Leidos Inc. awarded $22.3M for Naval towed array engineering and repair services
Contract Overview
Contract Amount: $22,333,906 ($22.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-31
End Date: 2026-03-30
Contract Duration: 364 days
Daily Burn Rate: $61.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TECHNICAL AND ENGINEERING SUPPORT SERVICES FOR NAVAL ARRAY TECHNICAL SUPPORT CENTER TO INCLUDE OPERATION OF THE FACILITY TO MANUFACTURE, UPGRADE, REPAIR, REFURBISH, DIAGNOSE, TROUBLESHOOT, TEST, EVALUATE TOWED ARRAYS AND TOWED ARRAY COMPONENTS.
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $22.3 million to LEIDOS, INC. for work described as: TECHNICAL AND ENGINEERING SUPPORT SERVICES FOR NAVAL ARRAY TECHNICAL SUPPORT CENTER TO INCLUDE OPERATION OF THE FACILITY TO MANUFACTURE, UPGRADE, REPAIR, REFURBISH, DIAGNOSE, TROUBLESHOOT, TEST, EVALUATE TOWED ARRAYS AND TOWED ARRAY COMPONENTS. Key points: 1. Contract focuses on critical maintenance and upgrade of towed array systems. 2. Services include manufacturing, repair, and diagnostic testing of naval equipment. 3. Performance period spans one year, indicating ongoing support needs. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. This award contributes to the readiness of naval sonar capabilities. 6. The fixed-fee structure provides cost certainty for the government.
Value Assessment
Rating: good
The contract value of $22.3 million for one year of specialized engineering and technical support appears reasonable given the critical nature of naval towed array systems. Benchmarking against similar complex defense engineering contracts suggests this pricing is within expected ranges. The cost-plus-fixed-fee (CPFF) structure allows for cost transparency while incentivizing efficient performance. Further analysis would require comparing specific labor rates and overhead costs to industry standards for this niche technical field.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach ensures that the most capable and cost-effective solution is selected.
Taxpayer Impact: Full and open competition maximizes taxpayer value by encouraging a wide range of potential contractors to submit proposals, driving down costs and improving the quality of services received.
Public Impact
Naval forces benefit from the continued operational readiness of towed array sonar systems. Services ensure the effective functioning of critical underwater surveillance and detection equipment. The contract supports specialized technical expertise within the defense industrial base. Workforce implications include employment for engineers, technicians, and support staff involved in array maintenance and manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in complex engineering and repair tasks.
- Reliance on a single delivery order under a potentially broader IDIQ could limit future competition visibility.
- Ensuring consistent quality across manufacturing, repair, and diagnostic phases requires robust oversight.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Fixed-fee structure provides cost predictability for the government.
- Focus on critical naval readiness systems aligns with defense priorities.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related technical and manufacturing capabilities. The market for specialized naval systems support is concentrated among a few key defense contractors with the requisite expertise and security clearances. Spending in this area is driven by the need to maintain and modernize aging naval fleets and their complex electronic systems, including sonar and acoustic arrays.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Leidos, Inc. is a large business, the nature of highly specialized defense engineering and manufacturing often requires significant resources and established capabilities that may not be readily available from smaller firms. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in this award information.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and technical representatives. The fixed-fee structure provides some level of cost control. Transparency is facilitated through the contract reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Ship Systems Engineering
- Defense Logistics and Maintenance
- Sonar and Acoustic Systems Support
- Naval Undersea Warfare
Risk Flags
- Technical Complexity
- Schedule Risk
- Quality Assurance
- Component Availability
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, naval-support, towed-arrays, full-and-open-competition, cost-plus-fixed-fee, sustainment, rhode-island, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.3 million to LEIDOS, INC.. TECHNICAL AND ENGINEERING SUPPORT SERVICES FOR NAVAL ARRAY TECHNICAL SUPPORT CENTER TO INCLUDE OPERATION OF THE FACILITY TO MANUFACTURE, UPGRADE, REPAIR, REFURBISH, DIAGNOSE, TROUBLESHOOT, TEST, EVALUATE TOWED ARRAYS AND TOWED ARRAY COMPONENTS.
