Leidos, Inc. awarded $17.1M for NHRC Research Services by the Department of the Navy
Contract Overview
Contract Amount: $17,114,498 ($17.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-20
End Date: 2026-09-19
Contract Duration: 1,825 days
Daily Burn Rate: $9.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NHRC RESEARCH SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106
Plain-Language Summary
Department of Defense obligated $17.1 million to LEIDOS, INC. for work described as: NHRC RESEARCH SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Research and Development in Physical, Engineering, and Life Sciences is a key area for the Navy. 3. The contract duration of 5 years indicates a long-term need for these services. 4. Cost Plus Fixed Fee contract type may incentivize cost control by the contractor. 5. The specific NAICS code (541715) points to specialized scientific research capabilities. 6. The award amount is moderate for R&D contracts within the defense sector.
Value Assessment
Rating: good
The contract value of $17.1 million over five years for research and development services appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts within the Department of Defense for scientific research suggests this award falls within a typical range. The Cost Plus Fixed Fee (CPFF) structure, while requiring careful oversight, can be effective for research where exact costs are difficult to predict, provided the fixed fee is appropriately set.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. The specific number of bidders is not provided, but the nature of the competition suggests a healthy market for these specialized research services. This approach generally leads to better price discovery and ensures the government selects the most capable and cost-effective solution.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging innovation among potential offerors, ultimately leading to better value for public funds.
Public Impact
The Department of the Navy benefits from advanced research and development capabilities. Services delivered likely support advancements in physical, engineering, and life sciences relevant to national security. The contract's impact is primarily within the defense sector, potentially influencing technological superiority. Workforce implications may include highly skilled scientists, engineers, and research support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPFF contracts if not closely monitored.
- Ensuring the fixed fee remains competitive and reflects market rates is crucial.
- The long-term nature of the contract requires sustained performance monitoring.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- The contractor, Leidos, Inc., is a large and established entity with significant government contracting experience.
- The contract supports critical R&D functions for the Department of the Navy.
Sector Analysis
The contract falls within the Research and Development sector, specifically NAICS code 541715, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). This is a critical area for defense agencies seeking to maintain technological advantages. The market for such services is characterized by specialized expertise, high barriers to entry, and significant government investment. Comparable spending benchmarks for defense R&D contracts of this nature can vary widely based on scope, but $17.1 million over five years represents a focused investment in specific scientific domains.
Small Business Impact
This contract does not appear to have a small business set-aside (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in the provided data. Analysis would be needed to determine if the prime contractor has adequate small business subcontracting plans in place to foster participation in this R&D effort.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Navy. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.
Related Government Programs
- Department of Defense Research and Development Programs
- Naval Research Laboratory Contracts
- Scientific and Technical Services Contracts
- Advanced Technology Development Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long-term duration necessitates continuous performance monitoring.
- Scope of R&D can be inherently uncertain, impacting predictability of outcomes and costs.
Tags
research-and-development, department-of-defense, department-of-the-navy, leidos-inc, cost-plus-fixed-fee, full-and-open-competition, scientific-research, california, delivery-order, r-and-d
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.1 million to LEIDOS, INC.. NHRC RESEARCH SERVICES
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 $17.1 million.
What is the period of performance?
Start: 2021-09-20. End: 2026-09-19.
What is Leidos, Inc.'s track record with the Department of the Navy and in R&D contracts?
Leidos, Inc. is a major government contractor with extensive experience across various federal agencies, including the Department of Defense. They have a significant portfolio of contracts related to research and development, IT services, and logistics. Their history with the Department of the Navy likely includes numerous awards for complex scientific and technical services. A detailed review of their past performance ratings, any past performance issues, and their success in delivering similar R&D projects would provide a clearer picture of their capabilities and reliability for this specific NHRC Research Services contract. Their size and established presence suggest a generally strong track record, but specific contract performance data is essential for a complete assessment.
How does the $17.1 million value compare to similar R&D contracts for the Navy?
The $17.1 million award for five years of research and development services by the Department of the Navy is a moderate-sized contract within the broader defense R&D landscape. The Navy, like other branches of the DoD, invests billions annually in R&D. Contracts for specialized scientific research, particularly in areas like physical, engineering, and life sciences, can range from a few million to hundreds of millions of dollars depending on the scope, duration, and complexity. This specific award suggests a focused effort on particular research objectives rather than a large-scale, multi-disciplinary program. Benchmarking against contracts with similar NAICS codes (541715) and durations would confirm if the pricing is competitive and reflects fair market value for the services procured.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially for research and development, revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns if the initial cost estimates are inaccurate or if the contractor's efficiency is low. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee is profitable, particularly in R&D where outcomes and effort can be unpredictable. Effective oversight, clear definition of allowable costs, and robust negotiation of the fixed fee are critical to mitigating these risks and ensuring value for the taxpayer.
How effective is full and open competition in ensuring value for taxpayer money in R&D procurements?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in R&D procurements. By allowing all responsible sources to submit offers, the government maximizes the pool of potential contractors, increasing the likelihood of receiving innovative solutions and competitive pricing. This competitive pressure encourages bidders to offer their best technical approaches and most cost-effective proposals. While R&D inherently involves uncertainty, a well-structured competition with clear evaluation criteria helps the government select the offeror that provides the best overall value, balancing technical merit, past performance, and price. This process fosters transparency and accountability, which are crucial for public trust and responsible spending.
What is the significance of the NAICS code 541715 for this contract?
The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' is highly significant as it precisely defines the scope of work for this contract. It indicates that the services procured involve scientific research and experimental development in fields such as physics, chemistry, biology, materials science, computer science, and various engineering disciplines. This specialization suggests the Department of the Navy is seeking advanced technical expertise to address specific challenges or explore new technological frontiers. Contracts under this code typically require highly educated personnel, specialized equipment, and rigorous scientific methodologies, differentiating them from general consulting or service contracts.
What are the potential long-term implications of this R&D contract for naval technology?
This R&D contract with Leidos, Inc. for NHRC Research Services could have significant long-term implications for naval technology by fostering advancements in critical areas of physical, engineering, and life sciences. The research conducted could lead to the development of new materials, improved sensor technologies, enhanced communication systems, advanced propulsion methods, or novel applications in areas like human performance or survivability. These innovations, if successful, could translate into next-generation naval platforms, improved operational capabilities, increased force protection, and a sustained technological edge for the U.S. Navy. The five-year duration allows for sustained research efforts, increasing the probability of impactful discoveries and their eventual integration into naval systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6264520R0020
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: $23,976,738
Exercised Options: $23,976,738
Current Obligation: $17,114,498
Actual Outlays: $26,370
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $1,943,390
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6264520D5020
IDV Type: IDC
Timeline
Start Date: 2021-09-20
Current End Date: 2026-09-19
Potential End Date: 2026-09-19 00:00:00
Last Modified: 2025-09-09
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