DoD's $39.4M Towed Systems Support Contract Awarded to Leidos, Inc
Contract Overview
Contract Amount: $39,381,725 ($39.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-11-09
End Date: 2025-07-31
Contract Duration: 1,725 days
Daily Burn Rate: $22.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL FACILITIES SERVICES FOR INTERMEDIATE LEVEL MAINTENANCE AND OPERATIONAL SUPPORT OF TOWED SYSTEMS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $39.4 million to LEIDOS, INC. for work described as: ENGINEERING AND TECHNICAL FACILITIES SERVICES FOR INTERMEDIATE LEVEL MAINTENANCE AND OPERATIONAL SUPPORT OF TOWED SYSTEMS Key points: 1. Contract awarded to Leidos, Inc. for engineering and technical facilities services. 2. Focuses on intermediate level maintenance and operational support for towed systems. 3. Significant duration of 1725 days indicates a long-term need. 4. The contract falls under the Engineering Services sector.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) pricing structure is common for complex engineering services. Benchmarking against similar CPFF contracts for specialized technical support is necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a Delivery Order under a larger contract vehicle is a standard procurement method.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Ensures operational readiness of critical towed systems for the Department of the Navy. Supports advanced engineering and maintenance capabilities within the defense sector. Potential impact on the efficiency and cost-effectiveness of naval operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPFF contract type if not closely managed.
- Reliance on a single contractor (Leidos, Inc.) for critical support services.
- Long contract duration may limit flexibility to adopt new technologies or approaches.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Experienced contractor (Leidos, Inc.) likely brings significant expertise.
- Clear focus on essential maintenance and operational support.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for maintaining complex military equipment. Spending benchmarks for similar specialized technical support services are typically high due to the required expertise and criticality.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Leidos, Inc. is a large corporation. There is no information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of Defense and Department of the Navy are responsible for oversight. The contract's long duration and CPFF structure necessitate diligent monitoring to ensure cost control and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration (over 4 years).
- Sole contractor (Leidos, Inc.) for critical support.
- Lack of small business participation noted.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.4 million to LEIDOS, INC.. ENGINEERING AND TECHNICAL FACILITIES SERVICES FOR INTERMEDIATE LEVEL MAINTENANCE AND OPERATIONAL SUPPORT OF TOWED SYSTEMS
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 $39.4 million.
What is the period of performance?
Start: 2020-11-09. End: 2025-07-31.
What is the estimated total cost per year for this contract, and how does it compare to similar DoD contracts for towed systems support?
The total contract value is approximately $39.4 million over 1725 days (roughly 4.7 years). This averages to about $8.36 million per year. A detailed comparison would require analyzing the specific services provided and the complexity of the towed systems supported, benchmarking against other CPFF contracts for similar technical maintenance and operational support within the DoD.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this particular service, and what mitigation strategies are in place?
The primary risk with CPFF is that the contractor may not be sufficiently incentivized to control costs, potentially leading to overruns if not managed tightly. Mitigation strategies typically include robust government oversight, detailed performance metrics, regular audits, and clear definition of fixed-fee scope to prevent scope creep.
How effectively does this contract ensure the operational readiness and technical performance of the Navy's towed systems, and what metrics are used to measure this effectiveness?
Effectiveness is measured by the contractor's ability to meet defined performance standards for maintenance, repair, and operational support of towed systems. Key metrics likely include system uptime, response times for support, quality of repairs, and adherence to technical specifications. The contract's success hinges on the Navy's rigorous performance monitoring and evaluation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6660420R3005
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: $41,920,996
Exercised Options: $41,920,996
Current Obligation: $39,381,725
Subaward Activity
Number of Subawards: 51
Total Subaward Amount: $3,261,038
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: 2020-11-09
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-12-15
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