DoD awards $53.2M R&D contract for critical minerals research to Leidos, Inc
Contract Overview
Contract Amount: $53,217,500 ($53.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-06-03
End Date: 2029-06-02
Contract Duration: 1,825 days
Daily Burn Rate: $29.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SEE SECTION J, ATTACHMENT 1, P1-23-2490 PERFORMANCE WORK STATEMENT (PWS) CRITICAL MINERALS AND MATERIALS RESEARCH AND DEVELOPMENT FOR THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND SUSTAINMENT.
Place of Performance
Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806
Plain-Language Summary
Department of Defense obligated $53.2 million to LEIDOS, INC. for work described as: SEE SECTION J, ATTACHMENT 1, P1-23-2490 PERFORMANCE WORK STATEMENT (PWS) CRITICAL MINERALS AND MATERIALS RESEARCH AND DEVELOPMENT FOR THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND SUSTAINMENT. Key points: 1. Contract focuses on critical minerals and materials R&D, aligning with national security interests. 2. Leidos, Inc. selected through full and open competition, suggesting a robust bidding process. 3. Performance period of 5 years indicates a long-term investment in this research area. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight. 5. Research and Development in Physical, Engineering, and Life Sciences is a key area for technological advancement. 6. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: good
The contract value of $53.2 million over five years for critical minerals R&D appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in advanced materials and defense science is necessary for a definitive assessment. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring to ensure costs remain within expected parameters while incentivizing efficient research outcomes. Without specific comparable contract data, a precise value-for-money judgment is difficult, but the investment aligns with strategic national priorities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally fosters competitive pricing and encourages innovation. The selection process likely involved a thorough evaluation of technical capabilities, past performance, and proposed costs, aiming to secure the best value for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the return on investment for federal research funds.
Public Impact
The Department of Defense, specifically the Office of the Under Secretary of Defense for Acquisition and Sustainment, is the primary beneficiary, aiming to secure supply chains for critical minerals. The contract will deliver research and development services focused on identifying, developing, and potentially producing advanced materials essential for defense applications. The geographic impact is primarily national, with potential benefits extending to the U.S. industrial base and technological competitiveness. Workforce implications may include specialized R&D roles for scientists, engineers, and technicians within Leidos and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- The specialized nature of critical minerals research may limit the pool of qualified subcontractors.
- Long-term R&D projects carry inherent risks of not achieving desired breakthroughs within the projected timeline.
Positive Signals
- Award through full and open competition suggests a competitive process that likely secured favorable terms.
- Focus on critical minerals aligns with urgent national security and economic priorities.
- A five-year performance period allows for sustained effort and potential for significant research advancements.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The critical minerals and materials aspect is highly relevant to national security, defense industrial base resilience, and the transition to advanced technologies. The market for such specialized R&D is often characterized by a few key players with deep expertise, making competition dynamics crucial. Comparable spending benchmarks would likely be found within other defense R&D initiatives or advanced materials science programs.
Small Business Impact
The provided data does not indicate any specific small business set-asides for this contract. Leidos, Inc. is a large business. Analysis of subcontracting opportunities for small businesses will be crucial to understand the broader economic impact. Without explicit subcontracting plans or goals detailed in the award, it is difficult to assess the direct benefit to the small business ecosystem from this specific contract.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Defense's contracting officers and program managers, ensuring adherence to the Performance Work Statement (PWS). The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to track expenditures and ensure the fixed fee is earned appropriately. Transparency will depend on the DoD's reporting practices for R&D contracts and any specific reporting requirements outlined in the PWS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DoD Critical Minerals Strategy
- National Security Innovation Base
- Advanced Materials Research Programs
- Department of Energy Critical Materials Initiatives
- National Science Foundation Engineering Research Centers
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent cost oversight.
- Potential for limited competition in highly specialized R&D fields.
- Long-term R&D projects carry inherent uncertainty in achieving specific outcomes.
Tags
defense, department-of-defense, research-and-development, critical-minerals, advanced-materials, leidos-inc, cost-plus-fixed-fee, full-and-open-competition, delivery-order, acquisition-and-sustainment, new-jersey, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.2 million to LEIDOS, INC.. SEE SECTION J, ATTACHMENT 1, P1-23-2490 PERFORMANCE WORK STATEMENT (PWS) CRITICAL MINERALS AND MATERIALS RESEARCH AND DEVELOPMENT FOR THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND SUSTAINMENT.
