Homeland Security's $27M maintenance contract for RSEDS units awarded to Leidos, Inc. with limited competition
Contract Overview
Contract Amount: $27,031,619 ($27.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2012-07-01
End Date: 2013-09-30
Contract Duration: 456 days
Daily Burn Rate: $59.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SAIC HSTS04-11-D-CT3118 PREVENTIVE, CORRECTIVE AND EXCEPTED MAINTENANCE SERVICES FOR RSEDS CT80 AND CT80 DR DEPLOYED UNITS FROM 07/01/2012 THRU 06/30/13 (365 DAYS). THIS PR REPLACES 2112202CT3057 POP THROUGH 6/30/2013
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Homeland Security obligated $27.0 million to LEIDOS, INC. for work described as: SAIC HSTS04-11-D-CT3118 PREVENTIVE, CORRECTIVE AND EXCEPTED MAINTENANCE SERVICES FOR RSEDS CT80 AND CT80 DR DEPLOYED UNITS FROM 07/01/2012 THRU 06/30/13 (365 DAYS). THIS PR REPLACES 2112202CT3057 POP THROUGH 6/30/2013 Key points: 1. The contract value of $27 million for a 15-month period suggests a significant investment in maintaining critical RSEDS deployed units. 2. Awarded to Leidos, Inc., the contract's limited competition raises questions about potential price efficiencies and the availability of alternative providers. 3. The 'NOT COMPETED' status indicates a lack of broad market engagement, potentially limiting opportunities for cost savings through competitive bidding. 4. The firm-fixed-price contract type shifts performance risk to the contractor, but the absence of competition may still allow for higher-than-market pricing. 5. Maintenance services for deployed units are crucial for operational readiness, highlighting the importance of reliable contractor performance. 6. The contract's focus on preventive, corrective, and excepted maintenance points to a need for ongoing support to ensure system functionality.
Value Assessment
Rating: fair
The contract value of approximately $27 million for a 15-month period (July 1, 2012, to September 30, 2013) for maintenance services is substantial. Without specific benchmarks for RSEDS unit maintenance or comparable contracts for similar complex systems, it is difficult to definitively assess value for money. The firm-fixed-price structure provides some cost certainty, but the lack of competition limits the ability to benchmark against market rates or other potential providers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a 'NOT COMPETED' basis, indicating that a full and open competition was not conducted. This suggests that either there was only one responsible source capable of providing the required maintenance services, or the agency determined that competition was not practicable. The limited competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a more open bidding process.
Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution, as the pricing was not subjected to a competitive market test.
Public Impact
The primary beneficiaries are the Department of Homeland Security and the Transportation Security Administration, who rely on the RSEDS CT80 and CT80 DR deployed units for their operations. The services delivered include essential preventive, corrective, and excepted maintenance, ensuring the continued functionality and reliability of critical security equipment. The geographic impact is focused on locations where the RSEDS CT80 and CT80 DR units are deployed, which are likely key transportation hubs or security checkpoints. The contract supports the workforce involved in maintaining and operating these specialized systems, ensuring that skilled personnel are available for critical tasks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Limited transparency into the selection process due to 'NOT COMPETED' award.
- Potential for contractor lock-in if alternative solutions are not explored.
- Dependence on a single contractor for critical maintenance services.
Positive Signals
- Firm-fixed-price contract shifts performance risk to the contractor.
- Maintenance services are essential for operational readiness of RSEDS units.
- Contract awarded to Leidos, Inc., a known entity in government contracting.
Sector Analysis
The Transportation Security Administration (TSA) operates within the broader security and transportation sectors. Contracts for maintenance of specialized equipment like the RSEDS (Radiation Sector-Electronic Detection System) fall under the umbrella of defense and security-related services. The market for such specialized maintenance can be niche, often dominated by a few key players with the requisite technical expertise and security clearances. Benchmarking spending in this area is challenging without more specific data on comparable systems and their maintenance costs.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). There is no explicit mention of small business subcontracting requirements or goals. Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting opportunities. The focus is on a large prime contractor for specialized services.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The firm-fixed-price nature provides some cost control, but the 'NOT COMPETED' award necessitates close monitoring of performance and deliverables to ensure value. Transparency is limited by the non-competitive award, and accountability would be managed through contract performance reviews and adherence to the specified maintenance schedules and standards.
