Leidos awarded $45.6M for Predator/Reaper drone operations center maintenance, supporting critical Air Force Special Operations
Contract Overview
Contract Amount: $45,653,269 ($45.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-23
End Date: 2013-01-14
Contract Duration: 1,574 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAINTENANCE SUPPORT OF THE DRAGON OPERATIONS CENTER-CANNON AFB, NEW MEXICO (DOC-C) AND DRAGON OPERATIONS CENTER-NELLIS AFB, NEVADA (DOC-N)AND ORGANIZATIONAL MAINTENANCE SUPPORT OF GROUND CONTROL STATIONS(GCSS)AT CANNON AND NELLIS AFBS AS REQUIRED BY THE PERFORMANCE WORK STATEMENT TO SUPPORT THE 3D SPECIAL OPERATIONS SQUADRON (3 SOS) AND THEIR ASSOCIATED AIR FORCE RESERVE UNIT'S MQ-1 PREDATOR AND MQ-9 REAPER OPERATIONS.
Place of Performance
Location: CANNON AFB, CURRY County, NEW MEXICO, 88103
Plain-Language Summary
Department of Defense obligated $45.7 million to LEIDOS, INC. for work described as: MAINTENANCE SUPPORT OF THE DRAGON OPERATIONS CENTER-CANNON AFB, NEW MEXICO (DOC-C) AND DRAGON OPERATIONS CENTER-NELLIS AFB, NEVADA (DOC-N)AND ORGANIZATIONAL MAINTENANCE SUPPORT OF GROUND CONTROL STATIONS(GCSS)AT CANNON AND NELLIS AFBS AS REQUIRED BY THE PERFORMANCE WORK STATEMENT… Key points: 1. Contract provides essential maintenance for drone operations centers and ground control stations, ensuring readiness for MQ-1 and MQ-9 aircraft. 2. The contract value of $45.6 million over approximately 4 years indicates a significant investment in maintaining advanced aerospace capabilities. 3. Competition was full and open, suggesting a robust market for these specialized technical support services. 4. The fixed-price contract type aims to control costs by shifting risk to the contractor, Leidos, Inc. 5. Performance is concentrated in New Mexico and Nevada, directly supporting Air Force Special Operations Command units. 6. This contract supports the operational readiness of critical intelligence, surveillance, and reconnaissance (ISR) platforms.
Value Assessment
Rating: good
The contract value of $45.6 million over roughly four years for specialized maintenance of drone operations centers and ground control stations appears reasonable given the critical nature of the support. Benchmarking against similar contracts for aerospace systems maintenance and IT support services would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests an effort to manage costs effectively. The duration and scope indicate a substantial requirement for sustained operational support.
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 three bidders suggests a competitive environment for these specialized services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market-driven pricing environment, potentially leading to cost savings.
Public Impact
The primary beneficiaries are the 3D Special Operations Squadron and associated Air Force Reserve units, enhancing their ability to operate MQ-1 Predator and MQ-9 Reaper aircraft. Services delivered include organizational maintenance support for Dragon Operations Centers (DOC) and Ground Control Stations (GCSS). The geographic impact is focused on Cannon Air Force Base, New Mexico, and Nellis Air Force Base, Nevada. This contract supports a specialized workforce of technical personnel required for maintaining advanced aerospace and IT systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical issues arise, despite the firm fixed-price structure.
- Dependence on a single contractor, Leidos, Inc., for critical operational support could pose a risk if performance issues emerge.
- The specialized nature of the equipment may limit the pool of qualified contractors for future competitions.
Positive Signals
- Firm fixed-price contract type helps control costs and provides budget certainty.
- Full and open competition suggests a healthy market and potential for competitive pricing.
- Contract supports critical national defense assets (MQ-1/MQ-9 operations), indicating high priority and oversight.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on IT and technical support services for unmanned aerial vehicle (UAV) operations. The market for such specialized maintenance and support is driven by defense spending and technological advancements in drone capabilities. Comparable spending benchmarks would typically be found within IT services for defense agencies and maintenance contracts for complex aerospace systems, often involving significant dollar values due to the high-tech nature of the equipment.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, Leidos, Inc. The impact on the small business ecosystem would depend on whether Leidos utilizes small business subcontractors, which is not detailed in the provided information. Without specific subcontracting plans, the direct benefit to small businesses from this particular award appears limited.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Air Force and the relevant contracting activity (DCA). Accountability measures are inherent in the firm fixed-price contract type, which incentivizes contractor performance to meet defined requirements. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Air Force ISR Platforms
- Unmanned Aerial Vehicle (UAV) Operations
- Defense IT Support Services
- Aerospace Systems Maintenance
- Special Operations Command Support
Risk Flags
- Potential for performance degradation impacting critical ISR missions.
- Risk of contractor cost overruns despite FFP structure.
- Dependence on specialized contractor expertise.
