Leidos Inc. awarded $29.5M for Army modernization support, including ISR and cyber operations
Contract Overview
Contract Amount: $29,528,765 ($29.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-15
End Date: 2026-03-14
Contract Duration: 729 days
Daily Burn Rate: $40.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ARMY MODERNIZATION PRIORITIES (AMP) JOINT TRAINING, INTELLIGENCE SURVEILLANCE RECONNAISSANCE (ISR) & CYBER OPERATIONS SUPPORT
Place of Performance
Location: ADELPHI, PRINCE GEORGES County, MARYLAND, 20783
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $29.5 million to LEIDOS, INC. for work described as: ARMY MODERNIZATION PRIORITIES (AMP) JOINT TRAINING, INTELLIGENCE SURVEILLANCE RECONNAISSANCE (ISR) & CYBER OPERATIONS SUPPORT Key points: 1. Contract focuses on critical Army modernization priorities, enhancing intelligence, surveillance, reconnaissance, and cyber capabilities. 2. The award represents a significant investment in advanced technological support for defense operations. 3. Competition was full and open, suggesting a robust market for these specialized services. 4. The contract duration of 729 days indicates a medium-term commitment to ongoing support. 5. Performance is expected in Maryland, a hub for defense contracting and technological development. 6. The contract type, Cost Plus Fixed Fee, allows for flexibility while managing project costs.
Value Assessment
Rating: good
The contract value of $29.5 million over two years for specialized R&D support appears reasonable given the critical nature of Army modernization priorities. Benchmarking against similar large-scale defense support contracts suggests this is within expected ranges for complex ISR and cyber operations. The Cost Plus Fixed Fee structure, while potentially leading to cost overruns if not managed tightly, is common for R&D where scope can evolve. Further analysis of specific task orders would be needed for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages innovation. The Army's decision to use full and open competition suggests confidence in the market's ability to meet its complex requirements for modernization support.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives the best value by considering a wide range of potential solutions and providers.
Public Impact
The U.S. Army benefits directly through enhanced capabilities in intelligence, surveillance, reconnaissance, and cyber operations, crucial for modern warfare. This contract supports the development and implementation of advanced technologies essential for maintaining military readiness and technological superiority. The geographic impact is primarily centered in Maryland, a key region for defense research and development, potentially creating or sustaining high-skilled jobs. Workforce implications include the need for specialized personnel in areas like cybersecurity, intelligence analysis, and systems engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to prevent scope creep and ensure costs remain aligned with the fixed fee component.
- The evolving nature of ISR and cyber technologies necessitates continuous monitoring to ensure the contractor remains at the forefront of innovation.
- Dependence on a single contractor for critical modernization support could pose a risk if performance falters or strategic needs shift rapidly.
Positive Signals
- Awarding to Leidos, Inc., a known entity in defense contracting, suggests a level of confidence in their past performance and technical expertise.
- The focus on modernization priorities indicates alignment with strategic defense goals, potentially leading to more effective and relevant outcomes.
- Full and open competition implies a healthy market and potential for strong technical solutions.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences, excluding niche areas like nanotechnology. The market for defense R&D is substantial, driven by continuous technological advancement and national security needs. This contract for Army modernization support, encompassing ISR and cyber, aligns with broader trends in defense spending towards sophisticated technological solutions and information dominance. Comparable spending benchmarks in this sub-sector often involve multi-year, high-value contracts for system development and integration.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Leidos, Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Leidos's subcontracting plan and the specific technical requirements of the task orders issued under this contract. Analysis of subcontracting reports would be necessary to determine the actual impact on the small business ecosystem.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely involve the Department of the Army's contracting officers and program managers, who are responsible for monitoring performance, costs, and adherence to the contract terms. Accountability measures are built into the contract through reporting requirements and payment milestones tied to performance. Transparency is generally maintained through contract award announcements and public contract databases, though specific task order details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Army Futures Command Initiatives
- Intelligence, Surveillance, and Reconnaissance (ISR) Modernization Programs
- Cybersecurity and Information Warfare Programs
- Department of Defense Research and Development Spending
- Advanced Technology Development Contracts
Risk Flags
- Potential for cost overruns in CPFF contract
- Evolving technology landscape requiring continuous adaptation
- Dependence on contractor expertise for critical functions
Tags
army, modernization, intelligence-surveillance-reconnaissance, cyber-operations, r&d, leidos-inc, department-of-defense, full-and-open-competition, cost-plus-fixed-fee, maryland, research-and-development, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.5 million to LEIDOS, INC.. ARMY MODERNIZATION PRIORITIES (AMP) JOINT TRAINING, INTELLIGENCE SURVEILLANCE RECONNAISSANCE (ISR) & CYBER OPERATIONS SUPPORT
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 $29.5 million.
