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

Positive Signals

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

Risk Flags

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: ManufacturingComputer and Peripheral Equipment ManufacturingElectronic 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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