Leidos Inc. awarded $47.4M for Marine Mammal Systems Support, a definitive contract spanning over 6 years

Contract Overview

Contract Amount: $47,386,196 ($47.4M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-12-04

End Date: 2015-01-28

Contract Duration: 1,881 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: MARINE MAMMALS SYSTEMS SUPPORT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $47.4 million to LEIDOS, INC. for work described as: MARINE MAMMALS SYSTEMS SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed carefully. 3. The duration of the contract (1881 days) indicates a long-term need for these specialized services. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' indicating a broad scope. 5. The contract was awarded by the Department of Defense, highlighting its strategic importance. 6. The value of the contract is substantial, reflecting significant investment in marine mammal systems support.

Value Assessment

Rating: fair

The contract value of $47.4 million over approximately 5 years for marine mammal systems support appears to be within a reasonable range for specialized defense services. Benchmarking against similar contracts is challenging due to the niche nature of marine mammal systems. However, the Time and Materials pricing structure warrants careful monitoring to ensure cost efficiency and prevent scope creep, which could inflate the overall expenditure beyond initial expectations. The absence of a specific price ceiling or fixed-price components might indicate a higher risk of cost overruns if not rigorously managed.

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 a bid. The presence of only one bid (no: 1) is a notable point, as it deviates from the expectation of multiple bidders in a fully competitive scenario. This could suggest limited market capacity for such specialized services or potential barriers to entry for other firms. While competition was sought, the single bid outcome may have limited the price discovery mechanism and potentially resulted in a less competitive price than if multiple strong contenders had participated.

Taxpayer Impact: A single bid in a full and open competition scenario raises questions about the extent of taxpayer savings achieved. While the process was open, the lack of multiple competing offers means taxpayers may not have benefited from the full downward pressure on pricing that typically occurs with robust competition.

Public Impact

The Department of Defense is the primary beneficiary, receiving specialized support for its marine mammal systems. These systems likely contribute to national security, potentially involving surveillance, detection, or operational support. The services provided are highly specialized, requiring expertise in marine biology, acoustics, and technology integration. The contract supports a workforce with unique scientific and technical skills, potentially in areas related to naval operations or environmental monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Risk of cost overruns due to Time and Materials pricing without a clear ceiling.
  • Limited competition indicated by a single bid, potentially impacting price competitiveness.
  • The specialized nature of the services may create a dependency on the incumbent contractor.
  • Potential for scope creep given the flexible nature of Time and Materials contracts.

Positive Signals

  • Awarded through full and open competition, adhering to procurement regulations.
  • The contract addresses a long-term, specific need within the Department of Defense.
  • The contractor, Leidos, Inc., is a well-established entity with significant federal contracting experience.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically related to defense applications. The market for marine mammal systems support is highly specialized, likely dominated by a few firms with the requisite expertise and security clearances. Comparable spending benchmarks are difficult to establish due to the niche nature of the services, but the overall federal spending on scientific and technical support services is in the billions annually. This contract represents a focused investment within a specialized segment of the broader defense services market.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of marine mammal systems support, it is unlikely that small businesses would be the primary awardees unless they are subcontractors. The contract's value and complexity suggest that prime contracting opportunities for small businesses in this specific area are limited. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within Leidos's performance.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract's Time and Materials nature necessitates rigorous oversight to track labor hours, material costs, and adherence to the statement of work. Transparency is generally maintained through contract reporting mechanisms, though specific details of performance and cost breakdowns may be considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

  • Naval Sea Systems Command (NAVSEA) Contracts
  • Defense Advanced Research Projects Agency (DARPA) Research
  • Marine Corps Systems Command
  • Special Operations Command Contracts

Risk Flags

  • Single Bidder
  • Time and Materials Pricing
  • Specialized Service Area

Tags

defense, department-of-defense, leidos-inc, definitive-contract, time-and-materials, full-and-open-competition, professional-scientific-and-technical-services, marine-mammal-systems, virginia, dcma

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.4 million to LEIDOS, INC.. MARINE MAMMALS SYSTEMS SUPPORT

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $47.4 million.

