Leidos Inc. awarded $22.8M contract for Joint Staff J6 analytical support, with a 20437% increase over prior contract
Contract Overview
Contract Amount: $22,807,731 ($22.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-08-01
End Date: 2026-08-21
Contract Duration: 1,116 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ANALYTICAL, TECHNICAL & FUNCTIONAL SERVICES SUPPORTING THE JOINT STAFF J6, JOINT ASSESSMENT DIVISION (JAD)
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $22.8 million to LEIDOS, INC. for work described as: ANALYTICAL, TECHNICAL & FUNCTIONAL SERVICES SUPPORTING THE JOINT STAFF J6, JOINT ASSESSMENT DIVISION (JAD) Key points: 1. Significant cost increase suggests potential scope expansion or market rate adjustments. 2. Full and open competition indicates a robust bidding process. 3. Contract type (Cost Plus Fixed Fee) may allow for cost overruns. 4. Performance period of nearly three years requires sustained oversight. 5. Leidos, Inc. is a large, established defense contractor. 6. Geographic concentration in Florida warrants monitoring for regional economic impact.
Value Assessment
Rating: questionable
The awarded amount of $22.8 million represents a substantial increase compared to the prior contract value of $20,437. This dramatic escalation requires careful scrutiny to understand the drivers. While Leidos is a capable contractor, the significant price jump warrants a deep dive into the scope of work, market rates for similar services, and justification for the increased cost. Without further data on the prior contract's scope and the current market, it is difficult to definitively benchmark value, but the magnitude of the increase raises concerns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This is generally a positive sign for price discovery and ensuring the government receives competitive offers. The number of bidders is not specified, but the process itself implies a level of market engagement that should theoretically drive down costs.
Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price for the required services. However, the significant cost increase still needs to be justified within this competitive framework.
Public Impact
The Joint Staff J6 and Joint Assessment Division (JAD) will benefit from enhanced analytical and technical support. Services delivered will likely involve data analysis, strategic assessments, and functional support for joint military operations. The primary geographic impact is in Florida, where the contractor is located. Workforce implications include employment opportunities for analysts, technical specialists, and support staff within Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 20437% increase in contract value from the previous award is a significant red flag requiring detailed justification.
- Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs, potentially impacting overall value.
- The duration of the contract (nearly three years) necessitates ongoing monitoring to ensure performance and cost control.
Positive Signals
- Awarded through full and open competition, indicating a potentially competitive bidding environment.
- Leidos, Inc. is an established contractor with a significant presence in the defense sector, suggesting experience and capability.
- The contract supports critical functions of the Joint Staff J6, indicating alignment with national security priorities.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services. The market for these services supporting defense agencies is substantial, with numerous large and small businesses competing for government contracts. Benchmarking this specific award against similar analytical support contracts for joint commands would provide further context on its pricing and scope.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, the primary impact on small businesses would likely be through subcontracting opportunities, if any are planned. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight will primarily fall under the Department of the Navy, the contracting agency, and the Joint Staff J6. The Cost Plus Fixed Fee contract type necessitates robust financial oversight to monitor costs and ensure they align with the fixed fee. Transparency will depend on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure.
Related Government Programs
- Joint Staff Support Services
- Defense Intelligence Analysis
- Technical Consulting for Military Operations
- Department of Defense IT and Analytical Support
Risk Flags
- Significant Cost Increase
- Potential for Cost Overruns (CPFF)
- Long Performance Period Risk
- Need for Robust Oversight
Tags
defense, department-of-defense, joint-staff, analytical-services, technical-services, functional-services, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, florida, engineering-services, >$10M
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.8 million to LEIDOS, INC.. ANALYTICAL, TECHNICAL & FUNCTIONAL SERVICES SUPPORTING THE JOINT STAFF J6, JOINT ASSESSMENT DIVISION (JAD)
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 $22.8 million.
What is the period of performance?
Start: 2023-08-01. End: 2026-08-21.
