Leidos Inc. awarded $24.1M contract for applied research services by the Department of the Army
Contract Overview
Contract Amount: $24,129,388 ($24.1M)
Contractor: Leidos Inc
Awarding Agency: Department of Defense
Start Date: 2006-04-11
End Date: 2010-10-31
Contract Duration: 1,664 days
Daily Burn Rate: $14.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200607!371938!1700!N61339!NAVAL AIR WARFARE CENTER !N6133900D0710 !A!N! !N!0040 ! !20060411!20071031!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000000800000!N!N!000000000000!AD22!RDTE/SERVICES-APPLIED RESEARCH !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!B!20080921!B!F!Y!A! !A!U!U!2!002!A! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !2100!W32G11!0001! !
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $24.1 million to LEIDOS INC for work described as: 200607!371938!1700!N61339!NAVAL AIR WARFARE CENTER !N6133900D0710 !A!N! !N!0040 ! !20060411!20071031!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000000800000!N!N!000000000000!AD2… Key points: 1. Contract awarded for applied research and development services, indicating a focus on innovation and future capabilities. 2. The contract's cost-plus-fixed-fee structure suggests potential for cost overruns if not managed carefully. 3. A duration of over 4 years implies a significant, long-term need for these specialized services. 4. The contract was awarded under full and open competition, suggesting a competitive bidding process. 5. The primary place of performance is Florida, indicating a regional economic impact. 6. The contract falls under the 'All Other Professional, Scientific, and Technical Services' NAICS code, highlighting a broad scope of work.
Value Assessment
Rating: fair
The total award amount of $24.1 million over approximately 4.5 years averages to about $5.36 million per year. Benchmarking this against similar applied research contracts is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if the scope is not tightly defined or if contractor efficiencies are not incentivized. The contract's value appears moderate for a federal research and development service contract.
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. While the data does not specify the number of bidders, this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency sought proposals from a wide range of potential contractors, aiming to secure the best value.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and improving the quality of services received.
Public Impact
The Department of the Army benefits from specialized applied research services to advance its technological capabilities. The contract supports scientific and technical services, likely contributing to defense modernization and operational effectiveness. The primary geographic impact is in Florida, where the services are performed, potentially creating or sustaining jobs in the region. The contract supports the scientific and engineering workforce involved in research and development activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, potentially leading to higher overall expenditures if not closely monitored.
- The broad NAICS code (541990) for 'All Other Professional, Scientific, and Technical Services' might indicate a less defined scope, increasing the risk of scope creep or cost overruns.
Positive Signals
- Awarded under full and open competition, suggesting a robust process to identify the best value provider.
- The contract has a defined period of performance, allowing for structured oversight and evaluation of contractor performance.
- The contractor, Leidos Inc., is a large and established company with significant experience in government contracting, suggesting a lower risk of performance failure.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on applied research. This sector is crucial for government innovation, enabling advancements in technology, defense, and other critical areas. The market for federal R&D services is substantial, with agencies like the Department of Defense being major consumers. Comparable spending benchmarks would depend heavily on the specific nature of the research, but contracts for specialized scientific services often range from millions to tens of millions of dollars.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, although Leidos Inc. may engage small businesses as subcontractors as part of its broader operations.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the technical point of contact within the Department of the Army. Performance monitoring, financial reviews, and compliance checks are standard oversight mechanisms. As a CPFF contract, rigorous oversight of incurred costs and adherence to the fixed fee is crucial. Transparency is generally maintained through contract databases like FPDS, and any significant issues could be subject to Inspector General review.
Related Government Programs
- Department of Defense Research and Development Contracts
- Applied Scientific Research Services
- Professional and Technical Services Contracts
- Naval Air Warfare Center Contracts
Risk Flags
- Cost-plus-fixed-fee contract type may lead to higher costs if not managed closely.
- Broad NAICS code could indicate potential for scope creep or unclear deliverables.
- Performance data and specific research outcomes are not detailed in the summary.
