Leidos awarded $411M DoD contract for STAMP Follow-On sustainment, a significant R&D investment
Contract Overview
Contract Amount: $411,048,644 ($411.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-07-31
End Date: 2026-02-16
Contract Duration: 2,026 days
Daily Burn Rate: $202.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THIS TASK ORDER IS CREATED FOR OPERATION AND SUSTAINMENT OF THE STAMP FOLLOW-ON REQUIREMENT.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $411.0 million to LEIDOS, INC. for work described as: THIS TASK ORDER IS CREATED FOR OPERATION AND SUSTAINMENT OF THE STAMP FOLLOW-ON REQUIREMENT. Key points: 1. The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful oversight to manage expenses. 2. Full and open competition suggests a potentially competitive pricing environment, though specific benchmarks are needed. 3. The duration of the contract, extending into 2026, indicates a long-term need for these sustainment services. 4. As a research and development contract, performance metrics will be crucial for assessing value and effectiveness. 5. The primary focus on sustainment suggests a mature technology requiring ongoing support rather than novel development. 6. The contract's value places it as a substantial award within the defense R&D sector.
Value Assessment
Rating: fair
Benchmarking the cost-plus-fixed-fee structure against similar sustainment contracts for complex R&D systems is essential. Without specific performance data or detailed cost breakdowns, it's difficult to definitively assess value for money. The fixed fee component provides some cost certainty, but the variable cost elements require diligent monitoring to ensure efficiency and prevent overruns. The contract's significant value suggests a critical need, but the absence of readily available comparable data makes a precise value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders, as suggested by the 'no' field, implies a degree of competition. However, the specific nature of the STAMP Follow-On requirement might limit the number of technically qualified bidders, potentially influencing the intensity of the competition and its impact on price discovery.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive environment, which can lead to better pricing and innovative solutions. It ensures that the government explores a wider range of capabilities and cost structures.
Public Impact
The Department of the Army benefits from the continued operation and sustainment of the STAMP Follow-On system. This contract ensures the availability of critical research and development capabilities for national defense. The services delivered are essential for maintaining the readiness and effectiveness of specific defense platforms. The contract is likely to support a specialized workforce within Leidos, Inc., focusing on advanced technology sustainment. The geographic impact is primarily within the operational sphere of the Department of Defense, with potential implications for Virginia-based operations of the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in a cost-plus-fixed-fee contract if not rigorously managed.
- The specialized nature of the system may limit the pool of qualified sustainment providers.
- Ensuring continued technological relevance and upgrade paths for the STAMP Follow-On system.
- Dependence on a single contractor for critical sustainment operations.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Long-term contract duration provides stability for sustainment operations.
- Leidos, Inc. has a significant presence and experience in defense contracting.
- The contract addresses a stated operational need for the Department of the Army.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The North American Industry Classification System (NAICS) code 541715 categorizes this as 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. The defense industry heavily invests in R&D for advanced systems, and contracts like this are crucial for maintaining technological superiority. Comparable spending benchmarks would involve analyzing other large-scale sustainment contracts for complex defense systems within the R&D domain.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside implications. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors to fulfill certain aspects of the sustainment requirement. The extent of small business subcontracting would depend on Leidos's procurement practices and the specific needs of the STAMP Follow-On system.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army, with specific program managers responsible for monitoring performance, costs, and adherence to contract terms. Given the R&D nature and significant value, Inspector General (IG) oversight may be applicable, particularly concerning financial accountability and potential fraud, waste, or abuse. Transparency would be enhanced through regular reporting requirements stipulated in the contract and potentially through public contract databases, though detailed cost breakdowns may be proprietary.
Related Government Programs
- Defense Research and Development Programs
- Military Sustainment and Logistics Contracts
- Advanced Technology Development Contracts
- Department of the Army Procurement
- Leidos Inc. Defense Contracts
Risk Flags
- Cost Overrun Risk
- Technical Performance Uncertainty
- Long-Term System Viability
- Contractor Dependency
Tags
department-of-defense, department-of-the-army, research-and-development, sustainment, cost-plus-fixed-fee, delivery-order, full-and-open-competition, leidos-inc, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $411.0 million to LEIDOS, INC.. THIS TASK ORDER IS CREATED FOR OPERATION AND SUSTAINMENT OF THE STAMP FOLLOW-ON REQUIREMENT.
