Leidos awarded $29.9M for integrated network nodes, impacting defense communications infrastructure
Contract Overview
Contract Amount: $29,948,920 ($29.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-04-17
End Date: 2025-02-21
Contract Duration: 310 days
Daily Burn Rate: $96.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCURE INTEGRATED NETWORK NODE WITH TRANSIT CASE WITH RUCK
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.9 million to LEIDOS, INC. for work described as: PROCURE INTEGRATED NETWORK NODE WITH TRANSIT CASE WITH RUCK Key points: 1. Value for money appears reasonable given the specialized nature of the equipment. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration is relatively short, indicating a focused need. 4. This contract supports critical defense communication capabilities. 5. The award is a single delivery order under a larger contract vehicle. 6. No small business set-aside was utilized for this specific award.
Value Assessment
Rating: good
The contract value of $29.9 million for integrated network nodes with transit cases appears within a reasonable range for specialized defense electronics. Benchmarking against similar procurements for advanced communication hardware suggests that the pricing is competitive, especially considering the firm-fixed-price nature of the contract which shifts risk to the contractor. The award amount is a single delivery order, implying it's part of a potentially larger, pre-negotiated framework, making direct per-unit cost comparisons difficult without more context on the total contract value and scope.
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 competitive nature of the solicitation suggests that multiple companies likely vied for the award. This level of competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified vendors, potentially leading to better pricing and terms.
Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible value through a broad competitive process, minimizing the risk of overpayment due to limited options.
Public Impact
The primary beneficiaries are the Department of Defense (DoD) units requiring advanced, portable network communication capabilities. The contract delivers integrated network nodes with transit cases, essential for establishing secure and reliable communication in various operational environments. The geographic impact is likely global, supporting deployed military forces wherever they operate. Workforce implications include the need for skilled personnel to manufacture, integrate, and potentially support these advanced electronic systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if this specific node technology becomes a de facto standard without ongoing competitive review.
- Reliance on a single delivery order might obscure the total lifecycle cost and potential for future sole-source follow-ons.
- The specific performance metrics and testing protocols are not detailed, making it hard to fully assess long-term reliability.
- Limited visibility into the supply chain for critical components could pose a risk.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Firm-fixed-price contract structure transfers cost overrun risk to the contractor.
- Leidos, Inc. is a large, established defense contractor with a track record in complex systems integration.
- The contract supports critical national defense communication infrastructure.
Sector Analysis
The procurement falls within the Electronic Computer Manufacturing sector, specifically focusing on advanced networking and communication hardware for defense applications. This sector is characterized by high R&D investment, stringent security requirements, and significant government spending. Comparable spending benchmarks in this area are difficult to pinpoint without knowing the exact technical specifications, but large defense contracts for communication systems often run into tens or hundreds of millions of dollars. The market is dominated by a few large prime contractors capable of handling complex integration and manufacturing.
Small Business Impact
This specific award was not set aside for small businesses, as indicated by the 'sb': false flag. The prime contractor, Leidos, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses within this delivery order. Without further details on subcontracting requirements, the direct impact on the small business ecosystem for this particular contract is likely minimal, though larger prime contractors often utilize small businesses for various components or services under their broader contract vehicles.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the firm-fixed-price contract terms, requiring Leidos to deliver the specified network nodes within budget. Transparency is facilitated through contract award databases, though detailed technical specifications and performance reports may be restricted due to security classifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Communication Systems
- Tactical Network Equipment
- Electronic Computer Manufacturing
- Command and Control Systems
- Integrated Network Solutions
Risk Flags
- Potential for technical obsolescence
- Integration complexity
- Performance in harsh environments
- Supply chain vulnerabilities
Tags
defense, department-of-defense, leidos-inc, electronic-computer-manufacturing, firm-fixed-price, delivery-order, full-and-open-competition, network-node, communications-equipment, virginia, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.9 million to LEIDOS, INC.. PROCURE INTEGRATED NETWORK NODE WITH TRANSIT CASE WITH RUCK
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 $29.9 million.
What is the period of performance?
Start: 2024-04-17. End: 2025-02-21.
What is Leidos, Inc.'s track record with similar defense communication hardware contracts?
Leidos, Inc. has a substantial track record in providing complex technology solutions and systems integration for the Department of Defense and other government agencies. They are frequently awarded contracts for C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems, including networking hardware, software development, and integration services. Their experience spans various defense platforms and operational environments. While specific details on past contracts for 'integrated network nodes with transit cases' are not provided here, Leidos's overall portfolio suggests they possess the technical expertise and capacity to execute such a requirement. Their history includes both large prime contract awards and significant subcontracting roles, demonstrating a broad engagement with defense technology procurements.
How does the $29.9 million award compare to other recent procurements of similar network nodes?
Direct comparison of the $29.9 million award for these specific integrated network nodes is challenging without detailed technical specifications and quantities. However, procurements for advanced tactical networking equipment and C4ISR systems for the DoD can range significantly, from a few million to hundreds of millions of dollars, depending on complexity, quantity, and technological sophistication. Given that this is a single delivery order, it represents a specific tranche of work. Leidos, as a major defense contractor, likely secured this award through a competitive process (as indicated by 'full and open competition'), suggesting the price is benchmarked against market rates for comparable capabilities. The firm-fixed-price nature also implies that the price was negotiated upfront, aiming for value.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential technical obsolescence of the network nodes, integration challenges with existing DoD systems, and performance failures in demanding operational environments. Mitigation strategies are likely embedded within the contract's technical specifications, testing requirements, and warranty clauses. The firm-fixed-price structure shifts financial risk for cost overruns to Leidos. Furthermore, the award under full and open competition suggests that multiple vendors were evaluated, implying a baseline level of capability and reliability was assessed. The relatively short contract duration (ending Feb 2025) also limits the exposure to long-term technological shifts or performance degradation.
How effective is this type of procurement strategy in ensuring the DoD receives cutting-edge communication technology?
Procuring advanced communication technology through competitive delivery orders under larger contract vehicles, like this one, can be effective. Full and open competition encourages innovation and allows the DoD to solicit proposals based on specific performance requirements. However, the effectiveness hinges on the clarity and foresight of those requirements. If the requirements are too narrowly defined, they might stifle innovation. Conversely, if they are too broad, the evaluation process can become complex. The use of established large contractors like Leidos ensures they have the resources to develop and deliver, but it's crucial that the competition remains robust to prevent complacency and ensure continuous technological advancement.
What are the historical spending patterns for integrated network nodes or similar communication equipment within the DoD?
The Department of Defense consistently allocates significant portions of its budget to C4ISR and communication systems. Historical spending patterns show a continuous investment in upgrading tactical networks, satellite communications, and secure data transmission capabilities. Annual spending on such systems often runs into the billions of dollars across various services (Army, Navy, Air Force, Marines). Procurements for network nodes, routers, switches, and related hardware are recurring needs driven by evolving threats, technological advancements, and the deployment of forces globally. This $29.9 million award represents a specific instance within this broader, sustained pattern of investment in defense communications infrastructure.
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: $29,948,920
Exercised Options: $29,948,920
Current Obligation: $29,948,920
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $28,088,820
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: 2024-04-17
Current End Date: 2025-02-21
Potential End Date: 2025-02-21 00:00:00
Last Modified: 2024-09-18
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)