Tags
department-of-defense, department-of-the-army, applied-research, professional-scientific-technical-services, cost-plus-fixed-fee, full-and-open-competition, leidos-inc, florida, rdte, research-and-development, contract-award, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.1 million to LEIDOS INC. 200607!371938!1700!N61339!NAVAL AIR WARFARE CENTER !N6133900D0710 !A!N! !N!0040 ! !20060411!20071031!054781240!054781240!054781240!N!SCIENCE APPLICATIONS INTERNATI!10260 CAMPUS POINT DR !SAN DIEGO !CA!92121!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000000800000!N!N!000000000000!AD22!RDTE/SERVICES-APPLIED RESEARCH !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!B!20080921!B!F!Y!A! !A!U!U!2!002!A! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !2100!W32G11!0001! !
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 $24.1 million.
What is the period of performance?
Start: 2006-04-11. End: 2010-10-31.
What is the specific nature of the 'applied research' being conducted under this contract?
The provided data indicates the contract falls under the NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and the PSC code AD22, 'RDT/SERVICES-APPLIED RESEARCH.' While this confirms the general category of work, the specific research topics or objectives are not detailed in the summary data. Applied research aims to gain knowledge or understanding necessary for the development, standardization, and improvement of products, processes, and services. Without further documentation, such as the Statement of Work (SOW), the precise nature of the research, whether it involves materials science, engineering, cybersecurity, or other fields, remains unspecified. This lack of specificity can make it difficult to benchmark performance or assess the direct impact on specific technological advancements.
How does the $24.1 million award compare to typical spending on similar applied research contracts by the Department of the Army?
The $24.1 million award for applied research services over approximately 4.5 years represents an average annual value of roughly $5.36 million. Comparing this to 'typical' spending is challenging without a more granular understanding of the specific research domain and complexity. However, for applied research contracts, this value falls within a moderate range. Larger, more complex R&D programs can easily reach hundreds of millions or even billions of dollars. Smaller, more focused research efforts might be in the low millions. Given Leidos's size and the nature of applied research, this contract size suggests a significant but not massive undertaking, likely focused on specific technological development or problem-solving areas for the Army.
What are the key performance indicators (KPIs) or metrics used to evaluate Leidos Inc.'s performance on this contract?
The provided summary data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate Leidos Inc.'s performance. Typically, for applied research contracts, performance is assessed based on factors such as the timely delivery of research findings, the quality and validity of the research conducted, adherence to project milestones, innovation demonstrated, and the successful application of research outcomes to meet the Army's objectives. For a Cost Plus Fixed Fee (CPFF) contract, meeting the defined scope within budget and schedule, while achieving the technical goals, are paramount. The contracting officer's representative (COR) would usually be responsible for monitoring these aspects throughout the contract's duration.
What is Leidos Inc.'s track record with the Department of the Army and specifically with applied research contracts?
Leidos Inc. is a major government contractor with extensive experience across various federal agencies, including the Department of Defense and the Department of the Army. While the provided data confirms this specific award, a comprehensive assessment of their track record would require analyzing their past performance on similar contracts. This includes reviewing past performance evaluations, any contract disputes or terminations, and their history of delivering complex scientific and technical services. Given Leidos's scale, it is highly probable they have a substantial portfolio of past performance relevant to applied research, likely demonstrating both successes and areas for improvement, as is common for large contractors.
Are there any specific risks associated with the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) for this contract?
The primary risk associated with the broad 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) is the potential for ambiguity in the contract's scope of work. This category is a catch-all for services not specified elsewhere, which can sometimes lead to challenges in defining precise deliverables, milestones, and performance standards. For the government, this can increase the risk of scope creep, cost overruns, and difficulties in objectively measuring performance. For the contractor, it can lead to disputes over requirements or expectations. Effective contract management, clear communication, and a well-defined Statement of Work (SOW) are crucial to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: N6133900D0710
IDV Type: IDC
Timeline
Start Date: 2006-04-11
Current End Date: 2010-10-31
Potential End Date: 2010-10-31 00:00:00
Last Modified: 2015-05-29
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