DoD awards $75M contract for C5ISR system modernization and support to Leidos, Inc
Contract Overview
Contract Amount: $75,071,381 ($75.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-01
End Date: 2026-02-28
Contract Duration: 729 days
Daily Burn Rate: $103.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MODERNIZATION, TECHNICAL, FIELDING, READINESS, AND SUPPORT TO COMMAND, CONTROL, COMPUTERS, COMMUNICATION, CYBER, INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE (C5ISR) AND COMMERCIAL OFF THE SHELF (COTS) SYSTEMS
Place of Performance
Location: AUGUSTA, RICHMOND County, GEORGIA, 30905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $75.1 million to LEIDOS, INC. for work described as: MODERNIZATION, TECHNICAL, FIELDING, READINESS, AND SUPPORT TO COMMAND, CONTROL, COMPUTERS, COMMUNICATION, CYBER, INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE (C5ISR) AND COMMERCIAL OFF THE SHELF (COTS) SYSTEMS Key points: 1. Contract focuses on modernization, technical support, fielding, readiness, and sustainment of C5ISR and COTS systems. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract duration is 729 days, indicating a medium-term engagement for these services. 5. The primary NAICS code (541715) points to Research and Development in Physical, Engineering, and Life Sciences. 6. This award represents a significant investment in enhancing critical defense communication and intelligence capabilities.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure value for money, as it allows for cost reimbursement plus a fixed fee. Benchmarking this specific award is challenging without detailed cost breakdowns, but CPFF contracts generally carry a higher risk of cost escalation compared to fixed-price contracts. The total award amount of $75 million over approximately two years suggests a substantial but not exceptionally high per-year investment for complex C5ISR systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of two bidders suggests a degree of competition, but the specific number of proposals received and the evaluation process would provide a clearer picture of the competitive landscape. A robust competition is generally expected to drive better pricing and terms for the government.
Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value of federal dollars spent.
Public Impact
The primary beneficiaries are the Department of the Army and its operational units relying on C5ISR systems. Services delivered include modernization, technical support, fielding, readiness, and sustainment of critical defense systems. Geographic impact is likely global, supporting deployed military forces and command centers. Workforce implications may include specialized technical roles for system integration, maintenance, and cybersecurity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
- Limited competition (2 bidders) may not represent the full market potential for cost savings.
- The scope of C5ISR modernization is complex and carries inherent technical and integration risks.
Positive Signals
- Awarded under full and open competition, suggesting a structured and fair procurement process.
- Leidos, Inc. is an established contractor with experience in defense systems integration.
- Focus on modernization and support aims to enhance critical defense capabilities.
Sector Analysis
The C5ISR sector is a critical and substantial part of the defense industry, encompassing a wide range of technologies for communication, intelligence, and command and control. Spending in this area is driven by the need for advanced capabilities to maintain military superiority and adapt to evolving threats. This contract fits within the broader R&D and IT services segments of the defense industrial base, where companies like Leidos play a significant role in developing and integrating complex systems.
Small Business Impact
This contract does not appear to have a small business set-aside component (ss: false, sb: false). While Leidos, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses will depend on Leidos's strategy and the specific requirements of the contract, which could impact the small business ecosystem.
Oversight & Accountability
Oversight will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, requiring detailed reporting and justification of costs. Transparency is typically maintained through contract awards databases and reporting requirements, though specific performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense C5ISR Modernization Programs
- Army Command, Control, Communications, Computers, and Intelligence (C4I) Systems
- Defense Information Technology Contracting
- Research and Development in Defense Technologies
Risk Flags
- Cost Overrun Risk (CPFF Contract Type)
- Technical Complexity and Integration Challenges
- Cybersecurity Vulnerabilities in C5ISR Systems
- Dependence on Contractor Performance
Tags
defense, department-of-defense, department-of-the-army, c5isr, systems-modernization, technical-support, readiness, full-and-open-competition, cost-plus-fixed-fee, research-and-development, leidos-inc, georgia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.1 million to LEIDOS, INC.. MODERNIZATION, TECHNICAL, FIELDING, READINESS, AND SUPPORT TO COMMAND, CONTROL, COMPUTERS, COMMUNICATION, CYBER, INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE (C5ISR) AND COMMERCIAL OFF THE SHELF (COTS) SYSTEMS
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 Army).
What is the total obligated amount?
The obligated amount is $75.1 million.
What is the period of performance?
Start: 2024-03-01. End: 2026-02-28.
What is Leidos, Inc.'s track record with similar DoD C5ISR contracts?
Leidos, Inc. has a substantial track record with the Department of Defense, including numerous contracts related to C5ISR systems, IT services, and systems integration. They have been involved in various modernization efforts, logistics support, and technical services for military branches. Analyzing their past performance on similar Cost Plus Fixed Fee (CPFF) contracts would be crucial to assess their ability to manage costs effectively and deliver on technical requirements within budget. Historical data on contract modifications, cost overruns, and successful delivery timelines for Leidos on comparable projects would provide valuable context for evaluating their suitability for this specific award.
How does the $75 million award compare to historical spending on C5ISR modernization and support?
The $75 million award for C5ISR modernization and support represents a significant but not unprecedented investment. Annual spending on C5ISR systems by the DoD can range into the tens of billions of dollars, encompassing research, development, procurement, and sustainment. This specific contract, valued at approximately $37.5 million per year over its two-year duration, falls within the typical range for major system sustainment and modernization efforts. Comparing it to similar contracts awarded to other large defense contractors for comparable services would provide a benchmark for assessing its relative scale and value. Trends in C5ISR spending indicate a continuous need for upgrades due to technological advancements and evolving threat landscapes.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides less incentive for cost efficiency compared to fixed-price contracts. If the project scope expands or unforeseen technical challenges arise, the total cost to the government could exceed initial estimates. Effective oversight, rigorous cost tracking, and clear performance metrics are essential to mitigate these risks. Additionally, ensuring that the 'fixed fee' remains appropriate for the scope of work and is not disproportionately high relative to the effort is a key consideration for value.
How effective are C5ISR systems in supporting current military operations and readiness?
C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) systems are fundamental to modern military operations, providing the situational awareness, communication links, and intelligence necessary for effective command and control. Their effectiveness directly impacts troop readiness, mission success, and overall force projection capabilities. Investments in modernization and support, such as those covered by this contract, aim to ensure these systems remain current, secure, and interoperable with evolving platforms and threats. Failures or outdated C5ISR capabilities can lead to significant operational disadvantages, making sustained investment and technological advancement critical.
What is the historical spending trend for C5ISR modernization within the Department of the Army?
The Department of the Army has consistently allocated substantial funding towards C5ISR modernization and sustainment, reflecting the critical role these capabilities play across all domains of warfare. Historical spending trends show a continuous effort to upgrade legacy systems and integrate new technologies to counter emerging threats and maintain information superiority. Factors driving this spending include the need for enhanced cybersecurity, improved data fusion, interoperability across different services, and the integration of artificial intelligence and machine learning. While specific annual figures fluctuate based on program priorities and budget cycles, the overall trend indicates a sustained and significant commitment to advancing C5ISR capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
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: $267,981,680
Exercised Options: $92,747,023
Current Obligation: $75,071,381
Actual Outlays: $14,506,041
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $12,459,047
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T19D0174
IDV Type: IDC
Timeline
Start Date: 2024-03-01
Current End Date: 2026-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2026-01-16
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