DoD's $64M ISR & Cyber R&D Contract Awarded to Leidos Under Full and Open Competition

Contract Overview

Contract Amount: $64,213,730 ($64.2M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-03-16

End Date: 2024-03-16

Contract Duration: 731 days

Daily Burn Rate: $87.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT - 16 AIR FORCE RDT&E JOINT ISR & CYBER OPERATIONS SUPPORT (16AFJOS)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $64.2 million to LEIDOS, INC. for work described as: RESEARCH AND DEVELOPMENT - 16 AIR FORCE RDT&E JOINT ISR & CYBER OPERATIONS SUPPORT (16AFJOS) Key points: 1. Leidos secured a significant $64.2M contract for joint ISR & Cyber operations support. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The R&D focus is on physical, engineering, and life sciences, excluding biotechnology. 4. This award highlights the Department of Defense's investment in advanced intelligence, surveillance, and reconnaissance capabilities.

Value Assessment

Rating: good

The Cost Plus Fixed Fee contract type suggests potential for cost overruns, but the fixed fee component provides some cost control. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors vie for the contract.

Taxpayer Impact: Taxpayer funds are being used for critical R&D in defense technology, aiming for enhanced national security capabilities.

Public Impact

Enhances national security through advanced ISR and cyber capabilities. Supports technological advancements in defense research and development. Potential for job creation within the defense contracting sector. Ensures the US maintains a technological edge in intelligence gathering and cyber defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can lead to cost overruns.
  • Lack of specific performance metrics makes it hard to assess value for money.
  • Limited visibility into the specific R&D outcomes and their direct impact.

Positive Signals

  • Awarded through full and open competition, suggesting competitive pricing.
  • Focus on critical ISR and Cyber R&D aligns with national security priorities.
  • Long-term contract duration allows for sustained development and integration.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority in defense.

Small Business Impact

The contract was awarded to Leidos, Inc., a large business. There is no explicit indication of small business subcontracting goals or participation in the provided data.

Oversight & Accountability

The Department of the Army awarded this contract, implying oversight from a major branch of the DoD. Further oversight details would depend on internal DoD reporting and auditing mechanisms.

Related Government Programs

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

Risk Flags

  • Potential for cost overruns due to CPFF structure.
  • Lack of transparency on specific R&D deliverables and success metrics.
  • Reliance on a single large contractor may limit future flexibility.
  • The broad nature of 'ISR & Cyber Operations Support' could lead to scope creep.

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 $64.2 million to LEIDOS, INC.. RESEARCH AND DEVELOPMENT - 16 AIR FORCE RDT&E JOINT ISR & CYBER OPERATIONS SUPPORT (16AFJOS)

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 $64.2 million.

What is the period of performance?

Start: 2022-03-16. End: 2024-03-16.

What specific technological advancements are expected from this R&D contract, and how will they be measured?

The provided data does not specify the exact technological advancements sought. Measuring success will likely depend on milestones defined in the contract's SOW, focusing on deliverables related to ISR and cyber operations support. Without access to the SOW, a precise assessment of expected outcomes and measurement criteria is not possible.

What are the potential risks associated with a Cost Plus Fixed Fee contract for R&D, and how are they mitigated?

CPFF contracts carry risks of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies often include robust government oversight, detailed SOWs, and clear performance metrics. However, the effectiveness of these mitigations depends on the government's ability to manage the contract closely and the contractor's adherence to cost controls.

How does this $64M investment in ISR and Cyber R&D compare to similar investments by other agencies or allies?

Benchmarking this $64M investment requires comparative data on similar R&D efforts in ISR and cyber operations across government agencies and allied nations. Without such data, it's difficult to definitively assess if this represents a high, low, or average level of investment. The strategic importance of ISR and cyber suggests significant ongoing investment is typical.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTGeneral Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911NF15R0004

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: $76,224,701

Exercised Options: $76,224,701

Current Obligation: $64,213,730

Actual Outlays: $1,243,791

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $8,614,363

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911NF15D0014

IDV Type: IDC

Timeline

Start Date: 2022-03-16

Current End Date: 2024-03-16

Potential End Date: 2024-03-16 00:00:00

Last Modified: 2025-12-31

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