DoD's $16.7M Naval Array Technical Support Center contract awarded to Leidos, Inc. for engineering services
Contract Overview
Contract Amount: $16,688,818 ($16.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-03-31
End Date: 2023-03-30
Contract Duration: 364 days
Daily Burn Rate: $45.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SERVICES AND SUPPLIES FOR THE OPERATION OF THE CODE 15 NAVAL ARRAY TECHNICAL SUPPORT CENTER (NATSC) FACILITY.
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $16.7 million to LEIDOS, INC. for work described as: SERVICES AND SUPPLIES FOR THE OPERATION OF THE CODE 15 NAVAL ARRAY TECHNICAL SUPPORT CENTER (NATSC) FACILITY. Key points: 1. Contract provides essential engineering services for a critical naval facility. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 364 days aligns with typical service periods. 4. Leidos, Inc. is a large, established government contractor with a significant presence. 5. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee. 6. Performance is located in Rhode Island, a key naval hub.
Value Assessment
Rating: good
The contract value of approximately $16.7 million for a one-year period for engineering services appears reasonable given the specialized nature of supporting a naval technical support center. Benchmarking against similar contracts for facility operations and specialized engineering support would provide a more precise value assessment. The CPFF structure means costs are reimbursed, but the fixed fee provides a level of cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of qualified contractors and potentially better pricing due to market forces. The specific number of bidders is not provided, but the method of competition suggests a healthy level of interest.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple vendors.
Public Impact
The primary beneficiaries are the U.S. Navy and Department of Defense, ensuring the continued operation and technical support of the Naval Array Technical Support Center. Services delivered include essential engineering support for the facility's functions. The geographic impact is concentrated in Rhode Island, supporting naval operations in the region. The contract supports a workforce of engineers and technical specialists, contributing to specialized employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to incur more costs if the fixed fee is substantial relative to the effort.
- Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
- The raw dollar amount does not provide insight into the specific scope of work or the complexity of the engineering services required.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Leidos, Inc. is a reputable contractor with extensive experience in government services.
- The contract supports a critical naval facility, ensuring operational readiness.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related infrastructure. The market for specialized naval facility support is niche, often dominated by large defense contractors. Comparable spending benchmarks would involve looking at other contracts for similar technical support centers or specialized engineering services for military installations, which can range from millions to tens of millions annually depending on scope and duration.
Small Business Impact
The data indicates that 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. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors, which would depend on their internal subcontracting plans and the specific needs of the contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Facilities Engineering Command contracts
- Department of Defense IT and Engineering Services
- Defense Infrastructure Support Contracts
- Naval Operations Support Contracts
Risk Flags
- Cost-plus-fixed-fee contract type may lead to higher overall costs if not managed diligently.
- Lack of specific performance metrics in the summary data makes it difficult to assess service quality.
- Potential for scope creep in engineering service contracts can increase costs.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, naval-operations, rhode-island, leidos-inc, technical-support, facility-operations
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to LEIDOS, INC.. SERVICES AND SUPPLIES FOR THE OPERATION OF THE CODE 15 NAVAL ARRAY TECHNICAL SUPPORT CENTER (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 $16.7 million.
What is the period of performance?
Start: 2022-03-31. End: 2023-03-30.
What is Leidos, Inc.'s track record with similar Department of Defense contracts?
Leidos, Inc. has a substantial track record with the Department of Defense, holding numerous contracts across various agencies and service areas. They are a major prime contractor specializing in areas such as IT, systems engineering, logistics, and technical support. Their history includes significant work with the Navy, Air Force, and Army, often involving complex technical solutions and large-scale program management. Analyzing their past performance on similar engineering support or facility operation contracts would reveal their reliability, ability to manage costs, and adherence to schedules. Publicly available contract databases and federal procurement reports often detail their award history and performance ratings, which are generally positive given their size and market position.
How does the value of this contract compare to similar naval technical support center contracts?
Direct comparison of this $16.7 million contract for a 364-day period requires access to specific data on comparable Naval Array Technical Support Center (NATSC) contracts or similar facilities. However, for specialized engineering and operational support of critical defense infrastructure, contract values can vary significantly based on the complexity of the systems supported, the scope of services (e.g., maintenance, upgrades, research support), and the specific location. Contracts for similar functions at other naval bases or for comparable technical facilities could range from a few million to tens of millions of dollars annually. The cost-plus-fixed-fee structure means the government reimburses allowable costs plus a predetermined profit, which can lead to higher total costs than fixed-price contracts if not managed carefully, but offers flexibility for evolving requirements.
What are the primary risks associated with this type of cost-plus-fixed-fee contract?
The primary risk with Cost-Plus-Fixed-Fee (CPFF) contracts is the potential for cost overruns. While the fee is fixed, the government bears the risk of increased costs for labor, materials, and overhead. If the contractor does not manage resources efficiently, the total contract cost can escalate beyond initial estimates. Another risk is scope creep, where the requirements may expand beyond the original agreement, leading to additional costs and potentially impacting the fixed fee negotiation for future modifications. Effective oversight, detailed cost tracking, and clear communication channels are crucial to mitigate these risks. The government must ensure that all costs claimed by the contractor are allowable, reasonable, and allocable to the contract.
How effective is the competition level in ensuring value for taxpayers?
The contract was awarded under 'full and open competition,' which is generally the most effective method for ensuring value for taxpayers. This approach allows any responsible business to bid, fostering a competitive environment that typically drives down prices and encourages innovation. The presence of multiple bidders increases the likelihood that the government will receive competitive proposals that reflect fair market value. While the exact number of bidders isn't specified, the mechanism itself is designed to promote price discovery and contractor efficiency. The effectiveness is further enhanced by robust evaluation criteria and negotiation strategies employed by the contracting agency to select the best value proposal.
What is the historical spending trend for engineering services at the NATSC facility?
Historical spending data specifically for the Naval Array Technical Support Center (NATSC) facility is not directly available in the provided data snippet. To determine historical spending trends, one would need to access contract databases and search for previous awards related to this specific facility or its predecessor functions. Analyzing past contracts awarded to incumbent or previous service providers would reveal spending patterns over time. Factors influencing these trends could include changes in operational requirements, technological upgrades, inflation, and shifts in contracting strategies (e.g., moving from sole-source to competitive awards). Without this historical context, it's challenging to assess if current spending represents an increase, decrease, or stable level compared to prior periods.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6660419R0182
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: $16,688,818
Exercised Options: $16,688,818
Current Obligation: $16,688,818
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,818,250
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6660421DA000
IDV Type: IDC
Timeline
Start Date: 2022-03-31
Current End Date: 2023-03-30
Potential End Date: 2023-03-30 00:00:00
Last Modified: 2025-11-19
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