Leidos awarded $14.6M Navy contract for engineering services, highlighting full and open competition
Contract Overview
Contract Amount: $14,568,473 ($14.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-01-04
End Date: 2027-01-09
Contract Duration: 1,466 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SASMP TASK ORDER
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.6 million to LEIDOS, INC. for work described as: SASMP TASK ORDER Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight of costs. 3. Duration of 1466 days indicates a long-term need for these engineering services. 4. The award to Leidos, Inc. places it within the large defense contractor landscape. 5. The North American Industry Classification System (NAICS) code 541330 points to a specialized engineering services market. 6. The contract's value is significant within the context of engineering services procurement.
Value Assessment
Rating: good
The contract value of $14.6 million over approximately four years for engineering services appears reasonable given the duration and the nature of the work. Benchmarking against similar large-scale engineering contracts for the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure necessitates close monitoring of actual costs to ensure they align with the fixed fee and deliver 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 bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives competitive pricing. The number of bidders is not specified, but the method of competition suggests a robust market for these engineering services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging a wider pool of qualified contractors to bid, leading to potentially better value.
Public Impact
The Department of the Navy benefits from specialized engineering services crucial for its operations. This contract supports the maintenance and enhancement of naval systems and infrastructure. The geographic impact is primarily within the United States, supporting naval bases and facilities. The contract likely supports a workforce of engineers and technical specialists, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- Long-term contracts require ongoing performance monitoring to ensure continued value.
- Reliance on a single large contractor for critical services can pose supply chain risks.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- The contractor, Leidos, Inc., is a well-established entity in the defense sector.
- The contract duration suggests a stable and predictable need for these services.
Sector Analysis
The engineering services sector within the defense industry is highly specialized and competitive. Companies like Leidos, Inc. are key players, providing critical support for complex military systems. This contract fits within the broader category of professional services procured by the Department of Defense, which often involves significant investment in research, development, and sustainment of military capabilities. Comparable spending benchmarks for similar engineering support contracts within the Navy or other military branches would provide further context.
Small Business Impact
This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Leidos, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Leidos's strategy and the specific requirements of the engineering services provided.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers. Accountability measures will be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Department of Defense Engineering Services
- Defense Professional Services Contracts
- Cost Plus Fixed Fee Contracts
- Leidos Inc. Defense Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent cost oversight.
- Long contract duration necessitates sustained performance monitoring.
- Potential for contractor performance issues over the contract lifecycle.
Tags
defense, department-of-the-navy, engineering-services, full-and-open-competition, cost-plus-fixed-fee, leidos-inc, professional-services, task-order, large-contract, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to LEIDOS, INC.. SASMP TASK ORDER
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 $14.6 million.
What is the period of performance?
Start: 2023-01-04. End: 2027-01-09.
What is Leidos, Inc.'s track record with similar engineering services contracts for the Department of Defense?
Leidos, Inc. has a substantial track record of performing engineering services for the Department of Defense across various branches, including the Navy. They are a major defense contractor known for providing a wide range of technical and engineering solutions. Their past performance on similar contracts, often involving complex systems integration, lifecycle support, and technical consulting, is generally considered strong. However, a detailed review of their specific performance ratings, any past disputes, or contract modifications on comparable awards would be necessary for a comprehensive assessment. Publicly available contract databases often contain performance information, though specific details can be limited.
How does the $14.6 million value compare to other engineering services contracts awarded by the Navy?
The $14.6 million value for this specific task order, awarded over approximately four years, falls within a moderate range for specialized engineering services procured by the Department of the Navy. The Navy frequently awards larger, multi-year contracts for complex engineering and technical support that can reach hundreds of millions or even billions of dollars. Conversely, smaller, more focused engineering support tasks might be valued in the low millions. This $14.6 million award suggests a significant but not exceptionally large scope of work, likely focused on specific projects or systems rather than broad, enterprise-wide support. Benchmarking against contracts with similar NAICS codes (541330) and contract types (CPFF) awarded within the last 1-2 years would provide a more precise comparison.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as this $14.6 million award to Leidos, Inc., revolve around cost control and contractor incentive. For the government, the risk is that the contractor's actual costs may exceed initial estimates, potentially leading to a higher overall expenditure than anticipated, even with a fixed fee. The contractor is incentivized to control costs to maximize their profit margin (the fixed fee), but there's a risk of scope creep or inefficient practices if oversight is lax. For the contractor, the risk lies in accurately estimating costs and managing the project within those parameters to ensure the fixed fee remains profitable. Effective government oversight, detailed cost tracking, and clear definition of work are crucial to mitigate these risks.
What is the expected program effectiveness or outcome of these engineering services?
The expected program effectiveness for this contract hinges on the successful delivery of specialized engineering services to the Department of the Navy. These services are likely aimed at supporting the design, development, testing, maintenance, or modernization of naval systems, platforms, or infrastructure. Successful outcomes would include improved system performance, enhanced operational readiness, timely completion of engineering tasks, adherence to technical specifications, and cost-effective solutions. The specific effectiveness will be measured against the technical requirements outlined in the contract statement of work and the contractor's ability to meet performance metrics and milestones. Ultimately, the goal is to ensure the Navy's technological capabilities remain advanced and reliable.
How does this contract's value and duration compare to historical spending on similar engineering services by the Department of the Navy?
Historical spending by the Department of the Navy on engineering services is substantial, often running into billions of dollars annually across numerous contracts. This $14.6 million award is a single task order, representing a fraction of that overall spending. Compared to historical patterns, contracts of this value and duration (approx. 4 years) are common for specific project support or specialized technical assistance. Larger, more strategic engineering support contracts awarded by the Navy typically have higher values and longer durations, often spanning 5-10 years and valued at tens or hundreds of millions. This contract appears to be a standard procurement for ongoing or project-specific engineering needs within the Navy's vast operational framework.
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: N0016722R3003
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: $35,728,405
Exercised Options: $30,657,462
Current Obligation: $14,568,473
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $4,634,037
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: 2023-01-04
Current End Date: 2027-01-09
Potential End Date: 2028-01-09 00:00:00
Last Modified: 2026-01-08
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