Leidos awarded $46.3M for acoustic systems R&D, raising questions on competition and value
Contract Overview
Contract Amount: $46,338,970 ($46.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-06-30
End Date: 2017-06-30
Contract Duration: 1,096 days
Daily Burn Rate: $42.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BASE PERIOD OF 30 MONTHS FOR TRANSFORMATIONAL RELIABLE ACOUSTIC PATH SYSTEMS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $46.3 million to LEIDOS, INC. for work described as: BASE PERIOD OF 30 MONTHS FOR TRANSFORMATIONAL RELIABLE ACOUSTIC PATH SYSTEMS Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Research and Development focus suggests high inherent risk and uncertain outcomes. 3. Contract type (Cost Plus Fixed Fee) can incentivize cost overruns. 4. Limited public information available on performance metrics and value for money. 5. Contractor's track record in similar R&D efforts warrants further investigation. 6. Geographic concentration in Virginia may not reflect broader national needs.
Value Assessment
Rating: questionable
The contract's value is difficult to benchmark due to its sole-source nature and specialized R&D focus. Without competitive bids, it's challenging to ascertain if the $46.3 million represents a fair market price for the Transformational Reliable Acoustic Path Systems. The Cost Plus Fixed Fee structure, while common in R&D, carries a risk of cost escalation if not closely monitored. Further analysis of Leidos's historical performance on similar contracts and the specific deliverables would be needed to provide a more definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when only one vendor possesses the necessary unique capabilities or when urgency precludes a competitive process. The lack of competition means that taxpayers did not benefit from the price reductions and innovation that can arise from a bidding process. The justification for this sole-source award should be thoroughly reviewed to ensure it was appropriate.
Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price, potentially leading to higher costs for taxpayers. It also bypasses opportunities for small businesses to compete for this work.
Public Impact
The Department of Defense is the primary beneficiary, seeking advancements in acoustic systems. The contract supports research and development activities, aiming to produce new technologies. The primary geographic impact is within Virginia, where the contractor is located. The contract may indirectly impact the specialized R&D workforce in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of transparency regarding performance metrics and value.
- R&D contracts inherently carry a high risk of failure or unmet objectives.
- Limited information on the specific capabilities being developed.
Positive Signals
- Contract awarded to a known entity (Leidos, Inc.) with potential expertise in the field.
- Focus on R&D may lead to critical technological advancements for national security.
- Contract duration allows for focused development efforts.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for advanced acoustic systems is specialized, often dominated by a few key players with deep technical expertise and security clearances. Comparable spending benchmarks are difficult to establish without more specific details on the technology, but R&D contracts of this magnitude in defense are significant investments aimed at future capabilities.
Small Business Impact
This contract was not set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses. The sole-source nature further limits the potential for small business participation. This contract does not appear to actively contribute to the small business ecosystem within this specialized R&D domain.
Oversight & Accountability
Oversight would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contract compliance and performance. However, the effectiveness of oversight for a sole-source R&D contract with a Cost Plus Fixed Fee structure depends heavily on detailed performance metrics, regular reporting, and proactive risk management by the contracting officer. Transparency is limited due to the nature of the award and the classified or sensitive aspects of R&D.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Acoustic Technology Development
- Naval Warfare Systems Research
- Signal Processing R&D Contracts
Risk Flags
- Sole-source award lacks competitive justification.
- Cost Plus Fixed Fee structure poses risk of cost overruns.
- Limited public data on performance metrics and value.
- R&D contracts have inherent uncertainty and risk of failure.
Tags
defense, department-of-defense, research-and-development, acoustic-systems, leidos-inc, sole-source, cost-plus-fixed-fee, virginia, definitive-contract, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.3 million to LEIDOS, INC.. BASE PERIOD OF 30 MONTHS FOR TRANSFORMATIONAL RELIABLE ACOUSTIC PATH SYSTEMS
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 $46.3 million.
What is the period of performance?
Start: 2014-06-30. End: 2017-06-30.
