Department of the Army awards $37.3M contract for Vigilant Pursuit Systems, highlighting a sole-source acquisition
Contract Overview
Contract Amount: $37,347,702 ($37.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-27
End Date: 2012-09-26
Contract Duration: 365 days
Daily Burn Rate: $102.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: UCA FOR THE ACQUISITION OF 8 VIGILANT PURSUIT SYSTEMS WITH RELATED PRODUCTS, SUPPORT, AND TRAINING.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $37.3 million to LEIDOS, INC. for work described as: UCA FOR THE ACQUISITION OF 8 VIGILANT PURSUIT SYSTEMS WITH RELATED PRODUCTS, SUPPORT, AND TRAINING. Key points: 1. The contract value of $37.3 million for 8 Vigilant Pursuit Systems represents a significant investment in specialized communication equipment. 2. The acquisition was conducted on a sole-source basis, indicating potential limitations in market availability or specific contractor capabilities. 3. The firm-fixed-price contract type suggests that the government has a clear understanding of the total cost, transferring some risk to the contractor. 4. The duration of 365 days for this definitive contract points to a focused, one-year delivery and support period. 5. The North American Industry Classification System (NAICS) code 334290 categorizes this as 'Other Communications Equipment Manufacturing,' placing it within a niche sector. 6. The award to Leidos, Inc. suggests a reliance on established contractors with proven expertise in this specialized area.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its sole-source nature and specialized equipment. The total award of $37.3 million for 8 systems averages to approximately $4.66 million per system, including related products, support, and training. Without competitive bids or publicly available cost breakdowns, it's difficult to definitively assess if this represents excellent value for money. However, the firm-fixed-price structure implies a negotiated price that the government found acceptable at the time of award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor possesses the necessary capabilities, technology, or security clearances required for the specific product or service. The lack of competition means that the government did not benefit from price discovery through a bidding process, potentially leading to a higher price than if multiple offers had been considered.
Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from the cost savings that can arise from a competitive bidding process. The government accepted the price proposed by the sole provider without the leverage of alternative offers.
Public Impact
The primary beneficiaries of this contract are the Department of the Army, which will receive advanced Vigilant Pursuit Systems. The contract delivers 8 specialized communication systems, along with associated products, support, and training, enhancing operational capabilities. The geographic impact is likely concentrated within Army operational units, though the specific deployment locations are not detailed. Workforce implications may include training for Army personnel on the new systems and potential support roles for Leidos, Inc. personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Lack of transparency in the justification for sole-sourcing could obscure potential alternatives.
- Specialized nature of the equipment may create vendor lock-in for future sustainment and upgrades.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award to an established contractor like Leidos, Inc. suggests a focus on reliability and proven performance.
- Inclusion of support and training ensures operational readiness and effective utilization of the systems.
Sector Analysis
The contract falls under the 'Other Communications Equipment Manufacturing' sector, identified by NAICS code 334290. This sector encompasses a wide range of communication devices beyond standard telephony and radio. The market for specialized defense communication systems is often characterized by high barriers to entry due to technological complexity, stringent performance requirements, and significant R&D investment. Spending in this area is driven by national security needs and technological advancements, with contracts often being large and awarded to a limited number of specialized defense contractors.
Small Business Impact
This contract does not appear to include a small business set-aside, as indicated by 'sb': false. The award to Leidos, Inc., a large prime contractor, suggests that small businesses are unlikely to be directly involved as prime recipients. However, Leidos may engage small businesses as subcontractors for specific components or services, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm-fixed-price nature provides a degree of financial accountability. Transparency regarding the justification for the sole-source award and performance metrics would be key areas for oversight. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Communications Systems
- Specialized Electronic Equipment Procurement
- Tactical Communication Systems
- Command and Control Systems
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency on justification
Tags
department-of-defense, department-of-the-army, communications-equipment, sole-source, definitive-contract, firm-fixed-price, leidos-inc, maryland, defense-sector, specialized-equipment, acquisition-value-37m
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.3 million to LEIDOS, INC.. UCA FOR THE ACQUISITION OF 8 VIGILANT PURSUIT SYSTEMS WITH RELATED PRODUCTS, SUPPORT, AND TRAINING.
