DoD's $40M Engineering Services Contract Awarded to Leidos, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $39,966,213 ($40.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-12-02
End Date: 2009-12-01
Contract Duration: 1,825 days
Daily Burn Rate: $21.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $40.0 million to LEIDOS, INC. for work described as: Key points: 1. Significant contract value of $39.96M for engineering services. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The sector is Engineering Services, a critical component of defense and infrastructure projects.
Value Assessment
Rating: good
The contract value of $39.96M appears reasonable for extensive engineering services over a 5-year period. Benchmarking against similar large-scale engineering contracts would provide a more precise assessment of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process was initiated but potentially narrowed. This method aims for price discovery but the exclusion of sources warrants scrutiny.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source procurement.
Public Impact
Taxpayers benefit from a competitive bidding process for a substantial contract. Leidos, Inc. will provide critical engineering services to the Department of the Navy. The duration of the contract (5 years) suggests a long-term need for these specialized services. The Cost Plus Fixed Fee structure requires diligent oversight to manage costs effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Need for clear performance metrics and oversight for 'EXCLUSION OF SOURCES' competition.
Positive Signals
- Awarded through full and open competition.
- Long-term contract indicates sustained demand for services.
Sector Analysis
Engineering services are vital for the Department of Defense's operational readiness and infrastructure development. Spending in this sector can vary widely based on project scope and technological requirements, but this $40M award represents a significant investment.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The 'EXCLUSION OF SOURCES' clause in the competition method requires careful oversight to ensure fairness and prevent potential anti-competitive practices. Robust monitoring of the Cost Plus Fixed Fee structure is essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns with CPFF contract type.
- Need for justification and oversight regarding 'EXCLUSION OF SOURCES'.
- Lack of small business participation noted.
- Contract duration of 5 years requires sustained oversight.
Tags
engineering-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.0 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $40.0 million.
What is the period of performance?
Start: 2004-12-02. End: 2009-12-01.
What specific engineering services were procured under this contract, and how do they align with the Department of the Navy's strategic objectives?
The contract falls under NAICS code 541330 (Engineering Services). While the specific services aren't detailed, they likely encompass design, analysis, testing, and technical support for naval systems, platforms, or infrastructure. Alignment with strategic objectives would depend on the Navy's current modernization and operational priorities, such as fleet readiness, cybersecurity enhancements, or new platform development.
What were the primary reasons for excluding certain sources during the 'full and open competition' process, and were these justifications adequately documented?
Excluding sources in a full and open competition typically occurs when only a limited number of contractors possess the unique capabilities, technology, or security clearances required for a specific project. The justifications must be robust, documented, and approved by appropriate authorities to ensure the exclusion is necessary and does not unduly restrict competition, thereby safeguarding fair market access.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and ensure the government received value for its investment over the contract's five-year duration?
Effective management of a Cost Plus Fixed Fee contract relies on stringent oversight, detailed cost tracking, and clear performance metrics. The government must actively monitor expenditures, validate costs, and ensure the fixed fee remains appropriate relative to the effort. Success is measured by the project's completion within budget expectations and meeting all performance requirements without excessive cost growth.
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 AFTER EXCLUSION OF SOURCES
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: 10260 CAMPUS POINT DR, 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: 2004-12-02
Current End Date: 2009-12-01
Potential End Date: 2009-12-01 00:00:00
Last Modified: 2017-04-27
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)