DoD Awards $23M for Undersea Measurement System Array to Leidos, Inc
Contract Overview
Contract Amount: $23,022,670 ($23.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2027-05-27
Contract Duration: 2,064 days
Daily Burn Rate: $11.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES, MATERIALS AND OTHER DIRECT COSTS TO SUPPORT THE DESIGN, DEVELOPMENT, TESTING AND INSTALLATION OF A HIGH GAIN MEASUREMENT SYSTEM ARRAY FOR THE BRITISH UNDERSEA TESTING AND EVALUATION CENTER.
Place of Performance
Location: LONG BEACH, HARRISON County, MISSISSIPPI, 39560
Plain-Language Summary
Department of Defense obligated $23.0 million to LEIDOS, INC. for work described as: ENGINEERING SERVICES, MATERIALS AND OTHER DIRECT COSTS TO SUPPORT THE DESIGN, DEVELOPMENT, TESTING AND INSTALLATION OF A HIGH GAIN MEASUREMENT SYSTEM ARRAY FOR THE BRITISH UNDERSEA TESTING AND EVALUATION CENTER. Key points: 1. Contract awarded to Leidos, Inc. for critical undersea testing infrastructure. 2. Significant investment in advanced measurement systems for defense applications. 3. Potential for long-term reliance on a single contractor for specialized systems. 4. Spending concentrated in the Engineering Services sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific details on the fixed fee percentage and the direct costs incurred.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.
Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competition, but the specialized nature of the system may justify the approach.
Public Impact
Enhances national security capabilities through advanced undersea testing. Supports technological development in a critical defense sector. Potential for job creation within Leidos and its subcontractors. Long-term implications for future defense procurement strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long performance period
Positive Signals
- Supports critical defense infrastructure
- Investment in advanced technology
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related research, development, and testing. Spending in this area is often characterized by high technical complexity and specialized requirements, making competitive bidding challenging.
Small Business Impact
The data indicates that small business participation was not a stated requirement for this contract (ss: false, sb: false). There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The Department of the Navy is the contracting agency, responsible for oversight. The contract type and limited competition warrant close monitoring to ensure cost efficiency and effective delivery.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Cost-plus contract type carries inherent cost escalation risks.
- Long performance period increases exposure to changing requirements or economic conditions.
- Lack of small business set-aside opportunities.
Tags
engineering-services, department-of-defense, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to LEIDOS, INC.. ENGINEERING SERVICES, MATERIALS AND OTHER DIRECT COSTS TO SUPPORT THE DESIGN, DEVELOPMENT, TESTING AND INSTALLATION OF A HIGH GAIN MEASUREMENT SYSTEM ARRAY FOR THE BRITISH UNDERSEA TESTING AND EVALUATION CENTER.
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 Navy).
What is the total obligated amount?
The obligated amount is $23.0 million.
What is the period of performance?
Start: 2021-10-01. End: 2027-05-27.
What is the estimated fixed fee percentage for this Cost Plus Fixed Fee contract, and how does it compare to industry standards for similar complex engineering projects?
The specific fixed fee percentage is not detailed in the provided data. For Cost Plus Fixed Fee contracts, the fee typically ranges from 5% to 15% of the estimated cost, depending on the project's complexity, risk, and the contractor's performance incentives. Without this information, a precise comparison is impossible, but a higher percentage could indicate greater perceived risk or profit margin for Leidos.
Given the limited competition, what measures are in place to ensure Leidos, Inc. is not overcharging for the engineering services and materials provided?
Oversight by the Department of the Navy is crucial. This includes rigorous auditing of direct costs, review of labor rates, and monitoring of material procurement. The fixed fee component also provides some incentive for the contractor to manage costs efficiently, as their profit is capped.
How will the effectiveness of the High Gain Measurement System Array be evaluated, and what are the key performance indicators to ensure it meets the operational needs of the British Undersea Testing
Effectiveness will likely be measured through a series of acceptance testing protocols and performance demonstrations outlined in the contract's Statement of Work. Key performance indicators would typically include accuracy, reliability, data acquisition rates, and integration with existing systems at the testing center. Formal sign-off by the end-user will confirm operational readiness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0016721R0002
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: $23,022,670
Exercised Options: $23,022,670
Current Obligation: $23,022,670
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $1,530,388
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0016721D0006
IDV Type: IDC
Timeline
Start Date: 2021-10-01
Current End Date: 2027-05-27
Potential End Date: 2027-05-27 00:00:00
Last Modified: 2025-09-02
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