Leidos awarded $862.6M for TSA logistics support, sustaining critical transportation security equipment
Contract Overview
Contract Amount: $862,620,736 ($862.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2019-10-01
End Date: 2025-03-31
Contract Duration: 2,008 days
Daily Burn Rate: $429.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS CONTRACT IS FOR LEIDOS TO PROVIDE THE TRANSPORTATION SECURITY ADMINISTRATION (TSA) WITH AN INTEGRATED LOGISTICS SUPPORT (ILS) PROGRAM TO SUSTAIN GOVERNMENT TRANSPORTATION SECURITY EQUIPMENT (TSE) OWNED AND OPERATED BY TSA.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $862.6 million to LEIDOS, INC. for work described as: THE PURPOSE OF THIS CONTRACT IS FOR LEIDOS TO PROVIDE THE TRANSPORTATION SECURITY ADMINISTRATION (TSA) WITH AN INTEGRATED LOGISTICS SUPPORT (ILS) PROGRAM TO SUSTAIN GOVERNMENT TRANSPORTATION SECURITY EQUIPMENT (TSE) OWNED AND OPERATED BY TSA. Key points: 1. Contract provides integrated logistics support for TSA's transportation security equipment. 2. Leidos, Inc. is the prime contractor for this definitive contract. 3. The contract has a firm fixed price structure. 4. Performance period spans from October 2019 to March 2025. 5. The contract is managed by the Department of Homeland Security, specifically the TSA. 6. The North American Industry Classification System (NAICS) code is 811219, covering electronic equipment repair and maintenance. 7. The contract was awarded under full and open competition. 8. The base contract value is over $862 million.
Value Assessment
Rating: good
The contract's value of over $862 million for integrated logistics support over approximately six years appears reasonable given the scope of sustaining critical transportation security equipment for the TSA. Benchmarking against similar large-scale logistics support contracts for federal agencies would provide further context, but the firm fixed-price nature suggests a degree of cost certainty for the government. The provided data does not include specific performance metrics or detailed cost breakdowns to conduct a more granular value-for-money assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The fact that it was competed openly suggests a healthy market for these types of logistics services. The presence of multiple bidders typically drives competitive pricing and encourages contractors to offer their best value propositions to secure the award.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and potentially lower prices for government services.
Public Impact
The primary beneficiaries are the Transportation Security Administration (TSA) and the traveling public, who rely on the consistent availability of transportation security equipment. The contract ensures the sustainment and operational readiness of critical TSA transportation security equipment. Services delivered include integrated logistics support, likely encompassing maintenance, repair, and supply chain management for the equipment. The geographic impact is national, as TSA operates across all major transportation hubs in the United States. Workforce implications may include specialized technical roles for logistics and equipment maintenance personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical issues arise with the equipment.
- Dependence on a single contractor for critical logistics support could pose a risk if performance issues emerge.
- Ensuring continuous availability of specialized parts and skilled technicians is crucial for uninterrupted operations.
Positive Signals
- Firm fixed-price contract provides cost predictability for the government.
- Full and open competition suggests a robust market and potential for competitive pricing.
- Long-term contract allows for sustained support and potential for economies of scale in logistics.
- Integrated logistics support aims to streamline maintenance and operational efficiency.
Sector Analysis
This contract falls within the broader Information Technology and Electronic Equipment Repair and Maintenance sector, specifically NAICS code 811219. This sector is vital for ensuring the operational readiness of specialized government equipment. The market for integrated logistics support for federal agencies is substantial, with numerous companies offering a range of services. The TSA's need for reliable sustainment of its transportation security equipment is a significant driver for spending in this area, ensuring national security and public safety.
Small Business Impact
The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides. This suggests that the prime contract was not specifically targeted towards small businesses. However, it is possible that Leidos, Inc. may engage small businesses as subcontractors to fulfill certain aspects of the logistics support, though this is not explicitly detailed in the provided information.
Oversight & Accountability
The Department of Homeland Security and the Transportation Security Administration are responsible for overseeing this contract. Oversight mechanisms would typically include contract performance reviews, financial audits, and adherence to reporting requirements. Transparency is generally maintained through contract award databases and public reporting of federal spending. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Transportation Security Equipment Maintenance Contracts
- Federal Logistics Support Services
- Department of Homeland Security IT and Equipment Sustainment
- TSA Equipment Procurement and Maintenance
Risk Flags
- Potential for cost overruns
- Contractor performance risk
- Supply chain vulnerability
- Equipment obsolescence
Tags
transportation-security, logistics-support, tsa, department-of-homeland-security, definitive-contract, firm-fixed-price, full-and-open-competition, equipment-repair-and-maintenance, national, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $862.6 million to LEIDOS, INC.. THE PURPOSE OF THIS CONTRACT IS FOR LEIDOS TO PROVIDE THE TRANSPORTATION SECURITY ADMINISTRATION (TSA) WITH AN INTEGRATED LOGISTICS SUPPORT (ILS) PROGRAM TO SUSTAIN GOVERNMENT TRANSPORTATION SECURITY EQUIPMENT (TSE) OWNED AND OPERATED BY TSA.
