Leidos, Inc. awarded $19.2M for Integrated Building Interior Surveillance System by Defense Contract Management Agency
Contract Overview
Contract Amount: $19,227,158 ($19.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-02-15
End Date: 2011-05-31
Contract Duration: 1,201 days
Daily Burn Rate: $16.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: INTEGRATED BUILDING INTERIOR SURVEILLANCE SYSTEM
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.2 million to LEIDOS, INC. for work described as: INTEGRATED BUILDING INTERIOR SURVEILLANCE SYSTEM Key points: 1. Contract awarded for a surveillance system, indicating a need for enhanced security or monitoring capabilities. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Awarded by the Defense Contract Management Agency, suggesting a focus on defense-related infrastructure or operations. 4. The duration of the contract is over 1000 days, implying a significant and ongoing requirement. 5. The North American Industry Classification System (NAICS) code 334511 points to manufacturing of search, detection, and navigation instruments. 6. The contract was awarded through full and open competition, suggesting a robust bidding process.
Value Assessment
Rating: fair
The total award amount of $19.2 million for an Integrated Building Interior Surveillance System over a period of approximately 3.3 years (1201 days) suggests a moderate investment. Without specific details on the system's capabilities, scope, and the number of units or locations covered, a direct comparison to similar contracts is challenging. However, the Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation, which warrants careful monitoring to ensure value for money. Benchmarking the per-unit cost would require detailed specifications of the surveillance system's components and features.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a competitive environment where multiple companies vied for the contract. The number of bidders is not specified, but the open competition method generally promotes price discovery and encourages contractors to offer competitive pricing to win the award. This approach is intended to ensure the government receives the best value through a broad range of offers.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices due to market forces and a wider selection of qualified vendors, leading to more efficient use of public funds.
Public Impact
The primary beneficiaries are likely entities within the Department of Defense requiring enhanced interior surveillance capabilities. The services delivered involve the provision and potentially installation/maintenance of an integrated surveillance system. The geographic impact is likely concentrated within facilities managed or overseen by the Defense Contract Management Agency, primarily in Virginia. Workforce implications could include roles in manufacturing, installation, maintenance, and oversight of the surveillance technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit.
- The duration of the contract (1201 days) may indicate a long-term reliance on this specific solution, potentially limiting future flexibility.
- Lack of specific details on system performance metrics makes it difficult to assess effectiveness and value.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
- The contract is managed by the Defense Contract Management Agency, implying a level of oversight for defense-related procurements.
- The system falls under NAICS code 334511, indicating a specialized manufacturing sector with established industry standards.
Sector Analysis
The contract falls within the Manufacturing of Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector (NAICS 334511). This is a specialized segment of the broader defense industrial base, focusing on advanced technological systems. The market for such systems is driven by government defense and security needs. Comparable spending benchmarks would depend on the specific technological sophistication and scale of the surveillance system, but investments in advanced sensor and monitoring technology for defense applications are common.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like Leidos, Inc. were the primary recipients. There is no explicit information on subcontracting plans for small businesses within this award. This means the direct impact on the small business ecosystem for this specific contract is likely minimal, unless Leidos actively engages small businesses as subcontractors, which is not detailed here.
Oversight & Accountability
Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet their contractual obligations. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor costs and prevent overruns. Transparency regarding the system's deployment and performance metrics would be key to assessing accountability, though such details are not readily available in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Security Systems
- Building Security Technology
- Surveillance Equipment Procurement
- Department of Defense Infrastructure
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Lack of detailed performance metrics makes effectiveness assessment difficult.
- No information provided on small business subcontracting.
Tags
defense, department-of-defense, dcma, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, surveillance-systems, integrated-systems, manufacturing, naics-334511, leidos-inc, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to LEIDOS, INC.. INTEGRATED BUILDING INTERIOR SURVEILLANCE SYSTEM
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $19.2 million.
What is the period of performance?
Start: 2008-02-15. End: 2011-05-31.
What is the specific nature and capability of the 'INTEGRATED BUILDING INTERIOR SURVEILLANCE SYSTEM' awarded to Leidos, Inc.?
The provided data identifies the contract's purpose as an 'INTEGRATED BUILDING INTERIOR SURVEILLANCE SYSTEM' under NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing). However, the specific technical specifications, features, and intended use of this system are not detailed. It likely involves advanced sensors, cameras, data processing, and potentially network integration for monitoring activities within government buildings. The 'integrated' aspect suggests a comprehensive solution rather than standalone components. Further details would be required from the contract's statement of work or technical exhibits to understand its precise capabilities, such as resolution, coverage area, data retention policies, and threat detection functionalities.
How does the $19.2 million award compare to typical spending on similar surveillance systems by the Department of Defense?
Comparing the $19.2 million award for the Integrated Building Interior Surveillance System requires context on the system's scope, technology, and duration. Surveillance systems can range from basic camera installations to highly sophisticated, AI-driven monitoring networks. Given the contract duration of 1201 days (approx. 3.3 years) and a Cost Plus Fixed Fee structure, this represents a significant, long-term investment. Without knowing the number of facilities covered, the technological sophistication (e.g., AI capabilities, sensor types), and the specific security requirements it addresses, a direct benchmark is difficult. However, major defense procurements for advanced security and monitoring technologies often run into tens or hundreds of millions of dollars, making $19.2 million a moderate to substantial investment for a specialized system.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this surveillance system?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total project cost. For the government, this means the final cost could significantly exceed initial estimates if costs are not meticulously managed and controlled. Effective oversight, detailed cost tracking, and clear definition of allowable costs are critical to mitigate this risk and ensure the project remains within budget expectations.
What is Leidos, Inc.'s track record with similar defense surveillance or integrated system contracts?
Leidos, Inc. is a major government contractor with extensive experience in defense, intelligence, and technology solutions. While the specific data provided does not detail Leidos's past performance on identical surveillance systems, the company frequently engages in large-scale IT, systems integration, and defense-related projects. Their portfolio often includes work on command and control systems, sensor integration, cybersecurity, and infrastructure modernization for various government agencies, including the Department of Defense. A deeper dive into Leidos's contract history, performance evaluations (e.g., CPARS), and specific project successes or challenges related to surveillance or integrated building systems would be necessary to fully assess their track record for this particular award.
How has spending on 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511) evolved within the Department of Defense over the past five
Spending within NAICS code 334511 by the Department of Defense (DoD) has generally remained robust, reflecting the continuous need for advanced technological systems in defense operations. While specific figures for this code fluctuate annually based on program priorities and budget allocations, the sector consistently represents a significant portion of defense procurement. Trends often show increased investment in areas like electronic warfare, intelligence, surveillance, and reconnaissance (ISR) systems, and advanced navigation technologies. The $19.2 million awarded to Leidos for the surveillance system is one component within this broader spending category. Analyzing historical DoD budgets and contract databases would reveal year-over-year trends and highlight specific sub-sectors within 334511 that have seen the most growth or decline.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,227,158
Exercised Options: $19,227,158
Current Obligation: $19,227,158
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-02-15
Current End Date: 2011-05-31
Potential End Date: 2011-05-31 00:00:00
Last Modified: 2016-07-26
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