Leidos, Inc. awarded $16.26M for synthetic environment R&D to enhance simulation and training
Contract Overview
Contract Amount: $16,262,009 ($16.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-24
End Date: 2026-08-23
Contract Duration: 1,794 days
Daily Burn Rate: $9.1K/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 EFFORT FOR INNOVATIVE WAYS TO ENHANCE THE GENERATION AND UTILIZATION OF COST-EFFECTIVE AND INTEROPERABLE SYNTHETIC ENVIRONMENTS FOR SIMULATION, TRAINING, AND BATTLE COMMAND SYSTEMS.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $16.3 million to LEIDOS, INC. for work described as: RESEARCH AND DEVELOPMENT EFFORT FOR INNOVATIVE WAYS TO ENHANCE THE GENERATION AND UTILIZATION OF COST-EFFECTIVE AND INTEROPERABLE SYNTHETIC ENVIRONMENTS FOR SIMULATION, TRAINING, AND BATTLE COMMAND SYSTEMS. Key points: 1. Contract focuses on innovative R&D for synthetic environments, crucial for modern defense training. 2. The definitive contract type suggests a long-term relationship for ongoing research needs. 3. Full and open competition was utilized, indicating a broad search for qualified contractors. 4. The contract duration of nearly five years allows for substantial research and development. 5. The primary focus on R&D suggests potential for future technological advancements in defense. 6. The award is a significant investment in enhancing simulation and battle command capabilities.
Value Assessment
Rating: good
The contract value of $16.26 million over approximately five years for R&D in synthetic environments appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in simulation and training technologies is challenging without more specific data on the scope and deliverables. However, the cost-plus-fixed-fee (CPFF) structure allows for cost control while incentivizing the contractor to manage expenses effectively. The absence of specific performance metrics makes a definitive value assessment difficult at this stage.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that the Department of the Army sought the widest possible pool of qualified offerors. The number of bidders is not specified, but this approach generally fosters competitive pricing and encourages innovation by allowing any responsible source to submit a proposal. The broad competition is a positive indicator for achieving fair market value.
Taxpayer Impact: Full and open competition maximizes the potential for taxpayers to receive the best value by ensuring a wide range of companies can bid, driving down costs and fostering innovation.
Public Impact
The Department of the Army is the primary beneficiary, seeking to improve its simulation and training capabilities. The services delivered will focus on research and development for synthetic environments. The contract is being performed in Florida, indicating a geographic concentration of this R&D effort. The contract supports a specialized workforce in research and development within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The cost-plus-fixed-fee (CPFF) contract type can sometimes lead to cost overruns if not closely monitored.
- The R&D nature of the contract means outcomes are not guaranteed, posing a risk to investment.
- Specific performance metrics and deliverables are not detailed, making it harder to track progress and success.
- The long duration of the contract requires sustained oversight to ensure continued alignment with evolving needs.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- The definitive contract type indicates a strategic, long-term commitment to this research area.
- The focus on innovative R&D has the potential to yield significant advancements in defense capabilities.
- The contractor, Leidos, Inc., is a well-established entity in defense contracting, suggesting experience and capability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on simulation and training technologies. The market for synthetic environments is growing as defense organizations increasingly rely on virtual and augmented reality for realistic training scenarios. Comparable spending benchmarks are difficult to pinpoint without more granular data on the specific technological advancements sought, but significant investments are being made across the defense industry in this area to maintain a technological edge.
Small Business Impact
This contract was not set aside for small businesses and there is no indication of subcontracting requirements for small businesses. The primary contractor, Leidos, Inc., is a large business. This means the direct impact on the small business ecosystem is likely minimal unless Leidos actively engages small businesses as subcontractors for specialized support, which is not explicitly stated in the provided data.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures will be tied to the terms of the Cost Plus Fixed Fee (CPFF) contract, requiring Leidos to adhere to budget and performance expectations. Transparency is facilitated through the Federal Procurement Data System (FPDS), which records contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Simulation and Training Systems
- Battle Command Systems
- Defense Research and Development
- Synthetic Environment Technologies
- Virtual and Augmented Reality in Defense
Risk Flags
- Potential for cost overruns in CPFF contract
- Uncertainty of R&D outcomes
- Lack of detailed performance metrics
- Long contract duration requires sustained oversight
Tags
research-and-development, department-of-defense, department-of-the-army, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, simulation-and-training, synthetic-environments, florida, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.3 million to LEIDOS, INC.. RESEARCH AND DEVELOPMENT EFFORT FOR INNOVATIVE WAYS TO ENHANCE THE GENERATION AND UTILIZATION OF COST-EFFECTIVE AND INTEROPERABLE SYNTHETIC ENVIRONMENTS FOR SIMULATION, TRAINING, AND BATTLE COMMAND SYSTEMS.
