TSA Spends $27.1M on Explosive Detection System Maintenance via Not Competed Contract

Contract Overview

Contract Amount: $27,116,882 ($27.1M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2013-06-28

End Date: 2014-07-18

Contract Duration: 385 days

Daily Burn Rate: $70.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Manufacturing

Official Description: IGF::OT::IGF THE PURPOSE OF DELIVERY ORDER HSTS04-13-J-CT3042 (DO 4) AGAINST CONTRACT HSTS04-11-D-CT3118 IS TO PROCURE SERVICES NECESSARY FOR THE PREVENTIVE MAINTENANCE AND CORRECTIVE MAINTENANCE OF SAIC REDUCED-SIZE EXPLOSIVE DETECTION SYSTEMS (EDS) AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY THE TRANSPORTATION SECURITY ADMINISTRATION (TSA).

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.1 million to LEIDOS, INC. for work described as: IGF::OT::IGF THE PURPOSE OF DELIVERY ORDER HSTS04-13-J-CT3042 (DO 4) AGAINST CONTRACT HSTS04-11-D-CT3118 IS TO PROCURE SERVICES NECESSARY FOR THE PREVENTIVE MAINTENANCE AND CORRECTIVE MAINTENANCE OF SAIC REDUCED-SIZE EXPLOSIVE DETECTION SYSTEMS (EDS) AND ASSOCIATED PERIPHERAL EQU… Key points: 1. High contract value for specialized maintenance services. 2. Sole-source award to Leidos, Inc. raises competition concerns. 3. Risk of inflated costs due to lack of competitive bidding. 4. Sector: Manufacturing (specifically, Other Miscellaneous Manufacturing).

Value Assessment

Rating: questionable

The contract value of $27.1M for EDS maintenance is substantial. Without competitive data, it's difficult to assess if this price is reasonable compared to similar maintenance contracts for specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential maintenance services.

Public Impact

Ensures continued operational readiness of critical explosive detection systems at transportation hubs. Potential for increased security risks if maintenance is not performed effectively due to cost pressures or lack of vendor innovation. Impacts TSA's ability to maintain a safe and secure transportation environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Potential for cost overruns
  • Sole-source award

Positive Signals

  • Essential service for national security
  • Maintains critical infrastructure

Sector Analysis

This contract falls under the 'All Other Miscellaneous Manufacturing' sector. Spending in this area often involves specialized equipment and services, where maintenance can be a significant long-term cost. Benchmarks are difficult without more specific data.

Small Business Impact

The contract was awarded to Leidos, Inc., a large business. There is no indication that small businesses were involved in this specific procurement, missing an opportunity for their participation.

Oversight & Accountability

The contract was awarded via a delivery order against an existing contract. Oversight should focus on the justification for the sole-source award and the reasonableness of the pricing throughout the performance period.

Related Government Programs

  • All Other Miscellaneous Manufacturing
  • Department of Homeland Security Contracting
  • Transportation Security Administration Programs

Risk Flags

  • Sole-source award limits competition.
  • Potential for higher costs due to lack of competitive pricing.
  • No small business participation noted.
  • Contract duration is relatively short (approx. 1 year), but the value is high.
  • Need for strong oversight to ensure value for money.

Tags

all-other-miscellaneous-manufacturing, department-of-homeland-security, ca, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.1 million to LEIDOS, INC.. IGF::OT::IGF THE PURPOSE OF DELIVERY ORDER HSTS04-13-J-CT3042 (DO 4) AGAINST CONTRACT HSTS04-11-D-CT3118 IS TO PROCURE SERVICES NECESSARY FOR THE PREVENTIVE MAINTENANCE AND CORRECTIVE MAINTENANCE OF SAIC REDUCED-SIZE EXPLOSIVE DETECTION SYSTEMS (EDS) AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY THE TRANSPORTATION SECURITY ADMINISTRATION (TSA).

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 $27.1 million.

What is the period of performance?

Start: 2013-06-28. End: 2014-07-18.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. A detailed justification would be required from the agency explaining why competition was not feasible or practicable for these specific maintenance services. This could involve proprietary technology, unique expertise, or urgent needs that preclude a competitive process.

How does the $27.1M cost compare to industry benchmarks for similar EDS maintenance contracts?

Without access to proprietary industry data or comparable government contracts, a precise benchmark is unavailable. However, the significant value suggests that the government should have sought competitive bids to ensure cost-effectiveness, unless specific circumstances justified a sole-source award.

What are the potential risks to national security if these maintenance services are not adequately provided?

Failure to adequately maintain the Explosive Detection Systems (EDS) could lead to system malfunctions, reduced detection capabilities, and potential security breaches at transportation facilities. This directly impacts the TSA's mission to ensure public safety and prevent acts of terrorism.

Industry Classification

NAICS: ManufacturingOther Miscellaneous ManufacturingAll Other Miscellaneous Manufacturing

Product/Service Code: QUALITY CONTROL, TEST, INSPECTIONQUALITY 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: $27,116,882

Exercised Options: $27,116,882

Current Obligation: $27,116,882

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $744,511

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0411DCT3118

IDV Type: IDC

Timeline

Start Date: 2013-06-28

Current End Date: 2014-07-18

Potential End Date: 2014-07-18 00:00:00

Last Modified: 2016-05-24

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