Leidos awarded $35.6M for R&D in physical, engineering, and life sciences by DoD
Contract Overview
Contract Amount: $35,628,305 ($35.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-28
End Date: 2013-11-27
Contract Duration: 2,252 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 61-0373-07
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $35.6 million to LEIDOS, INC. for work described as: 61-0373-07 Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract type, Cost Plus Fixed Fee, can lead to cost overruns if not managed closely. 3. A duration of 2252 days indicates a long-term project with potential for evolving requirements. 4. The award was made by the Defense Contract Management Agency, a key oversight body. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables. However, the duration and cost suggest a significant R&D effort. The Cost Plus Fixed Fee structure requires careful monitoring to ensure value for money, as it incentivizes cost incurrence. Comparing to similar R&D contracts in the physical, engineering, and life sciences would provide better context on pricing efficiency.
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 a bid. The presence of 5 bidders suggests a healthy level of competition for this R&D requirement. This competitive environment is generally favorable for price discovery and potentially achieving better value.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible research and development outcomes at a reasonable cost.
Public Impact
Benefits the Department of Defense by advancing research in critical scientific and engineering fields. Services delivered likely include advanced research, analysis, and potentially prototype development. Geographic impact is primarily within the United States, supporting domestic R&D capabilities. Workforce implications include employment for scientists, engineers, and research support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher final costs than fixed-price contracts if not managed diligently.
- Long contract duration (2252 days) increases the risk of scope creep or changing technological landscapes impacting project relevance.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- The contract is with a reputable contractor, Leidos, Inc., known for its work in various technology and defense sectors.
- The research area (Physical, Engineering, and Life Sciences) is vital for national security and technological advancement.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a broad category encompassing fundamental research to applied development. Spending in this area is crucial for maintaining a technological edge. Comparable spending benchmarks would depend on the specific sub-disciplines within these sciences and the agency's R&D priorities.
Small Business Impact
The contract does not indicate any specific small business set-aside. Given the nature of advanced R&D and the prime contractor (Leidos, Inc.), it is likely that any subcontracting opportunities would be for specialized services or components. The impact on the small business ecosystem would depend on the specific subcontracting plan, if any, developed by the prime contractor.
Oversight & Accountability
The Department of Defense, through agencies like the Defense Contract Management Agency, provides oversight for contracts of this nature. Accountability measures would include performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D details may be sensitive.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Scientific Research Contracts
- Engineering and Technology Development Contracts
- Life Sciences Research Initiatives
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
- Long contract duration increases the risk of technological obsolescence or shifting research priorities.
- R&D projects inherently carry a risk of not achieving desired outcomes or breakthroughs.
Tags
research-and-development, department-of-defense, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, virginia, physical-sciences, engineering, life-sciences, long-term-contract, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.6 million to LEIDOS, INC.. 61-0373-07
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 $35.6 million.
What is the period of performance?
Start: 2007-09-28. End: 2013-11-27.
What is Leidos, Inc.'s track record with Cost Plus Fixed Fee (CPFF) contracts, particularly within the Department of Defense?
Leidos, Inc. has a significant history of performing on CPFF contracts across various federal agencies, including the Department of Defense. CPFF contracts are common for R&D efforts where the final costs are uncertain. Leidos's experience suggests they are capable of managing the complexities of such agreements. However, the success of any CPFF contract hinges on robust government oversight to control costs and ensure the fixed fee remains appropriate for the work performed. Analyzing Leidos's past performance on similar contracts, including any cost variances or audit findings, would provide a clearer picture of their efficiency and adherence to budget constraints in this contract type.
How does the $35.6 million award compare to other R&D contracts in physical, engineering, and life sciences awarded by the DoD in recent years?
The $35.6 million award for this 2252-day contract is a substantial but not extraordinary figure for R&D within the DoD. The DoD consistently invests billions annually in R&D across various scientific domains. Contracts in physical, engineering, and life sciences can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and technological complexity. For instance, major defense research initiatives or platform development could easily exceed this amount. This specific contract's value appears to be in the mid-range for significant, multi-year R&D projects, suggesting a focused effort rather than a broad, overarching program.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D, and how are they typically mitigated?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. This can incentivize less cost-conscious behavior if not properly managed. Mitigation strategies include stringent government oversight, detailed cost tracking and auditing, clearly defined milestones, and performance metrics. The fixed fee itself acts as a ceiling for the contractor's profit, but the total cost can still escalate. Effective negotiation of the fixed fee based on realistic cost estimates and robust contract administration are crucial for mitigating these risks and ensuring value for the government.
What does the 'Research and Development in the Physical, Engineering, and Life Sciences' category entail, and why is it important for the DoD?
This category is broad and encompasses scientific inquiry and experimentation aimed at discovering new knowledge and applying it to create new or improved materials, devices, systems, and processes. Physical sciences include areas like physics and chemistry; engineering covers disciplines like aerospace, electrical, and mechanical engineering; and life sciences involve biology, medicine, and related fields. For the DoD, R&D in these areas is critical for maintaining technological superiority, developing advanced weaponry, improving soldier performance and protection, enhancing intelligence capabilities, and ensuring readiness in a rapidly evolving global landscape. It fuels innovation necessary for future defense capabilities.
Given the 2252-day duration, what are the potential challenges in maintaining project relevance and achieving objectives in a fast-paced R&D environment?
A contract duration of 2252 days (over 6 years) presents significant challenges in R&D, where technological advancements can occur rapidly. The primary risk is that the research objectives or developed technologies may become obsolete or less relevant by the time the contract concludes. To mitigate this, contracts often include provisions for periodic reviews, flexibility in adapting research directions based on emerging findings or external technological shifts, and phased deliverables. Strong program management on both the government and contractor sides is essential to steer the project effectively, ensuring it remains aligned with evolving strategic needs and technological frontiers throughout its extended lifecycle.
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: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $35,986,162
Exercised Options: $35,986,162
Current Obligation: $35,628,305
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-28
Current End Date: 2013-11-27
Potential End Date: 2013-11-27 00:00:00
Last Modified: 2016-07-12
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