DHS awards $7.78M contract for MSEDS equipment to Leidos, impacting airport security
Contract Overview
Contract Amount: $7,782,168 ($7.8M)
Contractor: Leidos Security Detection & Automation, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2019-09-30
End Date: 2024-09-29
Contract Duration: 1,826 days
Daily Burn Rate: $4.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PURCHASE OF MSEDS EQUIPMENT AND ASSOCIATED SERVICES.
Place of Performance
Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560
Plain-Language Summary
Department of Homeland Security obligated $7.8 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: PURCHASE OF MSEDS EQUIPMENT AND ASSOCIATED SERVICES. Key points: 1. The contract value of $7.78 million is moderate for specialized security equipment. 2. Leidos Security Detection & Automation, Inc. is a significant player in this niche market. 3. Potential risks include technology obsolescence and integration challenges with existing systems. 4. This spending falls within the broader IT and Defense/Security sectors.
Value Assessment
Rating: good
The contract value of $7.78 million for MSEDS equipment and services appears reasonable given the specialized nature of the technology. Benchmarking against similar procurements for advanced security screening systems would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices and ensure the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used for critical security infrastructure, aiming to enhance public safety at transportation hubs.
Public Impact
Enhances airport security screening capabilities nationwide. Supports the Transportation Security Administration's mission to protect transportation systems. Potential for improved passenger throughput and detection of threats.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized.
- Dependence on a single vendor for critical equipment maintenance and upgrades.
Positive Signals
- Awarded through full and open competition.
- Utilizes a firm fixed-price contract type, providing cost certainty.
- Long-term contract duration allows for sustained security improvements.
Sector Analysis
This procurement falls under the Information Technology and Defense/Security sectors, specifically related to advanced detection and navigation systems. Spending benchmarks for similar security equipment vary widely based on technological sophistication and scale.
Small Business Impact
The contract was awarded to Leidos Security Detection & Automation, Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
The contract is managed by the Department of Homeland Security's Transportation Security Administration. Standard oversight mechanisms for federal contracts, including performance monitoring and financial reporting, are expected to be in place.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Technology obsolescence risk.
- Integration complexity with existing security infrastructure.
- Potential for increased maintenance costs over time.
- Dependence on a single supplier for critical components.
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, ca, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $7.8 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. PURCHASE OF MSEDS EQUIPMENT AND ASSOCIATED SERVICES.
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 $7.8 million.
What is the period of performance?
Start: 2019-09-30. End: 2024-09-29.
What is the expected lifespan and upgrade path for the MSEDS equipment to ensure long-term value?
The expected lifespan and upgrade path for the MSEDS equipment are crucial for assessing long-term value. Without this information, it's difficult to determine if the initial investment will remain effective against evolving threats or become obsolete quickly. Future contracts should clearly define technology refresh cycles and supportability requirements.
How does the performance of this MSEDS equipment compare to other available technologies in terms of threat detection accuracy and false alarm rates?
Comparing the performance of this MSEDS equipment against alternatives is vital for understanding its effectiveness. Data on threat detection accuracy and false alarm rates directly impacts operational efficiency and security outcomes. A thorough post-award analysis or comparative study would illuminate whether this specific technology offers superior capabilities.
What is the total cost of ownership, including maintenance, training, and potential upgrades, over the contract's duration?
The total cost of ownership (TCO) is a critical factor beyond the initial award amount. Understanding the full financial commitment, encompassing ongoing maintenance, necessary training for personnel, and anticipated upgrade costs, provides a more realistic picture of the investment. This comprehensive view is essential for budget planning and demonstrating fiscal responsibility.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 70T04019Q9CAP1002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ONE RADCLIFF RD, TEWKSBURY, MA, 01876
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $27,282,392
Exercised Options: $7,782,168
Current Obligation: $7,782,168
Actual Outlays: $5,592,404
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $42,235
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-30
Current End Date: 2024-09-29
Potential End Date: 2024-09-29 02:48:42
Last Modified: 2026-02-04
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