DoD Awards $33.5M for Naval Research Lab Services, Lacking Competition

Contract Overview

Contract Amount: $33,504,190 ($33.5M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 1999-12-13

End Date: 2005-12-31

Contract Duration: 2,210 days

Daily Burn Rate: $15.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200009!1700!003110!E3220 !NAVAL RESEARCH LABORATORY !N0017300C2005 !A!*!* !19991213!20001212!030813091!030813091!030813091!N!5F565!GEO-CENTERS, INC. !7 WELLS AVENUE !NEWTON CENTRE !MA!02459!45595!017!25!NEWTON CENTER !MIDDLESEX !MASS !0001!+000006504143!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!A!S!*!B!A!*!A !N!U!2!001!B!* !Z!Y!Z!* !* !N!B!N!A!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.5 million to LEIDOS, INC. for work described as: 200009!1700!003110!E3220 !NAVAL RESEARCH LABORATORY !N0017300C2005 !A!*!* !19991213!20001212!030813091!030813091!030813091!N!5F565!GEO-CENTERS, INC. !7 WELLS AVENUE !NEWTON CENTRE !MA!02459!45595!017!25!NEWTON CENTER !MID… Key points: 1. Significant award to GEO-CENTERS, INC. for essential R&D services. 2. Sole-source award raises questions about price discovery and value. 3. Contract duration extends over six years, indicating long-term need. 4. Focus on basic research in physical, engineering, and life sciences.

Value Assessment

Rating: questionable

The contract value of $33.5 million over six years is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value for the specialized R&D services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the government's ability to ensure the best possible price and terms.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these research services, as there was no market pressure to drive down costs.

Public Impact

Supports critical research and development for the Naval Research Laboratory. Potential for advancements in physical, engineering, and life sciences. Long-term engagement suggests ongoing strategic importance of the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Extended contract duration may not reflect current market rates.
  • Lack of small business participation noted.

Positive Signals

  • Supports vital defense research and development.
  • Award to a single, presumably capable, vendor.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement but requires careful oversight to ensure efficiency.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and opportunities for small businesses may have been missed.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all performance requirements and that costs remain reasonable throughout the contract's extended duration.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Lack of competition
  • Potential for cost overruns (CPFF structure)
  • Limited small business involvement
  • Extended contract duration without clear competitive re-evaluation

Tags

research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to LEIDOS, INC.. 200009!1700!003110!E3220 !NAVAL RESEARCH LABORATORY !N0017300C2005 !A!*!* !19991213!20001212!030813091!030813091!030813091!N!5F565!GEO-CENTERS, INC. !7 WELLS AVENUE !NEWTON CENTRE !MA!02459!45595!017!25!NEWTON CENTER !MIDDLESEX !MASS !0001!+000006504143!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!A!S!*!B!A!*!A !N!U!

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $33.5 million.

What is the period of performance?

Start: 1999-12-13. End: 2005-12-31.

What specific justifications were provided for awarding this contract on a sole-source basis, and were alternative solutions considered?

The provided data does not detail the specific justifications for the sole-source award. Typically, such awards require a justification and approval (J&A) process, citing reasons like unique capabilities or urgent needs. Without this documentation, it's impossible to assess if the government adequately explored alternatives or if the sole-source decision was fully warranted.

How does the cost-plus-fixed-fee structure impact the government's ability to control expenses on this long-term R&D contract?

A Cost-Plus-Fixed-Fee (CPFF) contract allows the contractor to recover all allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost can fluctuate, potentially leading to higher overall spending if costs are not managed effectively. This structure can incentivize cost overruns, making robust government oversight crucial for controlling expenses.

What is the expected impact of these R&D services on future naval capabilities and technological advancements?

The contract supports basic research in physical, engineering, and life sciences for the Naval Research Laboratory. While the direct impact of basic research is often long-term and unpredictable, it lays the foundation for future technological breakthroughs that could enhance naval capabilities, improve operational effectiveness, and maintain a strategic advantage.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 7 WELLS AVENUE, NEWTON CENTRE, MA, 02459

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 1999-12-13

Current End Date: 2005-12-31

Potential End Date: 2005-12-31 00:00:00

Last Modified: 2018-03-25

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