DoD's $45M MUDRACE contract to Leidos, Inc. awarded for advanced radar research

Contract Overview

Contract Amount: $45,048,241 ($45.0M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-03

End Date: 2026-09-15

Contract Duration: 1,838 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MULTI-DOMAIN RADAR IN A CONTESTED ENVIRONMENT (MUDRACE)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.0 million to LEIDOS, INC. for work described as: MULTI-DOMAIN RADAR IN A CONTESTED ENVIRONMENT (MUDRACE) Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Research and Development focus in a critical defense technology area. 3. Cost Plus Fixed Fee (CPFF) contract type, which can incentivize cost control. 4. Long duration of 1838 days indicates a complex, multi-year research effort. 5. Contractor Leidos, Inc. has a significant presence in defense contracting. 6. Potential for follow-on work or integration into larger defense systems. 7. Virginia is the primary performance location, aligning with defense industry hubs.

Value Assessment

Rating: good

The contract's value of approximately $45 million over its duration appears reasonable for advanced R&D in a specialized field like multi-domain radar. Benchmarking against similar large-scale defense R&D contracts is challenging without more specific technical details, but the scope suggests a significant investment. The CPFF structure, while common for R&D, requires careful oversight to ensure cost efficiency. The contractor's experience in similar complex systems integration will be a key factor in assessing value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. This approach generally fosters a competitive environment, encouraging bidders to offer their best technical solutions and pricing. The specific number of bidders is not provided, but the 'full and open' designation implies a broad solicitation. This method is preferred for ensuring fair market access and potentially achieving better pricing through competitive pressure.

Taxpayer Impact: Taxpayers benefit from full and open competition as it increases the likelihood of receiving competitive pricing and innovative solutions, maximizing the value of federal investment in critical defense research.

Public Impact

Advances U.S. military capabilities in contested environments through next-generation radar technology. Supports the Department of the Navy's strategic objectives for enhanced situational awareness. Primarily benefits the Department of Defense by providing critical research outcomes. Potential for indirect benefits to the U.S. defense industrial base through innovation and technology development. Work is concentrated in Virginia, supporting the regional defense technology ecosystem and workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
  • The long duration of the contract necessitates sustained oversight to ensure progress and alignment with evolving requirements.
  • The complexity of multi-domain radar systems presents inherent technical risks.
  • Reliance on a single prime contractor for such a critical system warrants close monitoring of performance and potential single points of failure.

Positive Signals

  • Awarded through full and open competition, indicating a competitive process.
  • The contractor, Leidos, Inc., has extensive experience in defense systems integration and R&D.
  • The contract focuses on a high-priority defense capability (advanced radar).
  • The CPFF structure, when managed effectively, can allow for flexibility in R&D while maintaining cost targets.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced defense technologies. The market for sophisticated radar systems is highly specialized, dominated by a few large defense contractors with significant R&D capabilities. Spending in this area is driven by the need for technological superiority in military applications. Comparable spending benchmarks would typically be found within other large-scale defense R&D programs focused on sensor technology or electronic warfare.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. While the prime contractor, Leidos, Inc., is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Leidos's strategy and the specific needs of the research project. Analysis of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be embedded within the contract's milestones, deliverables, and reporting requirements. Transparency is typically maintained through contract award notices and potentially through program reviews, though detailed R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Advanced Sensor Technology Development
  • Defense Research and Development Programs
  • Electronic Warfare Systems
  • Naval Combat Systems Modernization
  • Multi-Domain Operations Research

Risk Flags

  • Cost Overrun Risk (CPFF)
  • Technology Obsolescence
  • Long Program Duration Management
  • Complexity of Multi-Domain Integration

Tags

defense, department-of-defense, department-of-the-navy, research-and-development, radar-technology, multi-domain, cost-plus-fixed-fee, definitive-contract, full-and-open-competition, leidos-inc, virginia, advanced-technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.0 million to LEIDOS, INC.. MULTI-DOMAIN RADAR IN A CONTESTED ENVIRONMENT (MUDRACE)

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 $45.0 million.

What is the period of performance?

Start: 2021-09-03. End: 2026-09-15.

