Leidos Inc. awarded $31.4M for naval signature silencing systems, highlighting engineering and program management support
Contract Overview
Contract Amount: $31,432,950 ($31.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-01-12
End Date: 2023-01-09
Contract Duration: 2,188 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CT::IGF LOGISTICS, OPERATIONS, SCIENTIFIC, ENGINEERING AND TECHNICAL SERVICES, SYSTEM DEVELOPMENT SUPPORT FOR SOFTWARE AND HARDWARE SYSTEMS, PROGRAM MANAGEMENT ASSISTANCE, AND HIGH-LEVEL, STRATEGIC PLANNING SERVICES IN SUPPORT OF SIGNATURE SILENCING PROGRAMS FOR NAVAL SHIPS AND UNDERSEA SYSTEMS.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.4 million to LEIDOS, INC. for work described as: IGF::CT::IGF LOGISTICS, OPERATIONS, SCIENTIFIC, ENGINEERING AND TECHNICAL SERVICES, SYSTEM DEVELOPMENT SUPPORT FOR SOFTWARE AND HARDWARE SYSTEMS, PROGRAM MANAGEMENT ASSISTANCE, AND HIGH-LEVEL, STRATEGIC PLANNING SERVICES IN SUPPORT OF SIGNATURE SILENCING PROGRAMS FOR NAVAL SHIPS … Key points: 1. Contract focuses on critical engineering, system development, and strategic planning for naval signature silencing. 2. Full and open competition suggests a robust market for these specialized services. 3. The contract duration of nearly six years indicates a long-term need for these capabilities. 4. Performance is tied to Naval Sea Systems Command, a key defense acquisition entity. 5. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight of costs. 6. This award falls within the broader engineering services sector for defense applications.
Value Assessment
Rating: good
The total award of $31.4 million over approximately six years for specialized engineering and program management services appears reasonable given the complexity and duration. Benchmarking against similar contracts for advanced naval systems development is challenging due to the niche nature of signature silencing. However, the cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D and complex services, necessitates diligent oversight to ensure costs remain aligned with the fixed fee and overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The specific number of bidders is not provided, but the competition type suggests a healthy market for these specialized engineering and technical services. This approach is generally expected to drive competitive pricing and innovation.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to better pricing and a wider array of solutions, ensuring that the government receives the best value for its investment in critical defense capabilities.
Public Impact
The primary beneficiaries are the U.S. Navy's undersea warfare and naval surface warfare programs, enhancing the stealth capabilities of ships and submarines. Services delivered include system development support for software and hardware, program management, and strategic planning. The geographic impact is primarily within the defense industrial base, with potential implications for naval bases and shipyards. Workforce implications include the need for highly skilled engineers, scientists, and program managers specializing in acoustics, naval architecture, and systems engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
- The specialized nature of the work may limit the pool of qualified small business subcontractors.
- Long contract durations can sometimes reduce agility in adapting to rapidly changing technological landscapes.
Positive Signals
- Awarded through full and open competition, suggesting strong market interest and potential for value.
- The contract supports critical national defense capabilities, aligning with strategic priorities.
- The long duration provides stability and allows for deep expertise development within the contractor.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications. The market for naval signature silencing is a niche but critical segment of the broader defense technology industry. Spending in this area is driven by the need for advanced stealth capabilities in increasingly complex operational environments. Comparable spending benchmarks are difficult to establish due to the proprietary and specialized nature of signature silencing technologies.
Small Business Impact
This contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses in the provided data. The specialized nature of signature silencing technology might present challenges for small businesses to compete directly or to be integrated as prime contractors. Further analysis would be needed to determine if subcontracting opportunities exist and are being utilized effectively to engage the small business industrial base.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Navy's contracting and program management offices. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to monitor expenditures and ensure that costs are reasonable and allocable. Transparency is generally maintained through contract reporting requirements, though specific details of technical performance and cost breakdowns may be sensitive.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Undersea Warfare Systems Development
- Defense Engineering Services
- Signature Management Programs
- Naval Ship Modernization
Risk Flags
- Cost-plus-fixed-fee pricing requires diligent oversight to manage potential cost escalations.
- The specialized nature of signature silencing may limit competition and innovation if not managed broadly.
- Long contract durations can sometimes lead to technology obsolescence if not actively managed.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, full-and-open-competition, cost-plus-fixed-fee, naval-systems, signature-silencing, program-management, system-development, leidos-inc, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.4 million to LEIDOS, INC.. IGF::CT::IGF LOGISTICS, OPERATIONS, SCIENTIFIC, ENGINEERING AND TECHNICAL SERVICES, SYSTEM DEVELOPMENT SUPPORT FOR SOFTWARE AND HARDWARE SYSTEMS, PROGRAM MANAGEMENT ASSISTANCE, AND HIGH-LEVEL, STRATEGIC PLANNING SERVICES IN SUPPORT OF SIGNATURE SILENCING PROGRAMS FOR NAVAL SHIPS AND UNDERSEA SYSTEMS.