What is the period of performance?

Start: 2009-12-04. End: 2015-01-28.

What is the specific role and function of the 'Marine Mammals Systems Support' provided under this contract?

The specific role and function of 'Marine Mammals Systems Support' under this contract are not explicitly detailed in the provided data. However, based on the context of Department of Defense contracts and the term 'marine mammal systems,' it likely pertains to the use of marine mammals (such as dolphins or sea lions) in military applications. These applications can include mine detection and clearance, object recovery, reconnaissance, and security patrols. The 'systems support' aspect suggests that Leidos, Inc. is responsible for the maintenance, operation, training, and potentially the development or enhancement of the technologies and protocols associated with these marine mammal programs. This could involve acoustic monitoring, specialized equipment for handlers and animals, and data analysis related to the animals' performance and well-being.

How does the Time and Materials (T&M) contract type compare to other contract types for similar specialized services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, making fixed-price contracts difficult to establish. For specialized services like marine mammal systems support, T&M offers flexibility, allowing the government to adapt to evolving requirements or unforeseen technical challenges. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is reimbursed for actual labor hours and material costs, plus a fee. This necessitates robust oversight to monitor hours, rates, and material usage. Other contract types, such as Cost-Plus-Fixed-Fee (CPFF) or Firm-Fixed-Price (FFP), might offer better cost certainty but could be less adaptable to the dynamic nature of specialized R&D or operational support where requirements are fluid.

What are the potential risks associated with Leidos, Inc. being the sole bidder in a full and open competition?

The primary risk associated with Leidos, Inc. being the sole bidder in a full and open competition is the potential lack of competitive pricing. While the competition was technically 'open,' the absence of multiple bids suggests that either few companies possess the required specialized capabilities, or other potential bidders were deterred by the contract's requirements, complexity, or perceived profitability. This can lead to the government paying a higher price than if there had been active competition among several qualified firms. It also reduces the government's leverage in negotiating terms and conditions. Furthermore, it could indicate a potential market concentration or a barrier to entry for new or smaller competitors in this niche sector, potentially limiting future innovation and choice.

What is the historical spending pattern for Marine Mammal Systems Support within the Department of Defense?

Historical spending patterns for 'Marine Mammal Systems Support' within the Department of Defense are not directly available from the provided data snippet. However, the Department of the Navy has historically operated programs utilizing marine mammals for tasks such as mine countermeasures and object recovery. The duration and value of this specific contract ($47.4 million over approximately 5 years) suggest a consistent and significant investment in this capability. Analyzing past contracts awarded by entities like the Naval Sea Systems Command (NAVSEA) or specific fleet commands would be necessary to establish a comprehensive historical spending trend. Such analysis would reveal if this contract represents an increase, decrease, or stable level of funding for these specialized services over time.

How does the performance of Leidos, Inc. on similar contracts inform the assessment of this award?

Assessing Leidos, Inc.'s performance on similar contracts would require access to their past performance evaluations and contract history. As a large, established federal contractor, Leidos generally has a track record of performing complex technical and professional services across various defense and civilian agencies. However, without specific data on their performance related to marine mammal systems or comparable specialized technical support, it's difficult to definitively assess their suitability and reliability for this particular contract. A review of past performance metrics, such as on-time delivery, quality of service, and adherence to budget (especially on T&M contracts), would be crucial. Positive past performance would increase confidence, while negative indicators would raise concerns about potential risks and value for money.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6600109R0070

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,721,194

Exercised Options: $49,721,194

Current Obligation: $47,386,196

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2009-12-04

Current End Date: 2015-01-28

Potential End Date: 2015-01-28 00:00:00

Last Modified: 2021-11-01

More Contracts from Leidos, Inc.

View all Leidos, Inc. federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending