Leidos, Inc. contract for Navy towed array sonar support valued at $48.6M, awarded via full and open competition
Contract Overview
Contract Amount: $48,578,847 ($48.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-06-27
End Date: 2020-12-15
Contract Duration: 1,267 days
Daily Burn Rate: $38.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF NUWCDIV NPT'S NAVAL ARRAY TECHNICAL SUPPORT CENTER (NATSC)FACILITY PROVIDES LIFECYCLE SUPPORT (DIAGNOSTIC TESTING, TROUBLESHOOTING, REFURBISHMENTS, UPGRADES AND REPAIRS) FOR ALL NAVY TOWED ARRAYS. THE CONTRACTOR SHALL PERFORM TASKS IN SUPPORT OF TOWED ARRAY SONAR PROGRAMS. THE CONTRACTOR SHALL PROVIDE SERVICES FOR OPERATION OF THE NATSC FACILITY.
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $48.6 million to LEIDOS, INC. for work described as: IGF::OT::IGF NUWCDIV NPT'S NAVAL ARRAY TECHNICAL SUPPORT CENTER (NATSC)FACILITY PROVIDES LIFECYCLE SUPPORT (DIAGNOSTIC TESTING, TROUBLESHOOTING, REFURBISHMENTS, UPGRADES AND REPAIRS) FOR ALL NAVY TOWED ARRAYS. THE CONTRACTOR SHALL PERFORM TASKS IN SUPPORT OF TOWED ARRAY SONAR PRO… Key points: 1. Contract provides essential lifecycle support for Navy towed arrays, including diagnostics, repair, and upgrades. 2. The award was made through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1267 days indicates a significant, long-term need for these specialized services. 4. Services include operation of the Naval Array Technical Support Center (NATSC) facility. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 6. This contract supports critical naval sonar programs, impacting national defense capabilities.
Value Assessment
Rating: good
The contract value of $48.6 million over approximately 3.5 years appears reasonable for specialized engineering and facility support services for complex naval systems. Benchmarking against similar contracts for lifecycle support of advanced defense equipment is necessary for a definitive value assessment. However, the CPFF structure warrants close monitoring to ensure costs remain within projected bounds and that the fixed fee adequately compensates the contractor for the defined scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive environment is generally favorable for price discovery and achieving a fair market price. The number of bids received (4) suggests a healthy level of interest from qualified contractors in this specialized service area.
Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives the best value for its investment in critical naval technology support.
Public Impact
The primary beneficiaries are the U.S. Navy's sonar programs, ensuring the operational readiness of towed array systems. Services delivered include diagnostic testing, troubleshooting, refurbishment, upgrades, and repairs for critical naval equipment. The contract supports the operation of the NATSC facility, a key hub for Navy towed array maintenance. Workforce implications include employment for engineers, technicians, and support staff involved in defense contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee, requiring robust oversight.
- The specialized nature of the services may limit the pool of qualified contractors in future procurements, potentially impacting competition.
- Reliance on a single contractor for lifecycle support of critical systems could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
- The contract addresses a clear and ongoing need for specialized technical support for vital naval assets.
- The contractor, Leidos, Inc., is a well-established entity in the defense sector, suggesting a degree of reliability.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related technology. The market for specialized naval systems support is characterized by high technical barriers to entry and significant government investment. Comparable spending benchmarks would involve other lifecycle support contracts for complex defense platforms, where costs are driven by technical sophistication, regulatory compliance, and long-term sustainment requirements.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors for specific components or services, which would be detailed in their subcontracting plan, if applicable.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and technical representatives who monitor performance, costs, and adherence to contract terms. The Inspector General's office may also conduct audits or investigations into cost allowability and performance. Transparency is facilitated through contract award databases and reporting requirements.
Related Government Programs
- Naval Sonar Systems Support
- Defense Engineering Services
- Lifecycle Support Contracts
- Department of the Navy Procurement
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent cost oversight.
- Specialized nature of services may limit future competition.
- Potential for cost overruns inherent in CPFF contracts.
