Leidos, Inc. awarded $46.6M for Deployment Health Research by the Department of the Navy
Contract Overview
Contract Amount: $46,574,147 ($46.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-30
End Date: 2024-08-27
Contract Duration: 2,158 days
Daily Burn Rate: $21.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BASE PERIOD-DEPLOYMENT HEALTH RESEARCH
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106
Plain-Language Summary
Department of Defense obligated $46.6 million to LEIDOS, INC. for work described as: BASE PERIOD-DEPLOYMENT HEALTH RESEARCH Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract duration of 2158 days indicates a long-term need for these services. 3. The contract type (Cost Plus Fixed Fee) may allow for cost overruns. 4. The base period of performance is substantial, covering over 5 years. 5. The North American Industry Classification System (NAICS) code 541712 points to significant R&D activity. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific details on the deliverables and comparable research projects. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly. However, CPFF is often used for research and development where the scope may evolve, allowing flexibility. The total award amount of $46.6 million over approximately 5.9 years suggests an average annual spend of around $7.8 million, which needs to be assessed against the complexity and impact of the research.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 4 bids suggests a competitive environment, which generally benefits the government by driving down prices and encouraging innovation. The specific number of bidders can influence price discovery, with more bidders typically leading to better price realization for the government.
Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is receiving services from the most capable and cost-effective provider.
Public Impact
The Department of Defense benefits from research that can improve the health and readiness of military personnel. Services delivered likely involve complex research methodologies and data analysis related to deployment health. The geographic impact is primarily within the United States, supporting military health initiatives. Workforce implications include employment for researchers, scientists, and support staff within Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without direct correlation to efficiency.
- The long duration of the contract may present challenges in adapting to rapidly evolving research needs or technologies.
- Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- The contract supports critical research for military personnel health, a high-priority area.
- Leidos, Inc. is a large, established government contractor with a significant track record.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority and ensuring personnel well-being. Comparable spending benchmarks would typically be found within other DoD R&D contracts for health-related research or scientific services.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, as a large prime contractor, Leidos, Inc. may engage small businesses as subcontractors, depending on the specific project needs and their subcontracting plans, which are not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are usually embedded within the contract terms, including reporting requirements and performance standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Military Health Research
- Deployment Health
- Medical Research and Development
- Defense Health Agency Contracts
- Naval Research Laboratory Contracts
Risk Flags
- Cost Plus Fixed Fee contract type may lead to higher costs if not managed effectively.
- Long contract duration could result in outdated research objectives or methodologies if not adapted.
- Lack of specific performance metrics makes it difficult to assess contractor efficiency and effectiveness.
Tags
research-and-development, department-of-defense, department-of-the-navy, leidos-inc, full-and-open-competition, cost-plus-fixed-fee, delivery-order, health-research, california, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.6 million to LEIDOS, INC.. BASE PERIOD-DEPLOYMENT HEALTH RESEARCH
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 $46.6 million.
What is the period of performance?
Start: 2018-09-30. End: 2024-08-27.
What is Leidos, Inc.'s track record with similar Department of Defense contracts, particularly in health research?
Leidos, Inc. has a substantial history of performing contracts for the Department of Defense across various domains, including significant work in health and research. They are a major government contractor with extensive experience in scientific research, systems engineering, and IT services. Their portfolio often includes projects related to military health, medical readiness, and advanced technological development. Specific to health research, Leidos has been involved in numerous projects that require complex data analysis, scientific investigation, and the development of solutions to improve health outcomes for service members. Their track record generally indicates a capacity to handle large, complex R&D efforts, though performance can vary by individual contract and program.
How does the $46.6 million award compare to other federal spending on deployment health research?
The $46.6 million award for deployment health research represents a significant investment in this specific area. To provide a precise comparison, one would need to analyze historical spending data for similar research categories across the entire federal government, particularly within the Department of Defense and its sub-agencies like the Navy, Army, and Air Force, as well as the Department of Veterans Affairs. Federal spending on health research is generally substantial, with billions allocated annually to various medical and scientific endeavors. This particular contract's value should be assessed in the context of the scope of work, the duration of the research, and the specific objectives it aims to achieve. Without a broader dataset of comparable contracts, it's difficult to definitively state if this is high or low, but it indicates a notable commitment to understanding and improving deployment-related health issues.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) services is the potential for cost overruns and reduced contractor incentive for efficiency. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total expenditure. For R&D, where the scope can be uncertain and evolve, this structure provides flexibility but may lead to the government paying more than necessary if costs are not rigorously managed and scrutinized. There's also a risk that the fixed fee might not adequately compensate for exceptional performance or innovation, potentially impacting contractor motivation.
How effective is full and open competition in ensuring value for money in R&D contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in R&D contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment where multiple companies vie for the contract. This competition drives down prices, encourages innovation, and pushes contractors to offer the best possible technical solutions at the most competitive rates. The process typically involves detailed evaluation criteria that assess both technical merit and cost, allowing the government to select the offer that provides the optimal balance. While R&D inherently involves uncertainty, a competitive process helps mitigate risks by identifying contractors with proven capabilities and cost-effective approaches, ultimately benefiting taxpayers.
What are the potential performance implications of a 2158-day contract duration?
A contract duration of 2158 days, approximately 5.9 years, suggests a long-term commitment to the research objectives. This extended period can be beneficial for complex R&D projects that require sustained effort, iterative development, and long-term data collection or analysis. It allows for deeper exploration of research questions and the potential for more significant breakthroughs. However, a long duration also introduces risks. The research landscape, technological advancements, and even military health priorities can evolve significantly over nearly six years. There's a risk that the initial research scope may become outdated, or that alternative, more efficient methods might emerge. Effective contract management, including regular reviews and potential modifications, is crucial to ensure the project remains relevant and efficient throughout its lifespan.
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: N6264518R0067
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, 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: $60,552,513
Exercised Options: $60,552,513
Current Obligation: $46,574,147
Actual Outlays: $1,043,739
Subaward Activity
Number of Subawards: 32
Total Subaward Amount: $2,695,237
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU420
IDV Type: IDC
Timeline
Start Date: 2018-09-30
Current End Date: 2024-08-27
Potential End Date: 2024-08-27 00:00:00
Last Modified: 2025-05-22
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