NASA Awards $291M for Safety, Reliability, and Quality Assurance Support Services to Leidos, Inc
Contract Overview
Contract Amount: $290,836,560 ($290.8M)
Contractor: Leidos, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-04-05
End Date: 2006-04-30
Contract Duration: 2,216 days
Daily Burn Rate: $131.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: SAFETY RELIABILITY & QUALITY ASSURANCE SUPPORT SERVICES
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $290.8 million to LEIDOS, INC. for work described as: SAFETY RELIABILITY & QUALITY ASSURANCE SUPPORT SERVICES Key points: 1. Leidos, Inc. secured a significant contract for critical support services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is substantial, spanning over 2200 days. 4. The award type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight.
Value Assessment
Rating: good
The contract value of $291 million over approximately 6 years suggests a significant investment in these services. Benchmarking against similar large-scale R&D support contracts would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes competitive pricing and allows the agency to select the best value.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing for taxpayers, ensuring that the significant investment in safety and quality assurance is cost-effective.
Public Impact
Ensures the safety and reliability of NASA's complex projects and missions. Supports critical quality assurance processes, maintaining high standards for space exploration. The long-term nature of the contract provides stability for essential support functions. The award to a single large contractor may limit opportunities for smaller, specialized firms in this niche.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires diligent monitoring to ensure cost control and prevent overruns.
- The long contract duration could lead to potential scope creep or evolving needs not fully captured in the initial award.
- Lack of small business participation noted, potentially missing out on specialized expertise or economic opportunities.
Positive Signals
- Awarded through full and open competition, indicating a robust and fair selection process.
- The contract addresses critical safety and reliability functions essential for NASA's mission success.
- The chosen contractor, Leidos, Inc., is a well-established entity with experience in government contracting.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, a critical area for NASA. Spending in this sector is often characterized by long-term investments and high-value, specialized services.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). This suggests that the scope and nature of the services required were likely better suited for larger, established contractors with extensive resources and experience.
Oversight & Accountability
The Cost Plus Award Fee contract type necessitates strong oversight from NASA to ensure that performance targets are met and that costs are managed effectively. Regular reviews and audits will be crucial for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Risk of contractor complacency over a long contract duration.
- Lack of small business participation may limit innovation.
- Dependence on a single large contractor for critical functions.
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $290.8 million to LEIDOS, INC.. SAFETY RELIABILITY & QUALITY ASSURANCE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $290.8 million.
What is the period of performance?
Start: 2000-04-05. End: 2006-04-30.
How does the performance of Leidos, Inc. under this contract compare to industry benchmarks for similar safety and reliability services, and what is the impact on NASA's mission success?
Assessing Leidos' performance against industry benchmarks requires access to detailed performance metrics and independent evaluations. High performance would translate to fewer mission failures, enhanced safety records, and potentially cost savings through proactive issue resolution. Conversely, subpar performance could lead to delays, increased costs, and compromised mission objectives, underscoring the importance of NASA's oversight.
What are the specific risks associated with the Cost Plus Award Fee structure in this contract, and how are they being mitigated by NASA to ensure taxpayer value?
The primary risk of a Cost Plus Award Fee (CPAF) contract is the potential for cost overruns if performance incentives are not carefully structured or if oversight is lax. NASA mitigates this by clearly defining award fee criteria tied to specific, measurable performance outcomes and by maintaining rigorous oversight of incurred costs and contractor performance. Regular reviews and audits are essential to ensure that award fees are earned based on genuine value and efficiency.
Given the long duration and significant value, what mechanisms are in place to ensure the ongoing relevance and effectiveness of the safety, reliability, and quality assurance services provided by Lei
To ensure ongoing relevance, NASA likely employs contract modification processes to adapt to evolving technological landscapes and mission requirements. Performance reviews, regular stakeholder feedback, and periodic re-evaluation of the service scope are crucial. The award fee structure itself incentivizes the contractor to remain effective and responsive to NASA's needs throughout the contract's lifecycle, ensuring continued value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 9BG312319P
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 2200 SPACE PARK DR, SUITE 200, HOUSTON, TX, 77058
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $158,361,282
Exercised Options: $193,408,679
Current Obligation: $290,836,560
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2000-04-05
Current End Date: 2006-04-30
Potential End Date: 2006-04-30 00:00:00
Last Modified: 2020-02-27
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