Leidos awarded $15.2M for advanced operator stations, supporting Army modernization efforts
Contract Overview
Contract Amount: $15,202,375 ($15.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-04-30
End Date: 2028-03-27
Contract Duration: 1,062 days
Daily Burn Rate: $14.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROCURE MASTER CONTROL STATION, FULL FUNCTION CREW STATION, RADIO INTERFACE TERMINAL, TACTICAL CONTROL CONSOLE, DUAL ENHANCED OPERATOR STATION, OPERATOR STATION, AND LOUDSPEAKER
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32822
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $15.2 million to LEIDOS, INC. for work described as: PROCURE MASTER CONTROL STATION, FULL FUNCTION CREW STATION, RADIO INTERFACE TERMINAL, TACTICAL CONTROL CONSOLE, DUAL ENHANCED OPERATOR STATION, OPERATOR STATION, AND LOUDSPEAKER Key points: 1. Contract value represents a significant investment in advanced command and control systems. 2. Full and open competition suggests a robust market for these specialized electronic manufacturing capabilities. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. Delivery order structure indicates phased deployment and potential for future taskings. 5. Focus on operator stations highlights modernization of soldier-computer interfaces. 6. Contract duration of over two years allows for sustained support and integration.
Value Assessment
Rating: good
The contract value of $15.2 million for a variety of operator stations and consoles appears reasonable given the specialized nature of the equipment. Benchmarking against similar procurements for advanced electronic control systems is challenging without more granular data on specific configurations and capabilities. However, the firm-fixed-price contract type suggests that the government has negotiated a set price, which can be advantageous for cost control. The duration of the contract also allows for potential economies of scale in production and delivery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, driving innovation and potentially leading to more favorable pricing for the government. The open nature of the competition suggests that Leidos offered a compelling technical solution and competitive price.
Taxpayer Impact: Full and open competition maximizes the opportunity for taxpayer dollars to be used efficiently by encouraging a wide range of suppliers to offer their best prices and capabilities.
Public Impact
Soldiers and personnel operating advanced command and control systems will benefit from enhanced operator stations. Services delivered include the manufacturing and supply of critical electronic hardware for military operations. The contract is associated with the state of Florida, suggesting potential for local economic impact. Workforce implications may include specialized manufacturing and engineering roles within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if these systems become highly integrated and proprietary.
- Dependence on a single contractor for critical hardware could pose supply chain risks.
- Ensuring long-term interoperability with existing and future systems requires careful planning.
Positive Signals
- Award to a known entity like Leidos suggests a degree of confidence in their capabilities.
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition indicates a healthy market and potential for competitive pricing.
Sector Analysis
This contract falls within the Electronic Computer Manufacturing sector, specifically related to specialized control systems and operator interfaces. The market for defense-related electronic systems is characterized by high technological demands, stringent quality requirements, and significant R&D investment. Comparable spending benchmarks would typically involve other procurements for command and control hardware, tactical displays, and specialized computing equipment for military applications, often running into millions or tens of millions of dollars.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the extent of small business participation will depend on Leidos's subcontracting strategy. Without specific set-aside provisions or reported subcontracting goals, the direct impact on the small business ecosystem is unclear, though large prime contractors often engage small businesses for specialized components or services.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is generally facilitated through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Army Command and Control Systems
- Tactical Computing Hardware
- Electronic Warfare Systems
- Soldier Modernization Programs
- Defense Information Technology Contracts
Risk Flags
- Potential for technical obsolescence
- Supply chain vulnerability for specialized components
- Integration complexity with existing systems
Tags
it, defense, department-of-the-army, full-and-open-competition, firm-fixed-price, delivery-order, electronic-computer-manufacturing, command-and-control, operator-stations, florida, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.2 million to LEIDOS, INC.. PROCURE MASTER CONTROL STATION, FULL FUNCTION CREW STATION, RADIO INTERFACE TERMINAL, TACTICAL CONTROL CONSOLE, DUAL ENHANCED OPERATOR STATION, OPERATOR STATION, AND LOUDSPEAKER
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 $15.2 million.
What is the period of performance?
Start: 2025-04-30. End: 2028-03-27.
What is Leidos's track record with similar Department of the Army procurements for electronic control systems?
Leidos has a substantial history of contracting with the Department of Defense, including the Army, for a wide array of IT, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and systems integration services. They are a major defense contractor frequently awarded large-value contracts for complex systems. Specific to electronic control systems and operator stations, Leidos has likely delivered similar or related technologies under previous contracts, leveraging their expertise in systems engineering and hardware integration. Analyzing their past performance on similar firm-fixed-price delivery orders would provide insight into their ability to meet schedule, cost, and technical requirements for this specific award.
How does the per-unit cost of these operator stations compare to industry benchmarks?
Determining a precise per-unit cost benchmark for these operator stations is challenging without detailed specifications of each component (e.g., PROCURE MASTER CONTROL STATION, FULL FUNCTION CREW STATION, TACTICAL CONTROL CONSOLE, DUAL ENHANCED OPERATOR STATION). These are likely highly specialized, ruggedized, and feature-rich systems tailored for military environments, which command a premium over commercial off-the-shelf (COTS) equivalents. Industry benchmarks for high-end tactical displays, control consoles, and integrated workstations can range from tens of thousands to over a hundred thousand dollars per unit, depending on customization, processing power, display technology, and environmental hardening. The total contract value of $15.2 million spread over potentially dozens or hundreds of units would need to be analyzed against these specialized market rates.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks include potential technical obsolescence of the hardware over its lifecycle, integration challenges with existing Army networks, and supply chain disruptions for specialized components. Mitigation strategies likely involve robust testing and validation protocols, adherence to strict interoperability standards, and careful vendor selection for critical sub-components. The firm-fixed-price nature of the contract shifts some cost risk to the contractor, incentivizing them to manage these factors effectively. Furthermore, the multi-year duration allows for phased deployment and potential mid-contract adjustments if unforeseen issues arise, though significant changes would require contract modifications.
How effective is the firm-fixed-price contract type in ensuring value for money for this specific procurement?
The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the risks are manageable. For the procurement of specified electronic hardware like operator stations, where the technical requirements are likely clear, FFP provides cost certainty to the government. It incentivizes the contractor, Leidos, to control costs and perform efficiently to maximize profit. This structure minimizes the risk of cost overruns for the government compared to cost-reimbursement contracts. However, value for money also depends on the initial price negotiation and the quality of the delivered product meeting the defined requirements.
What is the historical spending trend for similar operator station procurements by the Department of the Army?
Historical spending trends for similar operator station procurements by the Department of the Army would likely show a pattern of significant investment in C4ISR and soldier modernization technologies. Over the past decade, the Army has consistently allocated substantial budgets towards upgrading its command and control infrastructure, including advanced displays, consoles, and computing platforms. Spending in this area can fluctuate based on strategic priorities, technological advancements, and specific program lifecycles. Analyzing aggregated data for categories like 'Tactical Data Systems,' 'Command and Control Equipment,' or 'Electronic Warfare Systems' over several fiscal years would reveal trends in investment levels and potentially identify periods of increased or decreased procurement activity for such specialized hardware.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: $15,202,375
Exercised Options: $15,202,375
Current Obligation: $15,202,375
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $14,303,900
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: 2025-04-30
Current End Date: 2028-03-27
Potential End Date: 2028-03-27 12:03:00
Last Modified: 2025-09-26
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