DoD Awards $5.7M for Tactical Training Ranges Lifecycle Management to Leidos, Inc

Contract Overview

Contract Amount: $5,688,857 ($5.7M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-10-31

End Date: 2028-10-30

Contract Duration: 1,826 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TACTICAL TRAINING RANGES LIFECYCLE MANAGEMENT

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to LEIDOS, INC. for work described as: TACTICAL TRAINING RANGES LIFECYCLE MANAGEMENT Key points: 1. Leidos, Inc. secured a significant contract for tactical training ranges. 2. The contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type introduces risk for cost overruns. Benchmarking against similar lifecycle management contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, indicating a broad solicitation. The Cost Plus Fixed Fee structure may impact price discovery, potentially leading to higher costs than a fixed-price contract.

Taxpayer Impact: Taxpayers may face increased costs due to the Cost Plus Fixed Fee structure, depending on the contractor's cost management and the government's oversight.

Public Impact

Ensures readiness and effectiveness of critical training infrastructure for the Navy. Supports advanced tactical training capabilities essential for national defense. Potential for cost escalation due to the contract type could impact overall budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type
  • Potential for cost overruns
  • Long contract duration

Positive Signals

  • Full and open competition
  • Supports critical defense infrastructure

Sector Analysis

This contract is within the defense sector, specifically focusing on lifecycle management for tactical training ranges. Spending in this area is crucial for maintaining military readiness and technological superiority.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further investigation may be needed to determine small business participation.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust government oversight to manage costs effectively and ensure the contractor adheres to the fixed fee and scope. Regular audits and performance reviews are critical.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee contract type
  • Potential for cost overruns
  • Lack of small business participation data
  • Long contract duration (5 years)

Tags

search-detection-navigation-guidance-aer, department-of-defense, ca, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to LEIDOS, INC.. TACTICAL TRAINING RANGES LIFECYCLE MANAGEMENT

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 $5.7 million.

What is the period of performance?

Start: 2023-10-31. End: 2028-10-30.

What is the projected total cost of this contract given the Cost Plus Fixed Fee structure and the 5-year duration?

The initial award is $5.7 million, but the Cost Plus Fixed Fee (CPFF) structure means the final cost will depend on actual allowable costs incurred by Leidos, plus a fixed fee. Without detailed cost breakdowns and projections, it's difficult to determine the total potential expenditure. Effective government oversight is crucial to manage costs within reasonable bounds and prevent significant overruns beyond the initial estimate.

What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this tactical training ranges project?

The primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can disincentivize cost control. For tactical training ranges, scope creep or unforeseen technical challenges could significantly increase costs. Robust government oversight, clear contract terms, and detailed cost tracking are essential to mitigate these risks and ensure taxpayer value.

How will the effectiveness of the tactical training ranges be measured and ensured under this contract?

Effectiveness will likely be measured through performance metrics defined in the contract, focusing on the operational readiness and capability of the training ranges. This could include uptime, maintenance response times, and successful execution of training scenarios. The government's quality assurance personnel will monitor performance, and the fixed fee component incentivizes the contractor to meet these defined standards efficiently.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6893620R0081

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1121 W REEVES AVE, RIDGECREST, CA, 93555

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,371,944

Exercised Options: $5,688,857

Current Obligation: $5,688,857

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $400,391

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6893622D0021

IDV Type: IDC

Timeline

Start Date: 2023-10-31

Current End Date: 2028-10-30

Potential End Date: 2028-10-30 00:00:00

Last Modified: 2025-12-09

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