Navy's $110M Anti-Terrorism/Force Protection sustainment contract awarded to Leidos, Inc
Contract Overview
Contract Amount: $110,138,760 ($110.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-03-05
End Date: 2016-07-04
Contract Duration: 1,217 days
Daily Burn Rate: $90.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF ANTI-TERRORISM/FORCE PROTECTION (AT/FP) GLOBAL SUSTAINMENT OF NAVAL INSTALLATIONS WORLD-WIDE - THE INTENT OF THE AT/FP ASHORE GLOBAL SUSTAINMENT CONTRACT IS TO EFFECTIVELY PROCURE THE EQUIVALENT OF A FULL MAINTENANCE WARRANTY FOR THE AT/FP ASHORE SYSTEMS AND ASSOCIATED EQUIPMENT AND SOFTWARE. THE SCOPE OF IS TO PROVIDE CENTRALIZED COMPREHENSIVE LIFE CYCLE SUSTAINMENT OF THE AT/FP ASHORE SYSTEMS/EQUIPMENT TO INCLUDE ASSOCIATED FIRMWARE/SOFTWARE IDENTIFIED IN THIS PWS AND SUPPORTING DOCUMENTS. A SYSTEM INCLUDES ALL OF THE HARDWARE, FIRMWARE, SOFTWARE AND CABLING OR OTHER SIGNAL/DATA TRANSMISSION SUB-SYSTEMS NECESSARY FOR THE SYSTEM TO FUNCTION AS INTENDED. SUSTAINMENT IS DEFINED AS ALL WORK AND COSTS ASSOCIATED WITH MAINTAINING AND REPAIRING SYSTEMS/EQUIPMENT, FIRMWARE/SOFTWARE AND MATERIAL AS NECESSARY TO ENABLE THE SYSTEM TO PERFORM AS SPECIFIED. SUSTAINMENT DOES NOT INCLUDE THE NAVY/MARINE CORP INTRANET (NMCI), OCONUS NAVY ENTERPRISE NETWORK (ONE-NET), OR THE PUBLIC SAFETY NETWORK (PSNET) SYSTEMS/EQUIPMENT. THE AT/FP ASHORE SUSTAINMENT PROGRAM MAY ALSO PROVIDE SUPPORT FOR SUSTAINMENT OF FIRMWARE/SOFTWARE ASSOCIATED WITH THE AT/FP ASHORE SYSTEMS/EQUIPMENT AND ASSOCIATED FIRMWARE/SOFTWARE IN THE PERFORMANCE WORK STATEMENT (PWS).
Place of Performance
Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043
Plain-Language Summary
Department of Defense obligated $110.1 million to LEIDOS, INC. for work described as: IGF::OT::IGF ANTI-TERRORISM/FORCE PROTECTION (AT/FP) GLOBAL SUSTAINMENT OF NAVAL INSTALLATIONS WORLD-WIDE - THE INTENT OF THE AT/FP ASHORE GLOBAL SUSTAINMENT CONTRACT IS TO EFFECTIVELY PROCURE THE EQUIVALENT OF A FULL MAINTENANCE WARRANTY FOR THE AT/FP ASHORE SYSTEMS AND ASSOCIAT… Key points: 1. Contract focuses on comprehensive life cycle sustainment for critical security systems. 2. Leidos, Inc. secured this definitive contract through full and open competition. 3. The contract's duration and scope suggest a significant long-term commitment to system readiness. 4. Performance is tied to maintaining and repairing hardware, firmware, and software. 5. The fixed-price nature of the contract aims to control costs for the Navy. 6. This contract supports the Department of the Navy's security infrastructure.
Value Assessment
Rating: good
The contract value of approximately $110 million over its period of performance (roughly 3 years) for global sustainment of Anti-Terrorism/Force Protection (AT/FP) systems appears reasonable given the critical nature of the services. Benchmarking against similar large-scale, global sustainment contracts for complex security systems is challenging due to unique operational requirements. However, the firm-fixed-price structure suggests an effort to establish predictable costs for the Department of the Navy.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded using full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of five bidders (no) suggests a competitive environment, which typically benefits price discovery and can lead to more favorable terms for the government. The specific details of the competition, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the procurement process.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that drives down prices and encourages innovation.
Public Impact
Naval installations worldwide benefit from enhanced security through sustained AT/FP systems. The contract ensures the operational readiness of critical anti-terrorism and force protection equipment. Personnel responsible for security operations at naval bases are supported by reliable systems. The sustainment services contribute to the overall safety and security of naval personnel and assets globally.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical issues arise with complex systems.
- Dependence on a single contractor for critical security system sustainment globally.
- Ensuring consistent service quality across diverse geographic locations can be challenging.
Positive Signals
- Firm-fixed-price contract structure helps to control costs and budget predictability.
- Full and open competition suggests a robust procurement process and potential for competitive pricing.
- Focus on life-cycle sustainment indicates a commitment to long-term system reliability and readiness.
Sector Analysis
The contract falls within the Security Systems Services sector, specifically focusing on the maintenance and sustainment of Anti-Terrorism/Force Protection (AT/FP) systems. This is a critical niche within the broader defense and security industry, requiring specialized expertise in hardware, software, and firmware. The market for such services is driven by government needs for continuous operational readiness and the increasing complexity of security technologies. Comparable spending benchmarks would likely be found in other large-scale sustainment contracts for sophisticated defense systems.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The primary contractor, Leidos, Inc., is a large defense contractor. The absence of small business set-asides or explicit subcontracting goals means that the direct impact on the small business ecosystem for this specific contract is likely minimal, though Leidos may engage small businesses as part of its broader supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, performance work statements, and delivery schedules. Transparency is generally facilitated through contract award announcements and public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Department of Defense Information Technology Support Services
- Global Force Protection Services
- Defense Security Systems Maintenance Contracts
Risk Flags
- Potential for scope creep if system requirements evolve significantly during contract performance.
