DoD Awards $90M for Key Management & Cybersecurity Engineering Support to Leidos, Inc
Contract Overview
Contract Amount: $90,185,280 ($90.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-02-22
End Date: 2025-09-30
Contract Duration: 2,412 days
Daily Burn Rate: $37.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: KEY MANAGEMENT AND CYBER SECURITY SYSTEMS ENGINEERING SUPPORT SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152
Plain-Language Summary
Department of Defense obligated $90.2 million to LEIDOS, INC. for work described as: KEY MANAGEMENT AND CYBER SECURITY SYSTEMS ENGINEERING SUPPORT SERVICES Key points: 1. Significant contract value of $90.18M for critical cybersecurity and key management systems. 2. Leidos, Inc. is a major defense contractor, indicating established capabilities. 3. Full and open competition was utilized, suggesting a competitive price discovery process. 4. The contract spans over 6 years, indicating a long-term need for these services.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee. This type can be appropriate for R&D or when costs are uncertain, but requires careful oversight to manage costs effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a Delivery Order under a larger contract structure suggests a structured procurement process.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure services at a reasonable cost. However, the CPFF structure necessitates diligent oversight to ensure cost efficiency.
Public Impact
Enhances national security through robust key management and cybersecurity. Supports critical Department of the Navy operations and infrastructure. Ensures the integrity and confidentiality of sensitive defense data. Contributes to the readiness and operational effectiveness of naval forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type requires strong cost control and oversight.
- Long contract duration (over 6 years) may present evolving technology risks.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Experienced contractor (Leidos, Inc.) selected.
Sector Analysis
This contract falls within Engineering Services (NAICS 541330), a sector vital for defense modernization and operational support. Spending benchmarks for similar services can vary widely based on complexity and duration, but $90M over six years suggests a substantial, long-term requirement.
Small Business Impact
The data indicates the prime contractor is Leidos, Inc., a large business. There is no explicit mention of small business participation in this specific award, suggesting potential for subcontracting opportunities but no direct prime award to SMBs.
Oversight & Accountability
The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight will be crucial, particularly given the CPFF structure, to ensure costs are reasonable and performance meets requirements.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type requires diligent cost oversight.
- Long contract duration may lead to technology obsolescence or changing requirements.
- Cybersecurity services are inherently high-risk due to evolving threat landscape.
- Potential for cost creep if not managed tightly.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $90.2 million to LEIDOS, INC.. KEY MANAGEMENT AND CYBER SECURITY SYSTEMS ENGINEERING SUPPORT 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 $90.2 million.
What is the period of performance?
Start: 2019-02-22. End: 2025-09-30.
What is the estimated total value of the IDIQ contract from which this delivery order was issued, and how does this $90M order compare to the overall contract ceiling?
The provided data only details this specific delivery order's value ($90.18M) and duration (2412 days). To assess the overall value and potential for future spending, information on the parent IDIQ contract's ceiling and remaining value would be necessary. This context is crucial for understanding the full scope of the government's commitment and potential future obligations.
How will the Department of the Navy ensure cost control and prevent potential cost overruns with a Cost Plus Fixed Fee (CPFF) contract for cybersecurity services?
Effective oversight is paramount for CPFF contracts. The Navy should implement rigorous monitoring of Leidos's incurred costs, regular audits, and performance reviews. Establishing clear milestones and deliverables tied to the fixed fee, along with robust communication channels, will help ensure accountability and manage risks associated with cost uncertainty in cybersecurity.
What specific cybersecurity threats or key management vulnerabilities does this contract aim to address, and how will the effectiveness of Leidos's support be measured?
The contract's focus on 'Key Management and Cyber Security Systems Engineering Support Services' suggests it addresses the protection of sensitive data, secure access controls, and the overall resilience of DoD systems against cyber threats. Effectiveness will likely be measured through performance metrics such as system uptime, vulnerability remediation rates, successful key lifecycle management, and adherence to security protocols and compliance standards.
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: N6600118R3501
Offers Received: 1
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: $90,931,075
Exercised Options: $90,931,075
Current Obligation: $90,185,280
Actual Outlays: $5,377,622
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $676,242
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D7578
IDV Type: IDC
Timeline
Start Date: 2019-02-22
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-24
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