Leidos Inc. awarded $131.5M for Air Force Operations Support, with 90% of contract value awarded to a single entity
Contract Overview
Contract Amount: $131,487,179 ($131.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-06-21
End Date: 2022-06-13
Contract Duration: 1,453 days
Daily Burn Rate: $90.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 25 AIR FORCE OPERATIONS SUPPORT (25AFOS)
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78243
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $131.5 million to LEIDOS, INC. for work described as: 25 AIR FORCE OPERATIONS SUPPORT (25AFOS) Key points: 1. Contract value of $131.5M over 4 years indicates significant investment in Air Force operations support. 2. The majority of the contract value was awarded to a single entity, suggesting a concentrated relationship. 3. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code, pointing to technical and scientific services. 4. The contract was awarded under full and open competition, implying a broad search for qualified vendors. 5. Delivery Order contract type suggests a flexible approach to acquiring services as needed. 6. The contract duration of 1453 days (approx. 4 years) allows for sustained support and development. 7. The contract was awarded to Leidos, Inc., a major government contractor with a significant presence in the defense sector.
Value Assessment
Rating: good
The total contract value of $131.5M for Air Force Operations Support appears reasonable given the 4-year duration and the nature of R&D services. Benchmarking against similar contracts for large-scale operations support and R&D within the Department of Defense would provide a more precise value-for-money assessment. However, the concentration of award to a single entity (Leidos, Inc.) warrants attention to ensure competitive pricing was achieved throughout the contract's life.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the government sought proposals from all responsible sources. The data shows one award action, but the initial competition phase likely involved multiple bidders vying for the opportunity. The level of competition at the outset is a positive sign for price discovery, though the subsequent performance and any modifications would need to be reviewed for sustained competitive pressure.
Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of vendors to offer their best pricing and innovative solutions, potentially leading to cost savings and higher quality services.
Public Impact
The primary beneficiary is the U.S. Air Force, receiving critical operations support services. Services delivered likely encompass research, development, and technical support within physical, engineering, and life sciences. The contract's geographic impact is primarily associated with Texas (ST: TX, SN: TEXAS), where the contractor is located. Workforce implications include employment opportunities for scientists, engineers, and support staff within Leidos, Inc. and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Concentration of award to a single entity (Leidos, Inc.) may limit future competition and potentially lead to price increases if not managed carefully.
- The 'Research and Development' NAICS code suggests a focus on innovation, which can carry inherent risks of cost overruns or unmet technical objectives.
- The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not rigorously managed.
Positive Signals
- Awarded under full and open competition, suggesting a robust initial selection process.
- The significant contract value indicates a high level of trust and perceived capability of the awardee, Leidos, Inc.
- The extended duration allows for long-term planning and development of critical Air Force capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant government investment. Comparable spending benchmarks would involve analyzing other large R&D contracts awarded by the Department of Defense or other federal agencies for similar scientific and technical support services. The market size for federal R&D services is substantial, with numerous large and small businesses competing for these contracts.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, as a large prime contract awarded to Leidos, Inc., there may be opportunities for small businesses to participate as subcontractors, depending on Leidos's subcontracting plan and the specific needs of the Air Force operations support services.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Air Force Operations Support
- Department of Defense Research and Development
- Federal R&D Contracts
- Leidos, Inc. Government Contracts
Risk Flags
- Concentration of award to a single entity
- Potential for cost overruns in R&D contracts
- Need for rigorous oversight of CPFF contracts
Tags
defense, department-of-defense, air-force, research-and-development, leidos-inc, full-and-open-competition, delivery-order, cost-plus-fixed-fee, texas, large-contract, operations-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $131.5 million to LEIDOS, INC.. 25 AIR FORCE OPERATIONS SUPPORT (25AFOS)
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 $131.5 million.
What is the period of performance?
Start: 2018-06-21. End: 2022-06-13.
What is the historical spending pattern for 'Air Force Operations Support' contracts over the past five years?
