Leidos Inc. contract for rail cargo scanning systems valued at over $10 million by DHS
Contract Overview
Contract Amount: $10,138,717 ($10.1M)
Contractor: Leidos Inc
Awarding Agency: Department of Homeland Security
Start Date: 2007-09-25
End Date: 2010-12-31
Contract Duration: 1,193 days
Daily Burn Rate: $8.5K/day
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Defense
Official Description: RAIL ROAD CARGO SCANNING INSPECTION SYSTEMS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Homeland Security obligated $10.1 million to LEIDOS INC for work described as: RAIL ROAD CARGO SCANNING INSPECTION SYSTEMS Key points: 1. Contract awarded to a single, large incumbent provider, suggesting potential for limited competition. 2. The contract duration of over three years indicates a significant, long-term need for these systems. 3. The specific nature of 'Irradiation Apparatus Manufacturing' points to a specialized technology requirement. 4. Performance context is crucial to understand if the systems met operational demands for inspection. 5. Sector positioning within Homeland Security highlights critical infrastructure protection and border security.
Value Assessment
Rating: fair
The total contract value of approximately $10.1 million for irradiation apparatus manufacturing for rail cargo scanning systems appears to be within a reasonable range for specialized equipment. However, without specific details on the number of units procured or the exact capabilities of the systems, a precise value-for-money assessment is challenging. Benchmarking against similar procurements for advanced scanning technologies would be necessary for a more definitive evaluation. The lack of competitive bidding in the award phase also limits the ability to gauge optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only one vendor, Leidos Inc., was deemed capable of fulfilling the requirement. This approach bypasses the standard competitive bidding process, which typically involves multiple proposals and a thorough evaluation. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may not always result in the most cost-effective outcome for the government.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from robust competition among multiple vendors.
Public Impact
The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), enhancing their ability to inspect incoming rail cargo. The services delivered involve the provision and likely maintenance of specialized scanning inspection systems. The geographic impact is primarily focused on U.S. ports of entry where rail cargo is processed. Workforce implications may include training for CBP personnel on operating and maintaining the new systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Lack of detailed performance metrics makes it difficult to assess system effectiveness.
- Specialized nature of technology could lead to vendor lock-in and high future maintenance costs.
Positive Signals
- Addresses a critical national security need for cargo inspection.
- Award to an established company like Leidos may imply a degree of reliability and existing expertise.
- The contract duration suggests a commitment to a long-term solution for border security.
Sector Analysis
The procurement of rail cargo scanning inspection systems falls within the broader defense and security technology sector, specifically focusing on homeland security and border protection. This market segment involves advanced imaging, radiation detection, and data analysis technologies. The market size for such specialized security equipment is significant, driven by global trade and evolving security threats. This contract represents a specific application of such technologies to address the unique challenges of inspecting high-volume rail cargo.
Small Business Impact
This contract does not appear to have a small business set-aside component, as it was awarded to a large prime contractor, Leidos Inc. There is no explicit information regarding subcontracting plans for small businesses. The absence of a set-aside suggests that the primary focus was on acquiring specialized technology from a capable provider, rather than specifically fostering small business participation in this particular procurement.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the U.S. Customs and Border Protection (CBP) program managers within the Department of Homeland Security. Accountability measures would be defined in the contract's terms and conditions, including delivery schedules, performance standards, and payment milestones. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance reports. The DHS Office of Inspector General may conduct audits or investigations if specific concerns arise regarding waste, fraud, or abuse.
Related Government Programs
- DHS Cargo and Container Security Programs
- CBP Advanced Spectroscopic Portal Program
- Radiation Detection Systems for Border Security
- Port of Entry Technology Procurements
Risk Flags
- Sole-source award limits price competition.
- Lack of detailed performance metrics.
- Potential for vendor lock-in with specialized technology.
Tags
homeland-security, customs-and-border-protection, dhs, leidos-inc, sole-source, irradiation-apparatus-manufacturing, rail-cargo-scanning, inspection-systems, california, defense-contracting, security-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $10.1 million to LEIDOS INC. RAIL ROAD CARGO SCANNING INSPECTION SYSTEMS
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 $10.1 million.
What is the period of performance?
Start: 2007-09-25. End: 2010-12-31.
What specific type of irradiation technology is employed in these rail cargo scanning systems, and what are its primary detection capabilities?
The contract specifies 'Irradiation Apparatus Manufacturing' but does not detail the specific type of irradiation technology used (e.g., X-ray, gamma-ray, neutron). These systems are designed for inspection purposes, implying capabilities to detect contraband, hazardous materials, or undeclared goods within rail cargo. The exact detection capabilities would depend on the chosen technology, such as its ability to penetrate dense materials, identify specific elemental compositions, or detect radioactive signatures. Further technical specifications within the contract or related documentation would be needed to ascertain the precise nature and effectiveness of the irradiation technology.
How does the performance of these Leidos scanning systems compare to similar technologies used at other ports of entry or by international partners?
A direct comparison of performance is challenging without access to specific operational data and benchmarking metrics for this contract. However, Leidos is a major defense and technology contractor, suggesting the systems are likely based on established or advanced technologies. To assess comparative performance, one would need to examine metrics such as scanning speed, detection accuracy rates for various threat types, false alarm rates, system reliability, and maintenance requirements. Benchmarking against systems from other vendors or those deployed by agencies like the Transportation Security Administration (TSA) or international customs agencies would provide valuable context on value and effectiveness.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically stems from a determination that only one vendor possesses the unique capability, technology, or proprietary knowledge required to meet the government's needs. For 'Irradiation Apparatus Manufacturing' for specialized cargo scanning, it's possible that Leidos held specific patents, unique technological expertise, or had developed a system that was deemed the only viable option by U.S. Customs and Border Protection (CBP) at the time of award. The contracting officer would have documented this justification, often citing specific technical requirements or market research indicating a lack of adequate competition. Without access to the official justification documentation (e.g., a Justification and Approval document), the precise reasons remain speculative.
What is the expected lifespan of these rail cargo scanning systems, and what are the projected costs for maintenance and upgrades over their operational life?
The provided data does not specify the expected lifespan of the rail cargo scanning systems or the projected costs for maintenance and upgrades. Typically, specialized technological systems like these have lifespans ranging from 5 to 15 years, depending on the technology's obsolescence rate, wear and tear, and the availability of support. Maintenance costs can be significant, often ranging from 5-15% of the initial acquisition cost annually, especially for complex systems involving radiation. Upgrade costs would depend on technological advancements and evolving security requirements. These figures would normally be detailed in the contract's sustainment plan or related budgetary projections.
How has spending on rail cargo scanning and inspection technologies evolved within DHS over the past decade, and does this contract represent a significant shift?
Spending on rail cargo scanning and inspection technologies within DHS has likely seen a steady increase over the past decade, driven by evolving security mandates and the growth of international trade. This $10.1 million contract, awarded in 2007, represents a significant investment for its time in a specific area of border security technology. To understand its place in the broader evolution, one would need to analyze DHS's overall budget allocations for inspection technologies, including procurements for other modes of transport (maritime, air, land vehicles) and different types of scanning equipment (e.g., non-intrusive inspection, radiation detection). This contract likely reflects a targeted effort to enhance rail cargo security capabilities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 16701 W BERNARDO DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,138,717
Exercised Options: $10,138,717
Current Obligation: $10,138,717
Parent Contract
Parent Award PIID: HSBP1005D00990
IDV Type: IDC
Timeline
Start Date: 2007-09-25
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2011-09-27
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