DoD Awards $755M Engineering Services Contract to Leidos, Inc. for Space and Strategic Defense
Contract Overview
Contract Amount: $75,478,127 ($75.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-04-28
End Date: 2009-12-31
Contract Duration: 2,073 days
Daily Burn Rate: $36.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200409!002008!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0062 !A!N! !Y! ! !20040428!20070427!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DRIVE !SAN DIEGO !CA!92121!00200!025!24!ABINGDON !HARFORD !MARYLAND !+000028426000!N!N!000389903512!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !* !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!008!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $75.5 million to LEIDOS, INC. for work described as: 200409!002008!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0062 !A!N! !Y! ! !20040428!20070427!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DRIVE !SAN DIEGO !CA!92121!00200!025!24!ABINGDON !HARF… Key points: 1. Contract awarded to Leidos, Inc. for engineering services supporting US Space and Strategic Defense Command. 2. The contract has a base value of $36.41M with a potential value of $754.78M, indicating significant growth potential. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: good
The contract's potential value of $754.78M is substantial. Benchmarking against similar large-scale engineering services contracts for defense agencies is necessary to fully assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The significant difference between the base and potential value suggests options or task orders that were likely negotiated during the competitive process.
Taxpayer Impact: The competitive award process aims to secure cost-effective solutions for critical defense needs, potentially saving taxpayer money through market forces.
Public Impact
Supports critical US Space and Strategic Defense Command operations, impacting national security. Leidos, Inc. is a major defense contractor, indicating a significant player in the sector. The large contract value suggests substantial resource allocation towards defense modernization and capabilities. Potential for follow-on work or expansion based on the large difference between base and potential value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration (over 5 years) increases risk of scope creep and cost escalation.
- Significant difference between base and potential value ($36.41M vs $754.78M) requires close monitoring.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Leidos, Inc. is an established contractor with a track record in defense.
- Supports a critical national security mission.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the defense industry. Spending in this sector is often high due to the complexity and strategic importance of defense projects.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large contracts like this are often awarded to prime contractors who may then subcontract to smaller businesses, but this is not explicitly stated.
Oversight & Accountability
The Department of Defense, through agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial given the contract type and potential value to ensure performance and cost control.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Significant difference between base and potential contract value.
- Potential for cost overruns.
- Lack of explicit small business participation details.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.5 million to LEIDOS, INC.. 200409!002008!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0062 !A!N! !Y! ! !20040428!20070427!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DRIVE !SAN DIEGO !CA!92121!00200!025!24!ABINGDON !HARFORD !MARYLAND !+000028426000!N!N!000389903512!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !* !541330!E! !3! ! ! ! ! !999
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 $75.5 million.
What is the period of performance?
Start: 2004-04-28. End: 2009-12-31.
What specific engineering services are included under this contract, and how do they align with current strategic defense priorities?
The contract specifies 'Engineering Services' (NAICS 541330) and supports the 'USA SPACE AND STRATEGIC DEF CDR'. While the exact services are not detailed, they likely encompass a broad range of technical support, system design, integration, and testing for space and strategic defense assets. This aligns with ongoing national security efforts in space domain awareness, missile defense, and strategic command and control systems.
What are the key performance indicators (KPIs) and milestones for this Cost Plus Fixed Fee contract, and how will they be monitored to control costs?
For a Cost Plus Fixed Fee contract, KPIs typically focus on technical performance, schedule adherence, and cost management. The government will likely monitor actual costs incurred against the fixed fee and the estimated cost ceiling. Milestones would be tied to project deliverables and phases. Robust reporting requirements and regular reviews by the Defense Contract Management Agency are essential to ensure the contractor remains within budget and meets performance expectations.
How does the potential contract value of $754.78M compare to similar engineering services contracts awarded by the DoD for space and strategic defense capabilities?
A potential value of $754.78M for engineering services in the space and strategic defense sector is substantial, reflecting the high cost and complexity of these programs. Benchmarking against other major contracts for similar services, such as satellite development, command and control systems, or advanced missile defense technologies, would be necessary. However, given the critical nature of space and strategic defense, such large contract values are not uncommon for leading contractors like Leidos.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 10260 CAMPUS POINT DRIVE, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-28
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2022-04-07
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