Analyzing historical spending for 'Air Force Operations Support' (AFOS) contracts requires access to comprehensive federal procurement data. Typically, such analysis would involve querying databases like FPDS or USAspending.gov for contracts tagged with relevant keywords or NAICS codes related to operations support and R&D for the Air Force. Spending patterns can reveal trends in contract values, award types (e.g., IDIQ, sole-source), and the primary contractors involved. For instance, a historical review might show an increasing trend in AFOS spending due to evolving geopolitical threats or technological advancements, or a shift towards specific types of R&D services. Understanding these patterns provides context for the current $131.5M award, indicating whether it represents a typical investment or a significant deviation.
How does the awarded value of $131.5M compare to other large R&D contracts within the Department of Defense for similar services?
To compare the $131.5M award for Air Force Operations Support (AFOS) to other large R&D contracts within the Department of Defense (DoD), one would need to identify comparable contracts based on NAICS codes (e.g., 541712), service descriptions, and contract values. Databases like FPDS allow for filtering by agency, NAICS, and award amount. For example, if similar R&D support contracts for other branches of the military or for different operational domains (e.g., space, cyber) typically range from $50M to $200M over similar durations, then the $131.5M award to Leidos, Inc. would be considered within the expected range. Conversely, if comparable contracts are significantly smaller or larger, it might suggest unique aspects of this AFOS contract, such as its scope, complexity, or the specific technologies involved, warranting further investigation into its value proposition.
What is Leidos, Inc.'s track record with similar large-scale R&D and operations support contracts for the U.S. Air Force?
Assessing Leidos, Inc.'s track record with similar contracts involves reviewing their past performance on awards from the U.S. Air Force, particularly those involving Research and Development (R&D) and operations support. Procurement databases can be queried for contracts awarded to Leidos, Inc. by the Air Force, filtering by relevant NAICS codes and contract types. Key metrics to examine include contract values, durations, performance ratings (if available), and any instances of contract disputes or terminations. A history of successful, on-time, and within-budget delivery on complex R&D projects would indicate a strong track record. Conversely, frequent performance issues or cost overruns on similar contracts might raise concerns about their capability to execute this $131.5M award effectively. Understanding their past performance provides crucial insight into the reliability and potential risks associated with awarding this significant contract to them.
What are the specific performance metrics and deliverables expected under this $131.5M Air Force Operations Support contract?
The specific performance metrics and deliverables for the $131.5M Air Force Operations Support (AFOS) contract are detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents, typically not publicly disclosed in full detail, outline the precise requirements, objectives, and standards the contractor, Leidos, Inc., must meet. For an R&D-focused contract (NAICS 541712), deliverables might include research reports, prototype development, technical analyses, feasibility studies, and recommendations for system improvements. Performance metrics could involve adherence to project timelines, quality of research findings, successful demonstration of prototypes, and responsiveness to Air Force inquiries. The Cost Plus Fixed Fee (CPFF) contract type suggests that while costs are reimbursed, the fee is fixed, incentivizing efficient performance within the defined scope.
What is the potential impact of the 'full and open competition' award type on the overall cost-effectiveness of this contract?
The 'full and open competition' award type for this $131.5M Air Force Operations Support contract is generally a positive indicator for cost-effectiveness. It signifies that the government solicited proposals from all responsible sources, fostering a competitive environment where multiple companies could bid. This competition typically drives down prices as contractors strive to offer their most competitive rates and innovative solutions to win the contract. Furthermore, it increases the likelihood that the government selects the best value proposal, considering both technical merit and price. While the contract type is Cost Plus Fixed Fee (CPFF), which has its own cost considerations, the initial competitive process helps establish a baseline for fair pricing and encourages efficiency throughout the contract's performance period, ultimately benefiting taxpayers.
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 › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W911NF15R0004
Offers Received: 1
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: $133,731,101
Exercised Options: $133,731,101
Current Obligation: $131,487,179
Actual Outlays: $31,366,378
Subaward Activity
Number of Subawards: 78
Total Subaward Amount: $40,704,619
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W911NF15D0014
IDV Type: IDC
Timeline
Start Date: 2018-06-21
Current End Date: 2022-06-13
Potential End Date: 2022-06-13 00:00:00
Last Modified: 2025-12-31
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