Leidos Inc. awarded $32.7M for R&D services, with 7 bids received
Contract Overview
Contract Amount: $32,752,195 ($32.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-23
End Date: 2017-03-22
Contract Duration: 2,007 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TNTI BASE AWARD, PHASE 1
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $32.8 million to LEIDOS, INC. for work described as: TNTI BASE AWARD, PHASE 1 Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period spans over 2000 days, suggesting a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541712 points to specialized R&D in physical and engineering sciences. 5. The award was managed by the Defense Contract Management Agency, suggesting a focus on defense-related research. 6. The contract was not set aside for small businesses, implying a focus on large, capable contractors.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) structure means costs can escalate, and the fixed fee provides contractor incentive. Comparing it to similar R&D contracts would require detailed analysis of the scope of work and expected outcomes. The base award of $32.7 million over a multi-year period suggests a significant investment, but its true value depends on the success of the research.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with seven bids received. This level of competition is generally positive for price discovery and ensures a wide range of potential contractors were considered. The presence of multiple bidders suggests that the market for these R&D services is competitive, which can drive down costs and improve the quality of proposals.
Taxpayer Impact: The robust competition indicates that taxpayer dollars were likely used efficiently, as contractors vied to offer the best value. This process helps ensure that the government is not overpaying for the research and development services.
Public Impact
The primary beneficiaries are likely the Department of Defense and its associated research arms, receiving advanced R&D services. The services delivered are in the realm of physical, engineering, and life sciences research, excluding biotechnology. The geographic impact is primarily within Virginia, where the contract was managed. Workforce implications include employment for scientists, engineers, and support staff at Leidos, Inc. and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not closely monitored.
- The long duration of the contract (over 2000 days) increases the potential for scope creep or changing research needs.
- Lack of specific performance metrics in the provided data makes it difficult to assess the efficiency of resource utilization.
Positive Signals
- Awarded through full and open competition with multiple bidders, suggesting a competitive market.
- The contract is managed by the Defense Contract Management Agency, implying adherence to established oversight protocols.
- The research area (NAICS 541712) is critical for technological advancement in defense and other sectors.
Sector Analysis
The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding biotechnology. This is a broad category encompassing a wide range of scientific inquiry. The market for such services is often characterized by specialized expertise and significant investment in intellectual capital. Comparable spending benchmarks would depend heavily on the specific sub-field of research, but government R&D spending in this area is substantial, supporting innovation across various industries.
Small Business Impact
This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, Leidos, Inc., is expected to handle the majority of the work, potentially utilizing its own resources or larger subcontractors. The absence of small business set-asides means that opportunities for smaller firms in this specific award are not explicitly guaranteed.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to manage costs effectively. Transparency would be enhanced by public reporting of performance milestones and expenditures, though specific details are not provided here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Engineering Services Contracts
- Physical Sciences Research Grants
- Life Sciences Research Initiatives
Risk Flags
- Cost Plus Fixed Fee contract type requires close monitoring for cost overruns.
- Long contract duration increases risk of scope creep and obsolescence.
- Lack of detailed performance metrics makes value assessment difficult.
Tags
research-and-development, department-of-defense, leidos-inc, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, defense-contract-management-agency, virginia, physical-engineering-life-sciences, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.8 million to LEIDOS, INC.. TNTI BASE AWARD, PHASE 1
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 $32.8 million.
What is the period of performance?
Start: 2011-09-23. End: 2017-03-22.
What is the track record of Leidos, Inc. in fulfilling similar R&D contracts for the Department of Defense?
Leidos, Inc. has a substantial history of performing complex R&D and technical services for the Department of Defense and other federal agencies. Their portfolio includes work in areas such as systems engineering, information technology, and scientific research. While specific performance details for this particular contract are not detailed here, Leidos is generally considered a major defense contractor with extensive experience. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar CPFF contracts, would provide a more comprehensive understanding of their track record. This would involve reviewing contract databases and agency reports for any red flags or commendations related to their R&D execution.
How does the $32.7 million award compare to other R&D contracts in the physical and engineering sciences sector?
The $32.7 million base award for this contract is a significant but not extraordinary amount for R&D projects within the physical, engineering, and life sciences sector (NAICS 541712). Government R&D contracts can range from a few million dollars for specialized studies to hundreds of millions or even billions for large-scale, multi-year programs. Given that this is a definitive contract with a duration of over 2000 days, the total value could potentially increase through options or modifications. To provide a precise comparison, one would need to benchmark against contracts with similar scopes of work, research objectives, and durations within the same NAICS code. However, as a standalone figure, it represents a substantial investment in scientific advancement.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and contractor incentives. For the government, the risk is that the actual costs incurred by the contractor may exceed initial estimates, leading to a higher overall expenditure than anticipated, even with a fixed fee. The contractor's incentive is to complete the work within the estimated cost to maximize their profit (the fixed fee), but there's also a risk of cutting corners on quality if not properly overseen. For R&D, where outcomes can be uncertain, estimating costs accurately is inherently difficult, increasing the potential for cost overruns. Robust oversight, clear definition of allowable costs, and regular audits are crucial to mitigate these risks.
What does the presence of 7 bidders signify for the effectiveness of the competition?
The presence of seven bidders for this contract is a strong positive signal regarding the effectiveness of the full and open competition. A higher number of bids generally indicates a more competitive marketplace, where contractors are motivated to offer their best pricing and technical solutions to win the award. This level of competition increases the likelihood that the government secured a fair and reasonable price for the services. It also suggests that the solicitation was well-defined and accessible to a broad range of qualified companies, preventing market concentration and promoting innovation. The agency's ability to attract seven bids implies a well-executed procurement process.
How might the long contract duration (over 2000 days) impact the research outcomes and cost?
A contract duration exceeding 2000 days (over 5.5 years) for R&D presents both opportunities and challenges. On the positive side, it allows for in-depth research, iterative development, and the exploration of complex scientific problems that require sustained effort. This long-term commitment can foster deeper innovation and allow for the maturation of technologies. However, it also introduces risks. Scientific fields can evolve rapidly, potentially making the initial research objectives obsolete or requiring significant adjustments. Furthermore, long-term CPFF contracts increase the potential for cumulative cost growth if not meticulously managed. Scope creep, changes in personnel, and shifts in strategic priorities are also more likely over such extended periods, necessitating vigilant contract management and potential modifications.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 7
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: $32,752,195
Exercised Options: $32,752,195
Current Obligation: $32,752,195
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $1,131,248
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-09-23
Current End Date: 2017-03-22
Potential End Date: 2017-03-22 00:00:00
Last Modified: 2025-04-01
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