Leidos, Inc. awarded $125.6M for FAA's navigation systems, with a 2026 completion date
Contract Overview
Contract Amount: $125,620,891 ($125.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Transportation
Start Date: 2020-01-14
End Date: 2026-02-28
Contract Duration: 2,237 days
Daily Burn Rate: $56.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FUNDING FOR ASSOCIATED 693KA7-20-D-00001 CLINS
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $125.6 million to LEIDOS, INC. for work described as: FUNDING FOR ASSOCIATED 693KA7-20-D-00001 CLINS Key points: 1. Contract value represents a significant investment in critical aviation infrastructure. 2. The firm-fixed-price structure aims to control costs for the government. 3. A long performance period suggests a complex, multi-year project. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Focus on navigation systems highlights a key area of aviation safety and efficiency. 6. The contractor, Leidos, Inc., is a major player in government IT and engineering services.
Value Assessment
Rating: good
The total award of $125.6 million over approximately six years suggests a substantial but potentially reasonable investment for advanced navigation systems. Without specific benchmarks for comparable navigation system contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government. The duration of the contract also implies a significant scope of work that, if executed effectively, could yield long-term benefits in aviation safety and efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. This approach allows the government to select the offer that best meets its technical requirements and provides the greatest overall value.
Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, thereby reducing the risk of inflated costs.
Public Impact
The Federal Aviation Administration (FAA) benefits from enhanced navigation capabilities, improving air traffic management. Aviation safety is expected to be bolstered through the implementation of advanced navigation systems. The contract supports the modernization of critical aeronautical infrastructure across the United States. The aerospace and defense industry, particularly companies specializing in navigation technology, may see indirect benefits through subcontracting opportunities or follow-on work. Passengers and cargo will benefit from potentially more efficient and reliable air travel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving technological requirements not fully captured in the initial award.
- Reliance on a single large contractor for critical navigation systems may pose a risk if performance issues arise.
- The complexity of integrating new navigation systems requires robust project management and oversight to ensure successful deployment.
Positive Signals
- Firm-fixed-price contract structure shifts cost risk to the contractor, promoting cost control.
- Awarding under full and open competition suggests a thorough evaluation process and potential for competitive pricing.
- The contract supports a critical government function (aviation safety and efficiency), indicating a clear need and strategic importance.
Sector Analysis
This contract falls within the Information Technology and Aerospace & Defense sectors, specifically focusing on the manufacturing and integration of navigation systems. The market for such systems is characterized by high technological barriers to entry, significant R&D investment, and stringent regulatory requirements. Companies like Leidos operate in a space where government contracts are a substantial revenue source. Comparable spending benchmarks would typically be found within the FAA's overall IT and systems modernization budgets, as well as broader Department of Transportation technology investments.
Small Business Impact
The provided data indicates that small business participation (sb) is false for this specific contract. This suggests that small businesses were not a primary focus for this particular award, either as the prime contractor or through specific set-aside provisions. While this contract may not directly benefit small businesses through prime awards, there could be subcontracting opportunities. However, without explicit subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is likely limited.
Oversight & Accountability
Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), a division of the Department of Transportation. The FAA is responsible for monitoring contract performance, ensuring compliance with terms and conditions, and managing delivery orders against the IDIQ vehicle. Transparency is facilitated through contract award databases and reporting requirements. The Department of Transportation's Office of Inspector General (OIG) would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract.
Related Government Programs
- FAA Air Traffic Control Modernization Programs
- Department of Transportation IT Infrastructure Investments
- National Airspace System (NAS) Modernization Efforts
- Aeronautical Navigation and Surveillance Systems Procurement
Risk Flags
- Long-term contract duration may increase risk of technological obsolescence.
- Complexity of integrating new systems into the National Airspace System.
- Potential for contractor performance issues on a large-scale, multi-year project.
Tags
transportation, federal-aviation-administration, leidos-inc, firm-fixed-price, full-and-open-competition, navigation-systems, information-technology, aerospace-and-defense, virginia, delivery-order, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $125.6 million to LEIDOS, INC.. FUNDING FOR ASSOCIATED 693KA7-20-D-00001 CLINS
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $125.6 million.
