DHS awards $13M for explosive detection systems to Leidos, citing limited competition
Contract Overview
Contract Amount: $12,993,311 ($13.0M)
Contractor: Leidos Security Detection & Automation, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-09-22
End Date: 2028-09-21
Contract Duration: 1,095 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO SUPPORT THE PROVISION OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (MSEDS)AND REDUCED SPEED EXPLOSIVE DETECTION SYSTEMS(RSEDS),INSTALLATION SERVICES, AND ANCILLARY EQUIPMENT.
Place of Performance
Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $13.0 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO SUPPORT THE PROVISION OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (MSEDS)AND REDUCED SPEED EXPLOSIVE DETECTION SYSTEMS(RSEDS),INSTALLATION SERVICES, AND ANCILLARY EQUIPMENT. Key points: 1. Spending focuses on critical security equipment for transportation. 2. Leidos is the sole awardee, raising questions about competition. 3. The contract duration of nearly 4 years suggests a significant need. 4. The sector is vital for national security and public safety.
Value Assessment
Rating: fair
The contract value of $12,993,310.52 for a 4-year period appears reasonable for specialized security equipment. However, without competitive bids, it's difficult to definitively assess if this represents the best value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to higher spending than necessary, impacting taxpayer funds.
Public Impact
Enhanced security at transportation hubs through advanced explosive detection. Potential for increased efficiency in screening processes. Ensures continued operation of vital security infrastructure. Impacts travelers and cargo security nationwide.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Supports critical national security function
- Procurement of advanced technology
Sector Analysis
This contract falls within the 'Irradiation Apparatus Manufacturing' sector, specifically for security detection systems. Benchmarks for similar specialized security equipment contracts are not readily available, but the value is significant for this niche.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. The Transportation Security Administration should document the justification for not competing this requirement.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- No small business participation identified.
- Long contract duration requires careful performance monitoring.
Tags
irradiation-apparatus-manufacturing, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $13.0 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. THE PURPOSE OF THIS DELIVERY ORDER IS TO SUPPORT THE PROVISION OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (MSEDS)AND REDUCED SPEED EXPLOSIVE DETECTION SYSTEMS(RSEDS),INSTALLATION SERVICES, AND ANCILLARY EQUIPMENT.
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 $13.0 million.
What is the period of performance?
Start: 2025-09-22. End: 2028-09-21.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The TSA would need to provide documentation demonstrating why only Leidos could fulfill this requirement and how they validated the pricing as fair and reasonable in the absence of competitive bids. This might involve market research or comparison to similar, previously awarded contracts.
What are the specific performance metrics and deliverables for the MSEDS and RSEDS systems, and how will their effectiveness be measured?
Performance metrics would likely include detection rates, false alarm rates, system reliability, and uptime. The contract should clearly define these requirements and the methods for measuring them. Regular reporting and testing by the TSA would be crucial to ensure the systems meet operational needs and provide effective security.
Are there any plans to transition to a competitive procurement for future needs of these detection systems to ensure better value?
Given the significant investment and duration of this contract, it is prudent for the TSA to evaluate the market for future procurements. Developing a strategy that includes market research and potentially breaking down requirements to encourage broader competition could lead to cost savings and access to innovative solutions.
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
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: $12,993,311
Exercised Options: $12,993,311
Current Obligation: $12,993,311
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $310,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70T04025D7672N001
IDV Type: IDC
Timeline
Start Date: 2025-09-22
Current End Date: 2028-09-21
Potential End Date: 2028-09-21 00:00:00
Last Modified: 2025-11-13
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