DoD Awards $117M for Sensor Support Services to Leidos, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $117,304,176 ($117.3M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2024-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $64.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SENSORS SUPPORT SERVICES.

Place of Performance

Location: ABERDEEN, HARFORD County, MARYLAND, 21001

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $117.3 million to LEIDOS, INC. for work described as: SENSORS SUPPORT SERVICES. Key points: 1. Contract awarded to Leidos, Inc. for sensor support services. 2. Full and open competition was utilized for this award. 3. The contract has a duration of 1826 days. 4. The contract type is Cost Plus Fixed Fee. 5. The award is for the Department of the Army.

Value Assessment

Rating: good

The Cost Plus Fixed Fee contract type allows for flexibility in scope but can lead to higher costs if not managed tightly. The total award amount of $117M over five years suggests a moderate annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery and achieving a competitive price. This method allows all eligible contractors to bid, fostering a more robust market.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most advantageous offers.

Public Impact

Ensures continued support for critical sensor systems used by the Army. Supports technological advancements and maintenance of defense capabilities. Potential for job creation within the defense contracting sector. Leidos, Inc. is a major defense contractor, indicating established capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 64 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can incentivize contractor to increase costs.
  • Contract duration of 5 years may not reflect current technological needs.
  • No small business participation noted.

Positive Signals

  • Full and open competition utilized.
  • Awarded to a reputable large defense contractor.
  • Supports critical Department of Defense operations.

Sector Analysis

This contract falls within the IT and professional services sector, specifically custom computer programming services. Spending benchmarks for similar services vary widely based on complexity and duration, but $117M over five years for specialized support is within a typical range for large-scale defense contracts.

Small Business Impact

The data indicates that small businesses were not directly involved in this prime contract award, as the 'ss' (small business set-aside) field is false and 'sb' (small business) is false. This suggests the contract was awarded to a large business without specific provisions for small business participation.

Oversight & Accountability

The Department of the Army is responsible for oversight of this contract. The use of full and open competition and a defined contract type provides a framework for accountability. However, the Cost Plus Fixed Fee structure requires diligent monitoring to control costs.

Related Government Programs

  • Custom Computer Programming Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • No small business participation noted.
  • Long contract duration (5 years).
  • Specific sensor systems not identified.

Tags

custom-computer-programming-services, department-of-defense, md, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $117.3 million to LEIDOS, INC.. SENSORS SUPPORT SERVICES.

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 $117.3 million.

What is the period of performance?

Start: 2019-09-30. End: 2024-09-29.

What specific sensor systems are covered under this support contract, and how critical are they to current Army operations?

The specific sensor systems are not detailed in the provided data. However, given the award to Leidos, Inc., a major defense contractor, and the contract's value and duration, it is likely these sensors are integral to intelligence, surveillance, reconnaissance (ISR), or battlefield management. Their criticality would depend on their role in supporting ongoing military missions and strategic objectives.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?

The primary risk with CPFF contracts is that the contractor may have less incentive to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns if not rigorously managed and audited. For sensor support services, scope creep or unforeseen technical challenges could inflate costs beyond initial projections.

How does the lack of small business participation impact the overall effectiveness and innovation of the supported sensor systems?

While this contract did not involve small business set-asides, the prime contractor, Leidos, may still utilize small businesses as subcontractors. However, a lack of direct small business involvement in the prime award could limit access to innovative solutions or specialized expertise that smaller, agile firms often provide. This could potentially slow down the adoption of cutting-edge technologies or niche support capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1710 SAIC DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $209,743,227

Exercised Options: $209,743,227

Current Obligation: $117,304,176

Actual Outlays: $3,051,118

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $5,554,857

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T12DE001

IDV Type: IDC

Timeline

Start Date: 2019-09-30

Current End Date: 2024-09-29

Potential End Date: 2024-09-29 00:00:00

Last Modified: 2025-04-26

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