Tags
defense, department-of-defense, department-of-the-air-force, it-services, maintenance-support, unmanned-aerial-vehicle, mq-9-reaper, mq-1-predator, special-operations, firm-fixed-price, full-and-open-competition, new-mexico
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.7 million to LEIDOS, INC.. MAINTENANCE SUPPORT OF THE DRAGON OPERATIONS CENTER-CANNON AFB, NEW MEXICO (DOC-C) AND DRAGON OPERATIONS CENTER-NELLIS AFB, NEVADA (DOC-N)AND ORGANIZATIONAL MAINTENANCE SUPPORT OF GROUND CONTROL STATIONS(GCSS)AT CANNON AND NELLIS AFBS AS REQUIRED BY THE PERFORMANCE WORK STATEMENT TO SUPPORT THE 3D SPECIAL OPERATIONS SQUADRON (3 SOS) AND THEIR ASSOCIATED AIR FORCE RESERVE UNIT'S MQ-1 PREDATOR AND MQ-9 REAPER OPERATIONS.
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 Air Force).
What is the total obligated amount?
The obligated amount is $45.7 million.
What is the period of performance?
Start: 2008-09-23. End: 2013-01-14.
What is Leidos, Inc.'s track record with similar Department of Defense contracts, particularly in aerospace maintenance and IT support?
Leidos, Inc. has a substantial track record with the Department of Defense, frequently securing contracts for a wide range of services including IT, systems engineering, and logistics support. Their experience often encompasses complex defense programs, including those related to intelligence, surveillance, and reconnaissance (ISR) platforms. While specific details on their performance for MQ-1/MQ-9 related operations centers are not provided here, their general profile suggests they are a capable large business with extensive experience in supporting military operations. A deeper dive into their contract history, past performance evaluations, and any reported issues would be necessary for a comprehensive assessment of their suitability for this specific role.
How does the $45.6 million contract value compare to similar maintenance contracts for drone operations centers or ground control stations?
The $45.6 million contract value, spanning approximately four years, represents a significant but not necessarily outlier figure for specialized maintenance of critical defense infrastructure like drone operations centers. Contracts for maintaining complex IT systems and aerospace platforms can range widely based on scope, duration, and technological sophistication. For instance, contracts supporting larger, more complex ISR platforms or extensive global networks could easily exceed this amount. Conversely, simpler IT maintenance contracts might be lower. Without specific comparable contract data for the MQ-1/MQ-9 specific systems and their associated DOC/GCSS, it's challenging to definitively benchmark this value. However, it aligns with the expected investment for sustained operational readiness of advanced military assets.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this contract include potential performance failures by the contractor (Leidos, Inc.) that could disrupt critical drone operations, and the risk of cost overruns if unforeseen technical challenges arise, despite the firm fixed-price (FFP) structure. Mitigation strategies are embedded in the contract's FFP nature, which places the cost risk on the contractor. Performance failures would be addressed through contract management, potential penalties, and the possibility of contract termination for default. The government's mitigation also includes thorough vetting of the contractor's capabilities during the procurement phase and ongoing oversight of performance against the PWS. The concentration of support at two bases also presents a risk of localized disruption, mitigated by contingency planning and potentially redundant support arrangements.
How effective is the firm fixed-price (FFP) contract type in ensuring value for money for this type of service?
The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for services with well-defined requirements, such as the maintenance support outlined in this contract. FFP shifts the risk of cost overruns to the contractor, incentivizing them to manage costs efficiently and perform the work within the agreed-upon price. This provides budget certainty for the government. For maintenance services where the scope of work is predictable based on the Performance Work Statement (PWS), FFP is a suitable choice. However, if unforeseen technical complexities or scope changes arise, the contractor may seek modifications, potentially increasing costs. Effective oversight is still crucial to ensure the contractor meets quality standards and avoids cutting corners to maintain profitability.
What are the historical spending patterns for similar drone operations center maintenance services within the Department of the Air Force?
Historical spending patterns for similar drone operations center maintenance services within the Department of the Air Force typically show consistent investment in ensuring the operational readiness of ISR assets like the MQ-1 Predator and MQ-9 Reaper. These patterns reflect the evolving role and increasing reliance on unmanned systems for intelligence gathering and combat operations. Spending often involves multi-year contracts, similar to the one awarded to Leidos, Inc., with values fluctuating based on technological upgrades, fleet size, and operational tempo. While specific historical dollar amounts for this exact service are not provided, the overall trend indicates a sustained and significant allocation of resources towards maintaining the infrastructure and systems that support these critical platforms, often in the tens to hundreds of millions of dollars annually across various contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA485508R0017
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
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: $45,653,269
Exercised Options: $45,653,269
Current Obligation: $45,653,269
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-23
Current End Date: 2013-01-14
Potential End Date: 2013-01-14 00:00:00
Last Modified: 2014-03-18
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