Leidos, Inc. awarded $507.7M for HR3DGI Operations & Technology Integration II by the Department of the Army
Contract Overview
Contract Amount: $507,729,666 ($507.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-06
End Date: 2025-12-31
Contract Duration: 1,577 days
Daily Burn Rate: $322.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: HIGH-RESOLUTION THREE-DIMENSIONAL GEOSPATIAL INFORMATION (HR3DGI) OPERATIONS AND TECHNOLOGY INTEGRATION II (O&T II)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $507.7 million to LEIDOS, INC. for work described as: HIGH-RESOLUTION THREE-DIMENSIONAL GEOSPATIAL INFORMATION (HR3DGI) OPERATIONS AND TECHNOLOGY INTEGRATION II (O&T II) Key points: 1. Contract value represents significant investment in advanced geospatial capabilities. 2. Full and open competition suggests a robust market for these specialized services. 3. Potential for cost overruns exists given the Cost Plus Fixed Fee (CPFF) contract type. 4. Contract duration extends over multiple fiscal years, indicating a long-term need. 5. Focus on technology integration highlights the evolving nature of defense intelligence. 6. Geographic focus on Virginia may indicate a concentration of relevant facilities or personnel.
Value Assessment
Rating: good
The contract's value of over $507 million for HR3DGI operations and technology integration is substantial, reflecting the critical nature of high-resolution geospatial data for defense. Benchmarking against similar large-scale technology integration contracts within the Department of Defense is challenging due to the specificity of HR3DGI. However, the CPFF structure necessitates careful monitoring to ensure cost efficiency and prevent scope creep, which could inflate the overall expenditure beyond initial expectations. The award to Leidos, Inc., a major defense contractor, suggests a competitive selection process for a complex and high-stakes requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive landscape for advanced geospatial technology integration services. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government, as contractors are incentivized to offer competitive pricing and innovative approaches to win the contract.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market where multiple companies vie for government contracts, driving down prices and improving service quality through innovation.
Public Impact
The Department of the Army benefits from enhanced capabilities in high-resolution three-dimensional geospatial information operations and technology integration. This contract supports the delivery of advanced intelligence, surveillance, and reconnaissance (ISR) data crucial for military planning and operations. The primary geographic impact is within Virginia, likely supporting key Army installations or intelligence centers. Workforce implications include the potential for skilled jobs in geospatial analysis, software development, and systems engineering within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk of cost overruns if not managed diligently.
- The long duration of the contract (over 4 years) increases the potential for scope creep and evolving requirements that may not be fully captured in the initial pricing.
- Reliance on a single prime contractor, Leidos, Inc., for such a critical function could pose a risk if performance issues arise or if key personnel depart.
- The specific nature of HR3DGI operations means that technological obsolescence or the emergence of superior alternative technologies could impact long-term value.
- Limited public information on specific performance metrics makes it difficult to independently assess the contractor's ongoing value proposition.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
- Leidos, Inc. is a large, established defense contractor with a track record in complex technology integration, indicating a high probability of successful execution.
- The contract's focus on technology integration suggests a forward-looking approach to leveraging advanced capabilities for national security.
- The significant contract value implies a critical and sustained need for these services by the Department of the Army.
- The contract is structured to ensure delivery of essential geospatial intelligence capabilities.
Sector Analysis
The market for geospatial information services, particularly those involving advanced 3D data and technology integration, is a rapidly growing segment within the broader engineering and IT services sector supporting defense and intelligence agencies. This contract fits within the domain of defense intelligence and advanced analytics, where accurate and detailed spatial data is paramount for mission success. Comparable spending benchmarks are difficult to pinpoint due to the specialized nature of HR3DGI, but large-scale systems integration and technology development contracts for the DoD often run into hundreds of millions of dollars.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the prime contractor, Leidos, Inc., is a large business. While there is no explicit requirement for small business subcontracting mentioned in the provided data, large prime contractors in defense are often encouraged or required by broader DoD policies to subcontract with small businesses for various components and services. The impact on the small business ecosystem would depend on whether Leidos actively seeks out and engages small business partners for this specific contract.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is expected to monitor costs and ensure they align with the fixed fee and contract scope. Transparency is generally limited for defense contracts of this nature, with detailed performance metrics and financial breakdowns often classified or proprietary. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Geospatial Intelligence Services
- Defense Intelligence Systems Integration
- High-Resolution Mapping Technologies
- Army Command, Control, Communications, Computers, and Intelligence (C4I) Systems
- National Geospatial-Intelligence Agency (NGA) Support Contracts
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Creep Potential
- Technological Obsolescence
- Contractor Performance Dependency
Tags
department-of-defense, department-of-the-army, leidos-inc, geospatial-intelligence, technology-integration, cost-plus-fixed-fee, full-and-open-competition, virginia, engineering-services, it-services, defense-contracting, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $507.7 million to LEIDOS, INC.. HIGH-RESOLUTION THREE-DIMENSIONAL GEOSPATIAL INFORMATION (HR3DGI) OPERATIONS AND TECHNOLOGY INTEGRATION II (O&T II)
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 $507.7 million.
