DoD awards $11M for sensing capabilities, with Leidos Inc. securing a cost-plus-fixed-fee contract
Contract Overview
Contract Amount: $11,015,653 ($11.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-15
End Date: 2028-09-14
Contract Duration: 1,095 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE LIFE-CYCLE SUPPORT TO SENSING CAPABILITY FAMILIES ALIGNED WITHIN THE PD SAI PORTFOLIO.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 22812
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.0 million to LEIDOS, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE LIFE-CYCLE SUPPORT TO SENSING CAPABILITY FAMILIES ALIGNED WITHIN THE PD SAI PORTFOLIO. Key points: 1. Contract focuses on life-cycle support for sensing capabilities within the PD SAI portfolio. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The contract duration is 1095 days, spanning three years. 5. The primary North American Industry Classification System (NAICS) code is 334511 for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. 6. The award was made by the Department of the Army, a component of the Department of Defense. 7. The contractor, Leidos, Inc., has a significant presence in government contracting.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee (CPFF) type, which historically can present risks of cost escalation if not closely monitored. Benchmarking the value requires understanding the specific sensing capabilities and the scope of life-cycle support. Without detailed breakdowns of labor hours, material costs, and the fixed fee percentage, a precise value-for-money assessment is challenging. However, the award amount of approximately $11 million over three years suggests a moderate-sized contract within the defense sector.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This generally promotes a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the full and open nature suggests a robust selection process.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government explores a wide range of solutions.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the Department of the Army, which will receive life-cycle support for critical sensing capabilities. The services delivered will ensure the continued operational readiness and effectiveness of sensing systems vital for defense operations. The geographic impact is likely concentrated within areas where these sensing capabilities are deployed or supported, potentially including military bases and operational theaters. Workforce implications may include specialized technical roles for engineers, technicians, and support staff involved in the maintenance, upgrade, and sustainment of sensing systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns if not rigorously managed.
- Lack of specific details on performance metrics makes it difficult to assess the effectiveness of the life-cycle support.
- The broad scope of 'life-cycle support' could lead to scope creep if not clearly defined and managed.
- Dependence on a single contractor for life-cycle support of critical sensing capabilities could pose a risk if contractor performance degrades.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that could yield better value.
- The contractor, Leidos, Inc., is a large and experienced government contractor with a track record in defense systems.
- The contract aims to provide essential life-cycle support, ensuring the longevity and effectiveness of critical sensing capabilities.
- The three-year duration provides a stable period for support and potential for long-term relationship building.
Sector Analysis
This contract falls within the broader defense electronics and systems manufacturing sector, specifically focusing on sensor technology. The NAICS code 334511 covers a range of sophisticated equipment. The defense sector is characterized by high R&D investment, long product cycles, and significant government procurement. Comparable spending benchmarks would involve other contracts for sustainment and life-cycle support of advanced military systems, which can range from millions to billions depending on the complexity and scale.
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 subcontracting implications for small businesses arising from a small business set-aside. However, as Leidos, Inc. is a large prime contractor, there may be opportunities for small businesses to subcontract with Leidos, depending on their internal subcontracting plans and the specific needs of the life-cycle support services. The overall impact on the small business ecosystem is indirect and depends on Leidos's subcontracting strategy.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of the Army contracting and program management offices. Accountability measures will be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the public nature of contract awards, though detailed performance data may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Intelligence Agency (DIA) Sensing Programs
- Air Force Research Laboratory (AFRL) Sensor Development
- Navy Program Executive Office for Littoral Combat Ships (PEO LCS) Sensor Integration
- Army Futures Command (AFC) Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance (C2C4ISR) Directorate
- Intelligence, Surveillance, and Reconnaissance (ISR) Systems Procurement
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
- Scope definition for 'life-cycle support' needs clear boundaries to prevent overruns.
- Performance metrics and evaluation criteria are not detailed, impacting assessment of effectiveness.
- Potential for contractor dependency on critical sensing capabilities.
