Leidos awarded $35.3M for Navy R&D support, with a 4-year duration and fixed-fee structure
Contract Overview
Contract Amount: $35,318,817 ($35.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-04-13
End Date: 2026-06-30
Contract Duration: 1,539 days
Daily Burn Rate: $22.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BASE YEAR RESEARCH SUPPORT SERVICES
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $35.3 million to LEIDOS, INC. for work described as: BASE YEAR RESEARCH SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control by the contractor. 3. The contract duration of approximately 4 years (1539 days) indicates a significant, long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541712 points to research and development in physical, engineering, and life sciences. 5. The award is a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The contract is not set aside for small businesses, indicating it was competed broadly.
Value Assessment
Rating: good
The base year value of $35.3 million for research and development support services appears reasonable given the 4-year duration and the nature of R&D work, which can be complex and require specialized expertise. Benchmarking against similar R&D contracts would provide a more precise value-for-money assessment. The CPFF contract type allows for cost reimbursement plus a fixed fee, which can be effective in managing costs for R&D where the final scope may evolve.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. It provides the best opportunity to secure high-quality services at competitive rates.
Public Impact
The Department of the Navy benefits from specialized research and development support services. This contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or improved existing ones. The geographic impact is primarily within Ohio, where the contractor's facility is located. The contract likely supports a workforce of scientists, engineers, and research support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts if not closely monitored.
- The long duration could lead to scope creep if not managed effectively.
- Reliance on a single contractor (Leidos, Inc.) for a significant period may limit future flexibility or access to alternative innovative solutions.
Positive Signals
- Awarded through full and open competition, indicating a competitive process that should yield good value.
- The fixed fee component of the CPFF contract provides some incentive for the contractor to manage costs efficiently.
- Leidos, Inc. is a large, established government contractor with a track record in R&D support, suggesting a lower risk of performance issues.
- The contract duration allows for sustained focus and development on complex R&D projects.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D sector is characterized by innovation, specialized expertise, and often long project timelines. Government spending in this area is crucial for technological advancement and national security. Comparable spending benchmarks would involve analyzing other R&D contracts awarded by the Department of Defense or other federal agencies for similar scientific disciplines.
Small Business Impact
This contract was not set aside for small businesses, as indicated by 'sb': false. The prime contractor, Leidos, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. However, large R&D contracts often involve subcontracting opportunities, and it would be beneficial to assess if small businesses are being leveraged for specialized support within the scope of this work.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure requires diligent monitoring of costs incurred by the contractor to ensure they align with the contract's objectives and the fixed fee. Transparency is generally maintained through regular reporting requirements from the contractor and contract performance reviews. The Inspector General's office may conduct audits or investigations if specific concerns regarding fraud, waste, or abuse arise.
Related Government Programs
- Department of Defense Research and Development Contracts
- Navy Science and Technology Programs
- Engineering and Technical Services Contracts
- Scientific Research Services
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Creep Potential
- Long-Term Contract Dependency
Tags
research-and-development, department-of-the-navy, cost-plus-fixed-fee, full-and-open-competition, large-business, delivery-order, ohio, scientific-research, engineering-services, life-sciences, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.3 million to LEIDOS, INC.. BASE YEAR RESEARCH SUPPORT SERVICES
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 $35.3 million.
What is the period of performance?
Start: 2022-04-13. End: 2026-06-30.
What is Leidos, Inc.'s track record with the Department of the Navy for similar R&D support services?
Leidos, Inc. has a substantial history of contracting with the Department of the Navy and other Department of Defense agencies, often in areas related to research, development, systems engineering, and technical support. Their portfolio includes numerous contracts for scientific and technical services across various domains. Analyzing past performance reviews, contract modifications, and the overall value of previous awards to Leidos for similar services would provide insight into their reliability, technical capability, and cost management. Specific data on past performance ratings and any significant contract disputes or challenges would be crucial for a comprehensive assessment of their track record in delivering R&D support.
How does the estimated cost per day for this contract compare to similar R&D support contracts?
The base year value of $35,318,817.18 over approximately 1539 days equates to roughly $22,949 per day. To benchmark this value, we would need to compare it against similar R&D support contracts awarded by the Department of the Navy or other federal agencies. Key comparison factors include the specific scientific disciplines involved, the level of expertise required, the contract type (e.g., CPFF, FFP), and the geographic location. If this daily rate is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing/underbidding. A detailed analysis of the scope of work and required deliverables for this contract versus others would be necessary for a robust comparison.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?
The primary risks associated with a CPFF contract for R&D services revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with an incentive to manage costs efficiently to maximize profit, the government bears the risk of cost overruns if the actual costs exceed estimates. For R&D, where the scope can be inherently uncertain and evolve, there's a risk that the contractor may not have a strong incentive to control costs aggressively if they anticipate the government will cover them. Effective oversight, detailed cost tracking, and clear definition of milestones and deliverables are crucial to mitigate these risks and ensure the government receives good value.
How has the Department of the Navy's spending on R&D support services evolved over the past five years?
Analyzing the Department of the Navy's spending on R&D support services over the past five years would reveal trends in investment in scientific and technical capabilities. This would involve aggregating spending data across relevant NAICS codes (like 541712) and contract types. An increasing trend might indicate a growing emphasis on innovation and technological advancement, while a decrease could suggest shifting priorities or budget constraints. Understanding historical spending patterns provides context for the current award, helping to determine if it aligns with established investment levels or represents a significant deviation. This historical perspective is vital for assessing the strategic importance and sustainability of such R&D investments.
What is the potential impact of this contract on the broader R&D market, particularly for small businesses?
As this contract was awarded under full and open competition and is not a small business set-aside, its direct impact on the small business R&D ecosystem is likely limited unless significant subcontracting opportunities are created. However, the award to a large prime contractor like Leidos could indirectly influence the market by driving demand for specialized research services or technologies that small businesses might provide. The overall health of the R&D sector, influenced by such large contracts, can create a more robust environment for innovation. Assessing the subcontracting plan, if available, would provide a clearer picture of the direct opportunities for small businesses.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, 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: $72,393,184
Exercised Options: $44,835,262
Current Obligation: $35,318,817
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $138,375
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU420
IDV Type: IDC
Timeline
Start Date: 2022-04-13
Current End Date: 2026-06-30
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-30
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