What is the period of performance?
Start: 2024-03-15. End: 2026-03-14.
What is Leidos, Inc.'s track record with the Department of Defense, particularly in ISR and cyber operations support?
Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing large contracts across various domains, including intelligence, surveillance, reconnaissance, and cybersecurity. They are known for providing a wide range of services, from systems engineering and integration to advanced analytics and IT support. Their experience often involves complex, mission-critical programs. While specific performance metrics for past ISR and cyber contracts are not detailed here, their consistent presence as a prime contractor suggests a generally positive standing. However, like any large contractor, they may have faced scrutiny or performance challenges on specific projects, which would be detailed in contract performance reports and agency evaluations not publicly available in this summary.
How does the $29.5 million contract value compare to similar ISR and cyber modernization support contracts awarded by the Army or DoD?
The $29.5 million contract value for a two-year period (729 days) for Army modernization support, specifically focusing on ISR and cyber operations, appears to be a moderate-sized award within the broader landscape of defense contracting. Large-scale ISR and cyber development programs can range from tens of millions to billions of dollars over several years. This particular award suggests a focused effort on specific modernization priorities rather than a comprehensive overhaul of entire systems. When compared to major platform development or enterprise-wide cybersecurity overhauls, this contract's value is less substantial. However, for specialized R&D and support services in these critical fields, it represents a significant investment that aligns with ongoing efforts to enhance battlefield awareness and digital defense capabilities.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in rapidly evolving fields like cyber operations?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract in rapidly evolving fields like cyber operations revolve around cost control and scope management. While the fixed fee provides the contractor with an incentive to control costs, the 'cost-plus' element means the government reimburses allowable costs. In fast-paced R&D, requirements can change frequently, leading to scope creep. If not managed meticulously, this can drive up the 'cost' portion significantly, potentially exceeding initial expectations, even with a fixed fee. There's also a risk that the contractor might prioritize tasks that are more profitable or easier to justify under the cost structure, rather than those most critical to the evolving threat landscape. Effective oversight, clear communication, and robust change control processes are crucial to mitigate these risks.
What is the expected impact of this contract on the Army's overall modernization strategy for ISR and cyber capabilities?
This contract is expected to directly contribute to the Army's modernization strategy by providing essential research and development support for its Intelligence, Surveillance, Reconnaissance (ISR), and Cyber operations. Modernization in these areas is critical for maintaining information superiority and situational awareness on the future battlefield. The award to Leidos, Inc. signifies a commitment to leveraging advanced technological solutions and expertise to enhance these capabilities. It suggests a focus on integrating new technologies, improving data analysis, and strengthening defensive and offensive cyber postures. The contract's duration and scope indicate a targeted effort to address specific modernization priorities, potentially accelerating the fielding of advanced ISR and cyber tools necessary for near-peer competition.
Are there any historical spending patterns or trends related to Army ISR and cyber support contracts that this award fits into?
This award fits into a broader historical trend of increasing investment by the Department of Defense, and specifically the Army, in Intelligence, Surveillance, Reconnaissance (ISR), and Cyber capabilities. Over the past two decades, spending in these areas has grown substantially due to evolving geopolitical threats and the increasing importance of information warfare and data-driven decision-making. Contracts for ISR platforms, data processing, analytics, and cybersecurity solutions have become a significant portion of the defense budget. This $29.5 million contract represents a continuation of that trend, focusing on the R&D and support aspects necessary to maintain a technological edge. It aligns with strategic imperatives to modernize legacy systems and develop next-generation capabilities to counter sophisticated adversaries.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W911NF22R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $105,013,792
Exercised Options: $36,264,600
Current Obligation: $29,528,765
Actual Outlays: $3,737,952
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $54,009,209
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911NF23D0016
IDV Type: IDC
Timeline
Start Date: 2024-03-15
Current End Date: 2026-03-14
Potential End Date: 2029-09-14 00:00:00
Last Modified: 2025-09-03
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