Leidos Inc. awarded $58.7M for TSA system integration, replacing a previously canceled order
Contract Overview
Contract Amount: $58,720,310 ($58.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2011-07-21
End Date: 2015-11-30
Contract Duration: 1,593 days
Daily Burn Rate: $36.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SESI HSTS04-11-J-CT2096 TASK ORDER 14 (EAST REGION) SYSTEM INTEGRATION WORK IN ORDER TO INSTALL PSP EQUIPMENT TO THE EASTERN REGION NOTE: THIS NEW REQUEST REPLACED 2111201CT2051 THAT WAS CANCELLED TO CORRECT LOA
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $58.7 million to LEIDOS, INC. for work described as: SESI HSTS04-11-J-CT2096 TASK ORDER 14 (EAST REGION) SYSTEM INTEGRATION WORK IN ORDER TO INSTALL PSP EQUIPMENT TO THE EASTERN REGION NOTE: THIS NEW REQUEST REPLACED 2111201CT2051 THAT WAS CANCELLED TO CORRECT LOA Key points: 1. Contract value represents a significant investment in critical security infrastructure. 2. The task order's replacement suggests a need for corrected specifications or scope. 3. System integration for PSP equipment indicates a focus on enhancing security screening capabilities. 4. The duration of the contract (over 4 years) points to a complex and extensive project. 5. The 'cost plus fixed fee' structure implies potential for cost overruns if not managed carefully. 6. This award falls under the broader category of navigation and guidance system manufacturing.
Value Assessment
Rating: fair
Benchmarking the value of this specific task order is challenging without comparable data for similar system integration projects for PSP equipment. The 'cost plus fixed fee' contract type can sometimes lead to higher final costs compared to fixed-price contracts if not meticulously managed. However, the fixed fee component provides some level of cost certainty for the contractor's effort. The total award amount of $58.7 million over approximately 4 years suggests a substantial project scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 3 bidders suggests a moderate level of competition for this specific task order. While full and open competition is generally favorable, the number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the full and open competition. However, the actual value realized depends on the effectiveness of the bidding process and the final negotiated terms.
Public Impact
Passengers and the general public benefit from enhanced security screening through the installation of PSP equipment. The Transportation Security Administration (TSA) receives upgraded system integration services to improve operational efficiency. The project's geographic impact is focused on the Eastern Region of the United States. The contract supports a workforce involved in system integration, installation, and potentially maintenance of the new equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost increases due to the 'cost plus fixed fee' contract type.
- The replacement of a previous task order indicates potential initial planning or specification issues.
- The specific nature of 'PSP equipment' requires further clarity on its function and necessity.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- The contract addresses critical security infrastructure for the TSA.
- Leidos, Inc. is a large, established contractor with experience in government systems integration.
Sector Analysis
This contract falls within the broader Information Technology and Defense sectors, specifically related to system integration and manufacturing of specialized equipment. The market for security screening technology and associated system integration services is competitive, driven by government needs for enhanced safety and efficiency. Comparable spending benchmarks would involve analyzing other TSA procurements for similar security equipment and integration services, as well as broader federal investments in transportation security technology.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in the provided information and would require further investigation into the contractor's subcontracting plan.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement and program management offices, as well as the Transportation Security Administration. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed performance metrics and cost breakdowns may not be publicly available.
Related Government Programs
- Transportation Security Administration (TSA) Equipment Procurements
- Department of Homeland Security (DHS) IT and Systems Integration Contracts
- Federal Aviation Administration (FAA) Security Technology Investments
- Department of Defense (DoD) Security System Modernization
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Previous task order cancellation indicates potential planning or documentation issues.
- Scope creep risk in complex system integration projects.
- Dependence on contractor performance for critical security upgrades.
Tags
transportation-security, system-integration, homeland-security, tsa, leidos-inc, cost-plus-fixed-fee, full-and-open-competition, eastern-region, it-services, security-equipment, task-order, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $58.7 million to LEIDOS, INC.. SESI HSTS04-11-J-CT2096 TASK ORDER 14 (EAST REGION) SYSTEM INTEGRATION WORK IN ORDER TO INSTALL PSP EQUIPMENT TO THE EASTERN REGION NOTE: THIS NEW REQUEST REPLACED 2111201CT2051 THAT WAS CANCELLED TO CORRECT LOA
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 $58.7 million.
