DHS awards $136.8M for checkpoint screening equipment deployment, with a 5-year performance period
Contract Overview
Contract Amount: $136,767,462 ($136.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2021-08-27
End Date: 2026-09-16
Contract Duration: 1,846 days
Daily Burn Rate: $74.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS TASK ORDER IS FOR CPSS MID-SIZE DEPLOYMENT SERVICES RELATED TO THE DEPLOYMENT OF CHECKPOINT SCREENING EQUIPMENT.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $136.8 million to LEIDOS, INC. for work described as: THIS TASK ORDER IS FOR CPSS MID-SIZE DEPLOYMENT SERVICES RELATED TO THE DEPLOYMENT OF CHECKPOINT SCREENING EQUIPMENT. Key points: 1. Value for money appears reasonable given the long-term nature of the contract and the critical security function. 2. Full and open competition suggests a healthy market for these specialized engineering services. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. This contract supports the Transportation Security Administration's ongoing efforts to modernize airport security. 5. The contractor, Leidos, Inc., has a significant presence in government contracting, particularly in defense and intelligence. 6. The contract's duration of over five years allows for phased deployment and integration.
Value Assessment
Rating: good
The contract value of $136.8 million over approximately five years suggests a significant investment in critical infrastructure. Benchmarking against similar large-scale technology deployment contracts is challenging without more specific service details. However, the firm-fixed-price structure indicates that the government has negotiated a set price, which can be advantageous if the contractor manages costs effectively. The per-unit cost for deployment services is not explicitly provided, making direct price comparisons difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, encouraging bidders to offer competitive pricing and innovative solutions to secure the award. The specific number of bidders is not detailed, but the method of competition suggests a robust market response for these specialized engineering services.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of solutions, potentially leading to better value.
Public Impact
Travelers benefit from enhanced security screening capabilities at airports. The Transportation Security Administration (TSA) receives updated and potentially more efficient checkpoint screening equipment. The contract supports jobs in engineering, project management, and technical deployment roles. The geographic impact is national, covering various airports and transportation hubs across the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if deployment complexities are underestimated by the contractor.
- Risk of schedule delays impacting the modernization timeline for security equipment.
- Dependence on a single contractor for a critical national security function.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Long-term contract allows for sustained focus on deployment and integration.
- Contractor's experience in large-scale technology deployments is a positive signal.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to the deployment of specialized security equipment. The market for such services is driven by government needs for national security and infrastructure modernization. Comparable spending benchmarks would typically involve large-scale technology integration and deployment projects for federal agencies, often in the multi-million dollar range, reflecting the complexity and scale of national security initiatives.
Small Business Impact
The data indicates that this contract was not set aside for small businesses and that small business participation is not explicitly mentioned as a requirement. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors for specialized services or components, contributing indirectly to the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Homeland Security and the Transportation Security Administration. Accountability measures are embedded in the firm-fixed-price contract terms, performance metrics, and delivery schedules. Transparency is facilitated through federal contract databases, though specific performance details and cost breakdowns may be proprietary. The Inspector General for DHS would have jurisdiction to investigate potential fraud, waste, or abuse.
Related Government Programs
- Airport Security Enhancements
- Transportation Infrastructure Modernization
- Federal Security Equipment Procurement
- Homeland Security Technology Deployment
Risk Flags
- Potential for schedule slippage
- Integration complexity with existing systems
- Cybersecurity risks during deployment
- Contractor performance variability
Tags
transportation-security, homeland-security, engineering-services, full-and-open-competition, firm-fixed-price, delivery-order, large-contract, technology-deployment, national-scope, virginia-based-contractor, tsa
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $136.8 million to LEIDOS, INC.. THIS TASK ORDER IS FOR CPSS MID-SIZE DEPLOYMENT SERVICES RELATED TO THE DEPLOYMENT OF CHECKPOINT SCREENING EQUIPMENT.
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 $136.8 million.
What is the period of performance?
Start: 2021-08-27. End: 2026-09-16.
What is Leidos, Inc.'s track record with similar large-scale federal technology deployment contracts?
Leidos, Inc. has a substantial track record in executing large-scale federal contracts, including significant work in defense, intelligence, and civilian agency technology modernization. They have been involved in complex system integration, cybersecurity solutions, and infrastructure upgrades for various government entities. Their experience often includes managing multi-year, multi-million dollar projects, similar in scope and complexity to the TSA's checkpoint screening equipment deployment. Past performance reviews and contract awards databases would provide more granular detail on their success rates, on-time delivery, and adherence to budget on comparable projects.
How does the $136.8 million contract value compare to historical spending on checkpoint screening equipment deployment by the TSA?
Direct historical spending comparisons for this specific 'deployment services' task order are difficult without granular data on previous procurement actions for similar services. The TSA has historically invested heavily in screening technology, but this figure represents a specific task order for deployment services over five years, not the total cost of equipment. Annual TSA budgets for technology and equipment procurement are in the billions, and this contract represents a portion of that investment allocated to the logistical and technical aspects of deploying new or upgraded systems. Analyzing trends in technology refresh cycles and the average cost per deployment would provide further context.
What are the primary risks associated with deploying new checkpoint screening equipment on a national scale?
Key risks include technical integration challenges with existing airport infrastructure, potential for schedule delays due to unforeseen site conditions or logistical hurdles, and the need for extensive personnel training. Cybersecurity vulnerabilities during the deployment phase are also a significant concern. Furthermore, ensuring consistent performance and maintenance across numerous diverse locations presents a complex operational challenge. The firm-fixed-price nature of this contract shifts some financial risk to the contractor, but operational and security risks remain critical considerations for the agency.
How effective is the firm-fixed-price contract type in ensuring value for money for this type of deployment?
The firm-fixed-price (FFP) contract type is generally considered effective for well-defined projects where the scope of work is clear, aiming to provide the government with cost certainty. For deployment services, FFP shifts the risk of cost overruns to the contractor, incentivizing them to manage resources efficiently. However, if the scope is not perfectly defined or unforeseen issues arise, contractors may be less willing to absorb additional costs, potentially leading to disputes or reduced scope. The success of FFP in ensuring value relies heavily on the thoroughness of the initial scope definition and the contractor's ability to execute within that defined budget.
What are the potential workforce implications of this contract award for Leidos, Inc. and its subcontractors?
This contract is likely to necessitate the hiring and allocation of a significant workforce by Leidos, Inc. and potentially its subcontractors. This would include project managers, field engineers, technicians for installation and testing, logistics personnel, and training specialists. The duration of the contract suggests a need for sustained staffing over several years. The specific number of jobs created or impacted would depend on the project's phasing and the extent to which Leidos utilizes its existing workforce versus hiring new personnel or relying on subcontractors.
What oversight mechanisms are in place to monitor the performance and security of the deployed screening equipment?
Oversight will involve a combination of contract management by the TSA contracting officer's representative (COR), regular performance reviews, site inspections, and potentially independent testing and validation. Security oversight will be integrated throughout the deployment process, ensuring compliance with TSA security directives and cybersecurity best practices. The contract likely includes specific performance metrics and key performance indicators (KPIs) that must be met. The DHS Office of Inspector General (OIG) also provides an independent layer of oversight to detect and prevent fraud, waste, and abuse.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $136,767,462
Exercised Options: $136,767,462
Current Obligation: $136,767,462
Actual Outlays: $97,727,299
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $6,896,969
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70T04021D7672N003
IDV Type: IDC
Timeline
Start Date: 2021-08-27
Current End Date: 2026-09-16
Potential End Date: 2026-09-16 03:56:11
Last Modified: 2025-12-19
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