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 $31.4 million.
What is the period of performance?
Start: 2017-01-12. End: 2023-01-09.
What is Leidos Inc.'s track record with similar defense contracts, particularly in naval systems and signature management?
Leidos, Inc. has a substantial track record in supporting defense programs, including significant work with the Department of Defense and various naval commands. They are known for providing a wide range of services, from IT and systems engineering to logistics and program management. While specific details on their past performance in 'signature silencing' for naval systems are not publicly detailed in this award's summary, their broad expertise in complex engineering, software development, and systems integration suggests a strong capability to handle such specialized requirements. Their history includes numerous large-scale contracts, indicating experience in managing complex projects, adhering to stringent security protocols, and delivering technical solutions within demanding environments. Analyzing their past performance on contracts with similar pricing structures (like CPFF) and durations would provide further insight into their reliability and efficiency in delivering value.
How does the $31.4 million total award compare to other contracts for similar naval signature silencing technologies or services?
Direct comparison of the $31.4 million award for naval signature silencing services is challenging due to the highly specialized and often classified nature of this technology. Contracts for signature management, which encompasses acoustic, magnetic, and infrared signature reduction, can vary significantly in scope and value. Awards for research and development, system integration, and ongoing support for such niche capabilities are not as frequently publicized or standardized as broader defense procurement. However, considering the nearly six-year duration and the complexity of engineering, system development, and strategic planning involved, $31.4 million appears to be a moderate investment for a critical capability. Larger, multi-year programs involving the development and integration of entirely new stealth platforms would likely command significantly higher figures, while smaller, focused R&D efforts might be awarded for less.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of specialized engineering service?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Leidos, is the potential for cost overruns. While the 'fixed fee' component provides a defined profit margin for the contractor, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates due to unforeseen technical challenges, scope creep, or inefficient management, the government bears the financial burden. For specialized engineering services in areas like naval signature silencing, where technical uncertainties can be high, there's a risk that costs could escalate beyond initial projections. Effective oversight, robust cost accounting standards, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value.
What does the 'full and open competition' designation imply about the market maturity for naval signature silencing technologies?
The designation of 'full and open competition' suggests that the market for naval signature silencing technologies and related services is sufficiently mature and accessible to allow multiple qualified vendors to compete. This implies that the technology is not so specialized or proprietary that it restricts bidding to a single or very limited number of sources. It indicates that the Department of the Navy believes there are several companies capable of providing these critical services, fostering a competitive environment. This approach is generally favored as it promotes innovation, drives down prices through market forces, and ensures the government has a broader range of options to choose from, ultimately benefiting taxpayer investment by seeking the best possible solution at a competitive price.
How does this contract align with the Navy's broader strategic goals in areas like undersea warfare or fleet modernization?
This contract directly aligns with the U.S. Navy's strategic goals, particularly in enhancing the operational effectiveness and survivability of its fleet, especially in the context of undersea warfare and countering advanced threats. Signature silencing is a critical component of stealth technology, enabling naval vessels (both surface and subsurface) to operate with reduced detectability. This capability is essential for maintaining information dominance, projecting power, and ensuring mission success in contested environments. By investing in advanced signature silencing systems, the Navy aims to maintain its technological edge, improve the survivability of its assets, and enhance its ability to conduct complex operations, thereby supporting broader strategic objectives related to national security and maritime dominance.
What are the potential implications of this contract for the defense industrial base, specifically regarding innovation in stealth technologies?
This contract has several implications for the defense industrial base and innovation in stealth technologies. Firstly, by awarding through full and open competition, it signals to the market that the Navy is actively seeking advanced solutions in signature silencing, encouraging investment and innovation among potential bidders. Secondly, the long duration (nearly six years) provides a stable demand signal, allowing contractors like Leidos to invest in research and development, specialized facilities, and workforce training necessary for cutting-edge stealth capabilities. This sustained focus can lead to incremental improvements and potentially breakthrough innovations in materials science, acoustic dampening, and electromagnetic signature reduction. Finally, the contract's success could influence future procurement strategies and technology roadmaps for stealth across various defense platforms.
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: N0002415R3199
Offers Received: 1
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: $36,295,792
Exercised Options: $36,295,792
Current Obligation: $31,432,950
Actual Outlays: $470,569
Subaward Activity
Number of Subawards: 118
Total Subaward Amount: $17,798,717
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D7578
IDV Type: IDC
Timeline
Start Date: 2017-01-12
Current End Date: 2023-01-09
Potential End Date: 2023-01-09 00:00:00
Last Modified: 2025-09-15
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