DHS Awards $84.3M for Non-Intrusive Inspection Systems to Leidos, Inc

Contract Overview

Contract Amount: $84,307,963 ($84.3M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-21

End Date: 2027-03-31

Contract Duration: 2,017 days

Daily Burn Rate: $41.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $84.3 million to LEIDOS, INC. for work described as: LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE. Key points: 1. Leidos, Inc. secured a significant contract for advanced inspection systems. 2. The contract involves training and maintenance, indicating a long-term service component. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The sector is related to irradiation apparatus manufacturing, with applications in security.

Value Assessment

Rating: good

The award amount of $84.3 million over approximately 5.5 years suggests a substantial investment. Benchmarking against similar large-scale technology procurements for government agencies would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a delivery order mechanism implies a structured procurement process aimed at achieving best value.

Taxpayer Impact: The use of competitive bidding is intended to ensure taxpayer funds are used efficiently for critical security equipment.

Public Impact

Enhances border security capabilities through advanced inspection technology. Supports U.S. Customs and Border Protection's mission to secure national borders. Includes essential training and maintenance, ensuring operational readiness and longevity of systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in with long-term maintenance agreements.
  • Dependence on a single vendor for critical security technology.
  • Need for ongoing performance monitoring to ensure system effectiveness.

Positive Signals

  • Awarded through full and open competition.
  • Addresses a critical national security need.
  • Includes comprehensive training and maintenance.

Sector Analysis

This contract falls within the broader defense and security sector, specifically involving specialized equipment manufacturing. Spending benchmarks in this area are highly variable based on technological sophistication and scale.

Small Business Impact

The data indicates this contract was awarded to Leidos, Inc., a large business. There is no explicit information suggesting direct subcontracting opportunities for small businesses within this specific award, though they may be involved in the supply chain.

Oversight & Accountability

The Department of Homeland Security, through U.S. Customs and Border Protection, is responsible for overseeing this contract. Standard oversight mechanisms for large procurements, including performance reviews and financial audits, would apply.

Related Government Programs

  • Irradiation Apparatus Manufacturing
  • Department of Homeland Security Contracting
  • U.S. Customs and Border Protection Programs

Risk Flags

  • Long-term commitment to a single vendor for critical technology.
  • Potential for cost overruns in maintenance and training phases.
  • Dependence on vendor for operational continuity.
  • Need for robust performance monitoring to ensure effectiveness.

Tags

irradiation-apparatus-manufacturing, department-of-homeland-security, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $84.3 million to LEIDOS, INC.. LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $84.3 million.

What is the period of performance?

Start: 2021-09-21. End: 2027-03-31.

What is the specific technological advancement these inspection systems offer compared to previous generations?

The provided data does not detail the specific technological advancements. Further analysis would require reviewing the contract's technical specifications and performance requirements. Understanding the innovation is key to assessing if the investment justifies the cost and provides a significant operational advantage over existing or alternative solutions.

What are the key performance indicators (KPIs) used to measure the effectiveness of these inspection systems and the vendor's performance?

Key performance indicators are not detailed in the provided data. Typically, for inspection systems, KPIs would include detection rates, false positive/negative rates, throughput speed, and system uptime. Vendor performance would be measured against contractual obligations for delivery, training quality, and maintenance responsiveness.

How does the long-term maintenance and training component impact the total cost of ownership and the government's flexibility?

The inclusion of training and maintenance significantly increases the total cost of ownership beyond the initial acquisition price. It also impacts flexibility, potentially creating a reliance on Leidos for upkeep and upgrades, which could limit future options for technology refresh or alternative service providers.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingIrradiation Apparatus Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $107,833,575

Exercised Options: $84,307,963

Current Obligation: $84,307,963

Actual Outlays: $73,513,309

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $21,932,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B03C21D00000036

IDV Type: IDC

Timeline

Start Date: 2021-09-21

Current End Date: 2027-03-31

Potential End Date: 2033-04-17 13:31:03

Last Modified: 2026-03-26

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