Leidos awarded $19.7M for Naval Array Technical Support Center operations, continuing a multi-year contract
Contract Overview
Contract Amount: $19,694,461 ($19.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-31
End Date: 2024-03-30
Contract Duration: 365 days
Daily Burn Rate: $54.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: YEAR 3 SERVICES AN 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 $19.7 million to LEIDOS, INC. for work described as: YEAR 3 SERVICES AN SUPPLIES FOR THE OPERATION OF THE CODE 15 NAVAL ARRAY TECHNICAL SUPPORT CENTER (NATSC) FACILITY. Key points: 1. Contract value represents a significant investment in maintaining critical naval infrastructure. 2. The award follows a full and open competition, suggesting a competitive bidding process. 3. The fixed-fee structure provides some cost control, but potential for cost overruns exists. 4. This contract supports specialized engineering services essential for naval readiness. 5. The duration of one year indicates a need for ongoing, consistent support. 6. The contractor, Leidos, Inc., has a substantial presence in government contracting.
Value Assessment
Rating: good
The contract value of $19.7 million for one year of services appears reasonable given the specialized nature of supporting a Naval Array Technical Support Center. Benchmarking against similar contracts for facility operations and specialized technical support would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure allows for cost transparency while incentivizing the contractor to manage expenses within a defined profit margin. However, the 'cost plus' element warrants attention to ensure costs remain controlled.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors at competitive rates.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, potentially reducing the overall cost to the government.
Public Impact
The primary beneficiaries are the Department of the Navy and its operational readiness, ensuring the functionality of the Naval Array Technical Support Center. Services delivered include the operation and maintenance of the NATSC facility, crucial for naval intelligence and surveillance capabilities. The geographic impact is centered in Rhode Island, where the NATSC facility is located, supporting local infrastructure and operations. Workforce implications include the potential for continued employment for skilled technical and support personnel at the facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep within the 'cost plus' component of the contract if not rigorously monitored.
- Dependence on a single contractor for critical facility operations could pose a risk if performance issues arise.
- The specific technical requirements and performance metrics need clear definition to ensure effective service delivery.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- The contractor, Leidos, Inc., is a large, established entity with significant experience in government contracts.
- The fixed-fee component of the contract provides a defined profit margin, offering some cost predictability.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting specialized technical facilities for defense applications. The market for such services is characterized by a need for high technical expertise, security clearances, and proven performance. Comparable spending benchmarks would involve analyzing other contracts for the operation and maintenance of sensitive government facilities, particularly those within the Department of Defense, which often involve significant investment in specialized infrastructure.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct recipients of this prime contract. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors to fulfill specific needs, though this is not explicitly detailed in the provided data. The absence of a small business set-aside suggests the scope or nature of the services may not have been deemed suitable for such a designation.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Navy, specifically the contracting officer and their representatives, who are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases and reporting requirements. Accountability measures are embedded in the contract's performance standards and the potential for corrective actions or penalties if the contractor fails to meet obligations. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.
Related Government Programs
- Naval Facilities Engineering Command contracts
- Department of Defense IT and Technical Support Services
- Defense Intelligence Agency Support Contracts
- Operations and Maintenance of Government Facilities
Risk Flags
- Cost control risk in CPFF contracts
- Performance monitoring requirements
- Dependence on contractor expertise
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, facility-operations, technical-support, cost-plus-fixed-fee, full-and-open-competition, rhode-island, leidos-inc, naval-array-technical-support-center, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.7 million to LEIDOS, INC.. YEAR 3 SERVICES AN 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 $19.7 million.
What is the period of performance?
Start: 2023-03-31. End: 2024-03-30.
What is Leidos, Inc.'s track record with similar Department of Defense contracts, particularly those involving facility operations and technical support?
Leidos, Inc. has an extensive history of performing complex technical services and facility operations for the Department of Defense and other federal agencies. Their portfolio includes a wide range of support services, from IT infrastructure management to specialized engineering and operational support for critical government facilities. Analyzing their past performance on contracts of similar size, scope, and duration would reveal their ability to meet performance requirements, manage costs effectively, and maintain high levels of customer satisfaction. Publicly available contract databases and performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS) can offer insights into their reliability and expertise in executing defense-related contracts.
How does the $19.7 million annual cost compare to similar contracts for operating naval technical support centers?
Direct comparison of the $19.7 million annual cost requires access to detailed data on similar Naval Array Technical Support Center (NATSC) operations or comparable facilities. Factors influencing cost include the size and complexity of the facility, the specific technical services required, the level of security, and the geographic location. Without specific benchmark data for NATSC operations, it's challenging to definitively assess value. However, considering the specialized nature of naval array technology and the need for continuous operational support, this figure appears to be within a plausible range for such critical infrastructure. A thorough analysis would involve comparing cost per square foot, cost per system supported, or cost as a percentage of the asset's value, if such data were available for comparable contracts.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for the government?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure for the government is the potential for cost overruns, despite the fixed fee. While the fee is fixed, the 'cost' portion is reimbursable. If the contractor incurs higher-than-expected costs due to inefficiencies, poor planning, or unforeseen circumstances, the government bears the burden of these increased costs. Effective oversight is crucial to mitigate this risk. The government must rigorously audit and validate all claimed costs to ensure they are reasonable, allocable, and allowable under the contract terms. Without strong oversight, the CPFF structure can lead to the government paying more than anticipated, even though the contractor's profit margin remains constant.
What is the historical spending trend for the operation of the NATSC facility, and how does this award fit into that pattern?
To assess the historical spending trend for the NATSC facility, one would need to examine contract awards for its operation over previous years. This would involve searching federal procurement databases for contracts awarded to previous or current operators of the NATSC. Analyzing these past awards would reveal whether the current $19.7 million award represents an increase, decrease, or stable level of spending compared to prior years. Understanding this trend provides context on the government's long-term investment in the facility and helps identify any significant shifts in operational costs or contract scope. Without access to historical data, it is difficult to place this award within a broader spending pattern.
What specific performance metrics are likely being used to evaluate Leidos, Inc.'s success in operating the NATSC facility?
Specific performance metrics for operating a Naval Array Technical Support Center (NATSC) would likely focus on ensuring the continuous availability and optimal functioning of the array systems. Key performance indicators (KPIs) could include system uptime percentages, response times for maintenance and repair, successful completion rates of scheduled maintenance, adherence to operational procedures and security protocols, and timely reporting of system status and issues. Additionally, metrics related to energy consumption, environmental compliance, and personnel qualifications might be included. The effectiveness of Leidos, Inc. would be measured against these predefined standards, often detailed in the contract's Performance Work Statement (PWS) or Service Level Agreements (SLAs).
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: $19,694,461
Exercised Options: $19,694,461
Current Obligation: $19,694,461
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,479,496
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: 2023-03-31
Current End Date: 2024-03-30
Potential End Date: 2024-03-30 00:00:00
Last Modified: 2025-11-13
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