- Risk of contractor performance issues impacting critical security operations.
- Dependency on specific technical expertise which may be difficult to replace.
Tags
defense, department-of-defense, department-of-the-navy, security-systems-services, definitive-contract, firm-fixed-price, full-and-open-competition, global, sustainment, anti-terrorism, force-protection, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.1 million to LEIDOS, INC.. IGF::OT::IGF ANTI-TERRORISM/FORCE PROTECTION (AT/FP) GLOBAL SUSTAINMENT OF NAVAL INSTALLATIONS WORLD-WIDE - THE INTENT OF THE AT/FP ASHORE GLOBAL SUSTAINMENT CONTRACT IS TO EFFECTIVELY PROCURE THE EQUIVALENT OF A FULL MAINTENANCE WARRANTY FOR THE AT/FP ASHORE SYSTEMS AND ASSOCIATED EQUIPMENT AND SOFTWARE. THE SCOPE OF IS TO PROVIDE CENTRALIZED COMPREHENSIVE LIFE CYCLE SUSTAINMENT OF THE AT/FP ASHORE SYSTEMS/EQUIPMENT TO INCLUDE ASSOCIATED FIRMWARE/SOFTWARE IDENTIFIED IN THIS PWS AND SUPPORTING D
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 $110.1 million.
What is the period of performance?
Start: 2013-03-05. End: 2016-07-04.
What is the historical spending pattern for AT/FP system sustainment by the Department of the Navy?
Analyzing historical spending on Anti-Terrorism/Force Protection (AT/FP) systems sustainment by the Department of the Navy is crucial for understanding trends and justifying current expenditures. While specific historical data for this exact contract's predecessors isn't detailed here, the Navy consistently invests significant resources in maintaining the readiness of its security infrastructure across global installations. This includes funding for maintenance, upgrades, and lifecycle support of various security technologies. Past contracts for similar services, though potentially smaller in scope or focused on specific regions, would provide a baseline for evaluating the current $110 million award. Fluctuations in spending can be influenced by geopolitical events, evolving threat landscapes, and technological advancements in security systems. A comprehensive review would involve examining annual budget allocations and contract awards related to force protection and security systems over the last 5-10 years to identify patterns and significant shifts.
How does Leidos, Inc.'s performance on similar contracts compare to industry benchmarks?
Assessing Leidos, Inc.'s performance on similar contracts requires access to detailed performance metrics, past performance reviews, and potentially contractor rating systems (like CPARS). Without this specific data, a direct comparison is difficult. However, Leidos is a major defense contractor with a broad portfolio of services, including sustainment and IT support for government agencies. Their track record generally indicates experience in managing large, complex contracts. Industry benchmarks for sustainment contracts often focus on metrics such as on-time delivery, system uptime, response times for maintenance, and adherence to budget. For a contract of this nature, successful performance would mean consistently meeting or exceeding these key performance indicators. Any significant deviations or consistent underperformance on comparable contracts would raise concerns about Leidos's ability to effectively execute this AT/FP sustainment effort.
What are the primary risks associated with the sustainment of global AT/FP systems?
The primary risks associated with the sustainment of global Anti-Terrorism/Force Protection (AT/FP) systems are multifaceted. Technologically, these systems can become obsolete quickly, requiring continuous updates and integration of new hardware and software, which can be costly and complex. Geographically, maintaining systems across numerous, often remote, naval installations presents logistical challenges in terms of parts delivery, technician deployment, and ensuring consistent service quality. Security risks are also paramount; any compromise in the sustainment process could lead to vulnerabilities in critical defense infrastructure. Furthermore, the reliance on a single contractor for global sustainment, even if competitively sourced, introduces a risk of vendor lock-in and potential disruptions if the contractor faces financial or operational difficulties. Ensuring adequate personnel with the necessary security clearances and technical expertise across all locations is another significant challenge.
What is the estimated value of the global market for defense security system sustainment services?
Estimating the precise global market value for defense security system sustainment services is complex, as it encompasses a wide array of technologies and service providers across numerous countries and defense branches. However, it represents a substantial and growing segment of the defense industry. Market research reports often place the global defense security market in the hundreds of billions of dollars annually, with sustainment and maintenance forming a significant portion of this. Factors driving this market include ongoing geopolitical tensions, the need to maintain aging military equipment, the rapid evolution of security technologies (e.g., surveillance, access control, cyber defense), and the increasing emphasis on operational readiness. Contracts like the Navy's AT/FP sustainment award, valued at over $110 million, are indicative of the scale of investment required to keep these critical systems functional and effective worldwide.
How does the firm-fixed-price contract type influence cost control and contractor risk for this AT/FP sustainment contract?
The firm-fixed-price (FFP) contract type is chosen to provide the greatest degree of cost control for the buyer (the Department of the Navy) and places the maximum risk on the seller (Leidos, Inc.) for managing costs. Under an FFP agreement, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs incurred. This incentivizes Leidos to perform the work efficiently and to manage their resources effectively to maintain profitability. For the Navy, this means greater budget predictability and protection against cost overruns, assuming the scope of work is well-defined. The primary risk for Leidos lies in underestimating the costs associated with sustainment, which could lead to reduced profit margins or even a loss if unforeseen technical challenges or increased labor/material costs arise. This contract structure is suitable for services where the scope is clearly understood and technical risks are manageable.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N3943013R1201
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, 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: $122,686,352
Exercised Options: $110,138,760
Current Obligation: $110,138,760
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $62,593
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-03-05
Current End Date: 2016-07-04
Potential End Date: 2016-11-04 00:00:00
Last Modified: 2016-04-18
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