Leidos receives $36.6M for explosive detection system support, a sole-source contract
Contract Overview
Contract Amount: $36,577,213 ($36.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2017-07-01
End Date: 2018-06-30
Contract Duration: 364 days
Daily Burn Rate: $100.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF LEIDOS YEAR 2 TASK ORDER FOR REVEAL CT80DR/DR+ EXPLOSIVE DETECTION SYSTEM INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES WITH THE POP START DATE OF 7/1/2017.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $36.6 million to LEIDOS, INC. for work described as: IGF::CT::IGF LEIDOS YEAR 2 TASK ORDER FOR REVEAL CT80DR/DR+ EXPLOSIVE DETECTION SYSTEM INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES WITH THE POP START DATE OF 7/1/2017. Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Focus on integrated logistics support for explosive detection systems highlights critical security infrastructure. 3. The contract duration of one year suggests potential for future re-competition or task order adjustments. 4. Performance is tied to a specific system (Reveal CT80DR/DR+), indicating specialized technical requirements. 5. The award falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' NAICS code.
Value Assessment
Rating: questionable
Without competitive bidding, it is difficult to benchmark the value for money. The firm fixed-price structure provides cost certainty for the government, but the absence of competition means potential savings from market forces were likely foregone. Comparing this to similar logistics support contracts for security equipment would be necessary to assess if the pricing is within a reasonable range, but such data is not readily available in this context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The data does not provide information on why it was sole-source, such as a lack of available vendors or a specific justification. The absence of multiple bidders means there was no opportunity for price discovery through a competitive process, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition. Without a bidding process, there is less pressure on the contractor to offer the most cost-effective solution.
Public Impact
Benefits the Transportation Security Administration (TSA) by ensuring the operational readiness of explosive detection systems. Services delivered include integrated logistics support, crucial for maintaining complex security equipment. Geographic impact is likely concentrated around TSA operational sites where these systems are deployed. Workforce implications may involve specialized technicians for system maintenance and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- Sole-source awards can reduce government leverage in future negotiations.
- Dependence on a single contractor for critical logistics support.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Focus on essential security equipment maintenance.
Sector Analysis
This contract falls within the broader defense and security sector, specifically focusing on the maintenance and support of specialized electronic equipment. The market for such services is often characterized by high technical barriers to entry and a limited number of qualified providers. Comparable spending benchmarks would typically involve other government contracts for the sustainment of advanced security screening technologies.
Small Business Impact
The contract data indicates that small business participation was not a stated factor (ss: false, sb: false). There is no indication of small business set-asides or subcontracting requirements. This suggests that the primary contractor, Leidos, Inc., is expected to perform the majority of the work, with limited direct impact on the small business ecosystem for this specific award.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's internal review processes and potentially the Inspector General's office, especially given the value. Transparency is limited by the sole-source nature of the award. Accountability measures are inherent in the firm fixed-price contract, requiring Leidos to deliver specified services within the agreed-upon cost.
Related Government Programs
- Explosive Detection Systems Maintenance
- Transportation Security Administration Logistics Support
- Department of Homeland Security Equipment Sustainment
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for higher costs due to lack of competition.
- Limited transparency on contract justification.
Tags
dhs, tsa, leidos, sole-source, logistics-support, explosive-detection-system, firm-fixed-price, virginia, security-equipment, maintenance-and-repair, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $36.6 million to LEIDOS, INC.. IGF::CT::IGF LEIDOS YEAR 2 TASK ORDER FOR REVEAL CT80DR/DR+ EXPLOSIVE DETECTION SYSTEM INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES WITH THE POP START DATE OF 7/1/2017.
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 $36.6 million.
What is the period of performance?
Start: 2017-07-01. End: 2018-06-30.
What is Leidos's track record with the TSA and DHS for similar logistics support contracts?
Leidos, Inc. has a significant history of contracting with the Department of Homeland Security (DHS) and its components, including the Transportation Security Administration (TSA). They are a major government contractor often involved in providing a wide range of services, including IT, logistics, and systems integration. For logistics support of security equipment, Leidos has previously been awarded contracts for various systems. A detailed review of their past performance on similar contracts, including any past performance evaluations or disputes, would be necessary to fully assess their track record specifically for the Reveal CT80DR/DR+ system's integrated logistics support. However, their established presence suggests familiarity with government contracting and operational requirements within DHS.
How does the $36.6 million cost compare to similar explosive detection system support contracts?
Benchmarking this $36.6 million contract against similar explosive detection system support contracts is challenging without more specific data on the scope of services, system complexity, and contract duration for comparable awards. Given this was a sole-source award for one year of Integrated Logistics Support (ILS) for the Reveal CT80DR/DR+ system, direct comparisons are difficult. Typically, ILS contracts encompass maintenance, repair, spare parts, technical documentation, and training. The cost would be influenced by the number of systems supported, the criticality of the systems, and the required response times. Without access to a database of similar sole-source or competed ILS contracts for security screening equipment, it's hard to definitively state if $36.6 million represents a competitive price point. However, the absence of competition inherently raises concerns about potential overpricing.
What are the primary risks associated with this sole-source contract for explosive detection system support?
The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, Leidos, Inc. may not have been incentivized to offer the lowest possible price. Another risk is vendor lock-in; if the Reveal CT80DR/DR+ system is specialized, there may be few alternative providers capable of offering equivalent logistics support, potentially leading to continued sole-source awards in the future. Furthermore, reliance on a single contractor for critical security equipment maintenance could pose a risk if the contractor experiences financial instability, operational issues, or fails to meet performance standards, potentially impacting airport security operations.
How effective is the Reveal CT80DR/DR+ explosive detection system, and does this contract ensure its continued effectiveness?
The effectiveness of the Reveal CT80DR/DR+ explosive detection system is a critical factor for the TSA's security mission. While this contract focuses on the Integrated Logistics Support (ILS) for the system, it is designed to ensure its continued operational effectiveness. ILS typically includes maintenance, repair, calibration, and the provision of necessary parts, all of which are essential for the system to function as intended and meet performance requirements. The contract's firm fixed-price nature suggests a clear expectation of service delivery. However, the ultimate effectiveness of the system relies on the quality of the ILS provided by Leidos and the system's inherent capabilities, which are separate from the logistics support contract itself. Monitoring performance metrics and system uptime would be key indicators of the ILS contract's success in maintaining the system's effectiveness.
What are the historical spending patterns for explosive detection system support by the TSA?
Historical spending patterns for explosive detection system support by the TSA are likely substantial, given the agency's mission to secure air travel. The TSA invests heavily in screening technologies and their ongoing maintenance. Spending on ILS contracts can fluctuate based on the lifecycle of deployed systems, technological upgrades, and the number of units in operation. Contracts for such support are often awarded on an annual basis or through multi-year agreements, with values varying significantly based on the specific systems and the scope of services. Without access to TSA's detailed historical procurement data, it's difficult to provide precise figures. However, it is reasonable to assume that annual spending on logistics support for critical security equipment like explosive detection systems runs into the tens or hundreds of millions of dollars across all deployed technologies.
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: $36,602,213
Exercised Options: $36,602,213
Current Obligation: $36,577,213
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: 2017-07-01
Current End Date: 2018-06-30
Potential End Date: 2019-02-14 00:00:00
Last Modified: 2019-02-13
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