DHS Awards $235.7M for Checkpoint Maintenance to Leidos, Inc
Contract Overview
Contract Amount: $235,675,141 ($235.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-01-01
End Date: 2027-03-31
Contract Duration: 819 days
Daily Burn Rate: $287.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CHECKPOINT MAINTENANCE
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $235.7 million to LEIDOS, INC. for work described as: CHECKPOINT MAINTENANCE Key points: 1. Significant contract value for essential security equipment maintenance. 2. Leidos, Inc. is a major player in government contracting. 3. Potential for cost overruns or performance issues exists. 4. Focus on IT and electronic equipment maintenance sector.
Value Assessment
Rating: good
The contract value of $235.7M over approximately 2.75 years suggests a substantial investment. Benchmarking against similar large-scale maintenance contracts for critical infrastructure would be necessary for a precise assessment, but the scale indicates a significant but potentially fair price for comprehensive services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The use of a definitive contract with multiple awards suggests a structured procurement process aimed at price discovery.
Taxpayer Impact: Full and open competition is expected to yield a fair price, maximizing taxpayer value for essential checkpoint maintenance services.
Public Impact
Ensures continued operation of critical security checkpoints nationwide. Supports national security by maintaining essential screening equipment. Impacts traveler experience through reliable checkpoint functionality.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration and value may lead to scope creep.
- Reliance on a single contractor for critical maintenance.
- Potential for unforeseen technical challenges impacting cost.
Positive Signals
- Awarded through full and open competition.
- Clear contract type (Firm Fixed Price) limits cost risk.
- Multiple award contract structure can offer flexibility.
Sector Analysis
This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector, a critical component of national security infrastructure. Spending in this area is often substantial due to the need for continuous upkeep of advanced technology.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting large prime contractors are expected to perform the majority of the work. Subcontracting opportunities for small businesses may exist but are not explicitly detailed.
Oversight & Accountability
The Department of Homeland Security and the Transportation Security Administration are responsible for overseeing this contract. Robust oversight will be crucial to ensure performance standards are met and costs remain within budget.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Potential for cost overruns due to complexity.
- Dependence on a single contractor for critical systems.
- Risk of performance degradation impacting security.
- Long-term contract value may exceed initial estimates.
- Cybersecurity risks associated with maintaining sensitive equipment.
Tags
electronic-and-precision-equipment-repai, department-of-homeland-security, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $235.7 million to LEIDOS, INC.. CHECKPOINT MAINTENANCE
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 $235.7 million.
What is the period of performance?
Start: 2025-01-01. End: 2027-03-31.
What specific types of electronic and precision equipment are covered under this maintenance contract?
The contract likely covers a wide range of security screening equipment used at transportation checkpoints, including but not limited to X-ray machines, body scanners, explosive detection systems, and related IT infrastructure. Detailed specifications would be found in the contract's statement of work, outlining the exact systems and components requiring maintenance and repair services.
What are the key performance indicators (KPIs) for this contract to ensure effectiveness?
Key performance indicators would likely include equipment uptime percentages, response times for maintenance requests, successful repair rates, and adherence to preventative maintenance schedules. The TSA would monitor these KPIs to ensure checkpoint operations are not disrupted and that taxpayer funds are used efficiently to maintain operational readiness.
How will the government ensure competitive pricing in future contract renewals or modifications?
The government will likely leverage data from this contract's performance and pricing, along with market research, to inform future procurement strategies. Maintaining a competitive landscape by encouraging new entrants or ensuring multiple bidders for future solicitations will be key to securing favorable pricing and value for taxpayers.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › 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: 70T04024R7672N001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST FL 10, 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: $2,608,973,617
Exercised Options: $543,815,038
Current Obligation: $235,675,141
Actual Outlays: $101,698,656
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $32,729,120
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-01-01
Current End Date: 2027-03-31
Potential End Date: 2032-09-30 12:00:00
Last Modified: 2026-04-01
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