Leidos Security Detection & Automation Inc. contract for EDS and Linescan equipment maintenance valued at $10.9M

Contract Overview

Contract Amount: $10,912,290 ($10.9M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-03-31

End Date: 2009-08-12

Contract Duration: 1,595 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PREVENTIVE AND CORRECTIVE MAINTENANCE FOR EDS AND LINESCAN EQUIPMENT

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33702

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.9 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: PREVENTIVE AND CORRECTIVE MAINTENANCE FOR EDS AND LINESCAN EQUIPMENT Key points: 1. Contract awarded for preventive and corrective maintenance of specialized security equipment. 2. The contract duration was 1595 days, spanning over four years. 3. Awarded as a sole-source contract, limiting competitive bidding. 4. The contract was firm-fixed-price, providing cost certainty for the government. 5. The equipment is critical for security screening operations. 6. The contract was managed by the Transportation Security Administration (TSA).

Value Assessment

Rating: fair

The contract value of $10.9 million for over four years of maintenance suggests a significant investment in specialized equipment. Without comparable sole-source contracts or detailed service level agreements, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure likely provided some cost predictability. The absence of competition, however, raises questions about whether the government secured the most competitive pricing possible for these essential maintenance services.

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. This typically occurs when only one vendor possesses the necessary expertise, technology, or authorization to perform the required services. The lack of competition means that pricing was not subject to market forces, potentially leading to higher costs for the government compared to a competitively bid contract.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium for goods or services, as there is no competitive pressure to drive down prices. This highlights the importance of rigorous justification for sole-source procurements.

Public Impact

Passengers and cargo screened at airports benefit from the reliable operation of EDS and Linescan equipment. The contract ensures the operational readiness of critical security infrastructure. Services were delivered across Florida, impacting security operations in that state. Maintenance personnel, likely skilled technicians, were employed to perform the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to the maintenance of specialized security detection equipment. The market for such maintenance is often niche, with a limited number of qualified providers due to proprietary technology or specific certifications required. The total federal spending on engineering services is substantial, but contracts for specialized security equipment maintenance represent a smaller, critical segment focused on national security infrastructure.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by 'sb': false. The prime contractor, Leidos Security Detection & Automation, Inc., is a large business. There is no information provided on subcontracting plans or their impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Department of Homeland Security, specifically the Transportation Security Administration. As a sole-source award, the justification and terms would have been subject to internal DHS review. Transparency regarding the specific oversight mechanisms and accountability measures for this particular contract is limited without access to the full contract file and associated documentation.

Related Government Programs

Risk Flags

Tags

engineering-services, homeland-security, transportation-security-administration, sole-source, firm-fixed-price, maintenance, security-equipment, florida, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.9 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. PREVENTIVE AND CORRECTIVE MAINTENANCE FOR EDS AND LINESCAN 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 $10.9 million.

What is the period of performance?

Start: 2005-03-31. End: 2009-08-12.

What is the track record of Leidos Security Detection & Automation, Inc. in providing maintenance for EDS and Linescan equipment?

Leidos Security Detection & Automation, Inc. has a significant history of providing security technology solutions, including maintenance services for various screening equipment. Their involvement with EDS (Explosives Detection Systems) and Linescan (imaging technology) suggests a specialized capability. While this specific contract was sole-sourced, indicating a unique position or necessity, Leidos's broader portfolio often includes large-scale government contracts. Assessing their track record would involve examining past performance reviews, on-time delivery rates, and responsiveness to issues on similar contracts, particularly those with federal agencies like DHS and TSA. The duration and value of this contract suggest a level of established performance, though the sole-source nature limits direct comparison of their competitive pricing against peers for this specific service.

How does the value of this contract compare to similar maintenance contracts for security screening equipment?

Comparing the $10.9 million value for approximately 4.3 years of maintenance for EDS and Linescan equipment requires context on the number and type of units maintained, service level agreements, and geographic coverage. Sole-source contracts inherently make direct value comparisons difficult as they bypass competitive bidding, which typically drives down prices. If this contract covered a large fleet of equipment across multiple high-traffic airports in Florida, the cost might be reasonable. However, without data on the scope of services, number of devices, and response times, it's challenging to benchmark against competitively procured contracts for similar, albeit potentially less specialized, screening equipment. The absence of competition suggests potential for higher unit costs than might be achieved in a more open market.

What are the primary risks associated with this sole-source maintenance contract?

The primary risks associated with this sole-source contract include potential overpricing due to the lack of competitive bidding, leading to reduced value for taxpayer money. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider for critical maintenance, potentially limiting future flexibility and negotiation power. Furthermore, without the pressure of competition, there might be less incentive for the contractor to innovate or provide exceptional service beyond the contract's minimum requirements. Ensuring robust oversight and performance monitoring becomes crucial to mitigate these risks and verify that the services rendered are both necessary and cost-effective.

How effective was this contract in ensuring the operational readiness of security screening equipment?

The effectiveness of this contract in ensuring operational readiness hinges on the contractor's performance in delivering preventive and corrective maintenance as stipulated. Given that the contract spanned over four years and was for essential maintenance of security equipment, its successful completion implies a contribution to the operational status of EDS and Linescan systems. However, a definitive assessment of effectiveness would require performance metrics such as equipment uptime percentages, response times to corrective maintenance requests, and the frequency of equipment failures during the contract period. Without these specific performance data points, we can infer a baseline level of effectiveness from the contract's execution, but cannot quantify it precisely.

What are the historical spending patterns for EDS and Linescan equipment maintenance by the TSA?

Historical spending patterns for EDS and Linescan equipment maintenance by the TSA are not detailed in the provided data. This specific contract, valued at $10.9 million over 1595 days (approx. 4.3 years), represents a portion of the TSA's overall budget for equipment maintenance. To understand broader patterns, one would need to analyze TSA's procurement history over multiple fiscal years, identifying trends in spending on similar equipment, the prevalence of sole-source versus competitive awards, and the average contract values. This analysis would reveal whether spending on this type of maintenance has been consistent, increasing, or decreasing, and how this particular contract fits within that larger financial picture.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTIONOTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: ACCOUNTS PAYABLE, SAINT PETERSBURG, FL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,912,290

Exercised Options: $10,912,290

Current Obligation: $10,912,290

Parent Contract

Parent Award PIID: HSTS0405DDEP009

IDV Type: IDC

Timeline

Start Date: 2005-03-31

Current End Date: 2009-08-12

Potential End Date: 2009-08-12 00:00:00

Last Modified: 2010-03-22

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