DoD Awards $69.5M R&D Contract to Leidos, Inc. for Base Period Research

Contract Overview

Contract Amount: $69,493,994 ($69.5M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-28

End Date: 2026-06-28

Contract Duration: 1,461 days

Daily Burn Rate: $47.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: BEC 1 TO AWARD - BASE PERIOD

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $69.5 million to LEIDOS, INC. for work described as: BEC 1 TO AWARD - BASE PERIOD Key points: 1. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 2. Leidos, Inc. secured the award through full and open competition. 3. The contract has a base period duration of 1461 days. 4. The award type is a Delivery Order under an existing contract. 5. The contract is a Cost Plus Incentive Fee type.

Value Assessment

Rating: good

The contract's Cost Plus Incentive Fee structure aims to balance cost control with performance incentives. Benchmarking against similar R&D contracts is necessary to fully assess value, but the competitive award suggests a reasonable price discovery process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for soliciting bids and ensuring fair market pricing. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive nature of this award is expected to yield good value for taxpayers by leveraging market forces to secure research and development services.

Public Impact

Supports critical research and development efforts within the Department of Defense. Potential for technological advancements with broad applications. Contract duration suggests a long-term investment in specific research areas. Award to a large, established contractor like Leidos, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Incentive Fee structure requires careful monitoring to ensure cost efficiency.
  • Specific R&D outcomes and their impact are not detailed in the provided data.
  • Potential for scope creep in long-term R&D contracts.

Positive Signals

  • Awarded through full and open competition.
  • Long contract duration indicates sustained focus on R&D.
  • Contractor has a strong track record in government contracting.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for innovation and national security, with typical contract values varying widely based on the scope and complexity of the research.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses and was awarded to Leidos, Inc., a large prime contractor. Subcontracting opportunities for small businesses may exist but are not detailed here.

Oversight & Accountability

The award process under full and open competition suggests a degree of oversight. However, the Cost Plus Incentive Fee structure necessitates ongoing monitoring by the Department of Defense to ensure performance and cost accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost Plus Incentive Fee requires diligent oversight.
  • Lack of specific R&D objectives makes value assessment difficult.
  • Potential for cost overruns if not managed effectively.
  • Long duration may increase exposure to changing requirements.

Tags

research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.5 million to LEIDOS, INC.. BEC 1 TO AWARD - BASE PERIOD

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 $69.5 million.

What is the period of performance?

Start: 2022-06-28. End: 2026-06-28.

What specific research objectives does this contract aim to achieve, and how do they align with DoD priorities?

The provided data does not specify the exact research objectives. However, given the R&D classification (NAICS 541715), it likely pertains to advancements in physical, engineering, or life sciences relevant to national defense. Further analysis would require access to the Statement of Work to understand alignment with current DoD strategic priorities and technological needs.

How does the Cost Plus Incentive Fee (CPIF) structure mitigate risks associated with R&D uncertainty and ensure contractor performance?

A CPIF contract incentivizes the contractor to control costs by sharing in any savings or overruns relative to a target cost. For R&D, this structure aims to balance the inherent uncertainty by rewarding efficient performance while allowing flexibility for innovation. Effective oversight is crucial to ensure the incentive structure drives desired outcomes without compromising research integrity or leading to excessive costs.

What is the potential long-term impact of this R&D investment on technological capabilities and future defense applications?

The long-term impact depends heavily on the specific research outcomes, which are not detailed. Successful R&D in physical, engineering, or life sciences can lead to breakthroughs in areas like materials science, AI, cybersecurity, or medical countermeasures. These advancements could significantly enhance future defense capabilities, provide a technological edge, and potentially lead to dual-use applications benefiting the broader economy.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $98,188,209

Exercised Options: $71,712,962

Current Obligation: $69,493,994

Subaward Activity

Number of Subawards: 69

Total Subaward Amount: $22,782,608

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0174

IDV Type: IDC

Timeline

Start Date: 2022-06-28

Current End Date: 2026-06-28

Potential End Date: 2026-06-28 00:00:00

Last Modified: 2025-09-30

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