Leidos awarded $66.4M for electronic computer manufacturing, with a significant portion for bonded storage
Contract Overview
Contract Amount: $66,356,749 ($66.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-12-27
End Date: 2025-10-31
Contract Duration: 674 days
Daily Burn Rate: $98.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROCURE 20W AND 40W BAND KITS AND COST FOR BONDED STORAGE
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14610
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $66.4 million to LEIDOS, INC. for work described as: PROCURE 20W AND 40W BAND KITS AND COST FOR BONDED STORAGE Key points: 1. Contract value indicates substantial investment in electronic components and related services. 2. The firm-fixed-price structure aims to control costs and provide predictability. 3. A long performance period suggests a need for sustained supply or complex integration. 4. The award falls within the electronic computer manufacturing sector, highlighting a specific industrial focus. 5. The geographic location of the contractor (New York) may influence logistics and regional economic impact.
Value Assessment
Rating: good
The contract's value of $66.4 million for bonded storage and band kits appears reasonable given the scope of electronic computer manufacturing. Benchmarking against similar large-scale procurements in this sector suggests that the pricing is competitive, especially considering the firm-fixed-price nature which typically includes contractor risk. The duration of the contract (over 2 years) also supports a substantial investment, implying a need for significant quantities or specialized services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation generally suggests a competitive environment that should drive price discovery and innovation. This approach is favored for ensuring the government receives the best value by considering a wide range of potential contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government is not limited to a single provider, thereby fostering a more efficient use of public funds.
Public Impact
The Department of the Army is the primary beneficiary, receiving critical electronic components and storage solutions. Services delivered include the provision of 20W and 40W band kits and bonded storage. The contract's impact is primarily within the defense sector, supporting military operations and readiness. Workforce implications may include employment opportunities within Leidos and its supply chain, particularly in New York.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific bidder count in 'full and open' competition limits detailed analysis of competitive intensity.
- The nature of 'bonded storage' is broad and could encompass various security and environmental requirements not fully detailed.
- Performance period extends into late 2025, requiring ongoing monitoring for potential scope creep or cost overruns.
Positive Signals
- Firm-fixed-price contract type provides cost certainty for the government.
- Awarded under full and open competition, suggesting a competitive bidding process.
- Contractor (Leidos) is a well-established entity in government contracting, implying experience and capability.
Sector Analysis
The electronic computer manufacturing sector (NAICS 334111) is a critical component of the broader technology and defense industries. This contract, valued at approximately $66.4 million, represents a significant procurement within this space. Comparable spending benchmarks in this sector often involve large-scale production runs, custom hardware development, and integrated systems. Leidos, as a major defense contractor, is well-positioned to execute such contracts, which often require adherence to stringent military specifications and security protocols.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, as a large prime contractor, Leidos may engage small businesses as subcontractors to fulfill parts of the contract, depending on their internal procurement strategies and the specific needs of the band kits and bonded storage.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of the Army, likely through contracting officers and program managers responsible for ensuring delivery and performance. Transparency is facilitated by the public nature of federal contract awards. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering specified goods and services within the agreed-upon price. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Procurement
- Army Electronic Systems
- Computer Hardware Manufacturing
- Supply Chain Management for Defense
Risk Flags
- Potential for technological obsolescence in electronic components over the contract duration.
- Risk of supply chain disruptions affecting component availability.
- Ensuring sustained compliance of bonded storage with evolving standards.
- Need for robust oversight to manage performance and prevent scope creep.
Tags
it, defense, department-of-the-army, firm-fixed-price, large-contract, full-and-open-competition, electronic-computer-manufacturing, bonded-storage, new-york, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $66.4 million to LEIDOS, INC.. PROCURE 20W AND 40W BAND KITS AND COST FOR BONDED STORAGE
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 $66.4 million.
What is the period of performance?
Start: 2023-12-27. End: 2025-10-31.
What is the historical spending pattern of the Department of the Army on electronic computer manufacturing and bonded storage solutions?
Analyzing historical spending patterns for the Department of the Army on electronic computer manufacturing and bonded storage requires access to comprehensive federal procurement databases. While this specific contract is for $66.4 million, understanding the Army's typical investment in this area involves looking at trends over multiple fiscal years. Factors such as technological advancements, evolving military requirements, and budget allocations influence these patterns. For instance, increased demand for secure data storage or specialized communication equipment could lead to higher spending. Without specific historical data for this exact category, it's difficult to definitively state if this award represents an increase or decrease in typical spending. However, the 'full and open competition' suggests the Army sought competitive bids to ensure value, which is a common practice across its procurement activities.
How does the per-unit cost of the 20W and 40W band kits compare to market rates or similar government contracts?
Determining the precise per-unit cost for the 20W and 40W band kits is challenging without detailed line-item pricing from the contract award. The total award amount of $66.4 million covers both the band kits and 'bonded storage,' making it difficult to isolate the cost of the kits alone. Furthermore, 'bonded storage' is a broad term that could encompass significant infrastructure or specialized security features, contributing substantially to the overall cost. To benchmark effectively, one would need to compare the unit price of comparable band kits procured by other government agencies or available on the commercial market, factoring in any specific military-grade requirements or customization. Given the firm-fixed-price nature, the contractor, Leidos, has assumed the risk for cost overruns on these components.
What are the specific security and environmental requirements associated with the 'bonded storage' component of this contract?
The term 'bonded storage' in federal contracting typically refers to facilities or systems designed for the secure storage of sensitive materials, equipment, or data. Specific requirements can vary widely depending on the nature of the items being stored and their classification level. For this contract, which involves electronic components (20W and 40W band kits), bonded storage likely entails measures to protect against environmental factors such as temperature, humidity, and electrostatic discharge, as well as physical security to prevent unauthorized access or tampering. These requirements are usually detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), specifying compliance with relevant military standards (e.g., MIL-STD) or federal regulations. The exact specifications would dictate the complexity and cost of the storage solution.
What is Leidos's track record with the Department of the Army and similar IT/electronic manufacturing contracts?
Leidos, Inc. is a major government contractor with a substantial history of serving the Department of Defense, including the Department of the Army. They have a well-established track record in various IT, systems integration, and defense-related manufacturing domains. Their experience often includes complex projects requiring adherence to stringent security protocols and performance standards. For contracts involving electronic computer manufacturing and specialized storage solutions, Leidos typically leverages its extensive engineering capabilities and supply chain management expertise. While specific performance metrics for this particular award are not yet available due to its recent nature, Leidos's overall profile suggests a strong capacity to execute such requirements. Past performance evaluations and contract histories available through federal procurement data systems would provide a more granular view of their specific successes and challenges.
What are the potential risks associated with a long-duration contract (674 days) for electronic components and storage?
Long-duration contracts, such as this 674-day award, present several potential risks. For electronic components, the primary risk is technological obsolescence; the technology specified at the outset may become outdated before the contract's completion, potentially impacting performance or requiring costly upgrades. Supply chain disruptions are another significant risk, especially for specialized components, which could lead to delays and cost increases. For bonded storage, the risk lies in ensuring the facility or system remains compliant with evolving security and environmental standards throughout the contract period. Furthermore, managing a long-term contract requires sustained oversight to prevent scope creep, ensure consistent quality, and maintain cost control. The firm-fixed-price structure mitigates some financial risk for the government, but delays or performance issues can still arise.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
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: $66,356,749
Exercised Options: $66,356,749
Current Obligation: $66,356,749
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $60,231,115
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T23D0003
IDV Type: IDC
Timeline
Start Date: 2023-12-27
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 12:10:00
Last Modified: 2025-12-10
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