DHS awards $432M for airport passenger screening equipment sustainment to Leidos, Inc
Contract Overview
Contract Amount: $432,319,917 ($432.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2013-09-19
End Date: 2018-07-31
Contract Duration: 1,776 days
Daily Burn Rate: $243.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF CONTRACT FOR INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES IN SUPPORT OF THE OFFICE OF SECURITY CAPABILITIES TO PROVIDE SUSTAINMENT OF PASSENGER SCREENING EQUIPMENT DEPLOYED AT AIRPORTS NATION WIDE.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $432.3 million to LEIDOS, INC. for work described as: IGF::OT::IGF CONTRACT FOR INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES IN SUPPORT OF THE OFFICE OF SECURITY CAPABILITIES TO PROVIDE SUSTAINMENT OF PASSENGER SCREENING EQUIPMENT DEPLOYED AT AIRPORTS NATION WIDE. Key points: 1. Contract awarded via full and open competition, suggesting market availability. 2. Leidos, Inc. is a major defense and government contractor. 3. Risk of vendor lock-in for sustainment services. 4. Sector focus on transportation security technology.
Value Assessment
Rating: good
The contract value of $432M over 5 years for sustainment services appears reasonable given the scope of nationwide airport deployment. Benchmarking against similar large-scale equipment maintenance contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained.
Taxpayer Impact: The competitive award process aims to secure the best value for taxpayers by leveraging market forces.
Public Impact
Ensures continued operation of critical passenger screening equipment at airports nationwide. Supports national security by maintaining the effectiveness of security technology. Impacts traveler experience through reliable screening processes. Provides essential maintenance services to a key federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands.
- Dependence on a single vendor for critical sustainment.
Positive Signals
- Awarded through full and open competition.
- Supports national security infrastructure.
Sector Analysis
This contract falls within the IT and Transportation sectors, focusing on the sustainment of electronic security equipment. Spending benchmarks for similar nationwide logistics support contracts are typically in the hundreds of millions over several years.
Small Business Impact
The contract data indicates that small business participation was not a stated factor in this award, as the prime contractor is a large business and no specific small business set-aside was mentioned.
Oversight & Accountability
Oversight would typically be managed by the Transportation Security Administration (TSA) contracting officers and program managers to ensure performance and adherence to contract terms. Regular reporting and performance reviews are standard.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Potential for cost creep if maintenance needs exceed initial projections.
- Long-term reliance on a single vendor could limit future flexibility.
- Cybersecurity risks associated with maintaining sensitive security equipment.
- Performance degradation if vendor resources are stretched thin across multiple contracts.
Tags
other-electronic-and-precision-equipment, department-of-homeland-security, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $432.3 million to LEIDOS, INC.. IGF::OT::IGF CONTRACT FOR INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES IN SUPPORT OF THE OFFICE OF SECURITY CAPABILITIES TO PROVIDE SUSTAINMENT OF PASSENGER SCREENING EQUIPMENT DEPLOYED AT AIRPORTS NATION WIDE.
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 $432.3 million.
What is the period of performance?
Start: 2013-09-19. End: 2018-07-31.
What is the projected cost per unit for sustainment of the passenger screening equipment across different airport sizes?
The provided data does not detail per-unit sustainment costs. A comprehensive analysis would require breaking down the total contract value by the number and type of screening devices deployed nationwide. This would allow for a more granular assessment of cost-effectiveness across various airport classifications and equipment models.
What are the key performance indicators (KPIs) used to measure the effectiveness of the sustainment services provided by Leidos, Inc.?
Key performance indicators likely include equipment uptime, response times for maintenance requests, successful completion rates of preventative maintenance, and overall system reliability. The TSA would monitor these KPIs to ensure the security screening equipment remains operational and effective, directly impacting national security and passenger flow.
How does the pricing structure of this firm-fixed-price contract compare to industry benchmarks for similar nationwide logistics support contracts?
Firm-fixed-price contracts aim to provide cost certainty. Without specific line-item details or access to competitor bids, a direct benchmark is challenging. However, the overall value of $432M over approximately 5 years suggests a significant investment, and its competitiveness hinges on the scope of services and the efficiency of Leidos's operations compared to market alternatives.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other 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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, 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: $457,060,467
Exercised Options: $432,319,917
Current Obligation: $432,319,917
Subaward Activity
Number of Subawards: 123
Total Subaward Amount: $242,886,704
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-19
Current End Date: 2018-07-31
Potential End Date: 2020-10-21 00:00:00
Last Modified: 2020-04-24
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