DoD's $105.6M R&D Contract with Leidos Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $105,563,110 ($105.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-06-30
End Date: 2012-07-07
Contract Duration: 1,103 days
Daily Burn Rate: $95.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: U437000 - BAA 09-4482 - TASK 1
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $105.6 million to LEIDOS, INC. for work described as: U437000 - BAA 09-4482 - TASK 1 Key points: 1. The contract's significant value raises questions about cost-effectiveness for R&D services. 2. Full and open competition was utilized, but the specific price discovery mechanisms need review. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. The R&D sector is critical, but requires rigorous oversight to ensure taxpayer value.
Value Assessment
Rating: questionable
The $105.6 million contract value for R&D services is substantial. Without detailed cost breakdowns and performance metrics, it's difficult to benchmark against similar contracts. The Cost Plus Fixed Fee structure warrants close examination for potential inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the effectiveness of this competition in achieving optimal pricing for complex R&D tasks needs further analysis.
Taxpayer Impact: The substantial investment of over $105 million necessitates a thorough review to ensure it delivers maximum value and benefit to taxpayers.
Public Impact
Taxpayers are funding significant research and development efforts with potential long-term implications. The contract's duration and cost could impact future budget allocations for similar initiatives. The outcome of this R&D could lead to advancements in physical, engineering, or life sciences.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may incentivize higher costs.
- Lack of detailed performance metrics makes value assessment difficult.
- Potential for scope creep in long-term R&D contracts.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical R&D activities for the Department of Defense.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but requires careful management to ensure efficient use of funds and tangible outcomes.
Small Business Impact
The data indicates this contract was awarded to Leidos, Inc., a large business. There is no explicit information suggesting subcontracting opportunities for small businesses within this specific award, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would typically involve monitoring project progress, expenditures, and adherence to contract terms. The effectiveness of this oversight in managing a multi-year R&D effort is key.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee structure
- Lack of detailed performance metrics
- Long contract duration
- Potential for cost overruns
- Limited visibility into specific R&D deliverables
Tags
research-and-development-in-the-physical, department-of-defense, ca, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.6 million to LEIDOS, INC.. U437000 - BAA 09-4482 - TASK 1
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 $105.6 million.
What is the period of performance?
Start: 2009-06-30. End: 2012-07-07.
What specific R&D outcomes were achieved relative to the $105.6 million investment?
Assessing the precise R&D outcomes requires access to detailed project reports, technical milestones met, and any resulting innovations or advancements. Without this granular data, it's challenging to quantify the return on investment and determine if the $105.6 million expenditure yielded commensurate scientific or technological progress.
How did the Cost Plus Fixed Fee structure impact the final cost compared to other pricing models?
The Cost Plus Fixed Fee (CPFF) structure guarantees the contractor's costs are covered plus a predetermined fee. While providing cost certainty for the government on the fee, it can incentivize the contractor to incur higher costs to maximize their fee base if not tightly managed. A comparison with fixed-price or other incentive-based contracts would reveal potential cost savings missed.
Were there any performance issues or contract modifications that significantly altered the scope or cost?
Information regarding performance issues or significant contract modifications is not detailed in the provided data. Such changes could indicate challenges in initial planning, unforeseen technical hurdles, or evolving requirements. A review of contract modification history and performance reviews would be necessary to understand any deviations from the original plan and their impact on cost and schedule.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $144,377,218
Exercised Options: $124,530,020
Current Obligation: $105,563,110
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2009-06-30
Current End Date: 2012-07-07
Potential End Date: 2012-07-07 00:00:00
Last Modified: 2016-09-15
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