Leidos Inc. awarded $10.6M for intelligence analysis and physical security support by DHS
Contract Overview
Contract Amount: $10,625,706 ($10.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2006-10-01
End Date: 2009-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $9.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Other
Official Description: INTELLIGENCE ANALYSIS/PHYSICAL SECURITY SUPPORT
Place of Performance
Location: EL PASO, EL PASO County, TEXAS, 79901
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $10.6 million to LEIDOS, INC. for work described as: INTELLIGENCE ANALYSIS/PHYSICAL SECURITY SUPPORT Key points: 1. Contract value of $10.6M over 3 years indicates a significant investment in specialized support services. 2. Full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The contract's duration and scope point to a need for sustained, high-level analytical and security expertise. 4. Awarded to a single contractor, Leidos, Inc., highlighting their established capabilities in this domain. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services, a key area for intelligence analysis. 6. The contract was awarded under the 'Other' category, suggesting it doesn't fit neatly into predefined major sectors like IT or Defense.
Value Assessment
Rating: good
The contract value of $10.6 million over three years averages approximately $3.5 million annually. Benchmarking this against similar contracts for intelligence analysis and physical security support is challenging without more specific service details. However, the duration and the nature of the services suggest a fair price point for specialized expertise. The contract was awarded under labor hours, which can sometimes lead to cost overruns if not managed carefully, but also offers flexibility.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, though the exact number of proposals received is not detailed. A competitive process generally helps ensure fair market pricing and encourages contractors to offer their best value.
Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down costs through market forces, ensuring federal funds are used efficiently for essential services.
Public Impact
The U.S. Customs and Border Protection (CBP) benefits from enhanced intelligence analysis and physical security support, crucial for border operations. Services delivered likely include threat assessment, data analysis, and strategic planning to bolster physical security measures. The contract's performance location in Texas (TX) suggests a direct impact on border security operations within that state. Specialized analytical and security personnel are likely engaged, potentially impacting the workforce within the intelligence and security sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in labor hour contracts if not tightly managed.
- Reliance on a single contractor for critical intelligence and security functions could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a healthy market and competitive pricing.
- Contractor, Leidos, Inc., is a well-established entity with significant experience in government contracting.
- The contract duration of three years suggests a stable, long-term need for these critical services.
Sector Analysis
This contract falls under administrative management and general management consulting services, a broad category that supports various government functions. The intelligence analysis and physical security support provided are critical for agencies like U.S. Customs and Border Protection. While not a direct IT or defense procurement, it leverages analytical capabilities often found in those sectors. Comparable spending benchmarks would depend on the specific nature of the intelligence and security services rendered, but the $10.6 million value over three years suggests a significant, specialized engagement.
Small Business Impact
The data indicates this contract was not set aside for small businesses (SB: false) and there is no specific mention of subcontracting goals. This suggests that the primary award went to a large business, Leidos, Inc. The lack of small business set-aside implies that the scope of work was likely deemed too specialized or large for small business capabilities, or that the competitive bidding process did not yield small business prime contractors. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officers and program managers within the Department of Homeland Security. Accountability measures would be defined in the contract's statement of work, including performance metrics and reporting requirements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Homeland Security Contracts
- Intelligence Support Services
- Physical Security Services
- Management and Consulting Services
- Department of Homeland Security Procurements
- U.S. Customs and Border Protection Contracts
Risk Flags
- Labor Hour Contract Type
- Potential for Scope Creep
- Single Contractor Reliance
Tags
intelligence-analysis, physical-security, department-of-homeland-security, u-s-customs-and-border-protection, leidos-inc, labor-hours, full-and-open-competition, administrative-management, general-management-consulting, texas, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $10.6 million to LEIDOS, INC.. INTELLIGENCE ANALYSIS/PHYSICAL SECURITY SUPPORT
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 $10.6 million.
What is the period of performance?
Start: 2006-10-01. End: 2009-09-30.
