DHS awards $2.5M for explosive detection systems at TriCities Airport, with Leidos as prime

Contract Overview

Contract Amount: $2,540,246 ($2.5M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-03-15

End Date: 2019-06-28

Contract Duration: 835 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS CONTRACT IS FOR PROCUREMENT OF TECHNICAL SUPPORT, EQUIPMENT, INSTALLATION, INTEGRATION, NETWORKING AND TESTING OF UP TO THREE (3) MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (HEREAFTER REFERRED TO AS MSEDS), AND ASSOCIATED PERIPHERALS FOR TRICITIES AIRPORT (PSC).

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.5 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: THIS CONTRACT IS FOR PROCUREMENT OF TECHNICAL SUPPORT, EQUIPMENT, INSTALLATION, INTEGRATION, NETWORKING AND TESTING OF UP TO THREE (3) MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (HEREAFTER REFERRED TO AS MSEDS), AND ASSOCIATED PERIPHERALS FOR TRICITIES AIRPORT (PSC). Key points: 1. The contract focuses on procuring and installing medium speed explosive detection systems (MSEDS) and related equipment. 2. Leidos Security Detection & Automation, Inc. was awarded this definitive contract. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract was 835 days, indicating a medium-term project. 5. The primary agency involved is the Department of Homeland Security, specifically the Transportation Security Administration. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The North American Industry Classification System (NAICS) code is 334517, related to Irradiation Apparatus Manufacturing.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar MSEDS procurements. The total award amount of $2.54 million covers equipment, installation, integration, networking, and testing for up to three systems. Given the specialized nature of explosive detection technology, pricing can vary significantly based on system capabilities and vendor. Further analysis would require comparing per-unit costs against industry standards for similar systems and assessing the scope of services included in the installation and integration phases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and ensure the government receives the best value by selecting from multiple offers. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially leading to cost savings and higher quality equipment.

Public Impact

The primary beneficiaries are travelers and airport security personnel at TriCities Airport (PSC), who will benefit from enhanced security measures. The services delivered include the procurement, installation, integration, networking, and testing of explosive detection systems. The geographic impact is localized to TriCities Airport, improving its security infrastructure. The contract supports jobs within the security detection and automation manufacturing sector, particularly for Leidos and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen integration challenges arise with existing airport infrastructure.
Dependence on a single contractor for the full lifecycle of system deployment and initial support.
The effectiveness of the 'medium speed' systems in a high-traffic airport environment requires ongoing performance monitoring.

Positive Signals

Firm Fixed Price contract structure limits cost uncertainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Award to a specialized company like Leidos indicates access to relevant expertise in security detection technology.

Sector Analysis

The contract falls within the broader defense and security sector, specifically focusing on specialized equipment manufacturing and integration for transportation security. The market for explosive detection systems is driven by stringent regulatory requirements and the continuous need to upgrade security technology at critical infrastructure points like airports. Comparable spending benchmarks would involve looking at other TSA procurements for similar detection systems at airports of comparable size and traffic volume.

Small Business Impact

The contract details do not indicate any specific small business set-asides. As a definitive contract awarded to Leidos, a large corporation, the primary impact on small businesses would likely be through subcontracting opportunities. The extent to which Leidos engages small businesses for installation, integration, or support services will determine the overall impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). Contract performance would be monitored through regular reporting, site inspections, and acceptance testing of the installed systems. The contract's firm fixed-price nature provides a degree of financial oversight by capping the government's expenditure. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available.

Related Government Programs

Transportation Security Administration (TSA) Equipment Procurement
Homeland Security Department (DHS) Technology Modernization
Airport Security Infrastructure Upgrades
Explosive Detection Systems (EDS) Market

Risk Flags

Potential for integration challenges with existing airport infrastructure.
Performance validation of 'medium speed' systems in a real-world airport environment.
Dependence on contractor for successful deployment and initial operational support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.5 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. THIS CONTRACT IS FOR PROCUREMENT OF TECHNICAL SUPPORT, EQUIPMENT, INSTALLATION, INTEGRATION, NETWORKING AND TESTING OF UP TO THREE (3) MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (HEREAFTER REFERRED TO AS MSEDS), AND ASSOCIATED PERIPHERALS FOR TRICITIES AIRPORT (PSC).