What is Leidos, Inc.'s track record with similar large-scale defense R&D contracts?

Leidos, Inc. has a substantial track record in executing complex defense research and development programs. They are a major prime contractor for the U.S. Department of Defense across various domains, including intelligence, surveillance, reconnaissance (ISR), command and control (C2), and advanced sensor development. Their experience often involves integrating cutting-edge technologies into operational systems. For instance, Leidos has been involved in programs related to airborne ISR platforms, cyber security solutions, and sophisticated simulation and training environments. Their history suggests a capacity to manage large budgets, complex technical challenges, and long program durations typical of advanced R&D efforts. However, specific performance metrics and cost control success on past CPFF contracts would require deeper analysis of individual program histories and audit reports.

How does the $45 million value compare to similar multi-domain radar R&D efforts?

Benchmarking the $45 million value of the MUDRACE contract against similar multi-domain radar R&D efforts is challenging due to the proprietary nature of defense R&D and the unique specifications of such advanced systems. However, large-scale defense R&D programs, especially those involving novel sensor technologies like advanced radar, often run into tens or hundreds of millions of dollars over several years. The value appears consistent with the significant investment required for developing and testing complex, multi-domain capabilities that aim to provide a technological advantage. Factors influencing cost include the novelty of the technology, the number of domains integrated, the required performance characteristics (e.g., range, resolution, processing power), and the maturity of the underlying research.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for Research and Development (R&D) revolve around cost control and contractor incentive. While CPFF provides flexibility for R&D where costs can be uncertain, the fixed fee can incentivize the contractor to manage costs effectively to maximize profit. However, if not managed diligently, there's a risk that costs could escalate beyond initial projections, with the government bearing the brunt of the increased expenses up to the contract ceiling. The contractor might also be less motivated to innovate aggressively on cost-saving measures once the fee is established. Robust government oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for money.

What is the expected program effectiveness and impact on future defense capabilities?

The expected effectiveness of the MUDRACE program is to significantly enhance the Department of the Navy's situational awareness and operational capabilities in contested environments. By developing advanced multi-domain radar, the program aims to provide superior detection, tracking, and identification of threats across various spectrums (air, land, sea, space) and operational domains. This enhanced capability is critical for maintaining a strategic advantage against evolving adversary threats. The program's success could lead to improved decision-making, more effective targeting, and increased survivability for U.S. forces. Ultimately, it contributes to the modernization of naval warfare and broader joint force operations, potentially influencing future platform designs and operational doctrines.

How does this contract align with historical spending patterns in defense R&D for sensor technology?

This contract aligns with historical and ongoing spending patterns in defense R&D, particularly in sensor technology. The U.S. Department of Defense consistently allocates substantial resources towards developing advanced sensing capabilities, including radar, electronic warfare, and electro-optical/infrared systems. These technologies are fundamental to maintaining information superiority and achieving mission objectives across all operational domains. Historical spending reflects a continuous effort to counter emerging threats and achieve technological dominance. Contracts like MUDRACE represent the cutting edge of this investment, focusing on integrating multiple sensing modalities and enhancing performance in increasingly complex and contested environments, a trend observed over the past decade.

What are the potential implications of the 1838-day duration on project management and technology obsolescence?

The 1838-day duration (approximately 5 years) for the MUDRACE contract presents both opportunities and challenges for project management and technology obsolescence. A longer duration allows for in-depth research, development, testing, and integration of complex technologies, which is often necessary for advanced R&D. It provides stability for the contractor and allows for iterative development. However, it also increases the risk of technology obsolescence, as the pace of technological advancement, particularly in areas like radar and signal processing, can be rapid. Effective project management will require agile methodologies, continuous assessment of emerging technologies, and flexibility to adapt the program's direction if necessary to ensure the final product remains relevant and effective upon delivery.

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: BASIC RESEARCH

Solicitation ID: N0001421SB001

Offers Received: 999

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: $49,417,035

Exercised Options: $45,773,279

Current Obligation: $45,048,241

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $7,114,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2021-09-03

Current End Date: 2026-09-15

Potential End Date: 2026-09-15 00:00:00

Last Modified: 2025-09-29

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