DoD Navy Awards $53M for Navigation Systems to Leidos, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $52,973,558 ($53.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-10
End Date: 2026-09-30
Contract Duration: 1,300 days
Daily Burn Rate: $40.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: OPERATIONS AND SUSTAINMENT MATERIAL AND OTHER DIRECT COSTS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $53.0 million to LEIDOS, INC. for work described as: OPERATIONS AND SUSTAINMENT MATERIAL AND OTHER DIRECT COSTS Key points: 1. Significant contract value of $52.97M for navigation system sustainment. 2. Leidos, Inc. is the sole awardee, indicating strong performance or specific expertise. 3. The contract spans over three years, suggesting ongoing operational needs. 4. The sector is IT/Defense, focusing on critical navigation and guidance systems.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This is common for complex sustainment efforts where final costs may be uncertain. Pricing will be assessed against similar sustainment contracts for navigation systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. Multiple bidders likely participated, driving competitive pricing for the delivery order.
Taxpayer Impact: Taxpayer funds are being used for essential defense operations and sustainment, ensuring the readiness of critical navigation systems.
Public Impact
Ensures continued operational readiness of naval navigation and guidance systems. Supports advanced technology development and maintenance within the defense sector. Provides critical components for national security and maritime operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Fixed Fee contract type.
- Reliance on a single contractor for critical sustainment.
Positive Signals
- Awarded through full and open competition.
- Long-term contract duration indicates sustained need and potential for stable support.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on manufacturing and sustainment of navigation, guidance, and control systems. Spending benchmarks in this area are highly variable based on system complexity and criticality.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The use of full and open competition and a defined contract type suggests a structured oversight framework.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Sole awardee may limit future competitive opportunities if performance issues arise.
- Long contract duration could lead to price escalation if not managed.
- Dependence on specific technology or expertise held by the contractor.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.0 million to LEIDOS, INC.. OPERATIONS AND SUSTAINMENT MATERIAL AND OTHER DIRECT COSTS
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 $53.0 million.
What is the period of performance?
Start: 2023-03-10. End: 2026-09-30.
What is the benchmark cost for similar navigation system sustainment contracts?
Benchmarking the cost for similar navigation system sustainment contracts requires detailed analysis of system complexity, age, and specific support requirements. Without access to a comprehensive database of comparable contracts, providing an exact benchmark is challenging. However, costs can range significantly, from tens of thousands to millions of dollars annually, depending on the sophistication and scale of the systems being maintained.
What are the primary risks associated with a Cost Plus Fixed Fee contract for navigation systems?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract for navigation systems include potential cost overruns if the fixed fee is not adequately calibrated to the effort required, and contractor inefficiency if there isn't strong oversight. The government bears the risk of cost increases, while the contractor is incentivized to complete the work within the agreed-upon fee, which can sometimes lead to quality compromises if not managed carefully.
How effective is full and open competition in ensuring value for money in defense navigation system contracts?
Full and open competition is generally highly effective in ensuring value for money for defense navigation system contracts. It allows multiple qualified vendors to bid, fostering a competitive environment that drives down prices and encourages innovation. This process typically leads to better pricing and higher quality solutions compared to sole-source or limited competition awards, maximizing the return on taxpayer investment.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002419R6316
Offers Received: 5
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: $94,787,489
Exercised Options: $89,387,489
Current Obligation: $52,973,558
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $40,646,235
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002420D6337
IDV Type: IDC
Timeline
Start Date: 2023-03-10
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-08
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