What specific services are included under the "ANALYTICAL, TECHNICAL & FUNCTIONAL SERVICES SUPPORTING THE JOINT STAFF J6, JOINT ASSESSMENT DIVISION (JAD)" and how do they differ from the previous cont
The contract description indicates support for the Joint Staff J6's Joint Assessment Division (JAD). This typically involves providing analytical, technical, and functional expertise to aid in assessing military operations, strategic planning, and readiness. Services could encompass data analysis, modeling and simulation, intelligence support, policy development, and program management. The significant increase in contract value from $20,437 to over $22.8 million strongly suggests a substantial expansion in the scope of work, a change in the complexity of tasks, or a significant adjustment in market rates for these specialized services. Without the detailed statement of work for both the current and prior contracts, it is impossible to pinpoint the exact differences, but the financial data points to a vastly expanded or more resource-intensive requirement.
How does the Cost Plus Fixed Fee (CPFF) contract type influence the risk and value for taxpayers in this $22.8 million award?
A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This contract type is often used when the scope of work is not precisely defined or is expected to evolve. For taxpayers, CPFF contracts introduce a degree of risk because the government bears the cost risk; if the contractor's costs exceed estimates, the government pays more. While the fixed fee provides some cost certainty regarding profit, the total contract cost can fluctuate. This necessitates stringent oversight by the contracting agency to ensure that all incurred costs are reasonable, allocable, and necessary for contract performance. The value for taxpayers hinges on effective oversight and the contractor's efficiency in managing costs within the agreed-upon framework.
What does the substantial increase in contract value (20437%) from the previous award imply about the program's evolution or market conditions?
The staggering 20437% increase in contract value, from $20,437 to $22,807,731.39, is highly unusual and demands thorough investigation. Several factors could explain this escalation: 1) A significant expansion of the contract's scope of work, adding substantially more complex or extensive analytical and technical services. 2) A change in the contract type or duration, with the new contract potentially encompassing a much longer period or broader deliverables. 3) A substantial increase in market rates for the specialized skills and services required, possibly due to high demand or inflation. 4) The prior award may have been a much smaller, task-order-like award, and this new award represents a comprehensive, multi-year requirement. Without detailed historical data on the prior contract's specifics, it's difficult to isolate the primary driver, but this magnitude of increase suggests a fundamental shift in the program's requirements or the economic landscape.
Given Leidos, Inc. is a large, established contractor, what are the potential implications for competition and innovation in this contract?
Leidos, Inc. is a major player in the federal contracting space, particularly within defense and IT services. While their established presence and capabilities can ensure reliable performance and efficient execution, awarding large contracts to incumbent or well-resourced firms can sometimes present challenges for smaller, emerging businesses seeking to enter the market. However, this contract was awarded under 'full and open competition,' which theoretically allows any qualified bidder to compete. The implications for innovation depend on the contract's structure and performance incentives. If the contract encourages novel approaches and rewards innovative solutions, Leidos may indeed drive innovation. Conversely, if it primarily focuses on maintaining existing service levels, the impetus for radical innovation might be reduced. The government's role in soliciting and evaluating innovative proposals is crucial regardless of the contractor's size.
What are the potential risks associated with the contract's performance period of 1116 days (approximately 3 years)?
A performance period of approximately three years for a contract of this magnitude presents several potential risks. Firstly, requirements can evolve significantly over such a timeframe, especially in dynamic fields like defense analysis and technology. If the contract is not agile enough to adapt, the services provided may become outdated or misaligned with current needs. Secondly, long-term contracts can sometimes lead to complacency on the part of the contractor if oversight is not consistently rigorous. Ensuring sustained high performance and cost control over three years requires continuous engagement from the contracting agency. Thirdly, market conditions, including labor costs and technology availability, can change, potentially impacting the cost-effectiveness of the contract over its duration. Regular reviews and potential contract modifications may be necessary to mitigate these risks.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0018923R3021
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST FL 10, 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: $73,562,352
Exercised Options: $35,429,222
Current Obligation: $22,807,731
Actual Outlays: $2,164,958
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $9,725,358
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8006
IDV Type: IDC
Timeline
Start Date: 2023-08-01
Current End Date: 2026-08-21
Potential End Date: 2029-02-21 00:00:00
Last Modified: 2025-12-04
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