DoD Awards $58.8M for Active Protection System on Common Hardware System 6th Gen Contract to Leidos, Inc
Contract Overview
Contract Amount: $58,751,764 ($58.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-02-29
End Date: 2026-03-18
Contract Duration: 748 days
Daily Burn Rate: $78.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCURE EXPEDITED ACTIVE PROTECTION SYSTEM ON THE COMMON HARDWARE SYSTEM 6TH GENERATION CONTRACT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $58.8 million to LEIDOS, INC. for work described as: PROCURE EXPEDITED ACTIVE PROTECTION SYSTEM ON THE COMMON HARDWARE SYSTEM 6TH GENERATION CONTRACT Key points: 1. The contract value is substantial at $58.8 million, indicating a significant investment in defense technology. 2. Leidos, Inc. is a major defense contractor, suggesting established capabilities but also potential for limited future competition. 3. The expedited nature of the award may warrant scrutiny regarding the thoroughness of the acquisition process. 4. The procurement falls under the Electronic Computer Manufacturing sector, highlighting the increasing role of technology in defense systems.
Value Assessment
Rating: good
The contract value of $58.8 million for an Active Protection System on a common hardware platform appears reasonable given the complexity and specialized nature of defense technology. Benchmarking against similar advanced system procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery and achieving a competitive price. However, the 'expedited' nature of the award could potentially limit the number of bidders or the time for proposal evaluation.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment. The final price achieved will depend on the specific bids received and the negotiation process.
Public Impact
Enhances soldier protection through advanced active protection systems, directly impacting battlefield survivability. Supports the modernization of Army ground vehicles, contributing to overall force readiness and technological superiority. The contract's duration of over two years suggests a sustained commitment to this technology's development and deployment.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Expedited award process may limit thoroughness.
- Potential for vendor lock-in with specialized hardware.
Positive Signals
- Full and open competition utilized.
- Addresses critical soldier protection needs.
- Supports modernization efforts.
Sector Analysis
This procurement falls within the Electronic Computer Manufacturing sector, specifically related to defense applications. Spending in this area is driven by the need for advanced technological capabilities to maintain military superiority and protect personnel. Benchmarks for similar advanced defense system contracts are typically high due to R&D and specialized manufacturing requirements.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Given the prime contractor is Leidos, Inc., a large corporation, it's possible that subcontracting opportunities may exist for small businesses, but this is not explicitly stated in the provided information.
Oversight & Accountability
The Department of the Army is responsible for overseeing this contract. Standard procurement oversight mechanisms should be in place to ensure timely delivery, quality, and adherence to the contract terms. The expedited nature might require enhanced oversight to mitigate risks.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Expedited award process.
- Potential for limited competition despite 'full and open'.
- Lack of explicit small business participation.
- Complexity of integrating advanced defense systems.
Tags
electronic-computer-manufacturing, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.8 million to LEIDOS, INC.. PROCURE EXPEDITED ACTIVE PROTECTION SYSTEM ON THE COMMON HARDWARE SYSTEM 6TH GENERATION CONTRACT
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 $58.8 million.
What is the period of performance?
Start: 2024-02-29. End: 2026-03-18.
What specific capabilities does the Active Protection System offer, and how do they compare to existing or alternative technologies?
The Active Protection System (APS) is designed to detect, track, and neutralize incoming threats such as anti-tank guided missiles and rocket-propelled grenades before they impact the protected platform. Specific capabilities would include threat detection range, engagement success rate, and the type of countermeasures employed. A comparative analysis against other APS solutions, both fielded and developmental, would reveal its technological advantages, potential limitations, and overall effectiveness in enhancing survivability.
What are the key risks associated with the expedited award of this contract, and how are they being mitigated?
Expedited awards can increase risks such as insufficient vetting of contractors, inadequate price competition, or overlooking potential technical deficiencies. Mitigation strategies may include leveraging existing contract vehicles, relying on pre-qualified vendors, or implementing a streamlined but rigorous review process. The Department of the Army would need robust internal controls and potentially post-award reviews to ensure the chosen system meets all requirements and represents good value despite the accelerated timeline.
How does this investment in the Common Hardware System 6th Generation contribute to the overall modernization strategy and long-term effectiveness of Army ground vehicles?
Investing in the Common Hardware System 6th Generation with an integrated Active Protection System is crucial for modernizing Army ground vehicles by providing a standardized, adaptable platform for future upgrades and incorporating advanced defensive capabilities. This ensures that vehicles remain relevant against evolving threats, enhances soldier survivability, and potentially reduces lifecycle costs through commonality. It directly supports the Army's goal of maintaining a technological edge and operational readiness in complex environments.
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: $58,751,764
Exercised Options: $58,751,764
Current Obligation: $58,751,764
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $55,218,056
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: 2024-02-29
Current End Date: 2026-03-18
Potential End Date: 2026-03-18 12:03:00
Last Modified: 2025-09-30
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