DoD's $50M Novel Explosives R&D Contract Awarded to Leidos, Inc

Contract Overview

Contract Amount: $49,895,865 ($49.9M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-06-01

End Date: 2026-06-13

Contract Duration: 1,838 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION STUDIES OF NOVEL EXPLOSIVES FOR ADVANCED MULTI-PURPOSE MUNITIONS

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $49.9 million to LEIDOS, INC. for work described as: RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION STUDIES OF NOVEL EXPLOSIVES FOR ADVANCED MULTI-PURPOSE MUNITIONS Key points: 1. Leidos, Inc. secured a significant contract for advanced munitions research. 2. The contract focuses on R&D for novel explosives, a critical defense capability. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The sector is R&D in physical, engineering, and life sciences, excluding nano/biotech.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking per-unit costs for R&D studies is difficult due to the unique nature of each project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific nature of R&D can limit direct price comparisons.

Taxpayer Impact: Taxpayer funds are being invested in advanced defense technology, with the potential for significant long-term security benefits, but also the risk of inefficient spending.

Public Impact

Enhances national security through development of advanced munitions. Supports innovation in materials science and chemical engineering. Potential for dual-use technologies with civilian applications. Creates high-skilled jobs in research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences for defense applications. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure value.

Small Business Impact

The contract was awarded to Leidos, Inc., a large business. There is no explicit indication of small business subcontracting goals within the provided data, which could limit opportunities for smaller innovative firms.

Oversight & Accountability

The Department of the Air Force is the awarding agency. Oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure the R&D objectives are met efficiently and effectively.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.9 million to LEIDOS, INC.. RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION STUDIES OF NOVEL EXPLOSIVES FOR ADVANCED MULTI-PURPOSE MUNITIONS

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 $49.9 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-06-13.

How will the Cost Plus Fixed Fee structure be managed to ensure cost efficiency in this R&D project?

Effective management of a Cost Plus Fixed Fee contract for R&D requires robust oversight mechanisms. This includes detailed tracking of direct and indirect costs, regular performance reviews against milestones, and clear communication channels to address any deviations promptly. The agency must ensure that the fixed fee remains appropriate given the evolving scope and risks inherent in research.

What are the key performance indicators (KPIs) to measure the success of this novel explosives research?

Success metrics for this R&D contract would likely include the successful synthesis and characterization of novel explosive compounds meeting specific performance criteria (e.g., energy density, stability, sensitivity). Key indicators might also involve the successful integration of these materials into prototype munitions, successful testing results demonstrating enhanced capabilities, and adherence to safety and environmental standards throughout the research process.

What is the potential long-term impact of this research on future munitions development and national security?

This research has the potential to significantly advance munitions capabilities by developing explosives with superior performance characteristics, such as increased power, reduced collateral damage, or enhanced safety features. Such advancements could provide a critical technological edge, deter adversaries, and adapt to evolving battlefield requirements, thereby bolstering national security in the long term.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $54,906,115

Exercised Options: $54,906,115

Current Obligation: $49,895,865

Actual Outlays: $8,417,838

Subaward Activity

Number of Subawards: 77

Total Subaward Amount: $37,561,123

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0009

IDV Type: IDC

Timeline

Start Date: 2021-06-01

Current End Date: 2026-06-13

Potential End Date: 2026-06-13 00:00:00

Last Modified: 2025-12-29

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