Leidos Inc. awarded $27.2M for Naval Health Research, facing questions on value and competition
Contract Overview
Contract Amount: $27,212,386 ($27.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-09-17
End Date: 2022-03-09
Contract Duration: 1,634 days
Daily Burn Rate: $16.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF R&D RESEARCH SUPPORT SERVICES IN SUPPORT OF NAVAL HEALTH RESEARCH CENTER SAN DIEGO, CA
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106
Plain-Language Summary
Department of Defense obligated $27.2 million to LEIDOS, INC. for work described as: IGF::OT::IGF R&D RESEARCH SUPPORT SERVICES IN SUPPORT OF NAVAL HEALTH RESEARCH CENTER SAN DIEGO, CA Key points: 1. Contract value appears reasonable given the R&D scope and duration. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include the complexity of R&D and contractor performance. 4. This contract supports critical health research for the Navy. 5. Positioned within the scientific research and development sector.
Value Assessment
Rating: fair
The contract's value of $27.2 million over approximately five years for R&D services is within a typical range for specialized scientific support. Benchmarking against similar contracts for research services at naval facilities suggests the pricing is not overtly high, but detailed cost breakdowns are not publicly available to confirm true value for money. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight to manage costs effectively.
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 offers. While the number of bidders is not specified, this method generally fosters price discovery and encourages competitive pricing. The use of full and open competition is the government's preferred method for maximizing competition and achieving the best value.
Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better quality services due to a competitive bidding environment.
Public Impact
Benefits naval personnel and potentially the broader military community through advancements in health research. Delivers critical research and development services in physical, engineering, and life sciences. Geographic impact is primarily centered in San Diego, California, where the Naval Health Research Center is located. Supports a specialized workforce of scientists, researchers, and technical staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdowns makes it difficult to assess true value for money.
- Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed tightly.
- The specific R&D outcomes and their direct impact are not detailed in the award data.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process.
- Contract supports a critical mission area for the Department of Defense (Naval Health).
- Contractor (Leidos, Inc.) is a large, established company with significant federal contracting experience.
Sector Analysis
This contract falls within the Scientific Research and Development services sector, specifically NAICS code 541712. This sector is characterized by innovation and specialized expertise, often involving long-term projects. Spending in this area supports national security and technological advancement. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of naval health research, but R&D contracts of this magnitude are common across various federal agencies.
Small Business Impact
The contract data does not indicate any specific small business set-aside provisions. As a full and open competition award to a large prime contractor (Leidos, Inc.), there is potential for subcontracting opportunities for small businesses. However, the extent to which small businesses will be involved is not specified in the award details.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. The cost-plus-fixed-fee structure necessitates diligent monitoring of costs and performance to ensure adherence to the contract's objectives and budget. Transparency is limited to the award data provided; detailed performance reports or Inspector General findings related to this specific contract are not publicly accessible.
Related Government Programs
- Naval Health Research Center Programs
- Department of Defense Research and Development
- Medical and Health Services R&D
- Scientific and Technical Consulting Services
Risk Flags
- Cost-plus-fixed-fee contract type requires close monitoring.
- R&D projects carry inherent uncertainty in outcomes and timelines.
- Limited public data on specific performance metrics and cost breakdowns.
Tags
research-and-development, department-of-defense, department-of-the-navy, naval-health-research-center, cost-plus-fixed-fee, full-and-open-competition, scientific-research, california, leidos-inc, delivery-order, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.2 million to LEIDOS, INC.. IGF::OT::IGF R&D RESEARCH SUPPORT SERVICES IN SUPPORT OF NAVAL HEALTH RESEARCH CENTER SAN DIEGO, CA
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 $27.2 million.
What is the period of performance?
Start: 2017-09-17. End: 2022-03-09.
What is Leidos, Inc.'s track record with similar R&D contracts for the Department of Defense?
Leidos, Inc. has a substantial track record of performing research and development services for the Department of Defense across various branches and agencies. They frequently engage in contracts related to scientific research, engineering, and technical support. While specific performance metrics for past R&D contracts are not detailed here, Leidos is a large, established government contractor known for its broad capabilities. Reviewing their contract history for similar scientific research and development awards, particularly those involving health or biomedical research, would provide further context on their experience and past performance. Agencies often rely on past performance evaluations as a key factor in awarding new contracts.
How does the $27.2 million value compare to other Naval Health Research Center contracts?
The $27.2 million award value for this five-year R&D contract is a significant but not extraordinary figure for specialized scientific support within a major federal agency like the Department of the Navy. To provide a precise comparison, one would need access to a database of historical contracts awarded specifically to the Naval Health Research Center or for similar R&D services within the Navy. However, based on general knowledge of federal R&D spending, this amount aligns with the scope and duration of complex research projects. Without direct comparative data on similar contracts' values, it's challenging to definitively state if it represents exceptional value or is on the higher end, though it appears reasonable for the described services.
What are the primary risks associated with this type of R&D contract?
The primary risks associated with this type of Research and Development (R&D) contract, particularly a Cost Plus Fixed Fee (CPFF) award, include the inherent uncertainty of research outcomes, potential for cost overruns, and contractor performance issues. R&D projects by nature are exploratory, and results may not always meet initial expectations or timelines. For CPFF contracts, there's a risk that the fixed fee might not adequately compensate the contractor for unforeseen complexities, or conversely, that the contractor may not be sufficiently incentivized to control costs if the fee is generous. Ensuring rigorous oversight, clear milestones, and effective communication channels are crucial to mitigating these risks and achieving the program's objectives.
How effective is the 'full and open competition' strategy in ensuring value for this contract?
The 'full and open competition' strategy is generally considered the most effective method for ensuring value in federal contracting. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids and innovative solutions. This process drives down prices and improves the quality of services delivered. For this specific contract, full and open competition suggests that the Department of the Navy sought to obtain the best possible value by encouraging a wide range of qualified contractors to submit proposals. The effectiveness is further realized if the evaluation criteria are well-defined and rigorously applied to select the offer that represents the best overall value to the government.
What are the historical spending patterns for R&D support services at the Naval Health Research Center?
Analyzing historical spending patterns for R&D support services at the Naval Health Research Center (NHRC) would require access to historical contract databases and procurement records. Generally, federal agencies like the Department of the Navy allocate significant budgets to R&D to maintain technological superiority and address evolving threats and health challenges. Spending in this area can fluctuate based on strategic priorities, emerging research needs, and available funding. Contracts for R&D support services are often long-term and can be substantial in value, reflecting the specialized expertise and resources required. Understanding these patterns would involve looking at the total R&D spending by NHRC over several fiscal years, the number and value of contracts awarded, and the types of services procured.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6264517R0051
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $28,879,299
Exercised Options: $28,879,299
Current Obligation: $27,212,386
Actual Outlays: $-1,595
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $5,742,064
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU420
IDV Type: IDC
Timeline
Start Date: 2017-09-17
Current End Date: 2022-03-09
Potential End Date: 2022-03-09 00:00:00
Last Modified: 2022-02-24
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