DoD Awards $23M for Undersea Measurement System Array to Leidos, Inc

Contract Overview

Contract Amount: $23,022,670 ($23.0M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2027-05-27

Contract Duration: 2,064 days

Daily Burn Rate: $11.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES, MATERIALS AND OTHER DIRECT COSTS TO SUPPORT THE DESIGN, DEVELOPMENT, TESTING AND INSTALLATION OF A HIGH GAIN MEASUREMENT SYSTEM ARRAY FOR THE BRITISH UNDERSEA TESTING AND EVALUATION CENTER.

Place of Performance

Location: LONG BEACH, HARRISON County, MISSISSIPPI, 39560

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to LEIDOS, INC. for work described as: ENGINEERING SERVICES, MATERIALS AND OTHER DIRECT COSTS TO SUPPORT THE DESIGN, DEVELOPMENT, TESTING AND INSTALLATION OF A HIGH GAIN MEASUREMENT SYSTEM ARRAY FOR THE BRITISH UNDERSEA TESTING AND EVALUATION CENTER. Key points: 1. Contract awarded to Leidos, Inc. for critical undersea testing infrastructure. 2. Significant investment in advanced measurement systems for defense applications. 3. Potential for long-term reliance on a single contractor for specialized systems. 4. Spending concentrated in the Engineering Services sector.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific details on the fixed fee percentage and the direct costs incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.

Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competition, but the specialized nature of the system may justify the approach.

Public Impact

Enhances national security capabilities through advanced undersea testing. Supports technological development in a critical defense sector. Potential for job creation within Leidos and its subcontractors. Long-term implications for future defense procurement strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related research, development, and testing. Spending in this area is often characterized by high technical complexity and specialized requirements, making competitive bidding challenging.

Small Business Impact

The data indicates that small business participation was not a stated requirement for this contract (ss: false, sb: false). There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

The Department of the Navy is the contracting agency, responsible for oversight. The contract type and limited competition warrant close monitoring to ensure cost efficiency and effective delivery.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-defense, ms, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to LEIDOS, INC.. ENGINEERING SERVICES, MATERIALS AND OTHER DIRECT COSTS TO SUPPORT THE DESIGN, DEVELOPMENT, TESTING AND INSTALLATION OF A HIGH GAIN MEASUREMENT SYSTEM ARRAY FOR THE BRITISH UNDERSEA TESTING AND EVALUATION CENTER.

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 $23.0 million.

What is the period of performance?

Start: 2021-10-01. End: 2027-05-27.

What is the estimated fixed fee percentage for this Cost Plus Fixed Fee contract, and how does it compare to industry standards for similar complex engineering projects?

The specific fixed fee percentage is not detailed in the provided data. For Cost Plus Fixed Fee contracts, the fee typically ranges from 5% to 15% of the estimated cost, depending on the project's complexity, risk, and the contractor's performance incentives. Without this information, a precise comparison is impossible, but a higher percentage could indicate greater perceived risk or profit margin for Leidos.

Given the limited competition, what measures are in place to ensure Leidos, Inc. is not overcharging for the engineering services and materials provided?

Oversight by the Department of the Navy is crucial. This includes rigorous auditing of direct costs, review of labor rates, and monitoring of material procurement. The fixed fee component also provides some incentive for the contractor to manage costs efficiently, as their profit is capped.

How will the effectiveness of the High Gain Measurement System Array be evaluated, and what are the key performance indicators to ensure it meets the operational needs of the British Undersea Testing

Effectiveness will likely be measured through a series of acceptance testing protocols and performance demonstrations outlined in the contract's Statement of Work. Key performance indicators would typically include accuracy, reliability, data acquisition rates, and integration with existing systems at the testing center. Formal sign-off by the end-user will confirm operational readiness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0016721R0002

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: $23,022,670

Exercised Options: $23,022,670

Current Obligation: $23,022,670

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $1,530,388

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0016721D0006

IDV Type: IDC

Timeline

Start Date: 2021-10-01

Current End Date: 2027-05-27

Potential End Date: 2027-05-27 00:00:00

Last Modified: 2025-09-02

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