DoD's $66.4M SURTASS contract to Leidos, Inc. for undersea acoustic surveillance systems
Contract Overview
Contract Amount: $66,396,050 ($66.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-02-01
End Date: 2026-01-31
Contract Duration: 1,460 days
Daily Burn Rate: $45.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SURTASS OPERATIONS AND MAINTENANCE (O&M) TECHNICIAN CREWS AND FIELD SUPPORT TEAM (FST) TO OPERATE AND MAINTAIN ACTIVE AND PASSIVE SENSOR SYSTEMS NECESSARY TO PROVIDE MOBILE UNDERSEA ACOUSTIC SURVEILLANCE CAPABILITY
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $66.4 million to LEIDOS, INC. for work described as: SURTASS OPERATIONS AND MAINTENANCE (O&M) TECHNICIAN CREWS AND FIELD SUPPORT TEAM (FST) TO OPERATE AND MAINTAIN ACTIVE AND PASSIVE SENSOR SYSTEMS NECESSARY TO PROVIDE MOBILE UNDERSEA ACOUSTIC SURVEILLANCE CAPABILITY Key points: 1. Contract awarded to Leidos, Inc. for essential undersea acoustic surveillance capabilities. 2. Focus on operating and maintaining active and passive sensor systems for mobile undersea surveillance. 3. Contract duration spans from February 2022 to January 2026. 4. This award represents a significant investment in national defense and maritime security. 5. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: good
The contract value of $66.4 million over approximately four years for SURTASS operations and maintenance appears reasonable given the specialized nature of undersea acoustic surveillance. Benchmarking against similar complex defense systems and sensor maintenance contracts suggests this pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, warrants close monitoring of costs to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of two bids suggests a healthy, albeit not extensive, competitive landscape for this specialized service.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring that the government is not overpaying for critical defense capabilities.
Public Impact
The primary beneficiaries are the Department of Defense and national security interests, ensuring continuous undersea surveillance. Services delivered include the operation and maintenance of active and passive sensor systems. The geographic impact is global, supporting mobile undersea acoustic surveillance capabilities. Workforce implications include specialized technical and field support roles for operating and maintaining complex sensor systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed diligently.
- Limited number of bids (2) may indicate a niche market or high barriers to entry, potentially impacting future competition.
- The specialized nature of the technology requires highly skilled personnel, which can be costly to recruit and retain.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Long-term contract (approx. 4 years) provides stability for operations and maintenance.
- Focus on critical national security capabilities ensures continued investment in defense infrastructure.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting defense-related technology and operations. The market for undersea acoustic surveillance systems is highly specialized, dominated by a few key defense contractors with the necessary expertise and security clearances. Spending in this niche is driven by national security priorities and the need for advanced maritime domain awareness.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary contractor, Leidos, Inc., will likely perform the majority of the work, and opportunities for small businesses may be limited unless they are direct suppliers or specialized subcontractors to Leidos.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract awards databases and reporting requirements, though specific operational details of surveillance systems are classified.
Related Government Programs
- Naval Surveillance Systems
- Undersea Warfare Systems
- Defense Intelligence Support
- Maritime Domain Awareness Programs
- Acoustic Sensor Technology
Risk Flags
- Cost Overrun Risk (CPFF)
- Technical Obsolescence
- Personnel Retention (Specialized Skills)
- Cybersecurity Vulnerabilities
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, full-and-open-competition, cost-plus-fixed-fee, surveillance, undersea-warfare, acoustic-sensors, leidos-inc, virginia, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $66.4 million to LEIDOS, INC.. SURTASS OPERATIONS AND MAINTENANCE (O&M) TECHNICIAN CREWS AND FIELD SUPPORT TEAM (FST) TO OPERATE AND MAINTAIN ACTIVE AND PASSIVE SENSOR SYSTEMS NECESSARY TO PROVIDE MOBILE UNDERSEA ACOUSTIC SURVEILLANCE CAPABILITY
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 $66.4 million.
What is the period of performance?
Start: 2022-02-01. End: 2026-01-31.
What is the track record of Leidos, Inc. in performing similar complex defense system operations and maintenance contracts?
Leidos, Inc. has a substantial track record in providing a wide range of technical, engineering, and operational support services to the U.S. Department of Defense and other government agencies. They are known for their work in areas such as command and control, intelligence, surveillance, and reconnaissance (ISR), and complex system integration. Their experience often includes managing large-scale, long-duration contracts involving sophisticated technologies. For SURTASS operations and maintenance, Leidos's established presence in defense contracting suggests they possess the necessary infrastructure, cleared personnel, and program management capabilities to execute this contract effectively. Past performance reviews and contract awards databases would provide more granular detail on their specific success rates and any challenges encountered in similar roles.
How does the cost of this contract compare to similar undersea surveillance system maintenance contracts awarded in the past?
Directly comparing the cost of this $66.4 million contract for SURTASS operations and maintenance to similar contracts is challenging without access to detailed historical data on specialized undersea systems. However, given the complexity, global reach, and critical nature of mobile undersea acoustic surveillance, the annual cost (approximately $16.6 million) appears to be within a reasonable range for such high-tech, mission-critical defense services. Factors influencing cost include the number and type of sensor systems, operational tempo, geographic deployment, and the level of technical expertise required. Benchmarking against contracts for other advanced ISR platforms or naval system maintenance would provide a more robust comparison, but such data is often proprietary or classified.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this surveillance mission?
The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for the SURTASS operations and maintenance is the potential for cost overruns. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' component means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial projections due to unforeseen technical challenges, increased operational tempo, or inefficient management, the total contract value could increase significantly. This necessitates robust government oversight to scrutinize incurred costs, ensure efficiency, and prevent unnecessary expenditures. The risk is mitigated by the fixed fee, which incentivizes the contractor to control costs to some extent to maximize their overall return, but close monitoring remains crucial.
What is the expected effectiveness of the SURTASS system under this contract in providing mobile undersea acoustic surveillance?
The effectiveness of the SURTASS system under this contract is expected to be high, given its critical role in national security and the specialized nature of the services being procured. The contract mandates the operation and maintenance of active and passive sensor systems necessary for mobile undersea acoustic surveillance. This capability is vital for detecting, tracking, and classifying submarines and other undersea threats, contributing significantly to maritime domain awareness and force protection. The long-term nature of the contract (nearly four years) suggests a commitment to sustained operational readiness. The effectiveness will depend on the contractor's ability to maintain the sensor systems in optimal condition and ensure the crews are highly trained and proficient in their operation.
How has historical spending on SURTASS operations and maintenance evolved, and does this contract represent an increase or decrease?
Historical spending on SURTASS (Surveillance Towed Array Sensor System) operations and maintenance has been a consistent and significant component of the U.S. Navy's budget for undersea warfare capabilities. While specific year-over-year figures for SURTASS O&M are not publicly detailed in this data, the consistent need for undersea surveillance suggests ongoing investment. This $66.4 million contract, spanning approximately four years, represents a substantial, but likely typical, level of investment for maintaining and operating such a critical, technologically advanced system. Without comparative data on previous contract values or total annual spending trends for SURTASS O&M, it's difficult to definitively state if this represents an increase or decrease, but it reflects a sustained commitment to this capability.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0003921R3002
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST FL 10, 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: $83,480,419
Exercised Options: $71,969,615
Current Obligation: $66,396,050
Actual Outlays: $19,427,865
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $1,826,663
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8006
IDV Type: IDC
Timeline
Start Date: 2022-02-01
Current End Date: 2026-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2025-12-12
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)