DHS awards $109.8M for energy portals, with Leidos Inc. as prime contractor

Contract Overview

Contract Amount: $109,797,496 ($109.8M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-28

End Date: 2027-03-31

Contract Duration: 2,010 days

Daily Burn Rate: $54.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS DELIVERY ORDER IS FOR MULTI- ENERGY PORTALS.

Place of Performance

Location: PHARR, HIDALGO County, TEXAS, 78577

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $109.8 million to LEIDOS, INC. for work described as: THIS DELIVERY ORDER IS FOR MULTI- ENERGY PORTALS. Key points: 1. Contract value represents a significant investment in border security technology. 2. The delivery order is part of a larger framework agreement, suggesting potential for future task orders. 3. Fixed-price contract type aims to control costs, but requires careful scope management. 4. The duration of the contract extends over several years, indicating a long-term need. 5. The specific nature of 'energy portals' suggests advanced screening capabilities. 6. Texas is the primary state associated with this contract.

Value Assessment

Rating: good

The total value of $109.8 million for this delivery order appears substantial for specialized equipment. Benchmarking against similar large-scale technology procurements for border security would be necessary for a precise value-for-money assessment. The firm-fixed-price structure suggests an expectation of cost control by the agency. However, without detailed cost breakdowns or comparisons to industry standards for 'energy portals,' a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders (no is 3) suggests a competitive environment, which typically benefits price discovery and innovation. The agency's decision to use full and open competition implies confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by fostering a competitive bidding process.

Public Impact

U.S. Customs and Border Protection benefits from enhanced screening capabilities at the border. The delivery order supports the modernization of border security infrastructure. The primary geographic impact is in Texas, where the portals will likely be deployed. The contract supports jobs within the contractor's organization and potentially its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in multi-year delivery orders if not managed tightly.
  • Dependence on a single prime contractor for critical technology implementation.

Positive Signals

  • Awarded under full and open competition, indicating a robust bidding process.
  • Firm-fixed-price contract type provides cost certainty for the agency.
  • Long contract duration suggests a sustained commitment to the technology.

Sector Analysis

The procurement of 'energy portals' falls within the broader defense and security technology sector, specifically related to border security and inspection systems. This market is characterized by high technological sophistication and significant government investment. Comparable spending benchmarks would involve other large-scale procurements for advanced screening equipment, such as cargo inspection systems or biometric identification technologies, often valued in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb is false). While the prime contractor is Leidos, Inc., a large business, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned for this delivery order and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security, specifically U.S. Customs and Border Protection. Accountability measures are embedded in the contract terms, including performance requirements and delivery schedules. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Border Security Technology
  • Inspection and Screening Systems
  • Customs and Border Protection Technology Modernization

Risk Flags

  • Contract duration extends over multiple years, requiring ongoing performance monitoring.
  • Specialized technology procurement may have limited vendor pool for future support.
  • Firm-fixed-price contracts can lead to disputes if scope is not clearly defined.

Tags

defense, department-of-homeland-security, us-customs-and-border-protection, delivery-order, large-contract, full-and-open-competition, firm-fixed-price, technology, border-security, texas, leidos-inc

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $109.8 million to LEIDOS, INC.. THIS DELIVERY ORDER IS FOR MULTI- ENERGY PORTALS.

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 $109.8 million.

What is the period of performance?

Start: 2021-09-28. End: 2027-03-31.

What is the specific function and technological capability of these 'energy portals'?

The provided data describes the contract as being for 'MULTI- ENERGY PORTALS' but does not detail their specific function or technological capabilities. Typically, 'energy portals' in a border security context could refer to advanced screening systems that utilize various forms of energy (e.g., X-ray, gamma-ray, terahertz) to detect contraband, weapons, or illicit materials within cargo or individuals. These systems are crucial for enhancing the efficiency and effectiveness of border inspections. Further documentation, such as the Statement of Work or technical specifications within the contract, would be required to ascertain the precise nature of the technology.

How does the $109.8 million cost compare to similar border security technology procurements?

The $109.8 million cost for this delivery order is a significant investment. To benchmark its value, it would need to be compared against other large-scale procurements for advanced border security technologies, such as cargo scanning systems, biometric identification platforms, or integrated surveillance networks. For instance, procurements for large-scale cargo inspection systems can range from tens to hundreds of millions of dollars, depending on the technology, quantity, and deployment scope. Without specific details on the 'energy portals' and their capabilities, a direct comparison is difficult, but the amount suggests a substantial technological upgrade or deployment.

What are the key performance indicators (KPIs) and success metrics for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or success metrics for this contract. However, for a contract involving 'energy portals' for border security, typical KPIs would likely focus on detection rates for specific threats (e.g., explosives, narcotics, weapons), throughput speed (number of individuals or vehicles processed per hour), system reliability and uptime, and the accuracy of threat identification. The agency (U.S. Customs and Border Protection) would establish these metrics to ensure the technology meets operational requirements and enhances border security effectiveness. These would be detailed in the contract's Statement of Work.

What is Leidos, Inc.'s track record with similar large-scale government technology contracts, particularly in defense and security?

Leidos, Inc. has a substantial track record of performing large-scale technology and services contracts for various U.S. government agencies, including significant work within the defense and national security sectors. They are known for providing solutions in areas such as intelligence analysis, command and control systems, cybersecurity, and logistics support. Their experience often involves complex system integration and the deployment of advanced technologies. While specific details on their past performance related to 'energy portals' are not provided here, their general profile suggests they are a capable large prime contractor for such procurements.

What is the historical spending trend for similar 'energy portal' or advanced screening technologies by DHS?

The provided data does not offer historical spending trends for 'energy portals' or similar advanced screening technologies by the Department of Homeland Security (DHS). To analyze this, one would need to examine historical contract awards for related technologies, such as advanced imaging systems, radiation detection equipment, or other non-intrusive inspection technologies used at ports of entry. This would involve searching federal procurement databases for contracts awarded by DHS agencies like U.S. Customs and Border Protection (CBP) over several fiscal years to identify patterns in spending, technology adoption, and vendor engagement in this specific niche.

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

Solicitation ID: 70B03C21Q00000150

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $109,797,496

Exercised Options: $109,797,496

Current Obligation: $109,797,496

Actual Outlays: $74,467,183

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $51,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B03C21D00000004

IDV Type: IDC

Timeline

Start Date: 2021-09-28

Current End Date: 2027-03-31

Potential End Date: 2033-09-27 13:09:20

Last Modified: 2026-03-26

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