DoD's $25.1M follow-on logistics contract for critical naval systems awarded to Leidos, Inc
Contract Overview
Contract Amount: $25,157,370 ($25.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-06-17
End Date: 2018-01-26
Contract Duration: 588 days
Daily Burn Rate: $42.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FOLLOW-ON REQUIREMENT FOR THE LIFE CYCLE LOGISTICS OF TOMAHAWK COMMAND AND CONTROL SYSTEM (TC2S), NAVAL MISSION PLANNING SYSTEM (NAVMPS), DIGITAL CAMERA RECEIVING STATION (DCRS) AND NAVAL STRIKE WARFARE PLANNING CENTER PROGRAMS. ''IGF::OT::IGF''
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $25.2 million to LEIDOS, INC. for work described as: FOLLOW-ON REQUIREMENT FOR THE LIFE CYCLE LOGISTICS OF TOMAHAWK COMMAND AND CONTROL SYSTEM (TC2S), NAVAL MISSION PLANNING SYSTEM (NAVMPS), DIGITAL CAMERA RECEIVING STATION (DCRS) AND NAVAL STRIKE WARFARE PLANNING CENTER PROGRAMS. ''IGF::OT::IGF'' Key points: 1. Contract provides essential life cycle logistics support for key naval planning and strike warfare systems. 2. Follow-on nature suggests a reliance on incumbent expertise, potentially limiting new market entrants. 3. Awarded as a definitive contract, indicating a long-term relationship for ongoing services. 4. The firm-fixed-price structure aims to control costs for the Department of the Navy. 5. Focus on logistics and consulting services highlights the importance of operational readiness for naval forces. 6. Geographic location in Florida may indicate specific operational or training requirements.
Value Assessment
Rating: fair
The contract value of $25.1 million for a period of approximately 588 days (roughly 1.6 years) appears to be a reasonable investment for supporting critical naval systems. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar logistics support contracts for complex defense systems would be necessary for a more definitive evaluation. The absence of competition makes it difficult to ascertain if the pricing reflects optimal market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach is often taken for follow-on requirements where the incumbent contractor possesses unique knowledge, specialized facilities, or has developed critical infrastructure related to the systems being supported. While this can ensure continuity and leverage existing expertise, it bypasses the competitive process, which could potentially lead to higher costs for the government compared to a competed contract.
Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings typically achieved through a bidding process, potentially leading to a higher overall expenditure for these essential services.
Public Impact
Naval forces benefit from the continued operational readiness of critical command, control, and planning systems. Services ensure the effective life cycle management of Tomahawk Command and Control System (TC2S), Naval Mission Planning System (NAVMPS), Digital Camera Receiving Station (DCRS), and Naval Strike Warfare Planning Center programs. The contract's execution in Florida suggests a direct impact on the state's defense sector and associated workforce. Ensures that naval personnel have access to reliable and up-to-date planning and operational tools.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced incentive for cost efficiency.
- Follow-on nature without clear justification for sole-sourcing could indicate a missed opportunity for competitive bidding.
- Limited transparency into the specific services rendered and performance metrics makes independent assessment difficult.
Positive Signals
- Contract ensures continuity of support for critical naval systems, vital for national security.
- Firm-fixed-price contract type helps to manage and predict costs for the Department of the Navy.
- The award to Leidos, Inc. leverages established expertise in defense logistics and system support.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically logistics consulting. The Department of Defense is a major consumer of such services, requiring specialized support for its complex weapon systems and operational planning. The market for defense logistics support is substantial, with numerous contractors capable of providing these services. This contract represents a portion of the broader spending on sustainment and readiness for naval aviation and strike warfare capabilities.
Small Business Impact
The contract data indicates that small business participation was not a stated requirement (ss: false, sb: false). This suggests that the primary contractor, Leidos, Inc., is likely responsible for fulfilling the entire scope of work. There is no explicit information regarding subcontracting plans to small businesses. Therefore, this contract may not directly contribute to the small business contracting ecosystem unless Leidos voluntarily engages small businesses for specific components or services.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it likely includes clauses for performance monitoring and reporting. The Inspector General of the Department of Defense may also conduct audits or investigations into the contract's execution and financial management. Transparency is limited by the sole-source nature and the lack of publicly available detailed performance reports.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Defense Logistics Agency (DLA) Support Services
- Naval Air Systems Command (NAVAIR) Logistics
- Tomahawk Weapon System Sustainment
- Mission Planning Systems Support
Risk Flags
- Sole-source award without clear justification
- Potential for inflated pricing due to lack of competition
- Limited transparency into performance metrics
- Follow-on requirement may indicate a lack of proactive market research for competition
Tags
defense, department-of-the-navy, logistics-consulting, definitive-contract, firm-fixed-price, sole-source, follow-on, naval-systems, florida, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.2 million to LEIDOS, INC.. FOLLOW-ON REQUIREMENT FOR THE LIFE CYCLE LOGISTICS OF TOMAHAWK COMMAND AND CONTROL SYSTEM (TC2S), NAVAL MISSION PLANNING SYSTEM (NAVMPS), DIGITAL CAMERA RECEIVING STATION (DCRS) AND NAVAL STRIKE WARFARE PLANNING CENTER PROGRAMS. ''IGF::OT::IGF''
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 $25.2 million.
