DHS awards Leidos $33.7M for RSEDS maintenance, raising concerns over lack of competition
Contract Overview
Contract Amount: $33,694,587 ($33.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2018-07-01
End Date: 2019-05-31
Contract Duration: 334 days
Daily Burn Rate: $100.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LEIDOS RSEDS PREVENTIVE AND CORRECTIVE MAINTENANCE SERVICES YEAR 3 TASK ORDER
Place of Performance
Location: JAMAICA, QUEENS County, NEW YORK, 11430
State: New York Government Spending
Plain-Language Summary
Department of Homeland Security obligated $33.7 million to LEIDOS, INC. for work described as: LEIDOS RSEDS PREVENTIVE AND CORRECTIVE MAINTENANCE SERVICES YEAR 3 TASK ORDER Key points: 1. Significant contract value of $33.7M for maintenance services. 2. Sole-source award to Leidos, Inc. limits competitive pricing. 3. Potential risk associated with single-vendor reliance for critical infrastructure. 4. Spending falls within the 'Other Electronic and Precision Equipment Repair and Maintenance' sector.
Value Assessment
Rating: questionable
The contract value of $33.7M for one year of maintenance services appears high, especially given the lack of competitive bidding. Benchmarking against similar contracts for electronic equipment maintenance is difficult without more data, but the sole-source nature suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these essential maintenance services.
Public Impact
TSA's reliance on a single vendor for critical RSEDS maintenance could impact operational continuity. Taxpayers may be overpaying due to the absence of a competitive bidding process. The contract's duration and value warrant scrutiny for efficiency and necessity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Reliance on single vendor
Positive Signals
- Services are essential for operational continuity
- Fixed-price contract limits cost overruns
Sector Analysis
This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' sector. Spending benchmarks for this specific type of maintenance are hard to establish without more granular data, but the value suggests a significant operational requirement for the TSA.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award raises questions about the oversight processes that led to excluding competitive bidding. Further review is needed to ensure accountability and value for taxpayer money.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- High dependency on a single contractor.
- Limited transparency in vendor selection.
- Missed opportunity for small business engagement.
Tags
other-electronic-and-precision-equipment, department-of-homeland-security, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $33.7 million to LEIDOS, INC.. LEIDOS RSEDS PREVENTIVE AND CORRECTIVE MAINTENANCE SERVICES YEAR 3 TASK ORDER
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $33.7 million.
What is the period of performance?
Start: 2018-07-01. End: 2019-05-31.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation from the Department of Homeland Security, it's impossible to determine the precise reasoning. However, the absence of competition inherently raises concerns about whether alternative vendors could have provided similar services at a better price or with comparable quality.
How does the per-unit cost of this maintenance service compare to industry benchmarks, given the sole-source nature?
Benchmarking the per-unit cost is challenging due to the sole-source award and the specific nature of RSEDS maintenance. Typically, competitive bidding drives down costs. Without comparable contract data from other agencies or vendors performing similar services, it's difficult to definitively assess if the price is fair. The lack of competition suggests a higher likelihood of the price not reflecting the most cost-effective option available.
What is the potential impact on TSA's operational effectiveness if Leidos, Inc. is unable to provide these maintenance services?
The potential impact on TSA's operational effectiveness could be significant, as RSEDS (Reliable Secure Explosives Detection System) likely plays a crucial role in security screening. A disruption in maintenance could lead to system downtime, reduced detection capabilities, and potential delays in passenger and baggage screening. The reliance on a single vendor for such critical systems heightens this risk.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $33,694,587
Exercised Options: $33,694,587
Current Obligation: $33,694,587
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0416DCT3008
IDV Type: IDC
Timeline
Start Date: 2018-07-01
Current End Date: 2019-05-31
Potential End Date: 2019-05-31 00:00:00
Last Modified: 2020-02-24
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