Leidos Federal Healthcare Inc. awarded $16.7M for U-2 Reconnaissance Operations Support

Contract Overview

Contract Amount: $16,672,934 ($16.7M)

Contractor: Leidos Federal Healthcare, Inc.

Awarding Agency: General Services Administration

Start Date: 2006-04-24

End Date: 2008-07-31

Contract Duration: 829 days

Daily Burn Rate: $20.1K/day

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: U-2 RECONNAISSANCE OPERATIONS SUPPORT, HQ ACC/DOY

Place of Performance

Location: HAMPTON, HAMPTON (CITY) County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $16.7 million to LEIDOS FEDERAL HEALTHCARE, INC. for work described as: U-2 RECONNAISSANCE OPERATIONS SUPPORT, HQ ACC/DOY Key points: 1. Contract value appears reasonable for specialized intelligence support services. 2. Limited competition may have influenced final pricing. 3. Contract duration and firm-fixed-price structure suggest manageable cost risks. 4. Services support critical intelligence gathering capabilities. 5. Contract falls within the broader intelligence and defense support sector. 6. Performance period spans over two years, indicating sustained need.

Value Assessment

Rating: good

The contract value of $16.7 million for a two-year period for U-2 reconnaissance operations support appears to be within a reasonable range for specialized intelligence services. Benchmarking against similar intelligence support contracts is challenging due to the unique nature of U-2 operations. However, the firm-fixed-price structure suggests that the government has a clear understanding of the scope and cost, which generally leads to better value realization compared to cost-plus contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition level for this contract is noted as 'limited'. This suggests that the solicitation may have been restricted to a specific set of qualified contractors, potentially due to specialized requirements or existing relationships. With only three bidders, the level of competition was not extensive, which could potentially lead to less aggressive pricing than a full and open competition.

Taxpayer Impact: Limited competition can sometimes result in higher prices for taxpayers as it reduces the pressure on contractors to offer their most competitive rates.

Public Impact

Provides essential support for U-2 reconnaissance missions, contributing to national security. Benefits intelligence agencies and military branches relying on aerial surveillance data. Geographic impact is likely global, supporting deployed U-2 assets. Workforce implications include specialized technical and operational support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Potential for contractor lock-in if specialized knowledge is highly concentrated.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Clear performance period reduces uncertainty.
Contract awarded to a known entity in federal healthcare and IT services.

Sector Analysis

This contract falls within the broader defense and intelligence support services sector. The U-2 reconnaissance platform represents a niche but critical capability within military aviation. Spending in this area is driven by national security requirements and the need for persistent surveillance. Comparable spending benchmarks are difficult to establish due to the unique nature of U-2 operations and the specialized support required.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The nature of specialized intelligence support for advanced platforms like the U-2 often requires large, established contractors with specific expertise and security clearances, which may limit the direct involvement of smaller firms.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the General Services Administration (GSA), and the specific program office within the Department of the Air Force that utilizes U-2 reconnaissance. Accountability measures would be tied to contract performance clauses and deliverables. Transparency is generally limited for contracts involving sensitive national security operations.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Operations
Aerospace Support Services
Military Aviation Maintenance
National Reconnaissance Office Programs

Risk Flags

Limited competition
Potential for price escalation due to limited bidders

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.7 million to LEIDOS FEDERAL HEALTHCARE, INC.. U-2 RECONNAISSANCE OPERATIONS SUPPORT, HQ ACC/DOY

Who is the contractor on this award?

The obligated recipient is LEIDOS FEDERAL HEALTHCARE, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2006-04-24. End: 2008-07-31.

What is the track record of Leidos Federal Healthcare, Inc. in providing similar intelligence support services?

Leidos, and its predecessor entities, have a long history of supporting government intelligence and defense programs. While 'Leidos Federal Healthcare, Inc.' specifically might be a subsidiary or division, the parent company, Leidos, is a major government contractor with extensive experience in areas such as command and control, intelligence analysis, and systems engineering. Their track record includes supporting various intelligence, surveillance, and reconnaissance (ISR) platforms and operations. This specific contract for U-2 support aligns with their broader capabilities in providing technical and operational expertise to defense and intelligence agencies, suggesting a foundation of relevant experience.

How does the awarded value compare to similar U-2 support contracts or intelligence operations contracts?

Direct comparison of this $16.7 million contract for U-2 reconnaissance operations support to similar contracts is challenging due to the highly specialized and often classified nature of U-2 operations and associated support. U-2 support contracts are not frequently publicized with detailed cost breakdowns. However, considering the platform's age, unique capabilities, and the specialized technical and operational expertise required for its maintenance and mission execution, the value appears to be within a reasonable range for a multi-year contract. It reflects the costs associated with maintaining a legacy high-altitude reconnaissance asset and its associated mission systems.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential cost overruns if unforeseen technical issues arise (though mitigated by the firm-fixed-price structure), contractor performance issues impacting critical intelligence gathering, and the risk of obsolescence of the U-2 platform itself. Mitigation strategies likely involve robust contract oversight by the GSA and the end-user agency, clear performance metrics and deliverables, and contingency planning for technical challenges. The firm-fixed-price nature incentivizes the contractor to manage costs effectively. The limited competition also presents a risk of less competitive pricing, which is a factor to monitor.

How effective is the U-2 reconnaissance platform, and what is the strategic importance of this support contract?

The U-2 Dragon Lady remains a vital platform for intelligence, surveillance, and reconnaissance (ISR) due to its unique ability to operate at extremely high altitudes, providing persistent overhead imagery and signals intelligence. Despite the advent of newer technologies like satellites and drones, the U-2 offers flexibility, long endurance, and the ability to carry a variety of sophisticated sensor payloads that are not always interchangeable with other platforms. This contract is strategically important because it ensures the continued operational readiness and effectiveness of the U-2 fleet, which provides critical, timely intelligence to decision-makers across military and national security agencies.

What has been the historical spending trend for U-2 reconnaissance operations support over the past decade?

Historical spending on U-2 reconnaissance operations support has likely remained relatively consistent, albeit subject to fluctuations based on operational tempo and modernization efforts. While specific figures for 'U-2 reconnaissance operations support' are not readily available in public databases, overall spending on intelligence, surveillance, and reconnaissance (ISR) platforms and their sustainment has been a significant and enduring component of defense budgets. Given the U-2's long service life and its continued strategic value, funding for its sustainment, upgrades, and operational support has been a priority, indicating a stable, though not necessarily growing, expenditure pattern over the last decade.

What is the role of the General Services Administration (GSA) in managing this contract?

The General Services Administration (GSA), through its Federal Acquisition Service (FAS), acts as the contracting agency for this award. GSA's role is to provide efficient and effective procurement solutions for other federal agencies. In this capacity, GSA likely managed the solicitation, negotiation, and award process for the U-2 reconnaissance operations support contract on behalf of the Department of the Air Force or another intelligence community element. GSA's involvement ensures compliance with federal acquisition regulations and leverages their expertise in contracting to achieve best value for the government.

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1 CURIE COURT, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,523,218

Exercised Options: $17,523,218

Current Obligation: $16,672,934

Parent Contract

Parent Award PIID: GS07T00BGD0019

IDV Type: GWAC

Timeline