Leidos awarded $11.77M for Army R&D services, with a 2-year duration
Contract Overview
Contract Amount: $11,774,171 ($11.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-08-11
End Date: 2025-08-10
Contract Duration: 730 days
Daily Burn Rate: $16.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CPFF GRIDS III RESEARCH & ANALYSIS- SIES BASE YEAR
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.8 million to LEIDOS, INC. for work described as: CPFF GRIDS III RESEARCH & ANALYSIS- SIES BASE YEAR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can shift some risk to the government. 3. Performance period is 2 years, indicating a medium-term engagement for research and analysis. 4. The North American Industry Classification System (NAICS) code 541715 points to R&D in physical, engineering, and life sciences. 5. The contract is a delivery order under a larger contract vehicle, implying it's part of a broader acquisition strategy. 6. The awardee, Leidos, Inc., is a significant player in government contracting, particularly in defense and IT sectors.
Value Assessment
Rating: fair
Benchmarking the value of this specific delivery order is challenging without knowing the scope of work and comparable projects under the GRIDS III contract. CPFF contracts inherently carry risk for the government as costs can exceed initial estimates. However, the fixed fee component provides some cost certainty for the contractor's effort. Further analysis would require comparing the labor rates and indirect costs to similar R&D services procured by the Department of the Army.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific competition details for this delivery order would be found within the parent contract (GRIDS III). A full and open competition generally fosters price discovery and encourages multiple bidders, which can lead to more competitive pricing for the government.
Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures a broad range of capabilities are considered, potentially leading to better value.
Public Impact
The Department of the Army benefits from specialized research and analysis services to support its mission. This contract likely supports advancements in physical, engineering, or life sciences relevant to defense applications. The geographic impact is primarily within Virginia, where the contractor is located, but the research outcomes could have national defense implications. Workforce implications include employment for researchers, analysts, and support staff at Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns if not managed closely.
- The specific deliverables and performance metrics are not detailed in the provided data, making it difficult to assess performance outcomes.
- Reliance on a single delivery order under a larger IDIQ could concentrate risk if the parent contract has issues.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Leidos, Inc. has a significant track record in government contracting, implying experience and capability.
- The contract duration of 2 years allows for focused effort on specific research objectives.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers a broad range of scientific research and experimental development. The federal government is a major investor in R&D, with significant spending allocated to defense, health, and energy. Comparable spending benchmarks would involve analyzing other R&D contracts awarded by the Department of Defense and other agencies for similar scientific disciplines.
Small Business Impact
The provided data indicates that small business participation (ss and sb flags) is false for this specific award. This suggests that the contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting requirements explicitly stated in this data snippet. The impact on the small business ecosystem would depend on whether the prime contractor, Leidos, Inc., intends to subcontract portions of this work to small businesses, which is not detailed here.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract vehicle (GRIDS III), oversight may also be influenced by the governance structure of that parent contract. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- GRIDS III Contract Vehicle
- Department of the Army Research and Development Programs
- Federal R&D Spending
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost-reimbursable contract type (CPFF) carries inherent cost overrun risk for the government.
- Limited public information on specific deliverables and performance metrics for this delivery order.
- Potential for scope creep in R&D projects if not tightly managed.
Tags
research-and-development, department-of-defense, department-of-the-army, cost-plus-fixed-fee, delivery-order, full-and-open-competition, leidos-inc, virginia, scientific-research, engineering-services, life-sciences
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to LEIDOS, INC.. CPFF GRIDS III RESEARCH & ANALYSIS- SIES BASE YEAR
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 $11.8 million.
What is the period of performance?
Start: 2023-08-11. End: 2025-08-10.
What is the specific nature of the research and analysis being conducted under this delivery order?
The provided data identifies the contract as 'CPFF GRIDS III RESEARCH & ANALYSIS- SIES BASE YEAR' awarded to Leidos, Inc. The NAICS code 541715 indicates 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. While the specific project details are not available in this snippet, the description suggests the work involves scientific inquiry and experimental development within these broad fields for the Department of the Army. Further details would likely be found in the Statement of Work (SOW) associated with this delivery order, which outlines the specific tasks, objectives, and expected outcomes.
How does the $11.77 million award compare to other R&D contracts awarded by the Department of the Army?
The $11.77 million award for this specific delivery order represents a moderate investment for a 2-year R&D effort. The Department of the Army procures a vast array of R&D services, with contract values ranging from small, targeted research grants to multi-billion dollar programs spanning decades. To benchmark this award, one would need to compare it against similar-scoped R&D contracts within the physical, engineering, and life sciences domains, considering factors like contract duration, complexity, and the specific scientific disciplines involved. Without more context on the GRIDS III program's overall value and scope, a precise comparison is difficult, but it appears to be a standard-sized award for specialized research services.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is that the government bears the risk of cost overruns. While the contractor is guaranteed a fixed fee for their effort, the government pays the actual allowable costs incurred. If the R&D project encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government can escalate beyond initial projections. Effective oversight, robust cost accounting standards, and clear performance metrics are crucial to mitigate these risks. The fixed fee itself incentivizes the contractor to manage costs efficiently to protect their profit margin.
What is Leidos, Inc.'s track record with the Department of the Army and similar R&D contracts?
Leidos, Inc. is a major government contractor with a substantial history of serving the Department of Defense, including the Department of the Army. They have a broad portfolio encompassing IT, engineering, logistics, and scientific services. Their track record with the Army typically involves large-scale programs and complex technical solutions. For R&D contracts specifically, Leidos often leverages its expertise in areas like systems engineering, data analytics, and advanced technologies. A detailed review of their past performance ratings, contract history, and specific R&D project successes with the Army would provide a more granular assessment of their capabilities and reliability in this domain.
How has federal spending in the R&D sector (NAICS 541715) evolved over the past five years?
Federal spending in the R&D sector, particularly under NAICS code 541715, has generally seen consistent investment, driven by national security priorities, technological advancement goals, and scientific discovery initiatives. While specific year-over-year fluctuations occur based on budget appropriations and strategic shifts, the overall trend indicates sustained government commitment to research and development across physical, engineering, and life sciences. Agencies like the Department of Defense, National Science Foundation, and Department of Health and Human Services are major contributors. Analyzing historical spending data from sources like the National Science Foundation's annual surveys of R&D expenditures would reveal trends in funding levels, agency allocations, and research focus areas within this broad category.
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: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W5J9CQ16R0008
Offers Received: 1
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: $12,524,171
Exercised Options: $12,524,171
Current Obligation: $11,774,171
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $4,604,960
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W5J9CQ18D0001
IDV Type: IDC
Timeline
Start Date: 2023-08-11
Current End Date: 2025-08-10
Potential End Date: 2025-08-10 00:00:00
Last Modified: 2025-11-21
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