanned capabilities is strategically sound.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and submitted proposals. The presence of 99 bids suggests a highly competitive environment, which typically drives better pricing and innovation. The extensive number of bidders provides strong evidence that the market for MDUSV technology is mature and diverse, allowing the Department of the Navy to select the most advantageous offer based on technical merit and cost.
Taxpayer Impact: The full and open competition with numerous bidders is beneficial for taxpayers as it fosters a competitive environment that can lead to more cost-effective solutions and prevent price gouging.
Public Impact
The U.S. Navy benefits from advancements in unmanned surface vessel technology, enhancing its operational capabilities. Services delivered include research and development for the design, integration, and testing of the MDUSV. The geographic impact is primarily within the defense sector, with potential applications in maritime security and surveillance. Workforce implications include specialized roles in naval architecture, systems engineering, and autonomous systems development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
- The long performance period increases the risk of scope creep or evolving technological requirements impacting the final cost and timeline.
- Dependence on a single prime contractor for complex R&D can create single points of failure if not managed proactively.
Positive Signals
- Full and open competition with a high number of bidders suggests a healthy market and potential for competitive pricing.
- The contract is for research and development, aiming to advance critical defense technology, which is a positive strategic investment.
- The definitive contract award provides a clear framework for the development effort over the specified period.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences related to defense applications. The market for unmanned maritime systems (UMS) is rapidly growing, driven by advancements in AI, robotics, and sensor technology. This contract for an MDUSV is a component of a larger trend in defense spending towards autonomous platforms, which aim to reduce risk to personnel and increase operational reach. Comparable spending benchmarks in this niche R&D area are difficult to pinpoint without more specific technical details, but the overall investment reflects the strategic importance of UMS.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D effort, it is likely that prime contractor Leidos, Inc. will engage subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem. Without specific subcontracting data, it's presumed that opportunities for small businesses may exist within the supply chain for specialized components or services.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would include regular progress reports, milestone reviews, and financial audits to ensure funds are used appropriately. Transparency is typically maintained through contract award databases and public reporting, though detailed R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Unmanned Maritime Systems (UMS) Programs
- Naval Research and Development Programs
- Autonomous Systems Development
- Department of Defense R&D Spending
- Surface Warfare Technology Development
Risk Flags
- Cost Overrun Risk (CPFF Contract Type)
- Long Performance Period Risk
- Technological Obsolescence Risk
- Integration Complexity Risk
Tags
research-and-development, department-of-defense, department-of-the-navy, definitive-contract, medium-displacement-unmanned-surface-vessel, cost-plus-fixed-fee, full-and-open-competition, unmanned-systems, maritime-technology, virginia, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.6 million to LEIDOS, INC.. MEDIUM DISPLACEMENT UNMANNED SURFACE VESSEL (MDUSV)
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 Navy).
What is the total obligated amount?
The obligated amount is $27.6 million.
What is the period of performance?
Start: 2019-03-22. End: 2024-08-29.
What is the track record of Leidos, Inc. in performing similar large-scale R&D contracts for the Department of Defense?
Leidos, Inc. has a significant track record with the Department of Defense, frequently securing large contracts across various domains including R&D, IT services, and logistics. For instance, they have been involved in developing advanced simulation systems, C4ISR capabilities, and other complex engineering projects. Their experience in managing large, multi-year R&D efforts, particularly in areas requiring systems integration and technological innovation, suggests a capacity to handle the MDUSV program. However, a detailed review of past performance metrics, including cost performance and adherence to schedule on similar CPFF contracts, would be necessary for a comprehensive assessment of their suitability for this specific project.
How does the $27.6 million award compare to other Navy R&D contracts for unmanned systems?
The $27.6 million award for the Medium Displacement Unmanned Surface Vessel (MDUSV) R&D is a moderate-sized contract within the broader landscape of naval unmanned systems development. The Navy invests billions annually in various unmanned platforms, including aerial, surface, and subsurface vehicles. Contracts for prototyping, testing, and initial production of larger or more complex unmanned systems can range from tens to hundreds of millions of dollars. This specific award appears focused on the research and development phase, likely encompassing design, integration, and initial testing, which typically involves lower initial funding compared to full-scale production or deployment contracts. Therefore, in the context of the Navy's extensive UMS portfolio, this award represents a significant but not exceptionally large investment in a specific R&D capability.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for R&D is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This can create an incentive for contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total cost. For the government, this means the final cost could exceed initial estimates if costs are not rigorously controlled and monitored. Effective oversight, detailed cost tracking, and clear definition of work scope are crucial to mitigate these risks and ensure the government receives good value. The long duration of this contract (1987 days) further amplifies the need for vigilant cost management.
What is the expected effectiveness of the MDUSV program based on current technological trends?
The expected effectiveness of the Medium Displacement Unmanned Surface Vessel (MDUSV) program is high, aligning with global defense trends towards increased autonomy and reduced manning. MDUSVs are envisioned to perform a range of missions, including intelligence, surveillance, reconnaissance (ISR), mine countermeasures, and potentially anti-submarine warfare, often in conjunction with manned platforms or as part of a swarm. Their effectiveness stems from persistent presence, reduced risk to personnel in hazardous environments, and the potential for lower operational costs compared to manned vessels. Advancements in AI, sensor fusion, and power systems are continuously enhancing the capabilities and reliability of such platforms, making them a critical component of future naval operations.
How has Navy spending on unmanned maritime systems evolved over the past five years?
Navy spending on unmanned maritime systems (UMS) has seen a significant and consistent upward trend over the past five years, reflecting a strategic pivot towards autonomous capabilities. This growth is driven by the desire for persistent ISR, enhanced mine warfare, and the need to operate in contested environments with reduced risk to personnel. Budgetary documents and contract awards show increasing allocations for research, development, testing, and evaluation (RDT&E) of various unmanned platforms, including surface vessels (like the MDUSV), aerial drones, and undersea vehicles. While specific figures fluctuate annually based on program priorities, the overall trajectory indicates a sustained commitment to integrating UMS across the fleet, suggesting this $27.6 million R&D award is part of a larger, ongoing investment strategy.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: N0001418SB001
Offers Received: 99
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR, 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: $29,445,069
Exercised Options: $29,445,069
Current Obligation: $27,572,824
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $1,042,490
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-03-22
Current End Date: 2024-08-29
Potential End Date: 2024-08-29 00:00:00
Last Modified: 2024-08-29
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