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 $411.0 million.
What is the period of performance?
Start: 2020-07-31. End: 2026-02-16.
What is the track record of Leidos, Inc. in managing similar large-scale R&D sustainment contracts for the Department of Defense?
Leidos, Inc. has a substantial track record in managing complex defense contracts, including those involving research, development, and sustainment. They are a major prime contractor for the U.S. military across various domains. For R&D sustainment, their experience often involves integrating new technologies, maintaining sophisticated systems, and providing lifecycle support. Specific to programs like STAMP Follow-On, their ability to manage cost-plus-fixed-fee contracts, ensure technical performance, and navigate regulatory requirements is critical. Analyzing past performance evaluations and contract awards for Leidos in similar categories would provide a clearer picture of their capabilities and reliability in executing this specific task order.
How does the awarded amount of $411 million compare to the estimated value or previous spending on the STAMP Follow-On requirement?
The awarded amount of $411,048,644.22 represents the total estimated value for the operation and sustainment of the STAMP Follow-On requirement over its contract period, which extends to February 16, 2026. To compare this to previous spending or estimated values, one would need access to historical contract data for the STAMP program or its predecessors. Without that specific historical context, it's challenging to definitively state whether this award represents an increase, decrease, or stable level of investment. However, the duration and the nature of sustainment suggest a significant, ongoing commitment to the system's operational readiness.
What are the key performance indicators (KPIs) or metrics used to assess the success of this sustainment contract?
For a contract focused on operation and sustainment of an R&D requirement like STAMP Follow-On, key performance indicators (KPIs) would likely revolve around system availability, reliability, maintainability, and response times for support. Specific metrics could include Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), system uptime percentages, and adherence to maintenance schedules. For the R&D aspect, KPIs might also track the successful integration of upgrades or modifications, the effectiveness of technical support in resolving complex issues, and the overall contribution of the sustainment effort to the program's research objectives. The contract's cost-plus-fixed-fee structure necessitates close monitoring of cost efficiency alongside performance.
What are the potential risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' classification for this contract?
Classifying this contract under NAICS code 541715 ('Research and Development in the Physical, Engineering, and Life Sciences') introduces specific risks. R&D projects inherently carry a higher degree of uncertainty regarding technical outcomes and timelines compared to standard procurement. Risks include the possibility of unforeseen technical challenges, the need for scope adjustments as research progresses, and potential difficulties in defining clear, measurable success criteria upfront. For sustainment of an R&D system, risks might also involve ensuring the system remains relevant amidst rapid technological advancements, managing the obsolescence of components, and adapting support strategies to evolving research needs. The cost-plus-fixed-fee structure, while flexible, requires diligent oversight to mitigate risks of cost overruns due to the inherent uncertainties in R&D.
How does the 'Delivery Order' contract type impact the overall value and flexibility of this award?
The 'Delivery Order' (aw: DELIVERY ORDER) contract type signifies that this is a task order issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar basic ordering agreement. This structure allows the government to order specific goods or services as needed, up to a certain ceiling. For this STAMP Follow-On sustainment requirement, it means the $411 million is the total estimated value across potentially multiple delivery orders placed over the contract's lifespan. This provides flexibility for the Department of the Army to procure sustainment services incrementally, aligning spending with actual needs and program evolution. However, it also means the final amount spent could be less than the ceiling if needs change or the program is modified.
What is the significance of the contract ending in February 2026, and what are the implications for future sustainment planning?
The contract's end date of February 16, 2026, provides a defined period for the current sustainment operations of the STAMP Follow-On requirement. This timeframe allows for strategic planning for the system's future. Implications include the need for the Department of the Army to initiate procurement actions well in advance of this date if continued sustainment is required. This could involve re-competing the requirement, extending the current contract if options exist and are exercised, or transitioning to a new system. Planning must consider potential technological advancements, evolving operational needs, and the availability of alternative solutions to ensure uninterrupted support beyond 2026.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: 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: $700,031,517
Exercised Options: $700,031,517
Current Obligation: $411,048,644
Actual Outlays: $26,897,934
Subaward Activity
Number of Subawards: 191
Total Subaward Amount: $183,396,720
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T19D0174
IDV Type: IDC
Timeline
Start Date: 2020-07-31
Current End Date: 2026-02-16
Potential End Date: 2026-02-16 00:00:00
Last Modified: 2025-11-21
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