Leidos Inc. awarded $163M for 'Other Function' Equipment Maintenance and Support by DHS
Contract Overview
Contract Amount: $163,221,184 ($163.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2016-09-01
End Date: 2022-09-28
Contract Duration: 2,218 days
Daily Burn Rate: $73.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF "OTHER FUNCTION" EQUIPMENT MAINTENANCE AND SUPPORT
Place of Performance
Location: LORTON, FAIRFAX County, VIRGINIA, 22079
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $163.2 million to LEIDOS, INC. for work described as: IGF::OT::IGF "OTHER FUNCTION" EQUIPMENT MAINTENANCE AND SUPPORT Key points: 1. Contract awarded to a single vendor, raising questions about competition and potential cost savings. 2. The contract's duration of over 6 years suggests a long-term need for these services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving needs. 4. The 'Other Function' categorization lacks specificity, making direct performance benchmarking difficult. 5. High dollar value indicates significant reliance on this contractor for critical support functions.
Value Assessment
Rating: fair
The contract's value of $163 million over approximately 6 years represents a substantial investment. Without specific details on the 'other function' equipment, a direct comparison to similar contracts is challenging. However, the lack of competition suggests potential for higher-than-market pricing. Benchmarking value would require understanding the specific equipment supported and industry standards for its maintenance and support.
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 can provide the required goods or services, often due to proprietary technology, unique expertise, or urgent needs. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates robust internal oversight to ensure fair pricing and value.
Public Impact
U.S. Customs and Border Protection (CBP) personnel benefit from the continued operational readiness of critical equipment. Services ensure the functionality of unspecified 'other function' equipment essential for border security operations. The contract supports operations primarily within Virginia, where the contractor is located. Workforce implications are likely concentrated within Leidos, Inc., potentially involving specialized technical personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated costs for taxpayers.
- The 'other function' designation obscures the specific nature of the equipment and services, hindering transparency.
- Long contract duration without competitive re-evaluation could reduce incentives for cost efficiency over time.
Positive Signals
- The fixed-price nature of the contract provides cost predictability for the agency.
- Award to an established contractor like Leidos, Inc. may indicate a level of trust and proven capability.
- The contract ensures continued support for potentially critical, albeit unspecified, operational equipment.
Sector Analysis
The North American Industry Classification System (NAICS) code 334511 covers Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. This contract falls within the broader defense and security technology sector, which is characterized by high R&D investment and specialized manufacturing. Spending in this sector is often driven by national security requirements and technological advancements. Comparable spending benchmarks are difficult to establish without knowing the specific equipment category.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like Leidos, Inc. suggests that small business participation is unlikely unless proactively sought by the prime. This could limit opportunities for small businesses within the federal contracting ecosystem for this specific requirement.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. As a sole-source award, scrutiny on pricing and performance justification is crucial. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is limited due to the lack of public detail regarding the specific equipment and services.
Related Government Programs
- Department of Homeland Security - Other Equipment Maintenance
- CBP - Search, Detection, Navigation, Guidance Systems
- Federal Sole-Source Contracts
- Leidos Inc. - Government Contracts
Risk Flags
- Sole-source award
- Lack of specificity in contract description ('other function')
- Long contract duration
Tags
dhs, customs-and-border-protection, leidos-inc, maintenance-and-support, sole-source, definitive-contract, firm-fixed-price, equipment, virginia, naics-334511, homeland-security, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $163.2 million to LEIDOS, INC.. IGF::OT::IGF "OTHER FUNCTION" EQUIPMENT MAINTENANCE AND SUPPORT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $163.2 million.
What is the period of performance?
Start: 2016-09-01. End: 2022-09-28.
What specific 'other function' equipment does this contract cover, and what is its operational importance to CBP?
The provided data does not specify the 'other function' equipment covered by this contract. The NAICS code 334511 relates to the manufacturing of search, detection, navigation, guidance, aeronautical, and nautical systems and instruments. Given the agency is U.S. Customs and Border Protection (CBP), this equipment could range from sensors and surveillance systems to communication devices or specialized operational tools. Its operational importance is implied by the substantial contract value and duration, suggesting it is critical for CBP's mission, likely related to border security, interdiction, or law enforcement operations. Without further details, the exact nature and criticality remain speculative.
How does the $163 million contract value compare to similar maintenance and support contracts for specialized equipment within DHS or similar agencies?
Direct comparison is challenging due to the 'other function' designation, which lacks specificity. However, for complex systems and instruments within the defense and security sector (NAICS 334511), multi-year maintenance contracts can easily reach tens or hundreds of millions of dollars, especially for systems deployed in large numbers or critical operational environments. For instance, contracts for radar systems, advanced sensor suites, or communication networks often fall within this range. The $163 million figure over approximately 6 years ($27M/year) is substantial but not necessarily an outlier for specialized, high-tech equipment maintenance in a large federal agency like DHS, particularly if it involves proprietary technology or extensive support infrastructure.
What are the primary risks associated with a sole-source award of this magnitude and duration?
The primary risks associated with a sole-source award of this magnitude ($163M over ~6 years) include: 1. **Cost Overruns/Lack of Value:** Without competition, there's a reduced incentive for the contractor to offer the lowest possible price, potentially leading to taxpayers paying more than necessary. 2. **Vendor Lock-in:** The agency becomes heavily reliant on a single provider, making it difficult and costly to switch vendors in the future, even if performance or pricing becomes unsatisfactory. 3. **Stifled Innovation:** The lack of competitive pressure may reduce the contractor's motivation to innovate or improve services. 4. **Reduced Transparency:** Sole-source justifications can sometimes obscure the true necessity or cost-effectiveness of the requirement. 5. **Performance Issues:** If the sole provider experiences financial difficulties or operational challenges, it could severely disrupt critical government functions.
What is Leidos, Inc.'s track record with similar federal contracts, particularly within DHS?
Leidos, Inc. is a major government contractor with a significant presence across various federal agencies, including the Department of Homeland Security (DHS). They have a history of performing large-scale contracts related to IT services, systems engineering, logistics, and mission support. While specific details on their performance for this particular 'other function' equipment maintenance contract are not provided, Leidos generally has a substantial portfolio of work with DHS, often involving complex technological solutions and operational support. Their track record typically includes managing large programs and delivering technical services. A deeper dive into contract performance databases and agency reports would be needed for a granular assessment of their specific performance history relevant to this contract.
How has federal spending on 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511) trended in recent years?
Federal spending under NAICS code 334511 has generally remained robust, driven by defense, national security, and homeland security requirements. Agencies like the Department of Defense, DHS, and NASA are significant purchasers of these types of systems and related support. Spending trends can fluctuate based on modernization programs, geopolitical events, and specific agency budget allocations. While overall trends might show stability or gradual increases, specific contract awards like this one represent a portion of that broader spending. Analyzing historical data from sources like FPDS or USAspending would reveal year-over-year spending patterns and identify major contract vehicles within this sector.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 2008-6708
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $172,154,842
Exercised Options: $163,494,485
Current Obligation: $163,221,184
Actual Outlays: $2,536,845
Subaward Activity
Number of Subawards: 127
Total Subaward Amount: $13,761,944
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-01
Current End Date: 2022-09-28
Potential End Date: 2022-09-28 09:40:39
Last Modified: 2025-12-09
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