Leidos Inc. awarded $23.4M contract for engineering services by FAA, with limited competition
Contract Overview
Contract Amount: $23,395,651 ($23.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Transportation
Start Date: 2016-05-01
End Date: 2022-09-30
Contract Duration: 2,343 days
Daily Burn Rate: $10.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Transportation
Official Description: MICRO-EARTS ENGINEERING SERVICES IGF::CT::IGF
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20847
State: Maryland Government Spending
Plain-Language Summary
Department of Transportation obligated $23.4 million to LEIDOS, INC. for work described as: MICRO-EARTS ENGINEERING SERVICES IGF::CT::IGF Key points: 1. Contract awarded on a time-and-materials basis, which can pose cost control challenges. 2. The contract duration of 2343 days (over 6 years) indicates a long-term need for these services. 3. Awarded by the Federal Aviation Administration (FAA), suggesting a focus on aviation infrastructure or operations. 4. The single awardee, Leidos, Inc., highlights potential concentration risk and limited market engagement. 5. Engineering services are critical for complex government projects, but require careful oversight to ensure value. 6. The contract's value is substantial, necessitating robust performance monitoring to justify the expenditure.
Value Assessment
Rating: fair
The contract's value of $23.4 million over more than six years for engineering services requires careful benchmarking. Without specific deliverables or performance metrics, assessing value for money is challenging. Time and materials contracts, while flexible, can lead to cost overruns if not managed tightly. Comparing this to similar engineering service contracts within the FAA or other transportation agencies would be necessary to determine if the pricing is competitive and if the contractor is delivering efficient, effective services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed on a full and open basis, indicating a limited competition scenario. The data does not specify the reasons for this limitation, such as a sole-source justification or a specific set-aside. Limited competition can sometimes lead to higher prices and reduced innovation compared to a robust, open bidding process. Understanding the specific circumstances that led to limited competition is crucial for assessing its impact on cost and performance.
Taxpayer Impact: Limited competition can mean taxpayers may not be getting the best possible price or service, as a wider pool of potential contractors was not engaged.
Public Impact
The Federal Aviation Administration (FAA) is the primary beneficiary, likely receiving essential engineering support for its operations and infrastructure. Services delivered are engineering-related, crucial for the maintenance, development, or modernization of aviation systems. The geographic impact is likely concentrated around FAA facilities or projects within Maryland, where the contract is managed. The contract supports a workforce of engineers and technical specialists employed by Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation due to the time and materials pricing structure.
- Limited competition may result in suboptimal pricing and reduced contractor innovation.
- Long contract duration requires sustained oversight to ensure continued value and performance.
- Lack of detailed performance metrics in the provided data makes objective assessment difficult.
Positive Signals
- Award to an established contractor, Leidos, Inc., suggests a degree of confidence in their capabilities.
- Engineering services are vital for complex government functions like aviation management.
- Contract managed within Maryland, potentially allowing for closer oversight by regional FAA offices.
Sector Analysis
Engineering services represent a significant segment of the federal contracting market, supporting a wide array of government functions from infrastructure development to research and development. The Federal Aviation Administration, as a major agency, consistently procures engineering expertise to manage complex air traffic control systems, airport infrastructure, and safety regulations. Spending in this sector is often driven by modernization efforts, regulatory compliance, and the need for specialized technical knowledge that government agencies may not possess internally. Benchmarks for similar engineering services contracts within the transportation sector can vary widely based on scope, duration, and required expertise.
Small Business Impact
The provided data indicates that small business participation was not a specific requirement or focus for this contract (ss: false, sb: false). This suggests that small businesses were likely not directly involved as prime contractors or through specific set-aside provisions. While Leidos, Inc. may engage small businesses as subcontractors, the absence of explicit set-aside goals means there's no guaranteed pathway for small business involvement, potentially limiting opportunities within the small business ecosystem for this particular award.
Oversight & Accountability
Oversight for this contract would primarily fall under the Federal Aviation Administration's contracting officers and program managers. Accountability measures would be tied to the terms and conditions of the time and materials contract, including reporting requirements and performance evaluations. Transparency is facilitated through contract databases like FPDS, although detailed performance data and specific oversight activities are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- FAA Air Traffic Control Modernization Programs
- Department of Transportation Engineering Support Contracts
- Federal Aviation Systems Engineering Services
- Aviation Infrastructure Development Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Limited competition may lead to suboptimal pricing.
