DoD's $8.7M contract for towed systems support awarded to Leidos, Inc. amid full and open competition
Contract Overview
Contract Amount: $8,690,604 ($8.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-07-18
End Date: 2026-07-31
Contract Duration: 378 days
Daily Burn Rate: $23.0K/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 $8.7 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. Value for money assessed through competitive bidding and benchmarking. 2. Competition dynamics indicate a robust market for engineering services. 3. Risk indicators include contract type and performance duration. 4. Performance context is set by the need for intermediate maintenance and operational support. 5. Sector positioning within defense services highlights specialized technical requirements.
Value Assessment
Rating: good
The contract value of approximately $8.7 million for a 378-day period appears reasonable given the specialized nature of engineering and technical facilities services for towed systems. Benchmarking against similar contracts for defense maintenance and operational support would provide a more definitive assessment, but the use of full and open competition suggests a market-driven price. The Cost Plus Fixed Fee (CPFF) contract type allows for cost control while incentivizing efficiency.
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 were likely considered. The presence of a competitive process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the category suggests a healthy level of interest from qualified firms.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring the government receives competitive pricing for essential services.
Public Impact
The Department of the Navy benefits from enhanced operational readiness of towed systems. Services delivered include intermediate-level maintenance and operational support. Geographic impact is likely concentrated around naval bases or operational areas where towed systems are deployed. Workforce implications include employment for skilled engineers and technicians supporting defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
- The duration of the contract (378 days) requires ongoing performance monitoring.
- Dependence on a single contractor for critical support functions can pose a risk.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Leidos, Inc. is a large, established contractor with significant experience in defense services.
- The contract addresses a critical need for maintenance and operational support of towed systems.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications. The market for defense engineering and technical support services is substantial, driven by the continuous need for maintenance, modernization, and operational readiness of military equipment. Comparable spending benchmarks would involve analyzing other contracts for similar maintenance and support services for naval assets or specialized defense systems.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the specific subcontracting plan or goals are not detailed in the provided information.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the CPFF contract type, which requires detailed reporting and justification of costs. Transparency is typically facilitated through contract award databases and reporting requirements, though specific oversight details are not provided.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Defense Maintenance and Repair Services
- Towed Array Sonar Systems Support
- Engineering Services for Military Equipment
Risk Flags
- Contract Type Risk (CPFF)
- Performance Monitoring Requirement
- Dependence on Single Contractor
Tags
defense, department-of-the-navy, engineering-services, full-and-open-competition, cost-plus-fixed-fee, towed-systems, intermediate-maintenance, operational-support, leidos-inc, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.7 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 $8.7 million.
What is the period of performance?
Start: 2025-07-18. End: 2026-07-31.
What is Leidos, Inc.'s track record with the Department of Defense for similar engineering and technical services?
Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing contracts for a wide array of services including engineering, IT, logistics, and technical support. Their experience spans various branches of the military, and they are known for handling complex projects. For towed systems and naval support specifically, Leidos has been involved in numerous contracts related to ship maintenance, sonar systems, and other specialized naval technologies. A detailed review of their past performance on similar contracts, including any past performance evaluations or disputes, would be necessary for a comprehensive assessment. However, their general profile suggests a capable contractor for this type of requirement.
How does the estimated value of this contract compare to similar contracts for towed systems maintenance?
The estimated value of approximately $8.7 million for 378 days of service for towed systems maintenance and operational support is difficult to benchmark precisely without access to a comprehensive database of comparable contracts. However, considering the specialized nature of naval engineering services and the duration, this value appears within a reasonable range for a contract of this scope. Factors influencing this value include the complexity of the systems, the level of technical expertise required, and the specific maintenance tasks involved. Full and open competition, as indicated, should help ensure the price is competitive relative to market rates for similar specialized defense services.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for the government?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for the government is the potential for cost overruns. While the fixed fee provides a ceiling for the contractor's profit, the 'cost' portion is subject to actual expenses incurred. If the contractor's costs exceed initial estimates, the government pays these actual costs, plus the agreed-upon fixed fee. This necessitates robust government oversight to ensure costs are reasonable, allocable, and allowable. Without diligent monitoring of expenditures and performance, the total contract cost could escalate beyond initial projections. However, CPFF contracts are often used when the scope of work is not precisely defined, offering flexibility while still providing some cost control through the fixed fee.
How effective is the Department of the Navy in managing contracts for intermediate-level maintenance of complex systems?
The Department of the Navy generally has established processes and experienced personnel for managing contracts related to intermediate-level maintenance of complex systems. They utilize various contract types and oversight mechanisms tailored to the specific needs of different systems, including towed arrays. Effectiveness can vary depending on the specific program office, the complexity of the system, and the contractor's performance. Key indicators of effectiveness include meeting operational readiness goals, staying within budget, and timely completion of maintenance tasks. The Navy's extensive experience in fleet readiness suggests a high degree of capability in managing such contracts, though continuous evaluation and adaptation of management strategies are crucial.
What are the historical spending patterns for engineering and technical facilities services within the Department of the Navy?
Historical spending patterns for engineering and technical facilities services within the Department of the Navy are substantial and reflect the vast scope of naval operations and asset management. The Navy consistently invests significant funds in maintaining its complex fleet, which includes everything from surface vessels and submarines to specialized equipment like towed systems. Spending in this category typically fluctuates based on modernization programs, new platform acquisitions, and the lifecycle maintenance needs of existing assets. Analyzing historical data would reveal trends in contract awards by service type, major contractors, and specific naval commands, providing context for the current $8.7 million award.
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: N6660425R3000
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: $86,691,738
Exercised Options: $15,170,260
Current Obligation: $8,690,604
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $73,566
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: 2025-07-18
Current End Date: 2026-07-31
Potential End Date: 2030-07-31 00:00:00
Last Modified: 2026-01-13
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)