DoD's $22.2M R&D Contract with Leidos Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $22,198,435 ($22.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-06-27
End Date: 2011-07-31
Contract Duration: 2,956 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to LEIDOS, INC. for work described as: Key points: 1. The contract awarded to Leidos, Inc. for R&D services represents a significant investment. 2. Competition details are unclear, raising questions about price discovery and potential value. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' sector is broad, making direct benchmarks difficult. 4. Oversight and accountability mechanisms need to be clearly defined for this long-term contract.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Without clear performance metrics and competitive pricing data, assessing the value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the specific details of the bidding process and the number of proposals received are not provided. This lack of transparency hinders an assessment of whether the best possible price was achieved.
Taxpayer Impact: The long duration and cost-plus nature of this contract necessitate robust oversight to ensure taxpayer funds are used efficiently and effectively.
Public Impact
Taxpayers may be exposed to higher costs due to the Cost Plus Fixed Fee contract type. The long contract duration could limit opportunities for newer, potentially more innovative companies to compete. The broad scope of R&D services makes it difficult for the public to understand the specific outcomes and benefits derived from this spending.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for cost overruns with CPFF.
- Limited transparency on competition outcomes.
Positive Signals
- Awarded under full and open competition.
- Long-term commitment to R&D services.
Sector Analysis
This contract falls under the broad 'Research and Development in the Physical, Engineering, and Life Sciences' category. Spending in this sector is critical for innovation but can be complex to benchmark due to the diverse nature of research projects.
Small Business Impact
The data indicates this contract was not awarded to small businesses, and there is no indication of subcontracting opportunities for small businesses. This limits the participation of smaller entities in this significant federal spending.
Oversight & Accountability
The contract's long duration and cost-plus structure require diligent oversight from the Defense Contract Management Agency to ensure compliance, control costs, and verify performance against objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee structure can lead to uncontrolled costs.
- Lack of specific performance metrics makes value assessment difficult.
- Long contract duration may stifle innovation from new entrants.
- Limited transparency on the competitive bidding process.
- No indication of small business participation.
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 $22.2 million to LEIDOS, INC.. See the official description on USAspending.
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 $22.2 million.
What is the period of performance?
Start: 2003-06-27. End: 2011-07-31.
What specific R&D outcomes were achieved, and how do they align with the initial objectives and taxpayer investment?
The provided data lacks specific details on the R&D outcomes. A thorough review would require access to project reports, milestone achievements, and final deliverables to assess if the $22.2 million investment yielded tangible results aligned with the Department of Defense's strategic goals.
How effectively did the 'full and open competition' process ensure competitive pricing and identify the most capable offeror?
While the contract was awarded under full and open competition, the absence of data on the number of bids received and the evaluation criteria makes it difficult to definitively assess its effectiveness. Further investigation into the solicitation and award process is needed to confirm robust price discovery.
What mechanisms are in place to manage and mitigate the inherent risks of a Cost Plus Fixed Fee contract over its extended duration?
The Cost Plus Fixed Fee structure carries risks of cost escalation. Effective management requires stringent oversight, clear performance metrics, regular audits, and proactive risk identification by the contracting agency to ensure costs remain controlled and justified.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 7 WELLS AVENUE, NEWTON CENTRE, MA, 02459
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $36,287,972
Exercised Options: $36,287,972
Current Obligation: $22,198,435
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-06-27
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2016-07-12
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