DoD's $28.6M R&D Contract with Leidos, Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $28,596,657 ($28.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-27
End Date: 2012-10-19
Contract Duration: 2,579 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
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 $28.6 million to LEIDOS, INC. for work described as: Key points: 1. Significant investment in R&D services by the Department of Defense. 2. Leidos, Inc. secured a substantial contract, indicating strong capabilities. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for cost control. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for national security.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Without specific benchmarks for similar R&D contracts, assessing the overall value is challenging, but the fixed fee component provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method generally promotes competitive pricing and allows the government to select the best value. The extensive duration suggests a long-term need and potentially complex project.
Taxpayer Impact: Taxpayer funds are utilized for advanced research and development, aiming for technological advancements that could yield long-term benefits, though the CPFF structure requires careful oversight to ensure efficiency.
Public Impact
Supports advancements in physical, engineering, and life sciences, potentially leading to new technologies. Contract awarded to a major defense contractor, impacting the broader defense industrial base. Long contract duration suggests sustained government investment in R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure requires diligent oversight to prevent cost escalation.
- Long contract duration (2579 days) increases exposure to potential scope creep or changing requirements.
- Lack of specific performance metrics makes it difficult to assess R&D effectiveness.
Positive Signals
- Awarded through full and open competition, ensuring a competitive process.
- Contractor is a well-established entity in the defense sector.
- Focus on R&D aligns with strategic national interests.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541710. Spending in this area is crucial for innovation and maintaining a technological edge, with benchmarks varying widely based on the specific research domain and project complexity.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses. Large contracts like this often involve significant subcontracting opportunities, but direct award analysis does not highlight small business participation.
Oversight & Accountability
The long duration and CPFF structure necessitate robust oversight from the Defense Contract Management Agency (DCMA) to ensure contractor performance, cost control, and adherence to contract terms. Regular reviews and audits are critical.
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 (CPFF) structure can incentivize higher costs.
- Long contract duration increases risk of scope creep and requirement changes.
- Potential for cost overruns without rigorous oversight.
- Effectiveness metrics for R&D outcomes may be difficult to quantify.
- Lack of small business participation noted in direct award data.
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 $28.6 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 $28.6 million.
What is the period of performance?
Start: 2005-09-27. End: 2012-10-19.
How does the fixed fee component compare to industry standards for similar R&D projects of this scale and duration?
Assessing the fixed fee requires detailed knowledge of the specific R&D scope, complexity, and associated risks. Industry standards for fixed fees on Cost Plus Fixed Fee contracts can range from 5% to 15% of the estimated cost, depending on the project's risk profile and the contractor's profit motive. Without more granular data on the project's technical challenges and Leidos's estimated costs, a precise benchmark is difficult, but the fee should reflect the level of contractor risk and innovation required.
What mechanisms are in place to mitigate cost overruns inherent in a Cost Plus Fixed Fee contract for long-term R&D?
Mitigation strategies typically include stringent oversight by the contracting officer and DCMA, detailed cost tracking and reporting requirements, regular performance reviews, and clearly defined milestones. Incentive clauses, although not explicitly stated here, can also be incorporated to reward efficiency. The government must actively manage the contract, ensuring that costs incurred are reasonable, allocable, and allowable, and that the fixed fee is earned based on performance against the contract's objectives.
How will the effectiveness of the R&D outcomes be measured and evaluated over the contract's lifespan?
Effectiveness is typically measured through technical performance metrics (TPMs), delivery of prototypes or reports, successful testing phases, and achievement of specific research objectives outlined in the contract Statement of Work (SOW). The government's technical representatives play a key role in monitoring progress and evaluating the quality and utility of the research outputs. Regular reviews and final acceptance criteria are crucial for determining if the R&D investment yielded the desired results.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,454,935
Exercised Options: $29,454,935
Current Obligation: $28,596,657
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-09-27
Current End Date: 2012-10-19
Potential End Date: 2012-10-19 00:00:00
Last Modified: 2016-07-12
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