Tags
defense, department-of-the-navy, engineering-services, sonar-systems, lifecycle-support, cost-plus-fixed-fee, full-and-open-competition, rhode-island, naval-operations, technical-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.6 million to LEIDOS, INC.. IGF::OT::IGF NUWCDIV NPT'S NAVAL ARRAY TECHNICAL SUPPORT CENTER (NATSC)FACILITY PROVIDES LIFECYCLE SUPPORT (DIAGNOSTIC TESTING, TROUBLESHOOTING, REFURBISHMENTS, UPGRADES AND REPAIRS) FOR ALL NAVY TOWED ARRAYS. THE CONTRACTOR SHALL PERFORM TASKS IN SUPPORT OF TOWED ARRAY SONAR PROGRAMS. THE CONTRACTOR SHALL PROVIDE SERVICES FOR OPERATION OF THE NATSC FACILITY.
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 $48.6 million.
What is the period of performance?
Start: 2017-06-27. End: 2020-12-15.
What is Leidos, Inc.'s track record with similar Cost Plus Fixed Fee (CPFF) contracts within the Department of Defense?
Leidos, Inc. has a substantial history of performing Cost Plus Fixed Fee (CPFF) contracts across various Department of Defense agencies. Analyzing their past performance on similar contracts is crucial for assessing their ability to manage costs effectively under this structure. CPFF contracts require diligent oversight to ensure that the contractor's costs are reasonable and allowable, and that the fixed fee provides appropriate compensation without incentivizing excessive spending. A review of past performance evaluations, audit reports, and any contract disputes involving Leidos on CPFF agreements would provide insight into their reliability and cost control capabilities in this specific contract type. This historical data is essential for understanding potential risks and benefits associated with their current contract.
How does the per-unit cost or overall value of this contract compare to similar Navy towed array support contracts?
Direct per-unit cost comparisons for this contract are challenging due to the nature of lifecycle support services, which often involve a mix of labor, materials, and facility operations rather than standardized units. However, the total contract value of approximately $48.6 million over 1267 days (roughly 3.5 years) can be benchmarked against other sustainment and technical support contracts for complex naval systems. Factors such as the specific types of towed arrays supported, the scope of services (diagnostics, repair, upgrade, facility operation), and the technological sophistication of the equipment will influence cost. A comprehensive analysis would involve comparing this contract's value relative to its duration and scope against similar contracts awarded by the Navy or other defense branches for comparable systems to ascertain if the pricing is competitive and reflects fair market value.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific service, and how are they mitigated?
The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their fee is a percentage of the allowable costs. This can lead to cost overruns if not managed diligently. For this contract supporting Navy towed arrays, risks include potential increases in repair complexity, unforeseen material costs, or extended diagnostic times. Mitigation strategies employed by the government typically involve robust oversight by contracting officers and technical representatives, detailed cost accounting standards, regular audits, and clear performance metrics. The fixed fee itself acts as a ceiling on the contractor's profit, and the government's ability to scrutinize and disallow unallowable costs are key control mechanisms.
How effective has the NATSC facility been in supporting Navy towed arrays under previous contracts, and what is the expected impact of this contract on its future operations?
The effectiveness of the Naval Array Technical Support Center (NATSC) facility is critical for maintaining the operational readiness of the Navy's towed array sonar systems. While specific historical performance metrics for NATSC under prior contracts are not detailed in the provided data, its continued operation under this new contract suggests its ongoing importance. This contract ensures the facility's continued function by providing the necessary services for lifecycle support, including diagnostics, troubleshooting, and repairs. The expected impact is the sustained availability and reliability of these vital sonar systems, contributing directly to the Navy's mission capabilities. Future effectiveness will depend on the contractor's performance and the government's oversight.
What are the historical spending patterns for Navy towed array technical support, and how does this contract fit within that trend?
Historical spending on Navy towed array technical support would likely show a consistent requirement for lifecycle sustainment due to the critical nature of sonar technology and the long service life of naval platforms. Spending patterns are influenced by factors such as the number of towed arrays in service, technological upgrades, and the aging of existing systems requiring maintenance. This $48.6 million contract, awarded in 2017 and ending in 2020, represents a significant investment in maintaining these capabilities. It fits within a trend of ongoing, substantial government expenditure necessary to ensure the operational readiness and technological relevance of the Navy's sonar assets. Analyzing prior and subsequent contracts would reveal the overall trend and the relative scale of this particular award.
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: N6660417R3047
Offers Received: 4
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: $48,715,299
Exercised Options: $48,715,299
Current Obligation: $48,578,847
Actual Outlays: $5,156,974
Subaward Activity
Number of Subawards: 58
Total Subaward Amount: $12,634,738
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: 2017-06-27
Current End Date: 2020-12-15
Potential End Date: 2020-12-15 00:00:00
Last Modified: 2024-12-31
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