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 $862.6 million.
What is the period of performance?
Start: 2019-10-01. End: 2025-03-31.
What is Leidos's track record with similar large-scale federal logistics support contracts?
Leidos, Inc. has a significant history of performing large-scale federal contracts, including extensive work in logistics, IT services, and systems integration for various government agencies such as the Department of Defense, NASA, and other components of the Department of Homeland Security. Their experience often involves complex supply chain management, maintenance, and sustainment operations for critical infrastructure and equipment. While specific details of past performance on contracts directly comparable to this TSA ILS program would require deeper analysis of contract databases and performance reports, Leidos is generally recognized as a major federal contractor with substantial capabilities in this domain. Their ability to manage such contracts is often demonstrated through successful contract renewals and expansions, indicating a level of satisfaction with their performance by the contracting agencies.
How does the per-unit cost of maintaining TSA's transportation security equipment compare to industry benchmarks?
Determining a precise per-unit cost for maintaining TSA's transportation security equipment is challenging with the provided data. The contract value of over $862 million covers integrated logistics support for a broad range of equipment over several years. To establish a per-unit cost benchmark, one would need to know the exact number and types of equipment being supported, the specific maintenance tasks performed, and the associated costs for each. Industry benchmarks for similar equipment maintenance can vary widely based on technology, complexity, and service level agreements. Without a detailed breakdown of the equipment inventory and the specific services rendered per unit, a direct comparison to market rates or industry benchmarks is not feasible. The firm fixed-price nature of the contract suggests that the government has negotiated a total price for the defined scope of work.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks associated with this contract include potential performance failures by the contractor (Leidos), unforeseen increases in maintenance costs due to equipment aging or complexity, and supply chain disruptions affecting the availability of parts. Mitigation strategies typically involve robust contract oversight by the TSA, including performance monitoring, regular reviews, and defined remedies for non-performance. The firm fixed-price structure incentivizes Leidos to manage costs effectively. To address supply chain risks, contracts often include requirements for spare parts management, contingency planning, and potentially alternative sourcing strategies. Furthermore, the government may retain rights to inspect equipment and maintenance records, and may have options to terminate the contract for cause if performance standards are not met.
How effective has integrated logistics support been in ensuring the operational readiness of TSA's transportation security equipment historically?
The effectiveness of integrated logistics support (ILS) in ensuring the operational readiness of TSA's transportation security equipment is a critical measure of this contract's success. Historically, ILS programs aim to improve equipment uptime, reduce maintenance-related delays, and optimize resource allocation. TSA's mission relies heavily on the consistent functioning of its security screening technology. While specific historical data on the effectiveness of previous ILS contracts for TSA is not provided, the continued investment in such programs suggests a perceived value in maintaining equipment readiness through a consolidated logistics approach. Success would be measured by metrics such as equipment availability rates, mean time between failures (MTBF), and mean time to repair (MTTR), which are likely tracked by TSA under this contract.
What is the historical spending trend for TSA's logistics support and equipment maintenance?
Analyzing historical spending trends for TSA's logistics support and equipment maintenance is crucial for understanding the context of the $862.6 million award. While the specific historical figures for TSA's ILS are not in the provided data, federal agencies typically maintain multi-year spending patterns for critical operational support. Spending in this category can fluctuate based on equipment lifecycle, technological upgrades, and changes in security requirements. Large-scale contracts like this often represent a significant portion of an agency's operational budget for equipment sustainment. A review of past TSA budgets and contract awards for similar services would reveal whether this $862.6 million contract represents an increase, decrease, or stable level of investment compared to previous periods.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 70T04019R9DAP3003
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 11951 FREEDOM DR FL 15, 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: $1,013,951,305
Exercised Options: $917,821,682
Current Obligation: $862,620,736
Actual Outlays: $464,723,556
Subaward Activity
Number of Subawards: 113
Total Subaward Amount: $282,014,983
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-10-01
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 03:32:20
Last Modified: 2025-08-07
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