Related Government Programs
- Homeland Security Equipment Maintenance
- Transportation Security Administration Operations
- Radiation Detection Systems Maintenance
- Federal IT and Equipment Support Services
- Department of Homeland Security Contracts
Risk Flags
- Non-competitive award
- Lack of performance benchmarks
- Potential for cost overruns due to limited competition
Tags
homeland-security, transportation-security-administration, maintenance-services, firm-fixed-price, not-competed, leidos-inc, california, rse ds, critical-infrastructure, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $27.0 million to LEIDOS, INC.. SAIC HSTS04-11-D-CT3118 PREVENTIVE, CORRECTIVE AND EXCEPTED MAINTENANCE SERVICES FOR RSEDS CT80 AND CT80 DR DEPLOYED UNITS FROM 07/01/2012 THRU 06/30/13 (365 DAYS). THIS PR REPLACES 2112202CT3057 POP THROUGH 6/30/2013
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 $27.0 million.
What is the period of performance?
Start: 2012-07-01. End: 2013-09-30.
What is the track record of Leidos, Inc. in providing similar maintenance services for government agencies?
Leidos, Inc. (and its predecessor companies) has a significant history of providing a wide range of technical, engineering, and support services to various U.S. government agencies, including defense and homeland security. Their portfolio often includes complex system maintenance, logistics, and IT support. While specific performance data for this particular RSEDS maintenance contract is not detailed here, Leidos is generally considered an experienced contractor in the federal space. A deeper dive into their past performance ratings, any past performance issues, and their success on similar large-scale maintenance contracts would provide a more comprehensive understanding of their capabilities and reliability in this domain.
How does the cost of this contract compare to similar maintenance contracts for security or detection equipment?
Direct comparison of this $27 million contract for 15 months of RSEDS maintenance is difficult without access to a database of comparable contracts for similar specialized security and detection systems. Factors such as the complexity of the RSEDS units, the required technical expertise, the criticality of the equipment, and the specific maintenance tasks (preventive, corrective, excepted) all influence cost. The 'NOT COMPETED' status further complicates benchmarking, as there was no competitive bidding to establish a market-driven price. To assess value, one would ideally compare this contract's per-unit maintenance cost or total cost against contracts for similar systems or against internal cost estimates if available.
What are the primary risks associated with a 'NOT COMPETED' contract for critical maintenance services?
The primary risks associated with a 'NOT COMPETED' contract for critical maintenance services include: 1. **Higher Costs:** Without competition, the contractor may not be incentivized to offer the lowest possible price, potentially leading to inflated costs for taxpayers. 2. **Limited Innovation:** A sole-source or limited competition environment can stifle innovation, as there's less pressure to develop more efficient or cost-effective maintenance methods. 3. **Contractor Lock-in:** The agency may become overly reliant on the incumbent contractor, making it difficult and costly to switch providers in the future. 4. **Potential for Substandard Performance:** While a firm-fixed-price contract shifts risk, a lack of competition might reduce the contractor's motivation to prioritize quality if performance monitoring is lax. 5. **Reduced Transparency:** The justification for not competing can sometimes obscure the true reasons for the award, impacting public trust.
What is the operational significance of the RSEDS CT80 and CT80 DR units, and why is their maintenance critical?
The RSEDS (Radiation Sector-Electronic Detection System) CT80 and CT80 DR units are critical components of the Department of Homeland Security's (DHS) and Transportation Security Administration's (TSA) efforts to detect and monitor radiological and nuclear materials. These systems are deployed at various locations, likely including ports, borders, and transportation hubs, to enhance national security by identifying potential threats. Their continuous and reliable operation is paramount for effective threat detection and response. Therefore, preventive, corrective, and excepted maintenance is essential to ensure these systems function accurately and are available when needed, safeguarding against the illicit trafficking of dangerous materials.
What does the contract duration and value suggest about the expected lifespan or complexity of the RSEDS units?
The contract duration of 15 months (from July 1, 2012, through September 30, 2013) with a value of approximately $27 million suggests that the RSEDS CT80 and CT80 DR units are complex, high-value assets requiring specialized and ongoing maintenance. The significant expenditure over a relatively short period indicates that these systems are either very costly to maintain, require frequent servicing due to their operational environment, or are critical enough to warrant substantial investment in their upkeep. This duration and cost are typical for maintaining sophisticated technological systems that are vital for national security operations.
Industry Classification
NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,031,619
Exercised Options: $27,031,619
Current Obligation: $27,031,619
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $977,369
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0411DCT3118
IDV Type: IDC
Timeline
Start Date: 2012-07-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2016-05-24
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