What is Leidos, Inc.'s track record with similar sole-source R&D contracts for the Department of Defense?
Leidos, Inc. has a substantial history of contracting with the Department of Defense across various R&D and service areas. While specific data on sole-source R&D contracts for acoustic systems is not publicly detailed, their overall portfolio indicates significant experience in complex technological development. Analyzing past performance on Cost Plus Fixed Fee contracts, particularly those involving advanced sensor or signal processing technologies, would provide better insight into their ability to manage costs and deliver results within budget and schedule. Publicly available contract databases show numerous awards to Leidos, but isolating comparable sole-source R&D efforts requires deeper investigation into contract justifications and performance outcomes.
How does the $46.3 million cost compare to similar acoustic systems R&D efforts?
Benchmarking the $46.3 million cost for this specific R&D effort is challenging due to the sole-source nature of the award and the specialized 'Transformational Reliable Acoustic Path Systems' designation. Without competitive bids, there is no direct market comparison. However, R&D contracts in advanced defense technologies, particularly those involving novel sensor systems or signal processing, can range widely in cost depending on complexity, duration, and technological maturity. Generally, contracts of this magnitude for foundational research and development suggest a significant investment, but the true value proposition can only be assessed against the achieved technological advancements and their potential operational impact, which are not detailed in the provided data.
What are the primary risks associated with this Cost Plus Fixed Fee contract type for R&D?
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D where costs are uncertain, carries inherent risks. The primary risk is that the contractor may have less incentive to control costs rigorously, as the government agrees to cover all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if the project scope expands or unforeseen technical challenges arise. For taxpayers, this means potential for higher overall expenditure than initially budgeted. Effective oversight, clear definition of work, and robust cost monitoring by the government are crucial to mitigate these risks and ensure the fixed fee remains appropriate for the effort expended.
What specific technological advancements are expected from the Transformational Reliable Acoustic Path Systems?
The provided data does not specify the exact technological advancements expected from the 'Transformational Reliable Acoustic Path Systems.' The contract designation suggests a focus on improving the reliability and capability of acoustic path systems, likely for defense applications such as surveillance, detection, or communication. These systems could involve advanced sonar, underwater acoustics, or related signal processing technologies. Without further details on the project's objectives and deliverables, it is difficult to ascertain the precise nature or potential impact of the expected advancements. This lack of specificity is common in early-stage R&D contracts but makes assessing the program's effectiveness challenging.
What is the historical spending trend for acoustic systems R&D within the Department of Defense?
Historical spending on acoustic systems R&D within the Department of Defense is substantial, reflecting the critical role of acoustic technologies in naval warfare, intelligence gathering, and surveillance. While specific figures for 'Transformational Reliable Acoustic Path Systems' are not available historically, the DoD consistently invests billions annually in research, development, testing, and evaluation (RDT&E) across various technology areas, including advanced sensors and signal processing. Trends often show increased investment in areas promising enhanced detection capabilities, reduced noise signatures, and improved data analysis, driven by evolving geopolitical threats and technological advancements. This particular $46.3 million award represents a segment of that broader, ongoing investment.
What oversight mechanisms are in place for this sole-source R&D contract?
Oversight for this contract is primarily the responsibility of the awarding agency (Department of Defense) and the administrative contracting officer, likely supported by the Defense Contract Management Agency (DCMA). Mechanisms typically include regular progress reports from the contractor, reviews of incurred costs, technical performance reviews, and adherence to contract milestones. For a sole-source CPFF contract, rigorous oversight is critical to manage risks associated with cost escalation and ensure the contractor is diligently pursuing the R&D objectives. The effectiveness hinges on the government's ability to monitor technical progress and financial expenditures closely, potentially involving source selection evaluations if the contract were to be re-competed or extended.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR, 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: $46,414,922
Exercised Options: $46,414,922
Current Obligation: $46,338,970
Subaward Activity
Number of Subawards: 48
Total Subaward Amount: $14,037,894
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-06-30
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2022-09-23
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