DoD's $163M Kuwait Ammunition Supply Point Contract Awarded to Leidos Under Full and Open Competition
Contract Overview
Contract Amount: $162,983,475 ($163.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-12-30
End Date: 2018-09-28
Contract Duration: 2,829 days
Daily Burn Rate: $57.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: AMMUNITION SUPPLY POINT/THEATER STORAGE AREA IN KUWAIT
Plain-Language Summary
Department of Defense obligated $163.0 million to LEIDOS, INC. for work described as: AMMUNITION SUPPLY POINT/THEATER STORAGE AREA IN KUWAIT Key points: 1. Leidos secured a significant $163M contract for ammunition supply point operations in Kuwait. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges. 4. This spending falls under the 'Other Warehousing and Storage' sector, crucial for logistical support.
Value Assessment
Rating: fair
The $163M contract value over its period of performance appears substantial for warehousing and storage services. Benchmarking against similar large-scale logistical support contracts would be necessary to fully assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a fair price, though the CPFF structure warrants monitoring for cost overruns.
Public Impact
Ensures critical ammunition supply chain operations in a key theater. Supports military readiness and operational capabilities in the region. Potential for job creation and economic activity in Kuwait through contract execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns if not managed tightly.
- Lack of small business participation noted.
- Contract duration is lengthy, requiring sustained oversight.
Positive Signals
- Awarded through full and open competition.
- Supports critical military logistics.
- Leidos is a well-established government contractor.
Sector Analysis
This contract falls under 'Other Warehousing and Storage,' a critical component of defense logistics. Spending in this sector is often substantial, especially in support of overseas operations, and benchmarks vary widely based on scope and location.
Small Business Impact
The data indicates no small business participation in this contract. Efforts to ensure small businesses have opportunities in future, potentially smaller, sub-contracting roles could be explored.
Oversight & Accountability
The lengthy contract duration and CPFF structure necessitate robust oversight from the Department of the Army to ensure cost efficiency and performance standards are met throughout its term.
Related Government Programs
- Other Warehousing and Storage
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of small business participation.
- Long contract duration (2829 days).
- Geopolitical risks inherent in operating in Kuwait.
Tags
other-warehousing-and-storage, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.0 million to LEIDOS, INC.. AMMUNITION SUPPLY POINT/THEATER STORAGE AREA IN KUWAIT
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 $163.0 million.
What is the period of performance?
Start: 2010-12-30. End: 2018-09-28.
What specific warehousing and storage services are included in this $163M contract, and how do they align with operational needs?
The contract covers the Ammunition Supply Point/Theater Storage Area in Kuwait. This likely includes receiving, storing, maintaining, and issuing ammunition. The scope is critical for ensuring the availability and readiness of munitions for military operations in the region, directly supporting theater commanders' requirements.
What are the primary risks associated with a Cost Plus Fixed Fee contract for ammunition logistics in a deployed environment?
The primary risks with a CPFF contract in this context include potential cost overruns if the fixed fee is not adequately calibrated to the effort, and the contractor having less incentive to control costs compared to fixed-price contracts. In a deployed environment, unforeseen logistical challenges or security issues could also drive up costs.
How effective is the 'full and open competition' method in ensuring cost-effectiveness for long-term logistical support contracts like this one?
Full and open competition is generally effective in driving cost-effectiveness by fostering a competitive environment where multiple companies vie for the contract. This typically leads to better pricing and service offerings. However, the CPFF structure introduces a layer of complexity that requires diligent oversight to ensure the anticipated cost savings materialize throughout the contract's lifecycle.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J09R0236
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR, 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: $162,983,475
Exercised Options: $162,983,475
Current Obligation: $162,983,475
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-12-30
Current End Date: 2018-09-28
Potential End Date: 2018-09-28 00:00:00
Last Modified: 2022-08-16
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