DoD Awards $62.7M for ARL-E Systems 4 & 5 to Leidos, Inc
Contract Overview
Contract Amount: $62,679,033 ($62.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-08-28
End Date: 2022-12-31
Contract Duration: 1,221 days
Daily Burn Rate: $51.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ARL-E SYSTEMS 4 AND 5
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $62.7 million to LEIDOS, INC. for work described as: ARL-E SYSTEMS 4 AND 5 Key points: 1. Leidos, Inc. secured a significant contract for advanced systems. 2. The contract value is substantial, indicating critical program needs. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The sector is defense-specific, focusing on navigation and guidance systems.
Value Assessment
Rating: good
The contract value of $62.7M for ARL-E Systems 4 & 5 appears reasonable given the specialized nature of navigation and guidance systems. Benchmarking against similar complex defense systems 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 typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract suggests a structured procurement process.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely led to more favorable pricing than a sole-source procurement.
Public Impact
Enhances critical defense capabilities in navigation and guidance. Supports advanced military operations through technological upgrades. Impacts national security by ensuring reliable system performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is substantial (1221 days).
- Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Positive Signals
- Awarded under full and open competition.
- Contractor is a well-established defense firm.
Sector Analysis
This contract falls within the defense sector, specifically manufacturing instruments for search, detection, navigation, guidance, aeronautical, and nautical systems. Spending in this niche area is driven by military modernization and operational requirements.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this particular award. Further investigation into the prime contractor's subcontracting plan would be necessary to assess small business participation.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from a major defense agency. The use of a delivery order suggests it's part of a larger framework contract, which may have its own oversight mechanisms.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific small business participation data.
- Potential for cost overruns with CPFF contracts.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.7 million to LEIDOS, INC.. ARL-E SYSTEMS 4 AND 5
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 $62.7 million.
What is the period of performance?
Start: 2019-08-28. End: 2022-12-31.
What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how are potential cost overruns managed?
The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Effective oversight is crucial to scrutinize allowable costs and ensure the fixed fee remains appropriate. Robust auditing and performance metrics are key to managing potential cost overruns and ensuring value for taxpayer money.
How does the performance of ARL-E Systems 4 & 5 compare to previous iterations or industry benchmarks in terms of reliability and effectiveness?
Assessing the performance of ARL-E Systems 4 & 5 requires access to technical performance reports, operational feedback, and potentially independent testing data. Benchmarking against similar systems from competitors or previous generations would highlight improvements or areas needing further development. This comparison is vital for understanding the true value and effectiveness of the investment.
What are the long-term strategic implications of Leidos, Inc. holding this contract for the Department of Defense's navigation and guidance capabilities?
Leidos, Inc.'s role in providing these critical systems suggests a strategic partnership. The long-term implications involve potential dependency on a single provider for key technologies, influencing future innovation and procurement strategies. It also signifies the company's established expertise in a vital defense niche, potentially positioning them for future related contracts.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $62,679,033
Exercised Options: $62,679,033
Current Obligation: $62,679,033
Subaward Activity
Number of Subawards: 62
Total Subaward Amount: $14,865,628
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56KGY16D0001
IDV Type: IDC
Timeline
Start Date: 2019-08-28
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 12:12:00
Last Modified: 2024-06-07
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