What is the period of performance?
Start: 2016-06-17. End: 2018-01-26.
What is the specific scope of 'life cycle logistics' for the supported systems?
Life cycle logistics, in the context of this contract, encompasses a broad range of activities essential for maintaining the operational readiness and effectiveness of the Tomahawk Command and Control System (TC2S), Naval Mission Planning System (NAVMPS), Digital Camera Receiving Station (DCRS), and Naval Strike Warfare Planning Center programs. This typically includes planning, development, acquisition, storage, distribution, maintenance, modification, and disposal of systems and equipment. For these specific naval systems, it likely involves technical support, supply chain management, inventory control, repair and overhaul services, engineering support for obsolescence management, and ensuring the availability of spare parts and documentation. The goal is to ensure these critical planning and strike warfare tools are consistently available and functional for naval operations throughout their operational lifespan.
Why was this contract awarded on a sole-source basis as a follow-on requirement?
The contract was awarded on a sole-source basis as a follow-on requirement likely due to the specialized nature of the systems supported and the incumbent contractor's established expertise and infrastructure. For complex defense systems like TC2S, NAVMPS, DCRS, and the Naval Strike Warfare Planning Center, the original contractor often possesses unique technical knowledge, proprietary data, and established processes critical for effective life cycle logistics. Transitioning such support to a new contractor could be costly, time-consuming, and introduce significant risks to operational readiness. The Department of the Navy may have determined that Leidos, Inc. (the incumbent) was the only source capable of providing the necessary continuity and specialized support without unacceptable delays or performance degradation, thus justifying the sole-source award under specific procurement regulations.
How does the firm-fixed-price contract type benefit the Department of the Navy?
The firm-fixed-price (FFP) contract type is advantageous for the Department of the Navy as it shifts the majority of the cost risk from the government to the contractor, Leidos, Inc. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs incurred. This provides the Navy with cost certainty and predictability, making budgeting more straightforward. It incentivizes the contractor to manage its costs efficiently and to perform the work effectively to maximize its profit margin. For a follow-on requirement involving established systems, the FFP structure helps to lock in costs and prevent potential cost overruns that might occur with cost-reimbursement contracts, especially if the scope of work is well-defined.
What are the potential risks associated with a sole-source follow-on contract of this nature?
The primary risk associated with a sole-source follow-on contract is the potential for reduced price competition, which can lead to higher costs for the government compared to a competed contract. Without the pressure of competing bids, the incumbent contractor may have less incentive to offer the most competitive pricing or to aggressively pursue cost-saving efficiencies. There's also a risk of contractor complacency or a decline in innovation over time, as the threat of losing the contract to a competitor is absent. Furthermore, a sole-source award can limit opportunities for other capable companies to enter the market and demonstrate their capabilities, potentially hindering the development of a broader competitive landscape for these critical services in the future.
Can the performance of Leidos, Inc. on this contract be benchmarked against other similar contracts?
Benchmarking the performance of Leidos, Inc. on this specific contract against other similar contracts is challenging without access to detailed performance metrics and cost data, which are not publicly available. While Leidos is a large and experienced defense contractor, the effectiveness of their support for TC2S, NAVMPS, DCRS, and the Naval Strike Warfare Planning Center programs would need to be assessed based on factors such as on-time delivery of services, system uptime, responsiveness to issues, and adherence to budget (within the FFP structure). Comparisons would ideally be made with contracts for life cycle logistics support of comparable naval or complex defense systems, considering factors like contract value, duration, and the specific technical requirements involved. Publicly available contract databases might offer some high-level comparisons of contract values and durations, but qualitative performance data is typically proprietary.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833516R0196
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,859,816
Exercised Options: $25,859,816
Current Obligation: $25,157,370
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-06-17
Current End Date: 2018-01-26
Potential End Date: 2018-01-26 00:00:00
Last Modified: 2019-10-04
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