What is Leidos, Inc.'s track record with similar intelligence analysis and physical security contracts for federal agencies?
Leidos, Inc. has a substantial track record with federal agencies, including the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP), in providing a wide range of services that often encompass intelligence analysis, cybersecurity, and physical security solutions. Their portfolio includes large-scale contracts for mission support, IT services, and systems integration. For instance, they have held significant contracts related to border security technology, intelligence fusion, and operational support. This specific contract, valued at $10.6 million over three years for intelligence analysis and physical security support, aligns with their demonstrated capabilities and past performance in supporting national security and law enforcement missions. Their experience suggests a strong understanding of the complex requirements and regulatory environments associated with such sensitive government functions.
How does the $10.6 million contract value compare to similar intelligence analysis and physical security support contracts awarded by DHS or CBP?
The $10.6 million contract value for intelligence analysis and physical security support awarded to Leidos, Inc. by CBP appears to be a moderate-sized engagement within the broader landscape of DHS and CBP procurements. DHS and CBP frequently award contracts for security-related services, ranging from small, specialized task orders to multi-billion dollar enterprise-wide solutions. Contracts for intelligence analysis can vary significantly based on the scope, duration, and required expertise. Physical security contracts can also range widely, from equipment provision to comprehensive security operations. Given the three-year duration, the average annual value of approximately $3.5 million suggests a focused effort rather than an agency-wide overhaul. Without more granular details on the specific deliverables, a precise comparison is difficult, but it represents a significant investment in specialized support.
What are the primary risks associated with this contract, considering its scope and duration?
Several risks are associated with this contract. Firstly, as a labor-hour contract, there's a risk of cost overruns if the scope of work expands beyond initial estimates or if contractor efficiency is lower than anticipated. Effective project management and oversight are crucial to mitigate this. Secondly, the reliance on a single contractor, Leidos, Inc., for critical intelligence analysis and physical security support presents a performance risk; any degradation in service quality or contractor capability could directly impact CBP's operational effectiveness. Thirdly, the dynamic nature of intelligence threats and security needs means the contract's scope may require adaptation, posing a risk of misalignment if not managed through contract modifications. Finally, data security and handling of sensitive information are inherent risks in intelligence support roles, requiring robust security protocols from the contractor.
How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specific contract?
The 'full and open competition' approach is generally effective in ensuring value for money, as it allows the widest possible pool of qualified vendors to bid, fostering a competitive environment that drives down prices and encourages innovation. For this contract, awarded to Leidos, Inc. with two bidders, the competition level suggests a reasonable degree of market interest. However, the ultimate value for money depends on several factors beyond the initial competition. These include the clarity and realism of the performance work statement, the effectiveness of the evaluation criteria used by CBP, and the ongoing contract management and oversight to ensure the contractor meets performance standards and stays within budget. While competition is a strong starting point, sustained vigilance in contract administration is key to realizing long-term value.
What are the historical spending patterns for intelligence analysis and physical security support services by DHS and CBP?
Historical spending patterns for intelligence analysis and physical security support by DHS and CBP show a consistent and significant investment in these areas, reflecting the agencies' core missions. DHS, as a whole, allocates billions annually across various security and intelligence functions. CBP, specifically, spends substantial amounts on border security technology, intelligence gathering, and operational support. Contracts for intelligence analysis can range from niche analytical services to broad data fusion platforms, while physical security encompasses everything from sensor technology and surveillance systems to personnel and access control. Spending in these categories tends to be relatively stable, driven by ongoing threats and operational requirements, though specific contract values can fluctuate based on evolving needs, technological advancements, and budget allocations. The $10.6 million awarded here fits within this pattern of sustained investment in critical support functions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 1710 SAIC DRIVE, ROOM #8031, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,063,130
Exercised Options: $22,063,130
Current Obligation: $10,625,706
Parent Contract
Parent Award PIID: GS23F8006H
IDV Type: FSS
Timeline
Start Date: 2006-10-01
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2013-04-01
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