DHS TSA Awards $201.8M Contract to Leidos for Integrated Logistics Support of Passenger Checkpoint Equipment
Contract Overview
Contract Amount: $201,782,521 ($201.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2018-08-01
End Date: 2020-03-31
Contract Duration: 608 days
Daily Burn Rate: $331.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: THE PURPOSE OF THIS CONTRACT 70T04018C9DAP3038 IS TO SUPPORT THE DEPARTMENT OF HOMELAND SECURITY (DHS), TRANSPORTATION SECURITY ADMINISTRATION (TSA), ACQUISITION PROGRAM MANAGEMENT (APM) OFFICE, DEPLOYMENT AND LOGISTICS DIVISION (DLD), INTEGRATED LOGISTICS SUPPORT (ILS) BRANCH THROUGH THE PROVISION OF SERVICES. THE CONTRACTOR SHALL PROVIDE INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES FOR THE MAINTENANCE AND SUSTAINMENT OF PASSENGER CHECKPOINT TRANSPORTATION SECURITY EQUIPMENT (TSE) AT FEDERALIZED AIRPORTS THROUGHOUT THE UNITED STATES AND ITS TERRITORIES.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $201.8 million to LEIDOS, INC. for work described as: THE PURPOSE OF THIS CONTRACT 70T04018C9DAP3038 IS TO SUPPORT THE DEPARTMENT OF HOMELAND SECURITY (DHS), TRANSPORTATION SECURITY ADMINISTRATION (TSA), ACQUISITION PROGRAM MANAGEMENT (APM) OFFICE, DEPLOYMENT AND LOGISTICS DIVISION (DLD), INTEGRATED LOGISTICS SUPPORT (ILS) BRANCH TH… Key points: 1. Leidos secured a significant contract to provide integrated logistics support for TSA's passenger checkpoint equipment. 2. The contract focuses on maintenance and sustainment of critical security equipment at federalized airports. 3. This is a definitive contract awarded on a firm-fixed-price basis. 4. The contract was not competed, raising questions about potential price discovery.
Value Assessment
Rating: fair
The contract value of $201.8 million over approximately 20 months suggests a substantial investment. Without specific unit costs or detailed service breakdowns, a precise pricing assessment against similar contracts is difficult, but the scale indicates a significant operational expenditure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method may limit price discovery and potentially lead to higher costs for the government compared to a fully competitive process.
Taxpayer Impact: The lack of competition could mean taxpayers are not receiving the best possible price for these essential logistics services.
Public Impact
Ensures the operational readiness of passenger screening equipment at airports nationwide. Supports the Department of Homeland Security's mission to secure transportation. Impacts air travel efficiency and passenger experience through reliable equipment maintenance. Provides essential services to federalized airports across the US and its territories.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source award
Positive Signals
- Supports critical national security infrastructure
- Ensures operational continuity for TSA
- Long-term sustainment of vital equipment
Sector Analysis
This contract falls within the 'Other Electronic and Precision Equipment Repair and Maintenance' sector. Spending in this area is crucial for maintaining national security infrastructure, particularly in transportation. Benchmarks for similar large-scale logistics support contracts can vary widely based on equipment complexity and service scope.
Small Business Impact
The data indicates that this contract was not awarded to small businesses, as indicated by 'sb': false. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract is a definitive contract awarded by the Department of Homeland Security. Oversight would typically involve contract performance monitoring by the TSA's Acquisition Program Management Office to ensure services meet requirements and are delivered efficiently.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Vendor lock-in risk
- Limited transparency on pricing justification
Tags
other-electronic-and-precision-equipment, department-of-homeland-security, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $201.8 million to LEIDOS, INC.. THE PURPOSE OF THIS CONTRACT 70T04018C9DAP3038 IS TO SUPPORT THE DEPARTMENT OF HOMELAND SECURITY (DHS), TRANSPORTATION SECURITY ADMINISTRATION (TSA), ACQUISITION PROGRAM MANAGEMENT (APM) OFFICE, DEPLOYMENT AND LOGISTICS DIVISION (DLD), INTEGRATED LOGISTICS SUPPORT (ILS) BRANCH THROUGH THE PROVISION OF SERVICES. THE CONTRACTOR SHALL PROVIDE INTEGRATED LOGISTICS SUPPORT (ILS) SERVICES FOR THE MAINTENANCE AND SUSTAINMENT OF PASSENGER CHECKPOINT TRANSPORTATION SECURITY EQUIPMENT (TSE) AT FEDERALIZE
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 $201.8 million.
What is the period of performance?
Start: 2018-08-01. End: 2020-03-31.
What was the justification for not competing this significant logistics support contract?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required services, or in cases of urgent need. Further investigation into the contract file would be necessary to understand the specific rationale and ensure it aligns with federal procurement regulations.
How does the per-unit cost of maintenance compare to industry benchmarks for similar TSA equipment?
The provided data does not include specific per-unit cost breakdowns for maintenance services. To assess this, one would need to compare the total contract value and duration against the number and type of equipment supported, and then benchmark against industry standards for similar passenger checkpoint transportation security equipment maintenance and sustainment.
What is the potential risk of vendor lock-in or reduced service quality due to the sole-source nature of this award?
A sole-source award carries a risk of vendor lock-in, as the government may have limited options for switching providers without significant disruption. This can potentially reduce pressure on the vendor to maintain high service quality or competitive pricing over time. Robust performance monitoring and clear contract terms are crucial to mitigate these risks.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $218,849,299
Exercised Options: $201,782,521
Current Obligation: $201,782,521
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $13,972,951
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2018-08-01
Current End Date: 2020-03-31
Potential End Date: 2020-03-31 12:03:00
Last Modified: 2021-01-29
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