Tags
defense, department-of-defense, department-of-the-army, sensing-systems, life-cycle-support, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, navigational-and-guidance-equipment-manufacturing, virginia, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.0 million to LEIDOS, INC.. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE LIFE-CYCLE SUPPORT TO SENSING CAPABILITY FAMILIES ALIGNED WITHIN THE PD SAI PORTFOLIO.
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 $11.0 million.
What is the period of performance?
Start: 2025-09-15. End: 2028-09-14.
What is Leidos, Inc.'s track record with similar sensing capability support contracts for the Department of Defense?
Leidos, Inc. has a substantial history of supporting Department of Defense (DoD) programs, including those involving complex systems and intelligence, surveillance, and reconnaissance (ISR) capabilities. They have been involved in various aspects of defense contracting, from IT services and systems integration to logistics and sustainment. While specific details on past contracts directly mirroring this 'life-cycle support to sensing capability families' are not provided in the summary data, Leidos's extensive experience with the DoD suggests a capacity to handle such requirements. Their portfolio often includes work on sensor systems, data processing, and command and control platforms. A deeper dive into their contract history with agencies like the Army, Air Force, and Navy would reveal the extent and nature of their prior involvement with similar sensing technologies and support functions.
How does the $11 million contract value compare to other life-cycle support contracts for sensing systems within the DoD?
The $11 million contract value for three years of life-cycle support for sensing capabilities is considered a moderate-sized award within the Department of Defense (DoD) context. The DoD procures a vast array of sensing systems, from individual components to integrated platforms, with support contracts varying significantly in scale. Contracts for the sustainment and life-cycle management of major weapon systems or large-scale intelligence, surveillance, and reconnaissance (ISR) platforms can easily reach hundreds of millions or even billions of dollars over their lifespan. Conversely, support for specific subsystems or niche sensing technologies might fall within the multi-million dollar range, as seen here. This $11 million award suggests it pertains to a defined set of sensing capabilities rather than an entire platform or a broad spectrum of technologies, making it a focused but essential investment.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for life-cycle support?
Cost Plus Fixed Fee (CPFF) contracts carry inherent risks, primarily related to cost control and contractor incentive. The government agrees to pay the contractor's actual costs plus a predetermined fixed fee, which represents the contractor's profit. The main risk for the government is that the contractor may have less incentive to control costs, as they are assured of recovering their expenses and receiving their profit regardless of efficiency. This can lead to cost overruns if the contractor's actual costs exceed initial estimates. For life-cycle support, which can involve unforeseen technical challenges or evolving requirements, the CPFF structure necessitates robust government oversight to monitor expenditures, validate costs, and ensure the contractor is performing efficiently. Without stringent management, the fixed fee could become a disproportionately large percentage of the total contract cost if expenses escalate significantly.
How effective is 'full and open competition' in ensuring value for money for sensing capability support?
Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for sensing capability support. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This process allows the government to compare a wider range of technical solutions and pricing structures, increasing the likelihood of selecting the best overall value. While the success of full and open competition depends on clear requirements, fair evaluation criteria, and adequate bidder participation, it fundamentally provides a strong foundation for achieving competitive pricing and optimal resource allocation for services like life-cycle support for complex sensing systems.
What is the historical spending trend for sensing capability support within the Department of the Army?
Historical spending trends for sensing capability support within the Department of the Army (DoA) are generally characterized by consistent investment due to the critical nature of these technologies for military operations. The DoA continuously procures, maintains, and upgrades a wide array of sensing systems, encompassing everything from radar and electro-optical/infrared (EO/IR) sensors to electronic warfare and signals intelligence (SIGINT) equipment. Spending in this area fluctuates based on modernization priorities, threat assessments, and the lifecycle of existing systems. While specific aggregate figures for 'sensing capability support' are not readily available without detailed budget analysis, it's a significant sub-category within the broader Research, Development, Test, and Evaluation (RDT&E) and Procurement, Defense-wide budgets. The trend is typically one of sustained, albeit variable, expenditure to ensure technological superiority and operational readiness.
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: $65,474,518
Exercised Options: $21,634,264
Current Obligation: $11,015,653
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $84,065
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: 2025-09-15
Current End Date: 2028-09-14
Potential End Date: 2028-09-14 00:00:00
Last Modified: 2026-01-13
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)