DHS awarded Leidos $35.6M for explosives detection system maintenance, a sole-source contract
Contract Overview
Contract Amount: $35,604,390 ($35.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2016-07-01
End Date: 2017-06-30
Contract Duration: 364 days
Daily Burn Rate: $97.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF - YEAR 1 TASK ORDER OF THE LEIDOS PERFORMANCE-BASED LOGISTICS (PBL) SUPPORT PROGRAM TO SUSTAIN GOVERNMENT-CERTIFIED REDUCED-SIZED EXPLOSIVES DETECTION SYSTEMS (EDS), AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY THE TRANSPORTATION SECURITY ADMINISTRATION (TSA) FROM 7/1/2016 THROUGH 6/30/2017. THE PBL SUPPORT INCLUDES, BUT IS NOT LIMITED TO, CORRECTIVE AND PREVENTIVE MAINTENANCE; MAINTENANCE PLANNING; SUPPLY SUPPORT; TOOLS, TEST EQUIPMENT AND CALIBRATION; PARTS AND PARTS OBSOLESCENCE; AND SUBCONTRACT AGREEMENTS.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Homeland Security obligated $35.6 million to LEIDOS, INC. for work described as: IGF::CT::IGF - YEAR 1 TASK ORDER OF THE LEIDOS PERFORMANCE-BASED LOGISTICS (PBL) SUPPORT PROGRAM TO SUSTAIN GOVERNMENT-CERTIFIED REDUCED-SIZED EXPLOSIVES DETECTION SYSTEMS (EDS), AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY THE TRANSPORTATION SECURITY ADMINISTRATI… Key points: 1. The contract focuses on maintaining explosives detection systems, a critical component of transportation security. 2. Performance-based logistics (PBL) approach aims to ensure system readiness and reduce downtime. 3. Sole-source award raises questions about potential cost efficiencies and market competition. 4. The contract duration of one year suggests a need for ongoing evaluation of service needs. 5. Maintenance scope includes corrective and preventive maintenance, supply support, and parts obsolescence. 6. Geographic focus on California for this specific task order.
Value Assessment
Rating: fair
The awarded amount of $35.6 million for a one-year maintenance contract for explosives detection systems appears substantial. Without direct comparable contracts for similar systems or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. The sole-source nature of the award limits the ability to assess pricing against competitive market rates. Further analysis would be needed to determine if this represents a fair price for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Leidos, Inc., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified in specific circumstances, such as unique capabilities or urgent needs, they typically result in less price discovery and potentially higher costs for the government compared to full and open competition.
Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective solution available in the market. Without competitive pressure, there is a risk that the awarded price is higher than it would be if multiple vendors had vied for the contract.
Public Impact
Passengers and cargo screened at transportation facilities benefit from the reliable operation of explosives detection systems. The Transportation Security Administration (TSA) receives essential maintenance services to ensure the operational readiness of critical security equipment. The contract supports specialized technical jobs related to the maintenance and sustainment of advanced security technology. The primary geographic impact is within California, where these specific systems are deployed and maintained under this task order.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Lack of transparency in the sole-source justification could mask underlying issues.
- Performance-based logistics can sometimes lead to scope creep if not carefully managed.
- Reliance on a single vendor for critical maintenance could pose supply chain risks.
Positive Signals
- Performance-based logistics (PBL) approach can incentivize contractor efficiency and system uptime.
- Focus on sustainment of critical security equipment directly supports the TSA's mission.
- Leidos has a significant presence in government contracting, suggesting established processes.
Sector Analysis
The contract falls within the broader sector of government contracting for specialized equipment maintenance and support services. The market for maintaining advanced security and detection systems is often characterized by a limited number of highly specialized providers. This specific contract addresses the sustainment of explosives detection systems, a niche but critical area within the broader security technology market. Comparable spending benchmarks would likely be found within contracts for similar high-tech maintenance services for government agencies.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, this award does not directly benefit the small business ecosystem through set-asides or mandated subcontracting. The focus is on a large prime contractor for specialized services.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Transportation Security Administration (TSA) within the Department of Homeland Security. The contract's performance-based nature suggests that oversight would focus on meeting defined performance metrics and service levels. Transparency regarding the sole-source justification and ongoing performance reporting would be key accountability measures. The Inspector General for DHS would have jurisdiction for audits and investigations.
