Leidos Inc. awarded $71.4M for R&D, with a significant portion allocated to the YOGI PROJECT
Contract Overview
Contract Amount: $71,425,471 ($71.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-01-01
End Date: 2012-09-30
Contract Duration: 638 days
Daily Burn Rate: $112.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: U437A00 - YOGI PROJECT
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $71.4 million to LEIDOS, INC. for work described as: U437A00 - YOGI PROJECT Key points: 1. The contract's value of $71.4 million represents a substantial investment in research and development. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The contract duration of 638 days indicates a medium-term project requiring sustained effort. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' category highlights the technical nature of the work. 5. The award to Leidos, Inc., a major defense contractor, places this within a context of established industry players. 6. The contract type 'COST PLUS FIXED FEE' can incentivize cost control while ensuring project completion.
Value Assessment
Rating: fair
Benchmarking the value of this $71.4 million contract is challenging without specific deliverables or comparable projects. However, the duration of 638 days suggests a significant undertaking. The cost-plus-fixed-fee structure means that while the contractor is reimbursed for allowable costs, a fixed fee is added, which can lead to cost overruns if not managed carefully. Further analysis would require understanding the specific research objectives and the expected outcomes to assess true value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection process and potentially better pricing for the government. The presence of two bidders suggests a moderate level of competition for this specific R&D effort.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple providers.
Public Impact
The primary beneficiaries are likely the Department of Defense and its research initiatives, aiming to advance scientific and technological capabilities. The services delivered fall under research and development in physical, engineering, and life sciences, contributing to future technological advancements. The geographic impact is primarily within Virginia, where the contractor is based, but the research outcomes could have national security implications. Workforce implications include employment for researchers, engineers, and support staff at Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns are a potential risk with Cost Plus Fixed Fee contracts if not rigorously monitored.
- The specific R&D outcomes are not detailed, making it difficult to assess the project's ultimate success or impact.
- Limited competition (two bidders) might suggest a niche area or high barriers to entry, potentially impacting long-term cost-effectiveness.
Positive Signals
- Awarded under full and open competition, suggesting a fair and accessible bidding process.
- Leidos, Inc. is a large, established contractor with significant experience in R&D and defense contracts.
- The contract is for research and development, which is crucial for technological advancement and national security.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The R&D market within the defense sector is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the Department of Defense to major contractors in similar scientific fields.
Small Business Impact
The contract indicates that small business participation was not a primary focus, as the 'sb' (small business) flag is false and the contract was not set aside for small businesses. This suggests that the prime contractor, Leidos, Inc., may not have significant subcontracting obligations to small businesses for this particular award, though this would need further verification through subcontracting reports.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures would be tied to the achievement of research milestones and adherence to the cost-plus-fixed-fee agreement. Transparency is generally maintained through contract award databases, but specific project details and performance metrics may be sensitive.
Related Government Programs
- Department of Defense Research and Development Programs
- Army Science and Technology Initiatives
- Advanced Technology Development Contracts
- Leidos Inc. Contract Portfolio
Risk Flags
- Cost Overrun Risk (CPFF Contract)
- Limited Competition Impact on Price
- Unclear Project Deliverables/Outcomes
Tags
research-and-development, department-of-defense, department-of-the-army, leidos-inc, cost-plus-fixed-fee, full-and-open-competition, virginia, physical-engineering-life-sciences, medium-value-contract, fy2011-award
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.4 million to LEIDOS, INC.. U437A00 - YOGI PROJECT
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 $71.4 million.
What is the period of performance?
Start: 2011-01-01. End: 2012-09-30.
What is the specific nature of the 'YOGI PROJECT' and its intended outcomes?
The provided data does not specify the exact nature or intended outcomes of the 'YOGI PROJECT.' As a research and development contract under the Department of the Army, it likely pertains to advancing scientific or technological capabilities relevant to national defense. Further investigation into unclassified project descriptions or public statements from the Department of Defense or Leidos, Inc. would be necessary to ascertain the project's specific goals, such as developing new materials, improving sensor technology, or advancing computational modeling in a particular domain.
How does the $71.4 million award compare to similar R&D contracts for Leidos, Inc. or the Department of the Army?
Comparing the $71.4 million award requires context on the typical scale of R&D contracts within the Department of the Army and for a contractor like Leidos, Inc. Leidos is a major defense contractor that handles numerous large contracts, many of which can exceed this value, particularly in areas like systems integration, IT, and R&D. The Department of the Army also awards billions annually in R&D. Without specific project scope and duration comparisons, it's difficult to definitively label this award as particularly large or small. However, $71.4 million for a project spanning approximately 21 months (638 days) represents a significant, but not extraordinary, investment for a specialized R&D effort.
What are the key risks associated with a 'COST PLUS FIXED FEE' contract for this type of R&D work?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the 'fixed fee' component is predetermined. If the actual costs significantly exceed projections, the government may end up paying more than anticipated, especially if the contractor's efficiency is low or unforeseen technical challenges arise. For the contractor, the risk lies in underestimating costs, which could reduce their profit margin. Effective oversight and clear milestone definitions are crucial to mitigate these risks and ensure the government receives value.
What does the limited competition (2 bidders) imply for the government and taxpayers in this R&D context?
Limited competition, with only two bidders for this contract, suggests that the R&D area might be highly specialized, require unique capabilities, or have significant barriers to entry. While full and open competition was advertised, only two entities submitted proposals. This could potentially lead to less aggressive pricing than if there were multiple bidders vying for the contract. For taxpayers, this means there's a reduced assurance that the government secured the absolute lowest price possible. However, if the two bidders were highly qualified and the selection process was robust, the government may still have obtained good value, albeit with less price discovery than in a more crowded field.
How has Leidos, Inc. performed on similar government R&D contracts in the past?
Assessing Leidos, Inc.'s past performance on similar contracts would require access to detailed contract performance databases and past performance reviews, which are not provided in this data. However, as a large, established defense contractor, Leidos generally has a track record of executing complex projects. Their performance on R&D contracts would likely vary depending on the specific technical challenges, program management effectiveness, and the clarity of government requirements. Government contract performance is often evaluated through metrics like on-time delivery, adherence to budget, and technical success, which can be found in official performance records.
What is the historical spending trend for R&D contracts under the Department of the Army in the 'Physical, Engineering, and Life Sciences' category?
Historical spending trends for R&D in the 'Physical, Engineering, and Life Sciences' category by the Department of the Army are substantial and generally increasing, reflecting a continuous need for technological advancement. While specific figures for this exact NAICS code (541712) and agency would require detailed database analysis, the Army consistently invests billions annually in R&D across various scientific disciplines. Factors influencing these trends include evolving geopolitical landscapes, emerging technological threats, and strategic modernization priorities. This $71.4 million award fits within this broader pattern of significant, ongoing investment in scientific and engineering research.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $107,694,118
Exercised Options: $71,425,471
Current Obligation: $71,425,471
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-01-01
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2014-07-30
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