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 ServicesScientific Research and Development ServicesResearch and Development in the Social Sciences and Humanities

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (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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