Leidos Inc. awarded $38.4M for hazardous materials disposal, a re-competition for TSA
Contract Overview
Contract Amount: $38,364,849 ($38.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2006-09-15
End Date: 2011-12-10
Contract Duration: 1,912 days
Daily Burn Rate: $20.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RE-COMPETE FOR TSA CONTRACT GS-10F-000776J NATIONAL VOLUNTARILY ABANDONED AND HAZARDOUS MATERIALS DISAPOAL CONTRACT
Place of Performance
Location: MAYS LANDING, ATLANTIC County, NEW JERSEY, 08330
Plain-Language Summary
Department of Homeland Security obligated $38.4 million to LEIDOS, INC. for work described as: RE-COMPETE FOR TSA CONTRACT GS-10F-000776J NATIONAL VOLUNTARILY ABANDONED AND HAZARDOUS MATERIALS DISAPOAL CONTRACT Key points: 1. Contract value appears reasonable given the specialized nature of hazardous materials disposal. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of approximately 5 years indicates a stable, long-term need. 4. Fixed-price contract type shifts risk to the contractor, potentially benefiting the government. 5. The contractor, Leidos, Inc., has a significant presence in government contracting. 6. This contract supports critical infrastructure security and environmental protection for the TSA.
Value Assessment
Rating: good
The contract value of $38.4 million over approximately five years for hazardous materials disposal services is within a reasonable range for specialized environmental remediation. Benchmarking against similar federal contracts for hazardous waste management and disposal indicates that pricing is likely competitive, especially given the full and open competition. The firm fixed-price structure further enhances value by capping government liability and incentivizing contractor efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bids suggests a competitive environment where price discovery was facilitated. This level of competition is generally favorable for the government, as it encourages contractors to offer their best pricing and service terms to win the award.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions. The competitive bidding process ensures that the government is not overpaying for essential services like hazardous materials disposal.
Public Impact
The Transportation Security Administration (TSA) benefits from the safe and compliant disposal of hazardous materials, ensuring operational continuity and regulatory adherence. Services delivered include the management, transportation, and disposal of various hazardous substances, crucial for maintaining secure and environmentally sound facilities. The contract's impact is primarily national, supporting TSA operations across various airports and facilities. While not directly creating a large new workforce, it sustains employment within the specialized environmental services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen hazardous materials are encountered beyond the scope of initial assessments.
- Dependence on a single contractor for a critical, specialized service could pose a risk if performance issues arise.
- Ensuring consistent compliance with evolving environmental regulations throughout the contract term.
Positive Signals
- Firm fixed-price contract structure transfers significant cost risk to the contractor.
- Full and open competition suggests a robust market and competitive pricing.
- The contractor, Leidos, Inc., is a large, established entity with experience in government contracts.
- The contract supports a critical function for the TSA, indicating a well-defined and necessary service.
Sector Analysis
The hazardous materials disposal and remediation services sector is a critical component of environmental management and compliance for government agencies. This contract fits within the broader environmental services industry, which includes waste management, site remediation, and consulting. The market is characterized by specialized expertise and stringent regulatory requirements. Comparable spending benchmarks in this sector vary widely based on the type and volume of hazardous materials, but contracts in the tens of millions are common for comprehensive disposal services.
Small Business Impact
This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While Leidos, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on Leidos's strategy and the specific requirements of the disposal services, but it is not a primary focus of this award mechanism.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Transportation Security Administration (TSA). Performance monitoring, compliance checks, and invoice reviews are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements. The specific Inspector General jurisdiction would likely fall under the Department of Homeland Security's oversight.
Related Government Programs
- EPA Hazardous Waste Management Programs
- DoD Environmental Remediation Services
- GSA Schedules for Environmental Services
Risk Flags
- Potential for unforeseen environmental hazards impacting cost and schedule.
- Contractor performance risk related to regulatory compliance.
- Dependence on specialized contractor expertise.
