Navy Awards $17M for Distributed Common Ground Station Support to Leidos, Inc
Contract Overview
Contract Amount: $16,955,577 ($17.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-02-07
End Date: 2030-02-09
Contract Duration: 1,828 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SYSTEMS ENGINEERING, IN-SERVICE ENGINEERING ACTIVITY, AND TRAINING SERVICES FOR DEVELOPMENT, PRODUCTION, INSTALLATION, AND SUSTAINMENT SUPPORT TO THE DISTRIBUTED COMMON GROUND STATION NAVY FAMILY OF SYSTEMS AND OTHER PROGRAM MANAGER WARFARE 120
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $17.0 million to LEIDOS, INC. for work described as: SYSTEMS ENGINEERING, IN-SERVICE ENGINEERING ACTIVITY, AND TRAINING SERVICES FOR DEVELOPMENT, PRODUCTION, INSTALLATION, AND SUSTAINMENT SUPPORT TO THE DISTRIBUTED COMMON GROUND STATION NAVY FAMILY OF SYSTEMS AND OTHER PROGRAM MANAGER WARFARE 120 Key points: 1. Contract awarded to Leidos, Inc. for critical systems engineering and training services. 2. Supports the Navy's Distributed Common Ground Station (DCGS) program, vital for intelligence and situational awareness. 3. Long-term contract (2025-2030) indicates sustained need for these specialized services. 4. The engineering services sector is competitive, but specialized support for complex systems can limit bidders.
Value Assessment
Rating: good
The contract value of $16.96M over approximately 5 years suggests a reasonable annual spend for specialized engineering and training support. Benchmarking against similar complex system sustainment contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair pricing and good value for the government.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Enhances intelligence gathering and dissemination capabilities for the U.S. Navy. Supports critical warfighting systems, directly impacting national security. Ensures continued training and sustainment for complex technology, maintaining operational readiness. Long-term nature of the contract provides stability for a key defense program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Cost Plus Fixed Fee contracts if not closely monitored.
- Reliance on a single contractor for critical sustainment and training.
- Scope creep could increase the total contract value beyond initial estimates.
Positive Signals
- Awarded under full and open competition.
- Long-term contract ensures sustained support for a vital system.
- Focus on engineering, in-service, and training addresses comprehensive lifecycle needs.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex defense systems. Spending in this area is driven by the need for advanced technological capabilities and ongoing system sustainment, often involving significant investment.
Small Business Impact
While the prime contractor is Leidos, Inc., there is no explicit mention of small business participation in the provided data. Opportunities for small businesses may exist as subcontractors.
Oversight & Accountability
The Department of the Navy's contracting process, including full and open competition, provides a framework for oversight. However, ongoing monitoring of performance and costs under the Cost Plus Fixed Fee structure is crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight.
- Long contract duration increases exposure to changing technological landscapes.
- Potential for contractor lock-in due to specialized knowledge.
- No explicit mention of small business subcontracting goals.
Tags
engineering-services, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.0 million to LEIDOS, INC.. SYSTEMS ENGINEERING, IN-SERVICE ENGINEERING ACTIVITY, AND TRAINING SERVICES FOR DEVELOPMENT, PRODUCTION, INSTALLATION, AND SUSTAINMENT SUPPORT TO THE DISTRIBUTED COMMON GROUND STATION NAVY FAMILY OF SYSTEMS AND OTHER PROGRAM MANAGER WARFARE 120
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 $17.0 million.
What is the period of performance?
Start: 2025-02-07. End: 2030-02-09.
What is the projected total cost of ownership for the DCGS program over its lifecycle, and how does this contract contribute to it?
The total lifecycle cost for the DCGS program is not detailed here, but this $17M contract represents a significant investment in its sustainment and operational readiness. Understanding the full lifecycle costs requires analyzing all related contracts, upgrades, and personnel expenses over the system's entire operational period.
What are the specific performance metrics and key performance indicators (KPIs) used to evaluate Leidos's success in delivering these engineering and training services?
The provided data does not specify the performance metrics or KPIs for this contract. Typically, such contracts would include measures for system uptime, training effectiveness, response times for engineering support, and adherence to delivery schedules. These are crucial for ensuring the government receives the expected value and maintains operational capabilities.
How does the Cost Plus Fixed Fee (CPFF) structure balance cost control with the need for flexibility in evolving technological requirements for the DCGS?
The CPFF structure aims to provide a degree of cost certainty by setting a fixed fee for the contractor's effort, while allowing for reimbursement of actual costs. This can offer flexibility for evolving technical needs, but requires robust government oversight to manage costs effectively and prevent scope creep, ensuring the fixed fee remains appropriate for the work performed.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523624R3029
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST FL 10, 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: $125,362,452
Exercised Options: $53,412,156
Current Obligation: $16,955,577
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $20,585,317
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8006
IDV Type: IDC
Timeline
Start Date: 2025-02-07
Current End Date: 2030-02-09
Potential End Date: 2030-02-09 00:00:00
Last Modified: 2025-12-04
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