DoD's $82.6M Buckeye contract awarded to Leidos, Inc. for R&D services
Contract Overview
Contract Amount: $82,618,134 ($82.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-09-27
End Date: 2014-01-31
Contract Duration: 491 days
Daily Burn Rate: $168.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BUCKEYE
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $82.6 million to LEIDOS, INC. for work described as: BUCKEYE Key points: 1. Contract awarded to a single large business, Leidos, Inc. 2. Focus on Research and Development in Social Sciences and Humanities. 3. Significant contract value of over $82 million. 4. Awarded by the Department of the Army, part of DoD. 5. Contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee represents fair value for the R&D services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for an $82.6 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may have paid more than necessary due to the sole-source nature of the award. Limited transparency into the specific R&D outcomes and their public benefit. Potential for funds to be directed towards less critical research areas without competitive vetting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- High contract value
Positive Signals
- Awarded to a known entity (Leidos, Inc.)
- Specific R&D focus
Sector Analysis
This contract falls under the Research and Development sector, specifically in social sciences and humanities. Spending in this area can be crucial for understanding societal issues, but requires careful oversight to ensure relevance and efficiency, especially when awarded non-competitively.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The non-competed nature of this large contract warrants scrutiny. Oversight should focus on the justification for sole-sourcing and the effective management of the Cost Plus Fixed Fee structure to ensure accountability.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Cost-plus contract type carries inherent risk of cost overruns.
- High value ($82.6M) amplifies potential financial mismanagement.
- Limited information on specific R&D deliverables and public benefit.
- No indication of small business participation.
Tags
research-and-development-in-the-social-s, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.6 million to LEIDOS, INC.. BUCKEYE
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 $82.6 million.
What is the period of performance?
Start: 2012-09-27. End: 2014-01-31.
What was the specific justification for awarding this $82.6 million R&D contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. For this Buckeye contract, the specific rationale would need to be documented by the Department of the Army, potentially citing specialized expertise or proprietary technology held by Leidos, Inc. that was deemed essential for the R&D objectives.
How was the 'fixed fee' component of the Cost Plus Fixed Fee contract determined to be fair and reasonable without competition?
Determining a fair and reasonable fixed fee without competition usually involves analyzing historical pricing for similar services, using cost-plus-award-fee (CPAF) or cost-plus-incentive-fee (CPIF) structures with pre-defined metrics, or relying on independent government cost estimates. The agency must demonstrate that the fee adequately incentivizes performance while compensating the contractor appropriately for their efforts and risks.
What tangible outcomes or public benefits resulted from this $82.6 million investment in social sciences and humanities R&D?
Assessing the tangible outcomes requires reviewing the contract's deliverables and final reports. Public benefits from social science and humanities R&D can include improved policy recommendations, enhanced understanding of societal trends, development of new analytical frameworks, or contributions to educational resources. The specific impact would depend on the research's subject matter and its dissemination.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR STE B, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $82,716,918
Exercised Options: $82,716,918
Current Obligation: $82,618,134
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $51,881,373
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-09-27
Current End Date: 2014-01-31
Potential End Date: 2014-01-31 00:00:00
Last Modified: 2018-07-30
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