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 $16.3 million.
What is the period of performance?
Start: 2021-09-24. End: 2026-08-23.
What is Leidos, Inc.'s track record with similar R&D contracts for the Department of Defense?
Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing contracts for research, development, and advanced technological solutions. They are known for their work in areas such as command and control systems, intelligence analysis, and simulation technologies. While specific details on past synthetic environment R&D contracts are not provided here, their general experience suggests a strong capability to undertake complex research initiatives. Their history includes numerous large-scale contracts across various defense agencies, indicating a capacity to manage significant budgets and long-term projects. A deeper dive into their past performance on CPFF contracts and R&D efforts would provide further insight into their reliability and success rates in delivering on complex technical requirements.
How does the $16.26 million value compare to other R&D investments in synthetic environments?
The $16.26 million award for R&D in synthetic environments represents a significant, but not exceptionally large, investment for a multi-year project within the defense sector. The value is influenced by the specific scope of research, the complexity of the technologies involved, and the duration of the contract (nearly five years). Defense R&D budgets are substantial, and investments in simulation and training technologies are a priority. Without access to a comprehensive database of all synthetic environment R&D contracts, a precise benchmark is difficult. However, this figure suggests a focused effort rather than a broad, sweeping program. It is likely competitive within its niche, aiming to achieve specific technological advancements rather than a complete overhaul of existing systems.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risks associated with this Cost Plus Fixed Fee (CPFF) contract revolve around cost control and the inherent uncertainties of research and development. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' element means that the government reimburses allowable costs incurred by Leidos. If R&D efforts prove more complex or require more resources than initially anticipated, the total cost to the government could escalate, even with a fixed fee. Effective oversight is crucial to ensure that all costs are reasonable, allocable, and allowable. Furthermore, the R&D nature itself carries risk; the project may not yield the desired innovative outcomes, potentially leading to a suboptimal return on investment for the government, regardless of how well the contractor manages costs.
How might this contract impact the effectiveness of future military training and simulation?
This contract has the potential to significantly enhance the effectiveness of future military training and simulation by fostering innovation in synthetic environments. Improved synthetic environments can offer more realistic, adaptable, and cost-effective training scenarios compared to traditional methods. This R&D effort aims to make these environments more interoperable and cost-effective, which could lead to broader adoption and integration across different training platforms and systems. Enhanced simulation capabilities allow for training in complex or dangerous scenarios without real-world risk, improving readiness and reducing training costs. Ultimately, the success of this R&D could translate into better-prepared personnel and more sophisticated, data-driven training methodologies.
What are the historical spending patterns for synthetic environment R&D within the Department of Defense?
Historical spending patterns for synthetic environment R&D within the Department of Defense show a consistent and increasing trend over the past decade. Driven by the need for more realistic, cost-effective, and adaptable training solutions, the DoD has prioritized investments in simulation, virtual reality, and augmented reality technologies. This includes funding for the development of sophisticated synthetic environments that can replicate diverse operational conditions. While specific dollar amounts fluctuate year-to-year based on strategic priorities and technological advancements, the overall trajectory indicates a sustained commitment. Agencies like the Army, Navy, and Air Force, along with DARPA, have allocated significant resources to R&D in this domain, recognizing its critical role in maintaining military readiness and technological superiority.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911QY20R0022
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: $19,945,028
Exercised Options: $19,945,028
Current Obligation: $16,262,009
Actual Outlays: $1,512,895
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,618,757
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-09-24
Current End Date: 2026-08-23
Potential End Date: 2026-08-23 00:00:00
Last Modified: 2025-12-19
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