DHS awards $28.5M to Leidos for RSEDS maintenance, continuing a sole-source contract
Contract Overview
Contract Amount: $28,464,559 ($28.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2014-07-01
End Date: 2015-06-30
Contract Duration: 364 days
Daily Burn Rate: $78.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ORDER UNDER LEIDOS CONTRACT HSTS04-11-D-CT3118 TO FUND YEAR 4 OF LEIDOS ILS MAINTENANCE SERVICES FOR FIELDED REVEAL RSEDS FROM 7/1/2014 TO 6/30/2015 (365 DAYS). IGF::OT::IGF
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Homeland Security obligated $28.5 million to LEIDOS, INC. for work described as: ORDER UNDER LEIDOS CONTRACT HSTS04-11-D-CT3118 TO FUND YEAR 4 OF LEIDOS ILS MAINTENANCE SERVICES FOR FIELDED REVEAL RSEDS FROM 7/1/2014 TO 6/30/2015 (365 DAYS). IGF::OT::IGF Key points: 1. This award represents continued investment in fielded systems, suggesting a reliance on existing technology. 2. The contract's sole-source nature raises questions about potential cost efficiencies and market competition. 3. Maintenance services are critical for operational readiness, but the specific performance metrics are not detailed here. 4. The duration of the contract (one year) indicates a focus on ongoing operational support rather than long-term development. 5. The sector focus on 'All Other Miscellaneous Manufacturing' for a service contract is unusual and warrants further investigation.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without comparable sole-source maintenance agreements. The price of $28.5 million for one year of maintenance for fielded systems appears substantial. However, without details on the scope of services, the number of systems maintained, or the criticality of these systems, a definitive value assessment is difficult. The lack of competition inherently limits the ability to assess if this price represents a competitive market rate.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when there is an urgent need that cannot be met through a competitive process. The lack of competition means that potential cost savings that could arise from a bidding process were not realized.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure, potentially leading to higher costs than if the contract had been open to multiple bidders.
Public Impact
The Transportation Security Administration (TSA) benefits from the continued maintenance of its Reveal RSEDS systems, ensuring operational capabilities. Fielded RSEDS systems are likely used for security screening at transportation hubs. The geographic impact is likely concentrated at airports or other transportation security checkpoints where these systems are deployed. The contract supports the workforce involved in maintaining and operating these specialized security systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential cost savings for taxpayers.
- Lack of transparency in the justification for sole-source procurement.
- The contract's classification under 'All Other Miscellaneous Manufacturing' for maintenance services is unclear and may indicate miscategorization.
- Absence of performance metrics makes it difficult to assess the effectiveness of the maintenance services.
- Limited insight into the contractor's track record specifically for this type of maintenance under this contract.
Positive Signals
- Ensures continued operational readiness of critical security screening systems.
- Leidos, Inc. is a large, established government contractor with experience in various technology and support services.
- The contract specifies a firm-fixed-price structure, which provides cost certainty for the government.
- The contract is for maintenance, indicating a focus on sustaining existing capabilities rather than developing new ones.
Sector Analysis
The contract falls under the broader category of government IT and security services, specifically focusing on the maintenance of specialized screening equipment. The market for such maintenance services is often characterized by a limited number of qualified vendors, especially for proprietary or highly specialized systems. While the specific market size for RSEDS maintenance is not readily available, the Department of Homeland Security's overall spending on security technology and support services is in the billions annually.
Small Business Impact
This contract does not appear to involve small business set-asides, as indicated by 'sb': false. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Given the sole-source nature and the focus on specialized maintenance, it is less likely that significant subcontracting opportunities for small businesses would be a primary consideration.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and program management offices. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance reports.
