Leidos, Inc. awarded $3.08B for Antarctic Program support, with 7 bidders in a full and open competition

Contract Overview

Contract Amount: $3,080,759,042 ($3.1B)

Contractor: Leidos, Inc.

Awarding Agency: National Science Foundation

Start Date: 2011-12-23

End Date: 2026-09-30

Contract Duration: 5,395 days

Daily Burn Rate: $571.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: SCIENCE OPERATION AND MAINTENANCE SUPPORT FOR THE UNITED STATES ANTARCTIC PROGRAM

Plain-Language Summary

National Science Foundation obligated $3.08 billion to LEIDOS, INC. for work described as: SCIENCE OPERATION AND MAINTENANCE SUPPORT FOR THE UNITED STATES ANTARCTIC PROGRAM Key points: 1. The contract's value suggests significant long-term investment in critical scientific infrastructure. 2. A full and open competition with 7 bidders indicates a healthy market and potential for competitive pricing. 3. The Cost Plus Award Fee (CPA) structure incentivizes performance but requires careful oversight to manage costs. 4. The contract duration of nearly 15 years points to a stable, ongoing need for these services. 5. Facilities Support Services are essential for enabling complex scientific operations in a challenging environment. 6. The absence of small business set-asides may limit opportunities for smaller firms in this large contract.

Value Assessment

Rating: good

The total award value of over $3 billion for facilities support services in Antarctica is substantial. Benchmarking this against similar large-scale, geographically isolated support contracts is difficult due to the unique nature of the US Antarctic Program. However, the presence of multiple bidders in a full and open competition suggests that the pricing, while high, is likely competitive within the specialized market for such operations. The Cost Plus Award Fee (CPA) structure allows for flexibility and performance incentives, but necessitates rigorous monitoring to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, attracting 7 bidders. This level of competition is a positive indicator, suggesting that the National Science Foundation sought broad market participation and likely received a range of proposals. A competitive process with multiple bidders generally leads to better price discovery and can drive down costs compared to sole-source or limited competitions. The agency's approach indicates a commitment to leveraging market forces to secure the best value for these essential services.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in more favorable pricing and terms than would have been achievable through a less competitive procurement. It ensures that public funds are being used efficiently by selecting the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are scientists and researchers who rely on the operational support to conduct critical studies in Antarctica. Services delivered include maintenance, logistics, and facility management essential for the functioning of research stations. The geographic impact is concentrated in Antarctica, supporting the US Antarctic Program's presence and operations. Workforce implications include employment for personnel involved in facilities management, logistics, and technical support, likely a mix of direct hires and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPA) contract type can lead to cost overruns if not managed diligently, as contractor profits are tied to performance metrics that may not always align perfectly with cost efficiency.
The long duration of the contract (nearly 15 years) presents a risk of vendor lock-in and potential complacency if performance monitoring is not consistently rigorous.
The specialized nature of Antarctic operations means limited alternative providers, potentially reducing leverage in future renegotiations or procurements.
Reliance on a single large contractor for such critical infrastructure support could pose a significant risk if the contractor experiences financial instability or operational failures.

Positive Signals

The full and open competition with 7 bidders demonstrates a strong market response and likely resulted in a competitive selection process.
The Cost Plus Award Fee (CPA) structure, while requiring oversight, is designed to incentivize high performance and efficiency, potentially leading to better outcomes.
The long-term nature of the contract provides stability and continuity for essential scientific operations in a demanding environment.
Leidos, Inc. is a large, established government contractor with significant experience in complex support services, suggesting a capable provider.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of government operations, particularly for agencies managing remote or specialized infrastructure like the US Antarctic Program. The market for such services is often characterized by large, experienced contractors capable of handling complex logistics and maintenance requirements. Spending benchmarks for similar large-scale, long-term support contracts in extreme environments are scarce due to the unique nature of Antarctic operations, but the scale of this award reflects the significant investment required to maintain scientific presence and research capabilities in the region.

Small Business Impact

This contract was not awarded with a small business set-aside, and the data indicates no explicit small business subcontracting goals were mandated. As a large prime contract awarded to Leidos, Inc., there may be opportunities for small businesses to participate as subcontractors. However, the absence of specific set-asides or mandated subcontracting plans means that the extent of small business involvement will depend on the prime contractor's procurement strategy and the availability of suitable small business capabilities within the supply chain for these specialized services.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the National Science Foundation (NSF). As a Cost Plus Award Fee (CPA) contract, rigorous monitoring of performance metrics and cost expenditures is crucial. The NSF's contracting officers and technical representatives will be tasked with ensuring that Leidos, Inc. meets the performance standards required to earn award fees and that costs are reasonable and allocable. Transparency is facilitated through contract award data, but detailed performance reports and cost audits are typically internal oversight mechanisms.

