DoD's $44.3M TRAPS Units Fabrication Contract with Leidos Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $44,268,739 ($44.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-12-07
End Date: 2020-03-07
Contract Duration: 1,186 days
Daily Burn Rate: $37.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: TRAPS UNITS FABRICATION (LOT 1)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $44.3 million to LEIDOS, INC. for work described as: TRAPS UNITS FABRICATION (LOT 1) Key points: 1. The contract awarded to Leidos, Inc. for TRAPS Units Fabrication (Lot 1) totals $44.3 million. 2. Awarded by the Department of Defense, this contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. 3. The contract was not competed, raising questions about potential price discovery and taxpayer value. 4. The duration of the contract was 1186 days, ending in March 2020.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to benchmark pricing against similar contracts to ensure fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible price for these TRAPS units.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Defense received specialized equipment, but the procurement process lacked transparency. The duration of the contract suggests a long-term need for these TRAPS units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Incentive Fee contract type
- Potential for inflated pricing
Positive Signals
- Awarded to a known entity (Leidos, Inc.)
- Contract fulfilled its purpose (implied)
Sector Analysis
This contract falls within the Defense Industrial Base, specifically in the manufacturing of navigation and guidance systems. Spending in this sector is critical for national security but requires robust oversight to ensure cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' are false. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for a sole-source award. Further review of the procurement file would be necessary to assess accountability.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition raises concerns about fair pricing.
- Sole-source award may not represent best value.
- Cost Plus Incentive Fee contract type can lead to cost overruns.
- No indication of small business participation.
- Potential for inadequate oversight on sole-source justification.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.3 million to LEIDOS, INC.. TRAPS UNITS FABRICATION (LOT 1)
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 $44.3 million.
What is the period of performance?
Start: 2016-12-07. End: 2020-03-07.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or lack of available sources. A thorough review of the contract's procurement file would be required to understand the specific rationale and assess its validity.
How can the government ensure fair pricing when a contract is not competed?
When contracts are not competed, ensuring fair pricing relies heavily on robust cost analysis, independent government cost estimates, and negotiation expertise. The government must meticulously scrutinize the contractor's proposed costs, compare them to historical data or industry benchmarks, and leverage negotiation strategies to achieve a reasonable price. Transparency in the pricing structure is also crucial.
What is the potential impact of a Cost Plus Incentive Fee (CPIF) contract type on overall project cost and effectiveness?
CPIF contracts aim to incentivize both the contractor and the government by sharing cost savings or overruns based on pre-negotiated targets. While this can encourage efficiency, it also carries the risk of cost escalation if targets are not well-defined or if the contractor prioritizes profit over optimal cost control. Effectiveness depends on clear performance metrics and diligent government oversight.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003916R0013
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $50,648,482
Exercised Options: $50,376,232
Current Obligation: $44,268,739
Subaward Activity
Number of Subawards: 37
Total Subaward Amount: $9,747,997
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-12-07
Current End Date: 2020-03-07
Potential End Date: 2020-03-07 00:00:00
Last Modified: 2023-09-14
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)