What is the period of performance?
Start: 2020-01-14. End: 2026-02-28.
What is Leidos, Inc.'s track record with the Federal Aviation Administration and similar navigation system contracts?
Leidos, Inc. has a significant history of working with the Federal Aviation Administration (FAA) and other government agencies on complex IT, engineering, and systems integration projects. Their portfolio often includes work related to air traffic management, communication systems, and surveillance technologies. While specific details on past navigation system contracts with the FAA are not provided here, Leidos's extensive experience in the aerospace and defense sector suggests a strong capability to handle such requirements. Their track record generally indicates a capacity for large-scale, mission-critical projects, though performance can vary across individual contracts. A deeper dive into past FAA performance evaluations and contract close-outs would provide a more granular assessment of their reliability and effectiveness in this specific domain.
How does the $125.6 million award compare to historical spending on similar navigation system procurements by the FAA?
Comparing the $125.6 million award to historical spending requires access to detailed historical procurement data for FAA navigation systems. However, given the long-term nature of the contract (ending in 2026) and the critical role of navigation systems in aviation safety and efficiency, this figure represents a substantial investment. The FAA has consistently invested billions in modernizing its National Airspace System (NAS), which includes upgrades to navigation, communication, and surveillance technologies. This award likely fits within a broader modernization strategy. Without specific comparable contract values from previous years or similar system types, it's difficult to definitively state if this award is higher or lower than historical norms. However, it aligns with the trend of significant, multi-year investments required for maintaining and upgrading complex aviation infrastructure.
What are the primary risks associated with this contract, and what mitigation strategies are likely in place?
Primary risks for this contract include technological obsolescence, integration challenges with existing systems, potential cost overruns (despite the FFP structure, scope creep is a risk), and contractor performance issues. Given the long duration, ensuring the technology remains current throughout the contract period is crucial. Integration with the complex National Airspace System (NAS) presents significant technical hurdles. Mitigation strategies likely involve robust contract management by the FAA, including regular performance reviews, clear milestones, and change control processes. The firm-fixed-price nature shifts some financial risk to Leidos, incentivizing them to manage costs. The FAA's own technical expertise and oversight are critical for managing integration and performance risks.
How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this navigation system project?
The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and risks are understood. For this navigation system project, FFP places the primary responsibility for cost control on the contractor, Leidos, Inc. This means Leidos assumes the risk of cost overruns, incentivizing them to perform efficiently and manage resources effectively to maintain profitability. This structure provides budget certainty for the FAA, as the price is fixed. However, the effectiveness hinges on the initial scope definition; if significant changes or unforeseen complexities arise, the FFP structure can sometimes lead to disputes or requests for contract modifications, potentially impacting the overall value if not managed carefully through change order processes.
What is the potential impact of this contract on the broader aerospace and defense market, particularly concerning navigation technology providers?
This $125.6 million contract awarded to Leidos, Inc. for navigation systems has several potential impacts on the broader aerospace and defense market. Firstly, it signifies continued government investment in critical aviation infrastructure, which is a positive signal for companies operating in this space. Leidos, as the prime contractor, will likely engage subcontractors and partners, potentially benefiting specialized navigation technology providers, software developers, and systems integrators. This can spur innovation and competition among suppliers. Secondly, the scale and duration of the contract suggest a significant technological undertaking, potentially driving advancements in areas like satellite-based navigation, communication protocols, or data processing for air traffic management. The success of this contract could also influence future procurement strategies and technology roadmaps for navigation systems within the FAA and potentially other aviation authorities globally.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR FL 15, 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: $125,620,891
Exercised Options: $125,620,891
Current Obligation: $125,620,891
Actual Outlays: $94,148,531
Subaward Activity
Number of Subawards: 43
Total Subaward Amount: $51,512,144
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 693KA720D00001
IDV Type: IDC
Timeline
Start Date: 2020-01-14
Current End Date: 2026-02-28
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-04-06
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