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

Positive Signals

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

Risk Flags

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: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingIrradiation 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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