Leidos awarded $229M task order for CBP vetting software, impacting national security operations
Contract Overview
Contract Amount: $229,207,895 ($229.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2024-09-03
End Date: 2026-05-30
Contract Duration: 634 days
Daily Burn Rate: $361.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TRAVELERS PROCESSING VETTING SOFTWARE TASK ORDER 7 AWARD
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20148
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $229.2 million to LEIDOS, INC. for work described as: TRAVELERS PROCESSING VETTING SOFTWARE TASK ORDER 7 AWARD Key points: 1. The contract's value suggests a significant investment in critical national security infrastructure. 2. Full and open competition was utilized, indicating a potentially competitive pricing environment. 3. The duration of the contract (634 days) points to a sustained need for these services. 4. The task order falls under a broader BPA, suggesting potential for future related awards. 5. The specific NAICS code (541519) covers a range of IT services, requiring detailed performance analysis. 6. The contract type (Time and Materials) necessitates careful monitoring to control costs.
Value Assessment
Rating: good
Benchmarking the value of this $229 million task order against similar large-scale IT service contracts for national security agencies is challenging without more specific service details. However, the award to a large, established contractor like Leidos suggests a recognized capability. The Time and Materials pricing model, while flexible, carries inherent risk for cost overruns if not managed diligently. Further analysis would require comparing the proposed labor rates and estimated hours against industry benchmarks for similar roles and complexity.
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 and value for taxpayers. This implies that multiple qualified vendors had the opportunity to bid, fostering a competitive environment. The specific number of bidders is not provided, but the process itself suggests that the government sought the best possible solution and price through a broad solicitation.
Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by encouraging multiple vendors to offer their best terms and conditions.
Public Impact
This contract directly supports U.S. Customs and Border Protection's mission to secure national borders. The vetting software is crucial for identifying individuals who may pose security risks. The services delivered will enhance the efficiency and effectiveness of border security operations. The geographic impact is national, as CBP operates across all U.S. ports of entry and borders. The contract likely supports a workforce of IT professionals and subject matter experts involved in software development, maintenance, and implementation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials contract type can lead to cost escalation if not closely monitored.
- Lack of specific details on the number of bidders limits a full assessment of competition intensity.
- The broad NAICS code requires assurance that the specific services procured align with the intended vetting functions.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Contract awarded to a reputable large business with demonstrated experience in government IT solutions.
- The task order supports a critical national security function for a major federal agency.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, specifically focusing on software development and related services for government applications. The market for government IT services is substantial, with significant spending allocated to national security and law enforcement agencies. Comparable spending benchmarks would involve analyzing other large task orders for similar vetting or security software solutions awarded to major defense and civilian agencies.
Small Business Impact
The contract was awarded to Leidos, Inc., a large business, and there is no indication of a small business set-aside. This suggests that small businesses are unlikely to be direct prime contractors on this specific task order. However, there may be opportunities for small businesses to participate as subcontractors to Leidos, depending on their subcontracting plans and the specific technical requirements of the vetting software.
Oversight & Accountability
Oversight for this contract will likely be managed by the U.S. Customs and Border Protection contracting officers and program managers. Given the critical nature of vetting software for national security, there will be a strong emphasis on performance monitoring and adherence to security protocols. Transparency may be limited due to the sensitive nature of the data processed, but regular reporting and performance reviews are expected. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.
Related Government Programs
- Department of Homeland Security IT Modernization Programs
- Customs and Border Protection Passenger Name Record (PNR) Data Systems
- Biometric Identification Systems
- National Security Information Systems
Risk Flags
- Potential for cost overruns due to Time and Materials pricing
- Need for robust performance monitoring to ensure effectiveness of vetting software
- Security risks associated with sensitive data processing
Tags
it-services, software-development, national-security, border-security, department-of-homeland-security, u-s-customs-and-border-protection, full-and-open-competition, time-and-materials, large-business, task-order, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $229.2 million to LEIDOS, INC.. TRAVELERS PROCESSING VETTING SOFTWARE TASK ORDER 7 AWARD
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 $229.2 million.
What is the period of performance?
Start: 2024-09-03. End: 2026-05-30.
What is the specific functionality of the vetting software being procured under this task order, and how does it enhance current capabilities?
The provided data does not detail the specific functionalities of the vetting software. However, given its award to U.S. Customs and Border Protection (CBP) and the context of national security, it is highly probable that the software is designed to process and analyze vast amounts of data related to individuals seeking entry into the United States. This could include screening against various watchlists, analyzing travel patterns, assessing risk factors, and integrating with other biometric and intelligence databases. The enhancement to current capabilities would likely involve improved accuracy, speed of processing, broader data integration, and more sophisticated analytical tools to identify potential threats more effectively than previous systems.
How does the $229 million cost compare to historical spending on similar vetting software or services by CBP or other agencies?
Without specific historical data on CBP's spending for comparable vetting software, a direct comparison is difficult. However, $229 million represents a substantial investment, indicative of a complex, large-scale system. Large federal IT procurements, especially those involving national security and extensive data processing, often run into the hundreds of millions of dollars over their lifecycle. To provide a precise comparison, one would need to identify previous contracts for similar vetting systems, analyze their total value, duration, and scope, and adjust for inflation and technological advancements. It is plausible that this award is in line with or represents an upgrade to previous significant investments in border security technology.
What are the key performance indicators (KPIs) that will be used to measure the success of this task order, and what are the acceptable performance thresholds?
The provided data does not specify the Key Performance Indicators (KPIs) for this task order. However, for a vetting software system critical to national security, typical KPIs would likely include: accuracy rates (e.g., false positive/negative rates), processing speed (e.g., time to vet an individual), system uptime and availability, data integrity, and successful integration with other relevant databases. Acceptable performance thresholds would be defined in the contract's Performance Work Statement (PWS) and would likely be stringent, given the high stakes involved. Failure to meet these thresholds could result in penalties or contract termination.
What is Leidos, Inc.'s track record with the Department of Homeland Security and specifically with U.S. Customs and Border Protection for similar IT services?
Leidos, Inc. has a significant and established track record of providing IT services and solutions to the Department of Homeland Security (DHS) and its various components, including U.S. Customs and Border Protection (CBP). They have been involved in numerous large-scale contracts across different functional areas, including cybersecurity, data analytics, and mission-critical systems. Their experience with CBP likely encompasses support for border security operations, passenger processing, and data management systems. A thorough review of past performance evaluations and contract history would be necessary to fully assess their specific success with vetting software or closely related technologies for CBP.
Given the Time and Materials (T&M) contract type, what measures are in place to prevent cost overruns and ensure efficient resource utilization?
The Time and Materials (T&M) contract type, while offering flexibility, inherently carries a risk of cost overruns if not managed meticulously. To mitigate this, the government typically implements several oversight measures. These include establishing ceiling prices for labor categories and materials, requiring detailed timesheets and invoicing, conducting regular audits of labor hours and costs, and implementing strong project management oversight. The Contracting Officer's Representative (COR) plays a crucial role in monitoring progress, approving work, and ensuring that resources are utilized efficiently and only for necessary tasks. Clear communication and defined milestones are also essential to keep the project on track and within budget.
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
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: $232,425,843
Exercised Options: $232,152,868
Current Obligation: $229,207,895
Actual Outlays: $97,188,454
Subaward Activity
Number of Subawards: 49
Total Subaward Amount: $77,052,391
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 70B04C20A00000008
IDV Type: BPA
Timeline
Start Date: 2024-09-03
Current End Date: 2026-05-30
Potential End Date: 2026-05-30 09:14:49
Last Modified: 2026-02-02
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