Related Government Programs
- Transportation Security Administration (TSA) Equipment Maintenance
- Homeland Security Departmental Support Contracts
- Explosives Detection Systems Sustainment
- Performance-Based Logistics Contracts
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Limited transparency on cost justification
Tags
homeland-security, transportation-security-administration, explosives-detection-systems, maintenance-services, performance-based-logistics, sole-source, leidos, california, firm-fixed-price, fiscal-year-2017
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $35.6 million to LEIDOS, INC.. IGF::CT::IGF - YEAR 1 TASK ORDER OF THE LEIDOS PERFORMANCE-BASED LOGISTICS (PBL) SUPPORT PROGRAM TO SUSTAIN GOVERNMENT-CERTIFIED REDUCED-SIZED EXPLOSIVES DETECTION SYSTEMS (EDS), AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY THE TRANSPORTATION SECURITY ADMINISTRATION (TSA) FROM 7/1/2016 THROUGH 6/30/2017. THE PBL SUPPORT INCLUDES, BUT IS NOT LIMITED TO, CORRECTIVE AND PREVENTIVE MAINTENANCE; MAINTENANCE PLANNING; SUPPLY SUPPORT; TOOLS, TEST EQUIPMENT AND CALIBRATION; PARTS AND PA
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 $35.6 million.
What is the period of performance?
Start: 2016-07-01. End: 2017-06-30.
What is Leidos' track record with similar performance-based logistics (PBL) contracts for security equipment?
Leidos, Inc. has a substantial history of performing complex logistics and sustainment services for government agencies, including those within the Department of Defense and Homeland Security. Their experience often includes performance-based contracts where payment is tied to achieving specific outcomes, such as system availability or operational readiness. While specific details on PBL contracts for explosives detection systems are not provided here, Leidos' broader portfolio suggests they possess the capabilities to manage such agreements. However, the effectiveness and value derived from their PBL contracts can vary depending on the specific contract terms, performance metrics, and the agency's oversight.
How does the $35.6 million cost compare to similar explosives detection system maintenance contracts?
Directly comparing the $35.6 million cost for a one-year task order to similar contracts is challenging without access to a broader dataset of explosives detection system (EDS) maintenance agreements across different agencies and vendors. The nature of EDS can vary significantly in complexity and quantity, impacting maintenance costs. Furthermore, the sole-source award for this Leidos contract limits the ability to benchmark against competitive bids. Generally, sole-source contracts may incur higher costs than competitively procured ones. A comprehensive value assessment would require analyzing the scope of services, the specific EDS models supported, and comparing against industry benchmarks for similar high-technology equipment sustainment.
What are the primary risks associated with this sole-source contract for EDS maintenance?
The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competitive bidding. Without competing offers, the government may not be securing the most economical price for the maintenance services. Another risk is vendor lock-in, where the government becomes overly reliant on Leidos, potentially hindering the ability to switch to more cost-effective or technologically advanced solutions in the future. There's also a risk that without competitive pressure, the incentive for innovation or exceptional service delivery might be diminished, although the performance-based nature of the contract aims to mitigate this. Finally, if Leidos' performance falters, the sole-source nature could complicate finding a timely replacement.
How effective is the performance-based logistics (PBL) approach in ensuring the readiness of explosives detection systems?
The performance-based logistics (PBL) approach is designed to enhance the readiness and availability of critical assets like explosives detection systems by shifting the focus from transactional service delivery to achieving defined outcomes. Under a PBL model, the contractor (Leidos, in this case) is incentivized to ensure systems are operational, maintained proactively, and supported efficiently. This can lead to improved system uptime, reduced maintenance costs over the long term, and better supply chain management for parts. The effectiveness hinges on well-defined performance metrics, robust government oversight, and a clear understanding of desired outcomes. If implemented correctly, PBL can be highly effective in ensuring sustained readiness for complex equipment.
What is the historical spending trend for explosives detection system maintenance by the TSA?
The provided data represents a single task order for the 2016-2017 period, totaling $35.6 million. To understand historical spending trends for explosives detection system maintenance by the TSA, a broader analysis of contract awards over multiple fiscal years would be necessary. This would involve examining previous contracts awarded for EDS maintenance, including those awarded to Leidos and potentially other vendors, as well as tracking the total expenditure on such services. Without this longitudinal data, it's impossible to determine if the $35.6 million represents an increase, decrease, or stable level of spending compared to prior periods.
What specific types of explosives detection systems are covered under this contract?
The data indicates that this contract covers the sustainment of 'Government-Certified Reduced-Sized Explosives Detection Systems (EDS), and associated peripheral equipment.' While the specific make and model of these systems are not detailed in the provided snippet, the description suggests they are specialized, compact systems used for detecting explosives. The scope of work includes corrective and preventive maintenance, supply support, and parts obsolescence management for these systems and their related components deployed and operated by the TSA.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $35,604,390
Exercised Options: $35,604,390
Current Obligation: $35,604,390
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $71,903,819
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0416DCT3008
IDV Type: IDC
Timeline
Start Date: 2016-07-01
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2017-10-19
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