DHS Awards Leidos $7.6M for STSS System Management, Lacking Competition
Contract Overview
Contract Amount: $7,656,791 ($7.7M)
Contractor: Leidos Security Detection & Automation, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2023-09-12
End Date: 2026-09-11
Contract Duration: 1,095 days
Daily Burn Rate: $7.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LEIDOS STSS SYSTEM MANAGEMENT SERVICES
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22180
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $7.7 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: LEIDOS STSS SYSTEM MANAGEMENT SERVICES Key points: 1. Significant contract awarded to a single vendor, raising questions about competition. 2. The contract focuses on engineering services within the Transportation Security Administration. 3. Potential risk associated with sole-source awards and lack of price discovery. 4. The sector is IT/Engineering Services, with a notable contract value.
Value Assessment
Rating: questionable
The contract value of $7.6M for 3 years of system management services appears high given the lack of competition. Benchmarking against similar engineering services contracts is difficult without more data, but the absence of competitive bidding suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a competitively bid contract.
Taxpayer Impact: The lack of competition on this $7.6M contract means taxpayers may not be receiving the best possible price for these essential system management services.
Public Impact
Passengers and cargo screening systems managed under this contract are critical for national security. The TSA's operational efficiency relies on the effective management of these systems. Potential delays or disruptions in system upgrades or maintenance could impact travel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Critical infrastructure support
- Experienced vendor
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting critical transportation security systems. The value of $7.6M for a 3-year duration is moderate for specialized engineering support, but the procurement method is a key concern.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. The sole-source nature of the award further limits opportunities for small businesses to compete for this work.
Oversight & Accountability
The sole-source award warrants close oversight to ensure the government is receiving fair value and that the vendor is meeting all contractual obligations. Transparency in future procurements in this area is crucial.
Related Government Programs
- Engineering Services
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bidding.
- No clear indication of small business participation.
- Limited transparency on justification for sole-source award.
Tags
engineering-services, department-of-homeland-security, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $7.7 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. LEIDOS STSS SYSTEM MANAGEMENT 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 $7.7 million.
What is the period of performance?
Start: 2023-09-12. End: 2026-09-11.
What is the justification for awarding this contract on a sole-source basis, and were alternative procurement methods considered?
The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'sole-source'. A thorough review would require access to the contract file to understand the specific justification, such as a critical need, lack of qualified sources, or urgency. Without this information, it's impossible to assess if alternative methods were appropriately considered or if this was the most cost-effective approach.
How does the $7.6M price compare to industry benchmarks for similar system management services, especially considering the lack of competitive bidding?
Benchmarking is challenging due to the sole-source nature and limited data. However, the absence of competition suggests the price may not reflect market rates. A comparative analysis with similar government or commercial contracts for system management of comparable complexity and duration, adjusted for scope and service levels, would be necessary to assess value for money.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
The provided data does not detail the specific KPIs or performance metrics for this contract. Effective oversight would require clearly defined and measurable KPIs related to system uptime, response times, security compliance, and user satisfaction. The TSA should have a robust performance management plan in place to track these metrics and ensure Leidos is delivering on its contractual obligations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 RADCLIFF RD, TEWKSBURY, MA, 01876
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: $19,594,698
Exercised Options: $7,656,791
Current Obligation: $7,656,791
Actual Outlays: $5,003,388
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70T04023D7672N004
IDV Type: IDC
Timeline
Start Date: 2023-09-12
Current End Date: 2026-09-11
Potential End Date: 2030-09-11 09:09:32
Last Modified: 2026-01-12
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