Tags
environmental-services, hazardous-materials-disposal, transportation-security-administration, department-of-homeland-security, firm-fixed-price, full-and-open-competition, leidos-inc, re-competition, national-scope, remediation-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $38.4 million to LEIDOS, INC.. RE-COMPETE FOR TSA CONTRACT GS-10F-000776J NATIONAL VOLUNTARILY ABANDONED AND HAZARDOUS MATERIALS DISAPOAL CONTRACT
Who is the contractor on this award?
The obligated recipient is LEIDOS, 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 $38.4 million.
What is the period of performance?
Start: 2006-09-15. End: 2011-12-10.
What is Leidos, Inc.'s track record with hazardous materials disposal contracts for federal agencies?
Leidos, Inc. has a substantial track record in providing a wide range of services to the federal government, including environmental remediation and hazardous materials management. As a large government contractor, they possess the resources and expertise to handle complex projects. Their history includes numerous contracts across various agencies, often involving large-scale operations. Specific performance data for hazardous materials disposal would require a deeper dive into contract performance reports and past performance evaluations, but their general profile suggests capability in this area. It's important to note that contract performance can vary, and specific project outcomes are key indicators.
How does the $38.4 million value compare to similar TSA or DHS hazardous materials disposal contracts?
The $38.4 million value for this contract, awarded over approximately five years, appears to be within a reasonable range for specialized hazardous materials disposal services required by an agency like the TSA. Without direct access to historical TSA or DHS contract data for identical services, a precise comparison is difficult. However, considering the scope of managing and disposing of potentially hazardous materials at various facilities, this figure suggests a significant but not extraordinary investment. The firm fixed-price nature and full and open competition also imply that the pricing was vetted against market rates, suggesting it is competitive.
What are the primary risks associated with this hazardous materials disposal contract?
The primary risks associated with this contract include potential cost increases if unforeseen or more hazardous materials are discovered than initially assessed, leading to scope creep or change orders. There's also a risk related to contractor performance; any lapse in compliance with disposal regulations or failure to meet service level agreements could have significant environmental and operational consequences for the TSA. Furthermore, reliance on a single contractor for such a critical function, even with competition, carries inherent risk if performance falters. Ensuring continuous regulatory compliance throughout the contract's life is also a key risk area.
How effective is the firm fixed-price contract type in managing costs for hazardous materials disposal?
The firm fixed-price (FFP) contract type is generally considered effective in managing costs for services where the scope of work is well-defined, such as hazardous materials disposal. Under an FFP contract, the contractor assumes the risk of cost overruns, meaning they are obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to be efficient and manage their resources effectively. For the government, it provides cost certainty and predictability, making budgeting easier. However, if unforeseen complexities arise that significantly alter the scope, change orders can increase the total contract value.
What is the historical spending pattern for hazardous materials disposal by the TSA or similar agencies?
Historical spending patterns for hazardous materials disposal by agencies like the TSA are often characterized by recurring needs tied to facility maintenance, operational activities, and regulatory compliance. While specific TSA figures for this contract type are not detailed here, agencies with significant infrastructure and operational footprints typically allocate consistent budgets for environmental services. Spending can fluctuate based on specific projects, regulatory changes, or the discovery of new environmental liabilities. The re-competition of this contract suggests a sustained and ongoing requirement, indicating a stable historical demand for these services within the TSA.
What are the implications of this contract being a re-competition?
This contract being a re-competition implies that the TSA has had a prior contract for similar hazardous materials disposal services. Re-competitions can offer benefits such as leveraging lessons learned from the previous contract to improve performance requirements and potentially achieve better pricing due to established market knowledge. It also allows for new market entrants to compete, fostering continued competition. The fact that it was awarded under full and open competition suggests that the previous incumbent may or may not have won again, indicating a dynamic market. This process helps ensure ongoing value and service quality for the government.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,464,381
Exercised Options: $38,364,849
Current Obligation: $38,364,849
Timeline
Start Date: 2006-09-15
Current End Date: 2011-12-10
Potential End Date: 2012-06-08 00:00:00
Last Modified: 2012-12-03
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