DoD Awards $34.3M for Sensor Support to Leidos, Inc
Contract Overview
Contract Amount: $34,351,737 ($34.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-04-15
End Date: 2025-10-14
Contract Duration: 547 days
Daily Burn Rate: $62.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE OPERATIONAL AND SUSTAINMENT SERVICE AND SUPPLY SUPPORT TO SENSOR HARDWARE AND SOFTWARE CAPABILITIES.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $34.4 million to LEIDOS, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE OPERATIONAL AND SUSTAINMENT SERVICE AND SUPPLY SUPPORT TO SENSOR HARDWARE AND SOFTWARE CAPABILITIES. Key points: 1. Leidos, Inc. secured a significant contract for operational and sustainment services for sensor hardware and software. 2. The contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. 3. While awarded under full and open competition, the specific value and duration warrant scrutiny for cost-effectiveness. 4. The absence of small business participation is noted.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar sensor support contracts is needed to assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may limit price discovery and incentivize cost escalation.
Taxpayer Impact: Taxpayer funds are being utilized for critical sensor operational and sustainment support, with the ultimate value dependent on efficient contract management and performance.
Public Impact
Ensures continued operational readiness of essential sensor capabilities for the Department of the Army. Supports advanced technology in navigation and guidance systems, crucial for military operations. Potential for cost overruns due to the Cost Plus Fixed Fee contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- No small business participation
- Potential for cost overruns
Positive Signals
- Awarded under full and open competition
- Supports critical sensor hardware and software
Sector Analysis
This contract falls within the IT and Defense sectors, specifically related to advanced sensor systems. Spending benchmarks for similar operational and sustainment support contracts are typically in the millions, aligning with this award.
Small Business Impact
The contract explicitly states no small business participation. This could indicate a lack of opportunities for small businesses in this specialized area or a missed opportunity for subcontracting.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight to ensure costs are reasonable and fixed fees are justified. The Department of the Army's contracting officers must monitor performance and expenditures closely.
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
- Lack of small business participation
- Potential for cost overruns
- Limited price discovery due to contract type
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 $34.4 million to LEIDOS, INC.. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE OPERATIONAL AND SUSTAINMENT SERVICE AND SUPPLY SUPPORT TO SENSOR HARDWARE AND SOFTWARE CAPABILITIES.
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 $34.4 million.
What is the period of performance?
Start: 2024-04-15. End: 2025-10-14.
What is the projected total cost for the duration of the contract, and how does it compare to similar sustainment contracts?
The current award is $34.3 million for a 547-day period. A detailed cost breakdown and comparison with similar contracts for sensor operational and sustainment services are necessary to determine if this represents good value. The Cost Plus Fixed Fee nature necessitates close monitoring to prevent cost overruns and ensure the final expenditure aligns with market rates.
What are the specific risks associated with the Cost Plus Fixed Fee contract type in this context?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost escalation. The contractor is reimbursed for all allowable costs plus a fixed fee. This can incentivize higher spending as the fee remains constant, potentially leading to taxpayers footing a larger bill than anticipated if not rigorously overseen. Effective oversight is crucial to manage this risk.
How will the effectiveness of the sensor hardware and software sustainment be measured and ensured?
Effectiveness will likely be measured through performance metrics outlined in the task order, such as system uptime, response times for support, and successful resolution of issues. The Department of the Army must establish clear Key Performance Indicators (KPIs) and conduct regular reviews of Leidos's performance against these metrics to ensure the sustainment services are meeting operational requirements.
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: 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: $59,834,607
Exercised Options: $46,990,655
Current Obligation: $34,351,737
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $20,445,971
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56KGY24D0001
IDV Type: IDC
Timeline
Start Date: 2024-04-15
Current End Date: 2025-10-14
Potential End Date: 2025-10-14 00:00:00
Last Modified: 2025-07-24
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