Leidos Inc. awarded $87.8M in engineering services contracts by the Department of Defense
Contract Overview
Contract Amount: $87,804,541 ($87.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-12-16
End Date: 2011-03-25
Contract Duration: 2,656 days
Daily Burn Rate: $33.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 27
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $87.8 million to LEIDOS, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. The contract type, Cost Plus Fixed Fee, can present cost control challenges. 3. A duration of 2656 days indicates a long-term need for these engineering services. 4. The contract was awarded by the Defense Contract Management Agency, a key DoD entity. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services.
Value Assessment
Rating: fair
Benchmarking the value of this $87.8 million contract is challenging without specific service details and comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed carefully. The duration of over 7 years suggests a significant and ongoing requirement, but the overall value-for-money depends heavily on the successful delivery of complex engineering solutions and adherence to budget.
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 27 bids suggests a healthy level of interest and competition for these engineering services. A competitive bidding process generally helps in achieving better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for the required engineering services.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its complex operations. These services likely contribute to the design, development, and maintenance of critical defense systems. The geographic impact is likely national, supporting various defense installations and projects. The contract supports a workforce skilled in various engineering disciplines.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit.
- Long contract durations may lead to scope creep or evolving requirements that are not adequately controlled.
- The specific nature of 'engineering services' is broad and could encompass high-risk technical areas.
Positive Signals
- Awarded through full and open competition with a significant number of bidders (27).
- The contract is managed by the Defense Contract Management Agency, indicating established oversight.
- The long duration suggests a sustained and critical need for the services provided.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often supports complex government and private sector projects. The total federal spending on engineering services is substantial, with significant portions allocated to defense and infrastructure projects. This contract represents a portion of that spending, focused on specialized defense-related engineering.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Leidos, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the engineering services.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration and oversight. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency would be enhanced by public reporting on contract performance and expenditures, though specific details may be limited due to national security considerations.
Related Government Programs
- Defense Engineering Services
- Professional, Scientific, and Technical Services
- Department of Defense Contracts
- Cost-Plus Contracts
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns if not properly managed.
- Long contract duration increases the risk of scope creep and evolving requirements.
- The broad definition of 'Engineering Services' could mask specific high-risk technical areas.
Tags
defense, engineering-services, department-of-defense, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, virginia, large-contract, professional-services, technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.8 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 $87.8 million.
What is the period of performance?
Start: 2003-12-16. End: 2011-03-25.
What specific types of engineering services are covered under this contract?
The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. This code generally covers establishments primarily engaged in providing architectural, engineering, and related services. For a Department of Defense contract of this magnitude and duration, these services could encompass a wide range of activities, including but not limited to systems engineering, design and development of military hardware and software, technical analysis, research and development support, and program management support for complex defense systems. Without more specific contract line item numbers (CLINs) or a detailed statement of work, the precise nature of the services remains general.
How does the $87.8 million award compare to similar engineering services contracts awarded by the DoD?
The $87.8 million total award value over a period of approximately 7.3 years (2656 days) places this contract as a significant, but not exceptionally large, award within the DoD's engineering services portfolio. The DoD frequently awards large, multi-year contracts for engineering support, often in the hundreds of millions or even billions of dollars, particularly for major weapon systems development or sustainment. This contract's value is substantial enough to indicate a critical need but falls within a common range for specialized engineering support services rather than a flagship program acquisition. Benchmarking requires detailed comparison of service scope, duration, and specific technical requirements.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?
The primary risk with a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, they are reimbursed for allowable costs. This structure can incentivize contractors to incur higher costs, as their fee is a percentage of those costs (though in this case, it's a fixed fee, meaning the fee itself doesn't increase with costs, but the contractor is still reimbursed for costs). Effective oversight by the Defense Contract Management Agency (DCMA) is crucial to scrutinize allowable costs, prevent inefficiencies, and ensure the contractor exercises cost consciousness. Scope creep, where the project's requirements expand beyond the original agreement without corresponding adjustments to the fee or schedule, is another significant risk that requires diligent management.
What is the track record of Leidos, Inc. in performing large federal engineering contracts?
Leidos, Inc. has a substantial track record as a major government contractor, particularly within the defense and intelligence sectors. They frequently win and perform large, complex contracts involving systems engineering, IT services, and technical support for various federal agencies, including the Department of Defense. Their history includes managing significant programs and delivering technical solutions. While specific performance metrics for this particular contract are not detailed here, Leidos is generally considered an experienced and capable large prime contractor with the resources and expertise to handle contracts of this scale and complexity. Past performance reviews and contract close-out data would provide a more granular assessment.
How has federal spending on engineering services evolved over the past decade, and where does this contract fit?
Federal spending on engineering services has remained a significant and relatively stable component of overall federal procurement, particularly within the Department of Defense, transportation, and infrastructure sectors. Spending often fluctuates based on national security priorities, major infrastructure initiatives, and economic conditions. The Department of Defense consistently represents a large portion of this spending, funding a wide array of engineering support for weapon systems, facilities, and research. This $87.8 million contract fits within the ongoing, substantial allocation of defense funds towards specialized engineering expertise required to maintain technological superiority and operational readiness. It reflects a sustained demand for these services rather than a surge or decline.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 27
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DRIVE, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-12-16
Current End Date: 2011-03-25
Potential End Date: 2011-03-25 00:00:00
Last Modified: 2017-08-22
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