Related Government Programs
- Department of Homeland Security IT Services
- Transportation Security Administration Equipment Maintenance
- Government Contract Maintenance Services
- Sole-Source Procurements
Risk Flags
- Sole-source procurement
- Lack of competition
- Potential for cost overruns
- Limited transparency on performance metrics
Tags
dhs, tsa, leidos, maintenance-services, sole-source, firm-fixed-price, fiscal-year-2015, transportation-security, miscellaneous-manufacturing, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $28.5 million to LEIDOS, INC.. ORDER UNDER LEIDOS CONTRACT HSTS04-11-D-CT3118 TO FUND YEAR 4 OF LEIDOS ILS MAINTENANCE SERVICES FOR FIELDED REVEAL RSEDS FROM 7/1/2014 TO 6/30/2015 (365 DAYS). IGF::OT::IGF
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 $28.5 million.
What is the period of performance?
Start: 2014-07-01. End: 2015-06-30.
What is the specific nature of the 'Reveal RSEDS' systems, and why is Leidos the sole provider for their maintenance?
The 'Reveal RSEDS' systems are likely advanced security screening equipment used by the Transportation Security Administration (TSA), possibly for baggage or passenger screening. The reason for Leidos being the sole provider for maintenance is typically due to proprietary technology, specialized knowledge, or unique support requirements that only Leidos possesses or can fulfill. This often occurs with systems developed or significantly customized by a specific contractor, making it difficult or impossible for other companies to provide effective maintenance without extensive and costly re-training or reverse engineering. Without a detailed justification document for the sole-source award, the precise technical or contractual reasons remain speculative but are rooted in the unique relationship between the system and its provider.
How does the $28.5 million annual cost compare to similar maintenance contracts for security screening equipment?
Directly comparing the $28.5 million annual cost to similar maintenance contracts is challenging due to several factors. Firstly, the 'Reveal RSEDS' systems are specific, and their complexity, age, and the number of units deployed significantly influence maintenance costs. Secondly, this is a sole-source contract, which inherently lacks the price discovery mechanism of competitive bidding. Comparable contracts would ideally be for similar types of screening technology (e.g., advanced X-ray, millimeter wave scanners) from different manufacturers, procured competitively. However, without access to such data, it's difficult to definitively state if $28.5 million is high or low. Generally, sole-source maintenance for specialized government equipment can be more expensive than competitively bid services.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this maintenance contract?
The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, maintenance contracts for critical security equipment would include metrics such as system uptime, response times for service calls, repair turnaround times, and preventative maintenance schedules. The absence of this information in the summary data makes it difficult to quantitatively assess the performance and effectiveness of Leidos's maintenance services. A thorough review would require access to the full contract details, including any appendices or statements of work that outline these performance expectations and the associated remedies or incentives.
What is the historical spending trend for Leidos's maintenance services for RSEDS systems under this contract vehicle?
This specific award is for Year 4 of a contract (HSTS04-11-D-CT3118). To understand the historical spending trend, one would need to examine the funding allocated in Years 1, 2, and 3 of this contract, as well as any preceding contracts for similar services. The data provided only shows the amount for Year 4 ($28,464,559.23). If the spending has been relatively consistent over the years, it suggests a stable operational requirement. However, significant fluctuations could indicate changes in system deployment, maintenance needs, or contract modifications. Without the data for prior years, a trend analysis is not possible from this single data point.
Are there any identified risks associated with the continued sole-source maintenance of these RSEDS systems?
Yes, there are several identified risks associated with the continued sole-source maintenance of these RSEDS systems. The primary risk is financial: the lack of competition can lead to inflated prices and reduced value for taxpayer money. There's also a risk of vendor lock-in, where the government becomes overly dependent on a single provider, limiting future flexibility and potentially hindering upgrades or transitions to newer technologies. Operational risks could include a decline in service quality if the contractor faces internal issues or if their focus shifts away from this specific contract, especially if there are no strong performance incentives or penalties. Furthermore, a sole-source arrangement can sometimes reduce the incentive for the contractor to innovate or proactively improve services.
Industry Classification
NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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: $28,464,559
Exercised Options: $28,464,559
Current Obligation: $28,464,559
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $300,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0411DCT3118
IDV Type: IDC
Timeline
Start Date: 2014-07-01
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2016-10-24
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