Who is the contractor on this award?

The obligated recipient is LEIDOS SECURITY DETECTION & AUTOMATION, 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 $2.5 million.

What is the period of performance?

Start: 2017-03-15. End: 2019-06-28.

What is the specific performance capability of the 'medium speed' explosive detection systems procured under this contract?

The contract specifies 'medium speed' explosive detection systems (MSEDS) but does not detail their exact performance metrics, such as throughput (items per minute) or detection probability/false alarm rates. Typically, 'medium speed' systems are designed for environments where throughput is important but not as critical as at major international hubs, often found in mid-sized airports. The Transportation Security Administration (TSA) categorizes EDS based on their capabilities to meet specific security mandates and operational needs. Without further technical specifications or performance data from the contract award, it's difficult to precisely benchmark these systems against other available technologies or previous procurements. Further inquiry with the TSA or a review of related solicitations might reveal more detailed performance expectations.

How does the $2.54 million award compare to similar procurements for explosive detection systems at other airports?

Comparing the $2.54 million award for up to three MSEDS at TriCities Airport requires context regarding the specific model of detection system, its capabilities, and the scope of services included (installation, integration, testing). Larger, higher-throughput systems for major airports can cost significantly more per unit. Conversely, simpler systems or those procured in larger bulk orders might have lower per-unit costs. Given this is for up to three systems and includes installation and integration, the average cost per system is roughly $847,000. This figure needs to be benchmarked against other TSA procurements for similar 'medium speed' systems, considering factors like the number of units purchased, the vendor, and the year of award, to determine if it represents good value for money.

What is Leidos Security Detection & Automation, Inc.'s track record with similar government contracts, particularly for TSA?

Leidos, through its various acquisitions and divisions, has a significant history of providing security and automation solutions to government agencies, including the Transportation Security Administration (TSA). They are known for developing and deploying various security screening technologies. Their track record with TSA likely includes previous contracts for different types of screening equipment, software, and related services. A detailed review of their contract history with TSA would reveal the types of systems they have supplied, their performance on those contracts, and any past issues or commendations. This specific contract for MSEDS builds upon their established presence in the aviation security technology market.

What are the potential risks associated with the integration and installation of these new detection systems?

Key risks associated with the integration and installation of new explosive detection systems include technical compatibility issues with existing airport infrastructure (power, networking, physical space), delays in deployment due to unforeseen site conditions, and potential disruptions to airport operations during installation. There's also a risk related to the learning curve for airport personnel operating and maintaining the new equipment. Furthermore, if the contract is not sufficiently detailed regarding integration requirements, scope creep could lead to cost increases or schedule slippage. The firm fixed-price nature of this contract shifts some financial risk to the contractor, but significant integration challenges could still impact project timelines and operational readiness.

How has spending on explosive detection systems by the TSA evolved over the past five years?

Spending on explosive detection systems (EDS) by the TSA has generally seen consistent investment, driven by evolving security threats and technological advancements. While specific figures fluctuate annually based on modernization cycles and congressional appropriations, the TSA has a continuous need to upgrade and deploy screening technology at airports nationwide. Recent years have seen a focus on next-generation EDS, including computed tomography (CT) scanners, which offer higher detection rates. Contracts like this one for MSEDS represent ongoing efforts to maintain and enhance security capabilities, potentially filling specific operational niches or replacing aging equipment. Analyzing TSA's budget justifications and contract award databases would provide a clearer picture of spending trends and priorities.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSTS04-17-R-STD172

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10E COMMERCE WAY, WOBURN, MA, 01801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,928,752

Exercised Options: $2,540,246

Current Obligation: $2,540,246

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline