DoD's $91M Surveillance Towed Array Sensor System O&M Contract Awarded to Leidos, Inc
Contract Overview
Contract Amount: $90,958,655 ($91.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-04-28
End Date: 2023-01-30
Contract Duration: 4,295 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SURVEILLANCE TOWED ARRAY SENSOR SYSTEM OPERATIONS AND MAINTENANCE CREWS AND FIELD SUPPORT TEAMS
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $91.0 million to LEIDOS, INC. for work described as: SURVEILLANCE TOWED ARRAY SENSOR SYSTEM OPERATIONS AND MAINTENANCE CREWS AND FIELD SUPPORT TEAMS Key points: 1. Contract awarded to Leidos, Inc. for $91M for surveillance sensor system operations and maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The sector is Engineering Services, supporting the Department of the Navy's surveillance capabilities.
Value Assessment
Rating: fair
The contract value of $91M over its duration appears substantial for engineering services. Benchmarking against similar large-scale, long-term defense system maintenance contracts is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, which is generally positive for price discovery. However, the Cost Plus Fixed Fee structure requires robust oversight to ensure costs remain reasonable.
Taxpayer Impact: Taxpayer funds are being used for critical defense infrastructure maintenance. The effectiveness of the competition and oversight will determine the ultimate taxpayer impact.
Public Impact
Ensures continued operation of vital naval surveillance systems. Supports advanced technological capabilities for national security. Potential for long-term employment in specialized engineering fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may reduce flexibility for future technological advancements.
- Lack of small business participation noted.
Positive Signals
- Full and open competition utilized.
- Supports critical national defense infrastructure.
- Experienced contractor likely to provide reliable service.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related technology. Spending benchmarks for similar large-scale, long-term defense system operations and maintenance contracts are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award (ss: false, sb: false). This suggests a focus on large prime contractors for this specialized service.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates strong oversight from the Department of the Navy to manage costs effectively and ensure performance standards are met. Regular audits and performance reviews are crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- No small business participation.
- Potential for cost overruns without strict oversight.
- Reliance on a single contractor for critical system maintenance.
Tags
engineering-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.0 million to LEIDOS, INC.. SURVEILLANCE TOWED ARRAY SENSOR SYSTEM OPERATIONS AND MAINTENANCE CREWS AND FIELD SUPPORT TEAMS
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 $91.0 million.
What is the period of performance?
Start: 2011-04-28. End: 2023-01-30.
What is the specific performance metric for the surveillance towed array sensor system, and how is Leidos, Inc. being evaluated against it?
Performance metrics for such systems typically include uptime, data accuracy, response times, and system reliability. The Department of the Navy would have established specific Key Performance Parameters (KPPs) and Key Performance Indicators (KPIs) within the contract. Leidos's performance is likely evaluated through regular reporting, on-site inspections, and potentially user feedback from naval operations. The Cost Plus Fixed Fee structure implies that meeting these performance standards is tied to the fixed fee component, while the cost-plus aspect covers allowable expenses.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to prevent cost overruns and ensure the government receives fair value?
The 'Cost Plus' element means the government pays the contractor's allowable costs, plus a fixed fee. To prevent overruns, the government must have robust auditing processes for allowable costs, clear definitions of what constitutes an allowable cost, and potentially cost ceilings or incentive clauses. The 'Fixed Fee' provides the contractor with an incentive to control costs, as their profit is predetermined. Effective contract administration, including regular reviews of expenditures and performance, is critical for ensuring fair value.
How does the continued operation and maintenance of this specific surveillance system contribute to the broader Department of Defense's intelligence and operational readiness?
The Surveillance Towed Array Sensor System is crucial for underwater domain awareness, providing critical intelligence on adversary naval movements and activities. Its reliable operation and maintenance directly enhance the Navy's ability to detect, track, and identify threats in strategic maritime areas. This contributes significantly to overall operational readiness by ensuring commanders have accurate and timely information for decision-making, force protection, and mission execution in complex underwater environments.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003910R0042
Offers Received: 1
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: $110,395,868
Exercised Options: $98,122,443
Current Obligation: $90,958,655
Actual Outlays: $2,567,038
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $265,240
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-04-28
Current End Date: 2023-01-30
Potential End Date: 2023-01-30 00:00:00
Last Modified: 2025-01-15
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