Related Government Programs

US Antarctic Program Operations
Logistics and Transportation Services
Facilities Maintenance and Management
Scientific Research Support Services
Government Contracting

Risk Flags

Long contract duration may reduce flexibility.
CPA structure requires diligent cost oversight.
Specialized services limit alternative providers.
Potential for contractor complacency over time.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $3.08 billion to LEIDOS, INC.. SCIENCE OPERATION AND MAINTENANCE SUPPORT FOR THE UNITED STATES ANTARCTIC PROGRAM

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $3.08 billion.

What is the period of performance?

Start: 2011-12-23. End: 2026-09-30.

What is the historical spending trend for Science Operation and Maintenance Support for the United States Antarctic Program?

Historical spending data for this specific contract indicates a significant and consistent investment over its lifespan. The current award value of approximately $3.08 billion covers the period from December 2011 to September 2026, averaging over $200 million annually. Prior to this definitive contract, there would have been preceding contracts supporting the US Antarctic Program. Analyzing the specific award amounts for earlier contract vehicles would reveal the trend. However, the substantial value of the current contract suggests a sustained and potentially increasing commitment to maintaining and operating the Antarctic infrastructure, reflecting the ongoing importance of scientific endeavors in the region. The long duration and high value point towards a stable, long-term funding commitment rather than fluctuating year-to-year appropriations for this critical function.

How does the number of bidders (7) compare to similar large-scale facilities support contracts?

A competition with 7 bidders for a contract valued at over $3 billion is generally considered robust, especially for specialized services like those required for the US Antarctic Program. For large-scale facilities support contracts, the number of bidders can vary significantly based on the contract's complexity, geographic scope, and the required technical expertise. Contracts supporting remote or unique environments, like Antarctica, often have fewer potential bidders due to specialized requirements and high entry barriers. In contrast, more common facilities support contracts in CONUS (Continental United States) might see a higher number of bidders. Therefore, 7 bidders for this specific type of contract suggests a healthy level of market interest and competition within its niche, indicating that the NSF successfully attracted capable providers.

What are the primary risks associated with a Cost Plus Award Fee (CPA) contract structure for this program?

The primary risks associated with a Cost Plus Award Fee (CPA) contract for the Antarctic Program revolve around cost control and performance alignment. In a CPA structure, the contractor is reimbursed for allowable costs plus a fee that consists of a fixed base amount and an award amount determined by meeting or exceeding performance objectives. The risk is that the contractor may prioritize achieving award fee targets, potentially leading to increased costs if those targets are not tightly aligned with overall cost efficiency. Without stringent oversight, there's a potential for scope creep or less aggressive cost management than in a fixed-price contract. Additionally, defining objective and measurable performance standards for complex operations in Antarctica can be challenging, leading to potential disputes over award fee determinations. Effective management by the National Science Foundation is critical to mitigate these risks.

How does the contract duration (nearly 15 years) impact program effectiveness and contractor performance?

The nearly 15-year duration of this contract offers significant advantages for program effectiveness by ensuring continuity of operations and services critical to the US Antarctic Program. This long-term stability allows for consistent planning, investment in specialized equipment and training, and the development of deep institutional knowledge by the contractor, Leidos, Inc. For contractor performance, such a long duration can incentivize long-term investment and commitment to quality. However, it also presents risks. A lengthy contract period can potentially lead to complacency if performance monitoring is not consistently rigorous. It may also reduce the agency's leverage over time, especially if the market for such specialized services is limited. The National Science Foundation must maintain vigilant oversight throughout the contract's life to ensure sustained high performance and adapt to any evolving needs or technological advancements.

What is the significance of the North American Industry Classification System (NAICS) code 561210 (Facilities Support Services) in the context of this contract?

The NAICS code 561210, Facilities Support Services, is highly relevant as it defines the primary nature of the services being procured under this contract. This classification encompasses a broad range of services necessary for the operation and maintenance of facilities, including support services such as facility operation and maintenance, security, property management, and similar support services. For the US Antarctic Program, this translates to the essential functions required to keep research stations operational, safe, and habitable in an extremely challenging environment. It covers everything from maintaining buildings and power systems to managing waste, providing logistical support within the stations, and ensuring the overall functionality of the infrastructure that enables scientific research. This code signals that the contract is focused on the comprehensive operational backbone required for the program.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

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

Financial Breakdown

Contract Ceiling: $3,144,911,205

Exercised Options: $3,144,911,205

Current Obligation: $3,080,759,042

Actual Outlays: $1,078,152,662

Subaward Activity

Number of Subawards: 1055

Total Subaward Amount: $538,507,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline