Leidos Inc. awarded $13.2M in engineering services by DoD, with a 567-day performance period
Contract Overview
Contract Amount: $13,272,425 ($13.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-12
End Date: 2026-09-30
Contract Duration: 567 days
Daily Burn Rate: $23.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OTHER DIRECT COSTS (ODCS)
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.3 million to LEIDOS, INC. for work described as: OTHER DIRECT COSTS (ODCS) Key points: 1. Contract awarded to a large, established prime contractor with a strong federal presence. 2. Engineering services are critical for defense readiness and modernization efforts. 3. Performance period extends into FY2026, indicating long-term program support. 4. Contract type is Cost Plus Fixed Fee, which can present cost control challenges. 5. The contract was awarded under full and open competition, suggesting a robust bidding process. 6. Geographic location of performance is Maryland, a hub for federal contracting.
Value Assessment
Rating: fair
The awarded amount of $13.2 million for engineering services appears to be within a reasonable range for a contract of this duration and scope. However, without specific details on the services rendered and the labor mix, a precise value-for-money assessment is difficult. Benchmarking against similar engineering services contracts awarded by the Department of the Navy or other DoD components would provide a clearer picture of whether the pricing is competitive. The Cost Plus Fixed Fee (CPFF) contract type necessitates careful oversight to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the government sought the best possible solution from the widest possible market.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a competitive bidding process, ensuring that the government receives the best value for its investment.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its mission-critical systems. Services delivered likely include design, analysis, testing, and technical support for defense platforms or infrastructure. Geographic impact is concentrated in Maryland, supporting the federal government's presence in the region. Workforce implications include employment opportunities for engineers and technical professionals within Leidos and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost overruns.
- Lack of specific performance metrics makes it challenging to assess contractor efficiency.
- The duration of the contract (567 days) could lead to scope creep if not managed effectively.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing environment.
- Leidos, Inc. is a large, established contractor with a proven track record in federal services.
- Engineering services are essential for maintaining and advancing defense capabilities.
Sector Analysis
The engineering services sector is a vital component of the federal contracting landscape, particularly within the Department of Defense. This contract falls under the broader category of professional, scientific, and technical services. The market for defense engineering services is substantial, driven by the need for advanced technological solutions, system sustainment, and research and development. Comparable spending benchmarks for engineering services within the DoD often run into billions of dollars annually, with individual contracts varying significantly in size and scope based on specific requirements.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contractor, Leidos, Inc. may engage small businesses as subcontractors. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem is not immediately clear. Further analysis of subcontracting reports would be necessary to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of the Navy. The Cost Plus Fixed Fee structure necessitates close monitoring of expenditures to ensure that costs are reasonable and allocable to the contract. Transparency is typically maintained through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Inspector General, depending on the nature of any issues that may arise.
Related Government Programs
- Department of Defense Engineering Services
- Naval Sea Systems Command (NAVSEA) Contracts
- Professional, Scientific, and Technical Services
- Cost-Reimbursement Contracts
- Defense Infrastructure Support
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight.
- Potential for cost overruns inherent in CPFF contracts.
- Lack of specific performance metrics in award data.
- Limited insight into the number of bidders in full and open competition.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, leidos-inc, maryland, professional-scientific-and-technical-services, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.3 million to LEIDOS, INC.. OTHER DIRECT COSTS (ODCS)
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 $13.3 million.
What is the period of performance?
Start: 2025-03-12. End: 2026-09-30.
What is Leidos, Inc.'s track record with the Department of Defense, particularly in engineering services?
Leidos, Inc. is a major government contractor with a significant history of serving the Department of Defense across various domains, including IT, logistics, and engineering. They have a substantial portfolio of contracts with the DoD, often involving complex technical solutions and large-scale program support. Their experience in engineering services is extensive, encompassing areas such as systems engineering, naval architecture, and advanced technology integration. Analyzing their past performance reviews, contract awards, and any past performance issues or commendations would provide a comprehensive understanding of their capabilities and reliability in delivering engineering solutions to the DoD. Their established presence suggests a deep understanding of defense requirements and procurement processes.
How does the $13.2 million award compare to similar engineering services contracts awarded by the Department of the Navy?
The $13.2 million award for engineering services by the Department of the Navy is a moderate-sized contract. To benchmark its value, one would compare it against other engineering services contracts awarded by the Navy for similar scopes of work, duration, and complexity. For instance, contracts for ship design, systems integration, or technical support for naval platforms could serve as comparators. Factors such as the labor categories involved, the level of expertise required, and the specific deliverables will influence pricing. A detailed analysis would involve examining the average cost per labor hour, the total contract value relative to the period of performance, and the types of services rendered in comparable awards to determine if this contract represents a competitive price point.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this engineering service?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This structure can incentivize contractors to incur higher costs if not carefully managed, as their fee remains constant regardless of the actual costs incurred. For the government, the risk lies in potentially paying more than necessary if cost controls are not robust. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value. The contractor also bears some risk if actual costs exceed projections, potentially reducing their overall profit margin.
What is the expected program effectiveness or outcome of these engineering services for the Department of Defense?
The expected program effectiveness of these engineering services is to enhance or maintain the operational capabilities of the Department of Defense. This could involve supporting the design, development, integration, or sustainment of critical defense systems, platforms, or infrastructure. For example, the services might contribute to the modernization of naval vessels, the development of new communication systems, or the improvement of existing defense technologies. The ultimate outcome is to ensure that DoD assets are reliable, effective, and meet the evolving demands of national security. The success of these services will be measured by their contribution to mission readiness, technological superiority, and cost-efficiency in defense operations.
How has federal spending on engineering services by the Department of the Navy trended over the past five fiscal years?
Federal spending on engineering services by the Department of the Navy has generally remained substantial, reflecting the ongoing need for technical expertise in naval operations, shipbuilding, and modernization. While specific figures fluctuate year-to-year based on budgetary priorities and acquisition cycles, the Navy consistently allocates significant resources to engineering support. Trends often show increased investment during periods of major platform development or upgrades, and sustained spending for sustainment and lifecycle management of existing assets. Analyzing historical data from sources like USAspending.gov or agency budget reports would reveal specific dollar amounts and identify any upward or downward trends, as well as shifts in the types of engineering services being procured.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0016722R0004
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: $14,481,840
Exercised Options: $14,481,840
Current Obligation: $13,272,425
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $402,465
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0016722D0004
IDV Type: IDC
Timeline
Start Date: 2025-03-12
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-18
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