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 $22.3 million.
What is the period of performance?
Start: 2025-03-31. End: 2026-03-30.
What is Leidos, Inc.'s track record with similar naval engineering and repair contracts?
Leidos, Inc. has a substantial track record in providing complex engineering, IT, and logistics services to the Department of Defense and other federal agencies. They are a prime contractor on numerous large-scale defense programs, including those involving naval systems, electronic warfare, and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance). Their experience often includes managing sophisticated technical operations, system integration, and lifecycle support for critical military assets. Specific to towed arrays, Leidos has been involved in various aspects of sonar technology development, maintenance, and integration across different naval platforms. Their history suggests a capacity to handle the technical demands and security requirements inherent in this type of contract.
How does the awarded amount compare to historical spending on towed array technical support?
Historical spending on towed array technical support can vary significantly based on the specific systems, the scope of work (e.g., R&D vs. sustainment), and the number of contracts awarded annually. This $22.3 million award for one year represents a substantial investment in sustainment and operational support for these critical components. To provide a precise comparison, one would need to analyze historical contract data for similar services provided to the Navy or other branches over the past 5-10 years. Factors such as inflation, technological advancements, and changes in naval force structure also influence year-over-year spending. However, given the specialized nature and essential function of towed arrays in naval operations, annual expenditures in the tens of millions for comprehensive support are not uncommon.
What are the primary risks associated with this type of engineering and repair contract?
The primary risks associated with this type of engineering and repair contract include technical complexity, potential for schedule delays, and cost overruns (though mitigated by the fixed-fee structure). Technical risks involve unforeseen challenges in diagnosing and repairing aging or complex towed array systems, requiring specialized knowledge and potentially leading to extended timelines. Schedule risks can arise from the availability of critical components, specialized testing equipment, or personnel. While the fixed-fee component caps the contractor's profit, cost-plus elements can still lead to cost increases if not managed diligently. Furthermore, ensuring consistent quality across manufacturing, upgrade, and repair processes requires robust government oversight to prevent defects that could impact operational readiness.
How effective is the cost-plus-fixed-fee (CPFF) contract type for ensuring value for money in this context?
The Cost-Plus-Fixed-Fee (CPFF) contract type is often employed for complex services where the scope of work is well-defined but the exact costs are difficult to estimate upfront, such as specialized engineering and repair. For this towed array support contract, CPFF offers a balance: the government pays the actual allowable costs incurred by Leidos, plus a predetermined fixed fee representing the contractor's profit. This structure provides the government with cost transparency as costs are audited, and the fixed fee incentivizes the contractor to control costs to maximize their profit margin within that fixed amount. It is generally considered effective for ensuring value when the government has a clear understanding of the required services and can effectively monitor costs and performance.
What is the strategic importance of towed array systems to naval operations?
Towed array systems are of paramount strategic importance to naval operations, particularly for submarines and surface vessels engaged in anti-submarine warfare (ASW) and intelligence gathering. These systems consist of long, flexible arrays of hydrophones towed behind a vessel, enabling the detection and tracking of underwater acoustic signatures over vast distances. Their passive listening capabilities allow naval forces to detect enemy submarines, mines, and other underwater threats with a high degree of accuracy and stealth. Maintaining the operational readiness and technological advancement of these arrays is crucial for maintaining maritime superiority, ensuring force protection, and gathering vital intelligence in complex underwater environments.
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: $22,740,906
Exercised Options: $22,740,906
Current Obligation: $22,333,906
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: 2025-03-31
Current End Date: 2026-03-30
Potential End Date: 2026-03-30 00:00:00
Last Modified: 2026-01-15
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