DoD Awards $30M for KMA&E and Cyber Security Engineering Support to Leidos, Inc

Contract Overview

Contract Amount: $29,968,865 ($30.0M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-13

End Date: 2026-12-18

Contract Duration: 826 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: KEY MANAGEMENT ARCHITECTURE & ENGINEERING (KMA&E) AND CYBER SECURITY ENGINEERING (CSE) SUPPORT SERVICES.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to LEIDOS, INC. for work described as: KEY MANAGEMENT ARCHITECTURE & ENGINEERING (KMA&E) AND CYBER SECURITY ENGINEERING (CSE) SUPPORT SERVICES. Key points: 1. Contract awarded to Leidos, Inc. for critical engineering and cybersecurity services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is over two years, indicating a significant need for these services. 4. The total value of $29.97 million is substantial for specialized engineering support.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar engineering and cybersecurity contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently through a market-driven pricing approach.

Public Impact

Ensures continued cybersecurity and engineering support for naval operations. Supports advanced technological development and maintenance within the Department of Defense. Potential for innovation in key defense architecture and security protocols.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
  • Potential for scope creep in complex engineering and cybersecurity projects.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical national defense functions.
  • Long-term engagement indicates sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's advanced technological needs. Spending in this area is crucial for maintaining national security and technological superiority, with benchmarks varying widely based on project complexity and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large prime contractor, Leidos, Inc. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.

Oversight & Accountability

The award is a delivery order under a larger contract, suggesting existing oversight mechanisms. However, the Cost Plus Fixed Fee structure necessitates robust monitoring of costs and performance to ensure accountability and prevent waste.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Potential for scope creep in complex projects.
  • Reliance on a single large prime contractor.
  • Cybersecurity services are inherently high-risk due to evolving threat landscape.

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 $30.0 million to LEIDOS, INC.. KEY MANAGEMENT ARCHITECTURE & ENGINEERING (KMA&E) AND CYBER SECURITY ENGINEERING (CSE) 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 $30.0 million.

What is the period of performance?

Start: 2024-09-13. End: 2026-12-18.

What specific metrics will be used to evaluate the performance and value delivered by Leidos, Inc. under this Cost Plus Fixed Fee contract?

Performance evaluation will likely involve adherence to project timelines, quality of deliverables, and effectiveness of cybersecurity measures implemented. Value assessment will consider the cost efficiency relative to the achieved outcomes and the impact on operational readiness. Specific metrics should be detailed in the contract's statement of work and performance work statement, focusing on measurable technical and programmatic achievements.

How will the Department of Defense mitigate the inherent risks of cost overruns associated with a Cost Plus Fixed Fee contract for complex engineering services?

Mitigation strategies include rigorous baseline cost management, detailed work breakdown structures, and frequent performance reviews. The government will closely monitor labor hours, material costs, and indirect expenses against the fixed fee. Exercising strong contract administration, including change control processes and independent cost estimates, is crucial to prevent scope creep and ensure costs remain within acceptable variances.

What is the anticipated impact of these KMA&E and CSE support services on the Department of the Navy's overall cybersecurity posture and operational effectiveness?

These services are expected to significantly enhance the Navy's cybersecurity posture by strengthening defenses against evolving threats and ensuring the integrity of critical systems. Improved architecture and engineering will lead to more resilient and efficient operations, directly contributing to mission success and readiness. The focus on key management and cyber engineering suggests a proactive approach to safeguarding sensitive information and operational capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N6600124R3503

Offers Received: 1

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: $119,876,539

Exercised Options: $29,968,865

Current Obligation: $29,968,865

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,135,087

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: 2024-09-13

Current End Date: 2026-12-18

Potential End Date: 2029-09-12 00:00:00

Last Modified: 2026-01-12

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