What is the period of performance?
Start: 2021-09-06. End: 2025-12-31.
What is Leidos, Inc.'s track record with similar large-scale geospatial technology integration contracts for the Department of Defense?
Leidos, Inc. has a substantial track record in providing complex technology solutions and systems integration services to the Department of Defense and other federal agencies. They are known for their work in areas such as command and control, intelligence analysis, and enterprise IT modernization. While specific details on past HR3DGI contracts may be limited in public domain, Leidos's extensive experience in handling large, multi-year, high-value defense contracts suggests a strong capability to manage the technical and programmatic complexities associated with this award. Their history includes numerous prime contract awards for critical defense systems, indicating a capacity for managing significant budgets and delivering advanced technological capabilities.
How does the pricing structure (Cost Plus Fixed Fee) compare to other large DoD geospatial contracts, and what are the implications for value for money?
Cost Plus Fixed Fee (CPFF) contracts are common for complex research, development, and integration efforts where the final scope or cost is difficult to define precisely at the outset. This structure involves reimbursing the contractor for allowable costs plus a fixed fee representing profit. While CPFF can facilitate innovation and adaptation in evolving technological landscapes, it carries a higher risk of cost overruns compared to fixed-price contracts. For value for money, diligent oversight by the government is crucial to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for the defined scope. Benchmarking value is challenging without detailed cost breakdowns, but the competitive award process aims to ensure the fixed fee is fair.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks include potential cost overruns due to the CPFF structure, scope creep given the long duration and evolving technology, and performance issues from the prime contractor. Mitigation strategies typically involve robust government oversight, including regular audits of costs, detailed performance reviews against milestones, and strong contract management to control scope changes. The selection of a reputable contractor like Leidos, Inc. also serves as a risk mitigation factor, assuming they possess the necessary expertise and resources. Furthermore, clear contract terms and performance standards are established to guide execution and provide a basis for accountability.
What is the historical spending pattern for HR3DGI operations and technology integration within the Department of the Army or DoD?
Historical spending on High-Resolution Three-Dimensional Geospatial Information (HR3DGI) operations and technology integration within the Department of the Army and the broader DoD has likely seen a steady increase over the past decade, driven by advancements in sensor technology, data processing capabilities, and the growing demand for precise geospatial intelligence. While specific aggregate figures for HR3DGI are not readily available in the public domain, spending on related areas such as geospatial intelligence, mapping, and command and control systems has consistently represented a significant portion of defense budgets. The award of a $507.7 million contract like this one indicates a substantial and sustained investment in this capability area, reflecting its critical importance to modern military operations.
How does the geographic concentration in Virginia impact the contract's execution and potential benefits?
The geographic concentration in Virginia suggests that the contract's operations, personnel, or key facilities may be located near major Department of the Army installations, intelligence agencies (like the National Geospatial-Intelligence Agency - NGA), or defense industry hubs within the state. This proximity can facilitate closer collaboration between the contractor and government stakeholders, potentially streamlining communication, review processes, and operational integration. It may also leverage the existing skilled workforce and infrastructure available in the Northern Virginia technology corridor. The benefits include potentially faster response times, more efficient project management, and easier access to government personnel for requirements clarification and feedback.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, 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: $565,387,424
Exercised Options: $565,387,424
Current Obligation: $507,729,666
Actual Outlays: $549,088
Subaward Activity
Number of Subawards: 260
Total Subaward Amount: $134,925,167
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU122
IDV Type: IDC
Timeline
Start Date: 2021-09-06
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-10-31
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