Leidos Inc. awarded $111M contract for Travelers Processing Vetting Software by DHS
Contract Overview
Contract Amount: $111,276,731 ($111.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2023-09-03
End Date: 2024-12-31
Contract Duration: 485 days
Daily Burn Rate: $229.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TRAVELERS PROCESSING VETTING SOFTWARE (TPVS)
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20148
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $111.3 million to LEIDOS, INC. for work described as: TRAVELERS PROCESSING VETTING SOFTWARE (TPVS) Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 2. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 3. The duration of 485 days suggests a significant, ongoing need for the services. 4. The award is for 'Other Computer Related Services', a broad category. 5. The contract was awarded through Full and Open Competition, suggesting a competitive process. 6. The small business set-aside flag is false, indicating no specific preference for small businesses in this award.
Value Assessment
Rating: fair
The contract value of $111.28 million over approximately 16 months represents a substantial investment. Benchmarking this specific 'Travelers Processing Vetting Software' is difficult without more granular data on the services provided and comparable systems. However, the Time and Materials pricing model, while common, requires diligent oversight to ensure value for money and prevent cost overruns compared to fixed-price contracts. The absence of a specific Product and Service Code (PSC) makes direct comparison to similar IT service contracts challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition', suggesting that all responsible sources were permitted to submit offers. The specific details of the bidding process, such as the number of bidders or the evaluation criteria, are not provided. However, a full and open competition generally promotes a wider range of potential contractors and can lead to more competitive pricing.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions from a broad base of vendors.
Public Impact
The Department of Homeland Security (DHS) benefits from enhanced capabilities in traveler processing and vetting. The contract supports the U.S. Customs and Border Protection (CBP) in its mission. Improved vetting software can lead to more efficient border security operations. The contract likely impacts the IT services sector, particularly those specializing in government software solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- The broad NAICS code 'Other Computer Related Services' lacks specificity for detailed performance analysis.
- Limited information on the specific functionalities and performance metrics of the TPVS software.
Positive Signals
- Awarded through Full and Open Competition, suggesting a competitive bidding process.
- Contract is part of a larger Blanket Purchase Agreement (BPA) Call, implying pre-negotiated terms.
- The contract duration indicates a sustained need and commitment to the service.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, specifically focusing on software development and related computer services. The market for government IT services is substantial, with agencies like DHS consistently investing in technology to enhance security and operational efficiency. Comparable spending benchmarks for large-scale software development and integration projects within federal agencies can range from tens to hundreds of millions of dollars, depending on complexity and scope.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). This means that large businesses like Leidos, Inc. were eligible to compete and were awarded the contract. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem for this particular award is unclear, but it suggests that larger prime contractors are expected to fulfill the requirements.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically U.S. Customs and Border Protection (CBP). As a BPA Call award, there may be existing oversight mechanisms from the parent BPA. The Time and Materials (T&M) nature of the contract necessitates robust monitoring of labor hours and material costs to ensure accountability and prevent overspending. Transparency would be enhanced through regular reporting requirements and potential audits by DHS's Office of Inspector General (OIG).
Related Government Programs
- DHS Traveler Processing Systems
- CBP Border Security Technology
- Federal Software Development Contracts
- IT Services for Law Enforcement
Risk Flags
- Time and Materials Pricing
- Broad NAICS Code Classification
- Limited Publicly Available Performance Metrics
Tags
it-services, software-development, homeland-security, customs-and-border-protection, leidos-inc, time-and-materials, full-and-open-competition, blanket-purchase-agreement, virginia, federal-contract, national-security, vetting-software
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $111.3 million to LEIDOS, INC.. TRAVELERS PROCESSING VETTING SOFTWARE (TPVS)
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 $111.3 million.
What is the period of performance?
Start: 2023-09-03. End: 2024-12-31.
What specific functionalities does the Travelers Processing Vetting Software (TPVS) provide to U.S. Customs and Border Protection?
The provided data does not detail the specific functionalities of the Travelers Processing Vetting Software (TPVS). However, given its application within U.S. Customs and Border Protection (CBP) and the broad category of 'Other Computer Related Services', it likely involves software for analyzing traveler data, assessing risks, facilitating inspections, and potentially integrating with other border management systems. Such software is crucial for national security and efficient border operations, aiming to identify potential threats while streamlining the processing of legitimate travelers.
How does the $111.28 million contract value compare to similar vetting software contracts within DHS or other federal agencies?
Direct comparison of the $111.28 million contract value for TPVS is challenging without more specific details on the software's scope and functionalities. However, large-scale IT and software development contracts for federal agencies, particularly those related to national security and border management, frequently fall within this range or higher. For instance, contracts for biometric systems, data analytics platforms, or integrated border management solutions awarded by agencies like DHS, TSA, or DoD can easily reach or exceed $100 million over several years. The Time and Materials pricing model also means the final cost can fluctuate based on effort expended.
What are the potential risks associated with a Time and Materials (T&M) contract for vetting software, and how are they mitigated?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the contractor is reimbursed for actual labor hours and material costs, plus a fixed fee or percentage. This can lead to less predictable final costs compared to fixed-price contracts. Mitigation strategies employed by agencies like DHS typically include establishing 'not-to-exceed' (NTE) limits within the contract, requiring detailed timesheets and cost documentation, implementing strong project management oversight, conducting regular progress reviews, and potentially incorporating performance incentives or penalties. For vetting software, ensuring the accuracy and security of the system is paramount, regardless of the contract type.
What is the track record of Leidos, Inc. in delivering similar large-scale IT and software solutions for federal agencies, particularly DHS?
Leidos, Inc. is a major government contractor with a significant track record in delivering a wide array of IT, systems integration, and professional services to federal agencies, including the Department of Homeland Security (DHS). They have experience in areas such as cybersecurity, data analytics, mission systems, and enterprise IT. While specific performance details for every contract are not publicly available, Leidos generally holds a strong position in the federal contracting landscape. Their past performance on large, complex programs would have been a key factor in their selection for this vetting software contract, assuming a competitive evaluation process.
How does the use of a Blanket Purchase Agreement (BPA) Call impact the procurement process and potential cost savings for this contract?
A Blanket Purchase Agreement (BPA) is a simplified acquisition method allowing federal agencies to fill anticipated repetitive needs for supplies or services. A BPA Call is an order issued against an existing BPA. Using a BPA Call streamlines the procurement process by having pre-negotiated terms, conditions, and often pricing established under the parent BPA. This can lead to faster award times and potentially cost savings due to the pre-negotiated rates and reduced administrative effort compared to a full, open-market solicitation. However, the cost-effectiveness still depends on the initial negotiation of the BPA itself and the specific terms of the Call.
What are the implications of this contract being classified under NAICS code 541519 (Other Computer Related Services)?
The classification under NAICS code 541519, 'Other Computer Related Services,' is quite broad. It encompasses a wide range of IT services not specified elsewhere, such as computer disaster recovery services, computer systems integration design consulting, and computer facilities management. This broad classification suggests the contract might involve a mix of services or a unique combination of IT support. For analysts, it means that direct comparisons to more narrowly defined IT service contracts (e.g., software development, network support) might be less precise. It highlights the need for further detail on the specific deliverables to fully assess the contract's scope and value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 70B04C23Q00000195
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 5, 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: $126,751,282
Exercised Options: $111,276,731
Current Obligation: $111,276,731
Actual Outlays: $111,160,509
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $41,088,410
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 70B04C20A00000008
IDV Type: BPA
Timeline
Start Date: 2023-09-03
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-08-07
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