What is the period of performance?
Start: 2011-07-21. End: 2015-11-30.
What is the specific function and operational impact of the 'PSP equipment' being installed?
The provided data does not specify the exact nature of the 'PSP equipment'. However, given the context of the Transportation Security Administration (TSA) and system integration for security purposes, 'PSP' likely refers to Passenger Screening Points or similar security checkpoint technology. The operational impact would be to enhance or replace existing security screening mechanisms at airports or other transportation hubs within the Eastern Region. This could involve improved detection capabilities, faster processing times, or integration with other security databases. Further details on the equipment's specifications and intended use would be necessary for a complete understanding of its impact.
How does the 'cost plus fixed fee' (CPFF) structure compare to other contract types for similar system integration projects?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset or involves a high degree of uncertainty, which can be common in complex system integration projects. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the final cost, offering more cost certainty to the buyer but potentially higher risk for the contractor if costs escalate. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts, CPFF offers less direct incentive for the contractor to control costs beyond the initial agreement on the fixed fee. For system integration, if the technical requirements are well-defined, a fixed-price contract might be more cost-effective. However, if innovation or adaptation is key, CPFF can provide necessary flexibility.
What were the reasons for canceling the previous task order (2111201CT2051) and what corrective actions were taken?
The provided data states that the previous task order (2111201CT2051) was canceled 'to correct LOA'. LOA typically stands for 'Level of Agreement' or 'List of Attachments', but in the context of government contracting, it most commonly refers to 'Limitation of Authority' or 'Letter of Authorization'. This suggests that the original task order may have been issued without the proper authorization, or there were issues with the scope, funding, or documentation that required correction before proceeding. The cancellation and re-issuance as a new task order (SESI HSTS04-11-J-CT2096 TASK ORDER 14) indicate that the necessary corrections were made to the scope, documentation, or authorization process to ensure compliance and proper execution of the system integration work for the Eastern Region.
What is Leidos, Inc.'s track record with the TSA and DHS for similar system integration projects?
Leidos, Inc. is a major government contractor with extensive experience in IT services, systems integration, and defense solutions, including significant work with the Department of Homeland Security (DHS) and its components like the Transportation Security Administration (TSA). While specific details of their past performance on TSA system integration projects are not provided in this data snippet, Leidos has a history of managing large-scale, complex technology programs for federal agencies. Their portfolio often includes areas like cybersecurity, data analytics, and infrastructure modernization, which are relevant to TSA's mission. A comprehensive assessment would require reviewing their contract history, past performance evaluations, and any publicly available reports on their project execution within DHS.
How does the $58.7 million award compare to historical TSA spending on system integration for security equipment?
Without specific historical spending data for TSA's system integration projects related to security equipment, a direct comparison is difficult. However, $58.7 million over approximately four years for a regional system integration task order is a substantial amount, reflecting the complexity and criticality of upgrading security infrastructure. TSA's overall budget is in the billions, and investments in technology modernization, including system integration, are a significant component. This award likely represents a portion of TSA's ongoing efforts to enhance security capabilities across the nation. To provide a more precise benchmark, one would need to analyze TSA's budget allocations and contract awards for similar system integration efforts over the past several fiscal years.
What are the primary risks associated with this contract, and what mitigation strategies are likely in place?
Primary risks include potential cost overruns inherent in the 'Cost Plus Fixed Fee' structure, delays due to the complexity of system integration, and the possibility of technical challenges or equipment compatibility issues. The cancellation of the previous task order also suggests a risk related to initial planning or documentation accuracy. Mitigation strategies likely involve robust project management, detailed technical oversight by TSA, clear communication channels with Leidos, and potentially phased implementation with regular performance reviews. The fixed fee component provides some incentive for Leidos to manage costs efficiently, while the government's oversight aims to ensure adherence to scope and budget.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 9221 CORPORATE BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,720,310
Exercised Options: $58,720,310
Current Obligation: $58,720,310
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSTS0409DST2234
IDV Type: IDC
Timeline
Start Date: 2011-07-21
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2018-01-31
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