Leidos, Inc. awarded $29.8M for explosive detection system maintenance, a sole-source contract
Contract Overview
Contract Amount: $29,780,036 ($29.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2015-07-01
End Date: 2016-06-30
Contract Duration: 365 days
Daily Burn Rate: $81.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF TASK ORDER HSTS04-15-J-CT3021 IS FOR PREVENTATIVE AND CORRECTIVE MAINTENANCE SERVICES FOR REVEAL IMAGING TECHNOLOGIES REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Homeland Security obligated $29.8 million to LEIDOS, INC. for work described as: IGF::OT::IGF TASK ORDER HSTS04-15-J-CT3021 IS FOR PREVENTATIVE AND CORRECTIVE MAINTENANCE SERVICES FOR REVEAL IMAGING TECHNOLOGIES REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS. Key points: 1. Contract awarded to Leidos, Inc. for maintenance of explosive detection systems. 2. The contract value is approximately $29.8 million. 3. This was a sole-source award, indicating limited competition. 4. The contract duration is one year, from July 1, 2015, to June 30, 2016. 5. The service category is for preventative and corrective maintenance. 6. The systems covered are Reveal Imaging Technologies Reduced Size Explosive Detection Systems. 7. The awarding agency is the Department of Homeland Security, specifically the Transportation Security Administration.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its sole-source nature and the specific, specialized equipment it covers. Without competitive bids, it's difficult to ascertain if the $29.8 million price represents optimal value for money. The contract is for a single year, which limits long-term price comparison. However, the fixed-price structure provides some cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that only one vendor, Leidos, Inc., was solicited. This typically occurs when a specific product or service is required and only one contractor can provide it, often due to proprietary technology or existing infrastructure. The lack of competition means that the government did not benefit from a bidding process that could drive down prices.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, the government had less leverage to negotiate the lowest possible price for these essential maintenance services.
Public Impact
The Transportation Security Administration (TSA) benefits from this contract through the continued operational readiness of its explosive detection systems. Passengers and the public benefit from enhanced security at airports and other transportation hubs. The contract ensures the maintenance of critical security equipment, contributing to national security. The geographic impact is likely nationwide, covering locations where these Reveal Imaging Technologies systems are deployed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs for taxpayers.
- Lack of transparency in the justification for sole-source award.
- Contract duration is short, potentially leading to frequent re-solicitations and administrative overhead.
Positive Signals
- Contract ensures the operational readiness of critical security equipment.
- Fixed-price contract provides cost certainty for the government.
- Awarded to a known entity (Leidos, Inc.) with potential experience in this area.
Sector Analysis
This contract falls within the broader defense and security sector, specifically focusing on the maintenance of specialized security equipment. The market for such maintenance services is often niche, dominated by a few key players who have the technical expertise and proprietary knowledge related to the specific systems. The value of this contract, while significant, represents a small portion of overall federal spending on security and defense infrastructure.
Small Business Impact
This contract does not appear to involve small business set-asides, as it was awarded to Leidos, Inc., a large corporation. There is no indication of subcontracting opportunities for small businesses within the provided data. The focus is on a large prime contractor fulfilling a specialized maintenance requirement.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's internal audit and contracting oversight mechanisms. The Transportation Security Administration (TSA) would be responsible for monitoring performance and ensuring compliance with contract terms. Inspector General reports related to TSA or DHS procurements could provide further insights into accountability and transparency.
Related Government Programs
- Explosive Detection Systems Maintenance
- Transportation Security Administration Contracts
- Department of Homeland Security Procurement
- Leidos, Inc. Federal Contracts
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Tags
defense, transportation-security, homeland-security, transportation-security-administration, leidos-inc, maintenance, explosive-detection-systems, sole-source, firm-fixed-price, california, miscellaneous-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $29.8 million to LEIDOS, INC.. IGF::OT::IGF TASK ORDER HSTS04-15-J-CT3021 IS FOR PREVENTATIVE AND CORRECTIVE MAINTENANCE SERVICES FOR REVEAL IMAGING TECHNOLOGIES REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS.
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 $29.8 million.
What is the period of performance?
Start: 2015-07-01. End: 2016-06-30.
What is the track record of Leidos, Inc. in providing maintenance for similar explosive detection systems?
Leidos, Inc. has a significant presence in the federal contracting space, often performing complex technical services and logistics support for various government agencies. While specific details on their maintenance history for Reveal Imaging Technologies systems are not provided in this data snippet, their broad capabilities suggest they are likely equipped to handle such requirements. Further investigation into past performance evaluations and contract awards for Leidos related to security equipment maintenance would be necessary to fully assess their track record. The company's size and experience generally indicate a capacity to manage large, critical contracts, but the specific expertise for this niche system would need verification.
How does the $29.8 million contract value compare to similar maintenance contracts for explosive detection systems?
Direct comparison of the $29.8 million contract value is difficult without more data on similar systems and contracts. The value is influenced by the specific technology of the Reveal Imaging Technologies systems, the scope of preventative and corrective maintenance required, and the number of units deployed. As this was a sole-source award, it lacks a competitive benchmark. However, federal spending on security equipment maintenance can range widely, from hundreds of thousands for simpler systems to tens of millions for complex, integrated solutions. The one-year duration and the specialized nature of the equipment suggest this is a significant but potentially standard cost for maintaining such critical infrastructure.
What are the primary risks associated with this sole-source contract for explosive detection system maintenance?
The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. Without competing bids, Leidos, Inc. may not have been incentivized to offer the most cost-effective solution. Another risk is vendor lock-in; if Leidos is the only provider capable of servicing these specific systems, the government is dependent on them for future maintenance, potentially limiting negotiation power. Performance risk also exists, as with any contract, where the quality or timeliness of maintenance could be suboptimal, impacting security operations. Finally, the justification for the sole-source award itself could be scrutinized for adequacy.
How effective is the Transportation Security Administration (TSA) in managing maintenance contracts for critical security equipment?
The effectiveness of the TSA in managing maintenance contracts for critical security equipment can be assessed through various metrics, including system uptime, response times for corrective maintenance, and overall cost-efficiency. While this specific contract data doesn't provide performance metrics, the TSA's mission relies heavily on the consistent operation of its security technology. Past IG reports or GAO reviews concerning TSA's procurement and contract management practices would offer a more comprehensive view of their effectiveness. Generally, large agencies face challenges in managing complex technical contracts, balancing cost, performance, and technological obsolescence.
What are the historical spending patterns for maintenance of explosive detection systems by the Department of Homeland Security?
Historical spending patterns for explosive detection system maintenance by the Department of Homeland Security (DHS) would likely show a consistent need for such services, given the critical nature of airport and transportation security. Spending would fluctuate based on the number and types of systems deployed, technological upgrades, and the age of the equipment requiring maintenance. Analyzing prior years' budgets and contract awards for similar services, particularly those related to the TSA's security technology portfolio, would reveal trends. This $29.8 million award represents a specific instance within that broader spending context, highlighting the ongoing investment required to maintain operational readiness.
What is the justification for awarding this contract on a sole-source basis to Leidos, Inc.?
The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the snippet. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to proprietary technology, unique capabilities, urgent and compelling circumstances, or a lack of adequate competition identified during market research. For this contract, it likely relates to Leidos, Inc. being the sole provider or having exclusive rights to maintain the Reveal Imaging Technologies Reduced Size Explosive Detection Systems.
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: $29,780,036
Exercised Options: $29,780,036
Current Obligation: $29,780,036
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $240,000
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: 2015-07-01
Current End Date: 2016-06-30
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2018-04-24
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)