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 Army).
What is the total obligated amount?
The obligated amount is $37.3 million.
What is the period of performance?
Start: 2011-09-27. End: 2012-09-26.
What specific capabilities do the 8 Vigilant Pursuit Systems provide to the Department of the Army?
The provided data does not detail the specific capabilities of the Vigilant Pursuit Systems. However, given the NAICS code (Other Communications Equipment Manufacturing) and the context of a Department of the Army contract, these systems likely provide advanced, specialized communication functionalities critical for military operations. This could include secure data transmission, real-time situational awareness, command and control capabilities, or interoperability with existing military networks. The 'Vigilant Pursuit' name suggests a focus on surveillance, tracking, or rapid response scenarios. Further details would require access to the contract's statement of work or technical specifications.
Why was this contract awarded on a sole-source basis instead of being competed?
The data indicates the contract was 'NOT COMPETED' and is a 'sole-source' award. The specific justification for this sole-sourcing is not provided in the abbreviated data. Common reasons for sole-source awards include unique capabilities or proprietary technology held by a single vendor, urgent and compelling needs where only one source can reasonably satisfy the requirement, or situations where a previous contract was awarded and follow-on work is only feasible with the original contractor due to compatibility or integration issues. Without the official justification document (e.g., Justification and Approval for Other Than Full and Open Competition), the precise reason remains speculative but points to a perceived lack of viable alternatives.
How does the $37.3 million contract value compare to historical spending on similar communication systems by the Department of Defense?
Comparing this $37.3 million contract to historical spending on similar systems is difficult without more specific information on the 'Vigilant Pursuit Systems' and their function. The Department of Defense procures a vast array of communication equipment, ranging from tactical radios to complex network infrastructure. If the Vigilant Pursuit Systems are highly specialized, niche equipment, this value might be typical for such systems. However, if they represent a more common type of communication gear, $37.3 million could be a substantial amount, especially for only 8 units. Analyzing historical spending patterns for comparable systems, considering quantity, technological sophistication, and support packages, would be necessary for a meaningful benchmark.
What is the track record of Leidos, Inc. in providing similar communication systems to the government?
Leidos, Inc. is a major government contractor with a significant track record across various sectors, including defense and intelligence. They are known for providing a wide range of technology solutions, including command, control, communications, computers, and intelligence (C4I) systems, as well as cybersecurity and information technology services. While the specific 'Vigilant Pursuit Systems' might be a particular product line, Leidos has extensive experience in developing, integrating, and supporting complex communication and IT systems for military and government clients. Their history suggests they possess the technical expertise and capacity to deliver on such contracts, although the performance specifics for this particular award would require further investigation.
What are the potential risks associated with a sole-source acquisition of this magnitude?
Sole-source acquisitions, especially those valued at $37.3 million, carry inherent risks. The primary risk is the potential for inflated pricing due to the lack of competitive pressure, meaning the government may pay more than necessary. There's also a risk of reduced innovation, as the sole provider may have less incentive to improve their offering compared to a competitive market. Furthermore, reliance on a single vendor can lead to vendor lock-in, making future procurements or transitions more difficult and costly. Ensuring adequate oversight and robust contract management becomes even more critical to mitigate these risks and verify that the government is receiving fair value and necessary performance.
What is the expected performance outcome or program effectiveness based on this contract?
The contract aims to deliver 8 Vigilant Pursuit Systems with related products, support, and training. The expected outcome is enhanced operational capability for the Department of the Army, likely in areas related to communication, surveillance, or command and control, as suggested by the system's name and sector. The firm-fixed-price structure and inclusion of support and training are intended to ensure the systems are delivered on time, within budget, and are effectively integrated and utilized by the end-users. Program effectiveness would ultimately be measured by how well these systems meet the Army's operational requirements and contribute to mission success, which is not detailed in the provided data.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,555,476
Exercised Options: $37,555,476
Current Obligation: $37,347,702
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-09-27
Current End Date: 2012-09-26
Potential End Date: 2012-09-26 12:09:00
Last Modified: 2018-09-10
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