- Long contract duration requires sustained oversight.
- Lack of detailed public performance metrics.
Tags
engineering-services, transportation, federal-aviation-administration, faa, leidos-inc, definitive-contract, time-and-materials, limited-competition, maryland, large-contract, technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $23.4 million to LEIDOS, INC.. MICRO-EARTS ENGINEERING SERVICES IGF::CT::IGF
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 $23.4 million.
What is the period of performance?
Start: 2016-05-01. End: 2022-09-30.
What is the track record of Leidos, Inc. in performing similar engineering services contracts for the federal government, particularly the FAA?
Leidos, Inc. is a large government contractor with a significant history of performing engineering and technical services across various federal agencies, including the Department of Defense and the Department of Homeland Security. For the FAA specifically, Leidos has been involved in numerous contracts related to air traffic management systems, communication, navigation, and surveillance (CNS) technologies, and aviation safety initiatives. Their track record generally includes large-scale system integration, software development, and technical support. However, like any large contractor, specific contract performance can vary, and a detailed review of past FAA contracts would be needed to assess their performance on similar engineering services, including on-time delivery, budget adherence, and technical quality.
How does the $23.4 million contract value compare to other engineering services contracts awarded by the FAA or Department of Transportation in recent years?
The $23.4 million contract value for engineering services awarded to Leidos, Inc. by the FAA is a substantial but not extraordinary amount for long-term, complex engineering support within the transportation sector. The FAA and the broader Department of Transportation (DOT) frequently award contracts in the tens to hundreds of millions of dollars for major system upgrades, infrastructure projects, and ongoing operational support. For instance, contracts related to NextGen air traffic system modernization have seen investments far exceeding this amount. However, when compared to smaller, more specialized engineering task orders or contracts for specific studies, $23.4 million represents a significant commitment. A precise comparison would require analyzing contracts with similar scopes of work, duration, and specific engineering disciplines required.
What are the primary risks associated with a 'Time and Materials' contract type for engineering services, and how are they mitigated in this case?
Time and Materials (T&M) contracts carry inherent risks, primarily the potential for cost overruns, as the final price is determined by the actual hours worked and materials used, rather than a fixed price. This can be exacerbated if work is inefficient or scope creep occurs without proper controls. For the government, mitigating these risks involves robust oversight, including detailed monitoring of labor hours, verification of work performed, and strict adherence to pre-negotiated labor rates and overhead ceilings. The FAA, as the contracting agency, would need to assign dedicated personnel to track progress, validate invoices, and manage the scope of work closely. The contract's duration (over 6 years) further emphasizes the need for continuous vigilance to ensure the contractor remains efficient and costs stay within reasonable bounds relative to the value delivered.
Given the limited competition, what is the likelihood that the FAA received the most cost-effective solution for these engineering services?
Limited competition inherently reduces the pressure on a single contractor to offer the most competitive pricing. Without the threat of losing the contract to a rival bidder, the incentive to minimize costs and maximize efficiency may be diminished. While Leidos, Inc. is an established provider, the lack of a broader bidding process means the FAA may not have benefited from the full spectrum of market-driven price discovery. The cost-effectiveness of the solution is therefore more heavily reliant on the FAA's negotiation skills and their ability to closely monitor the contractor's performance and costs throughout the contract's lifecycle to ensure value is being achieved, rather than relying on competitive pressures to drive down price.
What are the historical spending patterns for engineering services by the Federal Aviation Administration over the past five years?
The Federal Aviation Administration (FAA) consistently allocates significant funds towards engineering services, reflecting the complexity and critical nature of managing the nation's air traffic system. Historical spending patterns show a substantial and often increasing investment in areas such as air traffic control system modernization (e.g., NextGen), airport infrastructure improvements, safety system enhancements, and research and development. While the exact total annual spending fluctuates based on program cycles and budget appropriations, engineering services typically represent a multi-billion dollar category within the FAA's overall budget. This specific $23.4 million contract falls within the broader trend of sustained investment in technical expertise required to maintain and advance aviation infrastructure and operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
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: $28,326,464
Exercised Options: $23,395,651
Current Obligation: $23,395,651
Actual Outlays: $4,846,396
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-05-01
Current End Date: 2022-09-30
Potential End Date: 2025-07-13 00:00:00
Last Modified: 2025-06-13
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