DoD's $47.4M Contract for AFCTC-3 Hardware/Software Awarded to Leidos Inc

Contract Overview

Contract Amount: $47,448,545 ($47.4M)

Contractor: Leidos Inc

Awarding Agency: Department of Defense

Start Date: 2010-12-01

End Date: 2015-05-30

Contract Duration: 1,641 days

Daily Burn Rate: $28.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AFCTC-3 HARDWARE AND SOFTWARE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $47.4 million to LEIDOS INC for work described as: AFCTC-3 HARDWARE AND SOFTWARE Key points: 1. Leidos Inc. secured a significant $47.4 million contract for AFCTC-3 hardware and software. 2. The contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' NAICS code. 3. Awarded by the Department of Defense, this contract highlights spending in the defense sector. 4. The firm fixed-price contract type suggests a defined scope and cost structure.

Value Assessment

Rating: fair

The contract value is substantial, but without specific unit details or comparable contract data, a precise value assessment is difficult. The firm fixed-price nature provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs compared to a competitive process.

Taxpayer Impact: Taxpayer funds are committed to a sole-source award, emphasizing the need for robust justification and oversight to ensure fair pricing.

Public Impact

Significant taxpayer investment in defense technology infrastructure. Potential for increased costs due to lack of competitive bidding. Impact on the defense industrial base and specific technology development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Potential for overpayment due to sole-source award

Positive Signals

  • Firm fixed-price contract provides cost certainty
  • Award to established contractor (Leidos Inc.)

Sector Analysis

This contract is within the defense sector, specifically related to machinery manufacturing for commercial and service industries. Defense spending benchmarks often show significant investment in specialized hardware and software for operational needs.

Small Business Impact

The data does not indicate any specific provisions or awards to small businesses under this contract, suggesting it was primarily awarded to a large prime contractor.

Oversight & Accountability

The 'VA' status and 'DEFINITIVE CONTRACT' type suggest a formal agreement, but further details on oversight mechanisms and performance monitoring would be needed to assess accountability.

Related Government Programs

  • Other Commercial and Service Industry Machinery Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Sole-source award limits competitive pricing.
  • Lack of detailed cost breakdown hinders value assessment.
  • Potential for cost overruns without competitive pressure.
  • Need for clear performance metrics and validation.

Tags

other-commercial-and-service-industry-ma, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.4 million to LEIDOS INC. AFCTC-3 HARDWARE AND SOFTWARE

Who is the contractor on this award?

The obligated recipient is LEIDOS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $47.4 million.

What is the period of performance?

Start: 2010-12-01. End: 2015-05-30.

What specific hardware and software components are included in the AFCTC-3 system, and how do their costs align with market rates?

The provided data lacks specifics on the AFCTC-3 components. A detailed breakdown of hardware and software, including specifications and quantities, is necessary to compare costs against industry benchmarks and assess value for money. Without this, it's difficult to determine if the $47.4 million represents a fair price.

What was the justification for awarding this contract on a limited/non-competitive basis, and what risks does this pose to cost control?

The justification for a limited competition is crucial. If based on unique capabilities or proprietary technology, it might be warranted. However, non-competitive awards inherently increase the risk of inflated pricing and reduced innovation, as the contractor faces less pressure to optimize costs and performance.

How will the performance and effectiveness of the AFCTC-3 hardware and software be measured and validated to ensure it meets DoD requirements?

Measuring performance requires clearly defined metrics and acceptance criteria within the contract. The Department of Defense must have robust testing and validation processes in place to ensure the delivered hardware and software function as intended and meet operational needs. Regular performance reviews are essential.

Industry Classification

NAICS: ManufacturingCommercial and Service Industry Machinery ManufacturingOther Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1710 SAIC DR, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,572,520

Exercised Options: $47,448,545

Current Obligation: $47,448,545

Subaward Activity

Number of Subawards: 104

Total Subaward Amount: $13,215,671

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2010-12-01

Current End Date: 2015-05-30

Potential End Date: 2015-05-30 00:00:00

Last Modified: 2025-04-01

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