Department of the Army's $54.6M contract for Warfighter Analysis and Integration awarded to Leidos, Inc
Contract Overview
Contract Amount: $54,589,672 ($54.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-11-08
End Date: 2008-12-16
Contract Duration: 769 days
Daily Burn Rate: $71.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: WARFIGHTER ANALYSIS AND INTEGRATION
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $54.6 million to LEIDOS, INC. for work described as: WARFIGHTER ANALYSIS AND INTEGRATION Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract type, Cost Plus Fixed Fee, can lead to cost overruns if not managed closely. 3. Performance period of 769 days indicates a medium-term project. 4. The contract was awarded in 2006, providing historical context for current spending. 5. Leidos, Inc. is a significant player in government contracting, particularly in R&D and IT services. 6. The North American Industry Classification System (NAICS) code 541710 points to research and development activities.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its age and specific R&D focus. The Cost Plus Fixed Fee (CPFF) structure, while common for research, carries inherent risks of cost escalation compared to fixed-price contracts. Without detailed performance metrics or comparison to similar, contemporary R&D efforts, assessing true value-for-money is difficult. The contract's duration and total value suggest a moderate investment in a specialized area.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bidders suggests a competitive environment, though the exact number of proposals received is not specified. Full and open competition generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible services at the most reasonable cost. A competitive award increases the likelihood that the government is not overpaying for the research and analysis services.
Public Impact
The primary beneficiaries are likely Department of Defense (DoD) warfighters and decision-makers who will receive enhanced analysis and integration capabilities. The services delivered are expected to improve strategic planning, operational effectiveness, and technological integration for military operations. The geographic impact is primarily within the Department of the Army's operational domains, potentially extending to global military installations. Workforce implications may include specialized research and analysis roles within Leidos, Inc. and potentially within the Army's research and development divisions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
- The age of the contract (awarded in 2006) means current market rates and technological capabilities may have significantly evolved.
- Limited information on specific performance outcomes makes it difficult to assess the ultimate effectiveness and return on investment.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Leidos, Inc. is a well-established contractor with a significant presence in defense and R&D sectors.
- The contract addresses a critical area of warfighter analysis and integration, suggesting strategic importance.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on defense applications. The R&D services market for the US government is substantial, with significant annual outlays directed towards innovation and technological advancement. This contract represents a portion of the broader DoD spending aimed at enhancing military capabilities through advanced analysis and system integration, fitting within the larger ecosystem of defense technology development.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it is possible that subcontracting opportunities for small businesses exist within the scope of this work, particularly for specialized research or support services. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem remains unclear.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Given the CPFF structure, rigorous financial oversight and performance monitoring would be crucial to ensure cost control and adherence to research objectives. Transparency would be facilitated through contract reporting requirements, though public access to detailed performance data may be limited due to the sensitive nature of defense research.
Related Government Programs
- Department of Defense Research and Development
- Warfighter Support Systems
- Military Intelligence Analysis
- Systems Integration Services
- Defense Advanced Research Projects Agency (DARPA) Projects
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Contract awarded in 2006; current relevance and cost-effectiveness require updated benchmarking.
- Limited public data on specific performance outcomes and effectiveness.
Tags
research-and-development, department-of-defense, department-of-the-army, leidos-inc, cost-plus-fixed-fee, full-and-open-competition, warfighter-analysis, systems-integration, california, medium-value-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.6 million to LEIDOS, INC.. WARFIGHTER ANALYSIS AND INTEGRATION
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 $54.6 million.
What is the period of performance?
Start: 2006-11-08. End: 2008-12-16.
What was Leidos, Inc.'s track record with the Department of Defense prior to this award?
Leidos, Inc. (and its predecessor companies) has a long history of contracting with the Department of Defense. Prior to November 2006, the company had secured numerous contracts across various defense agencies, including the Army, Navy, and Air Force, spanning IT services, logistics, research and development, and systems engineering. Their established presence indicated a familiarity with DoD requirements and processes, likely contributing to their successful bid on this Warfighter Analysis and Integration contract.
How does the $54.6 million value compare to similar R&D contracts for warfighter analysis?
Comparing the $54.6 million value of this 2006 contract to similar R&D contracts for warfighter analysis is challenging without access to a comprehensive database of historical defense R&D procurements. However, for its time, $54.6 million represented a significant investment in a specialized area. Modern R&D contracts in this domain can range from tens to hundreds of millions of dollars, reflecting inflation, technological advancements, and evolving military needs. The value should be assessed relative to the specific scope, duration, and technological complexity defined in the contract.
What were the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risks associated with a CPFF contract, like this one, revolve around cost control and potential for scope creep. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure can incentivize the contractor to incur higher costs, as their fee remains constant, potentially leading to budget overruns if not meticulously managed. For the government, the risk lies in ensuring that the costs incurred are reasonable and allocable to the contract's objectives, requiring robust oversight and auditing mechanisms.
How effective was the research and analysis conducted under this contract in improving warfighter capabilities?
Assessing the specific effectiveness of the research and analysis conducted under this 2006 contract is difficult based solely on the provided data. The contract's objective was to enhance warfighter capabilities through analysis and integration, but the ultimate impact depends on the successful implementation and adoption of the research findings by the Department of the Army. Publicly available information on the specific outcomes and their direct contribution to improved warfighter performance is typically limited for such R&D contracts due to security and proprietary considerations.
What were historical spending patterns for warfighter analysis and integration by the Department of the Army around 2006?
Around 2006, the Department of the Army, as part of the broader Department of Defense, was significantly increasing its investment in technologies and services aimed at enhancing warfighter capabilities, particularly in the context of ongoing conflicts. Spending on R&D, systems integration, and advanced analysis tools was a priority. Contracts like this one, valued at over $50 million, were indicative of the substantial resources allocated to ensuring technological superiority and effective operational support for military personnel.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
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: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $54,867,398
Exercised Options: $54,867,398
Current Obligation: $54,589,672
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DASG6002D0006
IDV Type: IDC
Timeline
Start Date: 2006-11-08
Current End Date: 2008-12-16
Potential End Date: 2008-12-16 00:00:00
Last Modified: 2016-07-18
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