DoD awards $23.8M contract to Leidos for Naval Tactical Signatures Guidance Support

Contract Overview

Contract Amount: $23,847,985 ($23.8M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-07-22

End Date: 2026-06-30

Contract Duration: 1,439 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TACTICAL SIGNATURES GUIDANCE SUPPORT - ENGINEERING, TECHNICAL, AND PROGRAM MANAGEMENT SERVICES REQUIRED IN SUPPORT OF THE DEVELOPMENT OF SIGNATURES GUIDANCE AND TACTICAL DECISION AIDS FOR NAVAL SHIPS, SUBMARINES, AIR AND SHORE BASED UNDERSEA SYSTEMS.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to LEIDOS, INC. for work described as: TACTICAL SIGNATURES GUIDANCE SUPPORT - ENGINEERING, TECHNICAL, AND PROGRAM MANAGEMENT SERVICES REQUIRED IN SUPPORT OF THE DEVELOPMENT OF SIGNATURES GUIDANCE AND TACTICAL DECISION AIDS FOR NAVAL SHIPS, SUBMARINES, AIR AND SHORE BASED UNDERSEA SYSTEMS. Key points: 1. Leidos, Inc. secured a significant contract for critical naval systems development. 2. The contract focuses on engineering, technical, and program management services. 3. This award falls under the Engineering Services sector, with a focus on defense applications. 4. The duration of the contract is over 3 years, indicating a substantial project timeline.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight to manage costs effectively. The total award value of $23.8M over nearly 4 years suggests a reasonable investment for the specialized services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense capabilities.

Public Impact

Enhances naval operational effectiveness through advanced tactical decision aids. Supports the development of critical undersea and air-based defense systems. Contributes to technological advancement in naval warfare capabilities. Ensures continued support for existing and future naval platforms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
  • The contract is not set aside for small businesses, potentially limiting opportunities for smaller firms.

Positive Signals

  • Awarded under full and open competition, suggesting competitive pricing.
  • Long-term contract duration allows for sustained development and support.
  • Focus on critical defense systems aligns with national security priorities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's naval capabilities. Spending in this area is crucial for maintaining technological superiority and operational readiness in complex defense environments.

Small Business Impact

The contract was not set aside for small businesses, meaning there are no specific provisions to ensure participation from small business entities. This could limit opportunities for smaller, specialized firms in this particular award.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The Cost Plus Fixed Fee contract type necessitates rigorous monitoring of costs and performance to ensure accountability and prevent potential overruns.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee contract requires diligent oversight.
  • Potential for cost overruns if not managed effectively.
  • Lack of small business set-aside may limit opportunities for smaller firms.
  • Reliance on a single contractor (Leidos, Inc.) for critical support services.
  • Long contract duration could lead to scope creep if not managed tightly.

Tags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to LEIDOS, INC.. TACTICAL SIGNATURES GUIDANCE SUPPORT - ENGINEERING, TECHNICAL, AND PROGRAM MANAGEMENT SERVICES REQUIRED IN SUPPORT OF THE DEVELOPMENT OF SIGNATURES GUIDANCE AND TACTICAL DECISION AIDS FOR NAVAL SHIPS, SUBMARINES, AIR AND SHORE BASED 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 $23.8 million.

What is the period of performance?

Start: 2022-07-22. End: 2026-06-30.

What is the specific impact of these tactical signatures guidance systems on naval vessel operational efficiency?

The tactical signatures guidance systems are designed to provide naval platforms with enhanced situational awareness and improved decision-making capabilities. By offering real-time data and predictive analysis related to enemy signatures and environmental factors, these systems aim to optimize operational tactics, reduce risks, and ultimately increase the effectiveness of naval missions in contested environments.

What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this project?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract involve potential cost overruns if the contractor's actual costs exceed projections, even though the fee is fixed. This necessitates robust government oversight to scrutinize incurred costs and ensure efficiency. There's also a risk that the contractor might not be sufficiently incentivized to control costs beyond the fixed fee, potentially impacting overall value for the taxpayer.

How does this contract contribute to the overall effectiveness and modernization of the U.S. Navy's undersea warfare capabilities?

This contract directly contributes to the modernization of undersea warfare by developing advanced tactical decision aids and guidance systems. These tools are crucial for naval platforms, including submarines, to better detect, track, and engage threats while remaining undetected. By enhancing situational awareness and providing superior intelligence, the contract supports the Navy's ability to maintain a strategic advantage in the complex and evolving undersea domain.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0016721R3007

Offers Received: 1

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: $47,007,851

Exercised Options: $37,250,285

Current Obligation: $23,847,985

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $8,689,399

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: 2022-07-22

Current End Date: 2026-06-30

Potential End Date: 2027-06-30 00:00:00

Last Modified: 2026-04-06

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