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 $53.2 million.
What is the period of performance?
Start: 2024-06-03. End: 2029-06-02.
What is Leidos, Inc.'s track record in performing similar critical minerals or advanced materials R&D contracts for the federal government?
Leidos, Inc. has a substantial history of performing complex research and development contracts across various scientific and engineering disciplines for the U.S. government, including defense and intelligence agencies. While specific contract details for 'critical minerals and materials R&D' are not immediately available without deeper database searches, their portfolio often includes work in areas such as advanced materials science, sensor development, and systems engineering that are adjacent to this domain. Their experience in managing large-scale, multi-disciplinary R&D efforts, coupled with their established security clearances and infrastructure, positions them as a capable contractor. A thorough review would involve examining past performance evaluations and contract awards related to materials science, supply chain resilience, and defense-specific technological advancements to fully assess their relevant expertise and historical success rates.
How does the $53.2 million value compare to other federal R&D investments in critical minerals and materials?
The $53.2 million award over five years represents a significant, but not unprecedented, investment in critical minerals and materials R&D. Federal agencies like the Department of Defense (DoD), Department of Energy (DOE), and the National Science Foundation (NSF) collectively invest billions annually in R&D across various scientific fields. Contracts specifically targeting critical minerals often range from a few million to tens of millions of dollars, depending on the scope, duration, and technological maturity. For instance, DOE's critical materials research programs frequently involve multi-year efforts. The DoD's focus on materials critical for defense applications, such as those in this contract, can command substantial funding due to national security implications. Benchmarking this specific award against similar DoD-funded R&D efforts in advanced materials or supply chain security would provide a clearer picture of its relative scale and investment level within the broader federal R&D landscape.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is that the contractor may incur costs exceeding initial estimates, while the government is obligated to pay those costs plus a predetermined fixed fee. This can lead to budget overruns if cost controls are not robust. For the contractor, the risk lies in not being able to complete the work within the estimated cost structure while still earning the fixed fee. Mitigation strategies employed by the government typically include stringent oversight of contractor expenditures, detailed progress reporting, clearly defined milestones, and robust negotiation of the fixed fee based on realistic cost projections and risk assessments. The PWS must be meticulously defined to prevent scope creep, and regular reviews are essential to ensure the contractor is managing resources efficiently and effectively towards the research objectives.
What is the expected impact of this contract on the U.S. supply chain for critical minerals and materials?
This contract is expected to contribute to strengthening the U.S. supply chain for critical minerals and materials by fostering innovation in their research, development, and potentially their sourcing or processing. The Office of the Under Secretary of Defense for Acquisition and Sustainment is specifically tasked with addressing vulnerabilities in defense supply chains. By funding R&D, the DoD aims to identify alternative materials, develop more efficient extraction or recycling methods, or discover novel materials that can reduce reliance on foreign sources or materials subject to geopolitical instability. The outcomes of this research could lead to new domestic capabilities, reduced dependence on adversarial nations, and enhanced national security by ensuring access to essential resources for defense systems and advanced technologies.
How does this contract align with broader federal initiatives related to critical minerals and domestic manufacturing?
This contract directly aligns with broader federal initiatives, including the Biden-Harris Administration's focus on securing domestic supply chains for critical minerals, as outlined in executive orders and national strategies. The DoD's emphasis on critical minerals is driven by national security imperatives, ensuring that the U.S. military has reliable access to the materials needed for advanced weapon systems and technologies. This initiative complements efforts by agencies like the Department of the Interior and the Department of Energy, which are also focused on domestic sourcing, processing, and recycling of critical minerals. By investing in R&D, the government seeks to stimulate innovation that can bolster domestic manufacturing capabilities, reduce reliance on foreign adversaries, and promote economic growth in strategic sectors.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $253,653,619
Exercised Options: $253,653,619
Current Obligation: $53,217,500
Actual Outlays: $1,456,345
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $28,062,058
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: 2024-06-03
Current End Date: 2029-06-02
Potential End Date: 2029-06-02 00:00:00
Last Modified: 2025-12-29
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