DoD Awards $19.8M for M1A2 SE Tech Refresh Kits to Leidos, Inc
Contract Overview
Contract Amount: $19,866,325 ($19.9M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-27
End Date: 2025-09-16
Contract Duration: 1,328 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TECH REFRESH NRE & UPGRADE KITS (M1A2 SE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $19.9 million to LEIDOS, INC. for work described as: TECH REFRESH NRE & UPGRADE KITS (M1A2 SE Key points: 1. Contract awarded to Leidos, Inc. for M1A2 SE technical refresh and upgrade kits. 2. The contract value is $19,866,324.96, with a duration of 1328 days. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The spending is categorized under 'Other Commercial and Service Industry Machinery Manufacturing'.
Value Assessment
Rating: good
The contract value of $19.8M for upgrade kits appears reasonable given the specialized nature of military hardware. Benchmarking against similar defense upgrade contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required equipment and services.
Public Impact
Enhances the capabilities of the M1A2 Abrams main battle tank. Supports modernization efforts within the U.S. Army. Ensures continued operational readiness of armored vehicle fleets. Contributes to the defense industrial base through contract awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs.
- Dependence on a single contractor for critical upgrades.
- Long contract duration may lead to technology obsolescence.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type limits cost risk.
- Supports critical military modernization programs.
Sector Analysis
This contract falls within the defense sector, specifically related to military vehicle modernization. Spending on such upgrades is benchmarked against overall defense procurement budgets and the lifecycle costs of major weapon systems.
Small Business Impact
While the prime contractor is Leidos, Inc., there is no specific information provided regarding subcontracting opportunities for small businesses on this particular award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army's contracting oversight is crucial for ensuring the successful delivery of these upgrade kits and adherence to contract terms. Regular performance reviews and audits would be standard oversight mechanisms.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration
- Potential for scope creep
- Dependence on prime contractor
- Need for detailed performance metrics
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to LEIDOS, INC.. TECH REFRESH NRE & UPGRADE KITS (M1A2 SE
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 $19.9 million.
What is the period of performance?
Start: 2022-01-27. End: 2025-09-16.
What is the specific technological advancement these kits provide to the M1A2 SE?
The specific technological advancements are not detailed in the provided data. However, 'tech refresh' and 'upgrade kits' typically imply improvements in areas such as situational awareness, lethality, survivability, or network integration. These upgrades are essential for maintaining the combat effectiveness of the M1A2 SE against evolving threats.
What are the primary risks associated with this contract's long duration?
The primary risks associated with the 1328-day duration include potential technology obsolescence, where the upgraded systems might be outdated before full deployment or by the end of the contract. Additionally, there's a risk of escalating costs due to inflation or unforeseen technical challenges that may arise over such an extended period, impacting the overall value for taxpayers.
How does this contract contribute to the overall effectiveness of the M1A2 SE fleet?
This contract directly contributes to the effectiveness of the M1A2 SE fleet by ensuring its components are updated with current technology, enhancing its combat capabilities and reliability. Regular tech refreshes are vital for maintaining a technological edge over adversaries and ensuring the platform remains relevant and capable in modern warfare scenarios.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W900KK21R0055
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $25,294,282
Exercised Options: $19,866,325
Current Obligation: $19,866,325
Subaward Activity
Number of Subawards: 45
Total Subaward Amount: $4,212,322
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK22D0004
IDV Type: IDC
Timeline
Start Date: 2022-01-27
Current End Date: 2025-09-16
Potential End Date: 2025-09-16 00:00:00
Last Modified: 2025-09-16
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