DHS awards $20.3M for explosive detection systems to Leidos, a sole-source contract

Contract Overview

Contract Amount: $20,329,500 ($20.3M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-27

End Date: 2027-09-26

Contract Duration: 1,094 days

Daily Burn Rate: $18.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER FOR 17 MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS

Place of Performance

Location: TEWKSBURY, MIDDLESEX County, MASSACHUSETTS, 01876

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.3 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: DELIVERY ORDER FOR 17 MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS Key points: 1. Contract awarded for specialized detection systems, indicating a need for advanced security technology. 2. Sole-source award suggests limited market options or specific contractor capabilities. 3. Long-term contract duration (nearly 3 years) implies ongoing operational requirements. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The award falls under the Irradiation Apparatus Manufacturing industry, highlighting a niche technological focus.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without comparable bids. The price of $20.3 million for 17 systems over nearly three years suggests a significant investment per unit. Without competitive pricing, it's difficult to definitively assess if this represents excellent value for money. Further analysis would require understanding the specific technological capabilities and maintenance included in the price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, or for follow-on work to an existing contract. The lack of competition means that taxpayers did not benefit from potential price reductions that could arise from a bidding process.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible prices for taxpayers. This can lead to higher overall spending compared to a competitively bid scenario.

Public Impact

Enhanced security screening at transportation hubs through the deployment of advanced explosive detection systems. Increased public safety by improving the ability to identify and neutralize threats. Supports the Transportation Security Administration's (TSA) mission to secure the nation's transportation systems. Potential for job creation within Leidos and its supply chain related to the manufacturing and maintenance of these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition raises questions about whether the government secured the best possible value.
Dependence on a single vendor for critical security technology could pose future supply chain risks.

Positive Signals

Contract addresses a critical national security need for explosive detection.
Fixed-price contract provides cost certainty for the duration of the award.
Long-term duration suggests a stable and reliable solution for TSA operations.

Sector Analysis

The market for security and detection systems is a specialized segment within the broader defense and homeland security sector. This contract for explosive detection systems falls under the category of specialized equipment manufacturing, often characterized by high research and development costs and stringent performance requirements. The Transportation Security Administration (TSA) is a significant buyer in this space, continually seeking advanced technologies to maintain and improve screening capabilities at various transportation points.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. The prime contractor, Leidos, is a large corporation. There is no immediate indication of subcontracting opportunities for small businesses within the provided data, though large prime contractors often engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). As a delivery order under a larger contract vehicle (likely a General Services Administration Schedule or similar), the underlying contract likely has established oversight mechanisms. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract. Inspector General reviews would be applicable if any issues of fraud, waste, or abuse arise.

Related Government Programs

Explosive Detection Systems
Transportation Security Equipment
Homeland Security Technology
Apparatus Manufacturing

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of competition reduces transparency in pricing.
Dependence on a single vendor for critical security equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.3 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. DELIVERY ORDER FOR 17 MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS

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 $20.3 million.

What is the period of performance?

Start: 2024-09-27. End: 2027-09-26.

What is the specific technological advantage of the Leidos explosive detection systems being procured?

The provided data does not detail the specific technological advantages of the 17 medium-speed explosive detection systems being procured from Leidos. However, given the context of the Transportation Security Administration (TSA) and the 'Irradiation Apparatus Manufacturing' classification, these systems likely employ advanced sensing technologies, potentially including X-ray, computed tomography (CT), or other forms of radiation-based detection. The 'medium-speed' designation suggests a balance between detection capability and throughput, crucial for screening at transportation hubs. Further details on the system's detection limits, speed, and specific threat capabilities would be found in the technical specifications of the contract, which are not publicly available in this summary.

Why was this contract awarded on a sole-source basis instead of being competed?

The contract was awarded on a sole-source basis, as indicated by 'CT: NOT COMPETED'. This typically occurs when the government determines that only one responsible source is available or capable of providing the required goods or services. Reasons can include proprietary technology, unique capabilities, urgent and compelling needs where competition is not feasible, or if it's a follow-on effort to a previously competed contract where the original contractor is the only viable option. Without further details on the specific justification for the sole-source award, it's presumed that Leidos possesses unique qualifications or technology essential for these specific explosive detection systems, making competition impractical or impossible for this particular requirement.

What is the historical spending pattern for similar explosive detection systems by the TSA or DHS?

Historical spending data for similar explosive detection systems by the TSA or DHS is not directly available in the provided summary. However, the TSA has a continuous need for advanced screening technologies to counter evolving threats. Past procurements would likely show a pattern of investing in various detection modalities, including trace detection, millimeter wave, and CT scanners. The total value of such procurements can fluctuate significantly based on technological advancements, threat assessments, and budget allocations. Analyzing historical contract awards for 'Explosive Detection Systems' or related PSC codes within DHS and TSA would reveal trends in spending, vendor landscape, and the evolution of required system capabilities over time.

What are the performance expectations and key performance indicators (KPIs) for these detection systems?

The provided data does not specify the performance expectations or Key Performance Indicators (KPIs) for these 17 medium-speed explosive detection systems. Typically, for such critical security equipment, KPIs would focus on detection rates (e.g., probability of detection for specific threat types), false alarm rates, system throughput (e.g., passengers or bags per hour), reliability (e.g., mean time between failures), and maintainability. The contract's statement of work (SOW) and any associated performance clauses would detail these requirements. The TSA would monitor these KPIs throughout the contract period to ensure the systems are meeting operational needs and security standards.

What is the potential impact of this contract on the broader market for explosive detection technology?

This sole-source award of $20.3 million for 17 systems to Leidos could have a mixed impact on the broader market for explosive detection technology. On one hand, it solidifies Leidos's position as a key provider in this niche, potentially allowing them to further refine their technology and manufacturing processes. On the other hand, the lack of competition for this specific procurement means that other vendors in the market do not have an opportunity to demonstrate their capabilities or compete for this particular contract. This could potentially stifle innovation or market entry for competitors if sole-source awards become a common practice for such critical systems, limiting the government's access to a wider range of solutions and price points.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70T04024Q7672N015

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,329,500

Exercised Options: $20,329,500

Current Obligation: $20,329,500

Actual Outlays: $3,975,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70T04019D9CAP1049

IDV Type: IDC

Timeline