Leidos awarded $30M for TSA security equipment logistics support, a sole-source contract
Contract Overview
Contract Amount: $29,978,711 ($30.0M)
Contractor: Leidos Security Detection & Automation, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2006-03-10
End Date: 2006-09-30
Contract Duration: 204 days
Daily Burn Rate: $147.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LOGISTICS SUPPORT PROGRAM TO SUSTAIN THE SECURITY EQUIPMENT DEPLOYED AND UTILIZED BY TSA
Place of Performance
Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33702
State: Florida Government Spending
Plain-Language Summary
Department of Homeland Security obligated $30.0 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: LOGISTICS SUPPORT PROGRAM TO SUSTAIN THE SECURITY EQUIPMENT DEPLOYED AND UTILIZED BY TSA Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. The contract covers logistics support for existing security equipment, indicating a focus on sustainment rather than new technology. 3. A firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns. 4. The contract duration of 204 days is relatively short, suggesting a specific, time-bound need. 5. The award was made by the Department of Homeland Security, Transportation Security Administration. 6. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The $30 million award for a 204-day logistics support program for security equipment appears substantial. Without comparable sole-source contracts or market research data, it's difficult to definitively assess if this represents a fair price. The absence of competition limits the government's ability to leverage market forces for cost savings.
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 responsible source is available or when a compelling justification for other than full and open competition exists. The lack of competition means that multiple bidders were not considered, which can limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. The government did not have the opportunity to solicit and evaluate multiple offers, which is a standard mechanism for ensuring cost-effectiveness.
Public Impact
The primary beneficiaries are the Transportation Security Administration (TSA) and its operational security equipment. The services delivered include logistics support, crucial for maintaining the functionality of deployed security equipment. The geographic impact is likely focused on locations where TSA security equipment is deployed and requires logistical maintenance. Workforce implications may involve specialized logistics and technical personnel required to support the security equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Lack of transparency in the justification for sole-source procurement.
- Potential for cost inefficiencies without competitive pressure.
Positive Signals
- Contract awarded to a known entity (Leidos), potentially indicating familiarity with their capabilities.
- Firm-fixed-price contract shifts cost risk to the contractor.
- Focus on sustainment of existing equipment aligns with operational needs.
Sector Analysis
The contract falls within the Engineering Services sector (NAICS 541330), specifically related to logistics and sustainment of specialized security equipment. The market for such services is often characterized by a few large, specialized contractors capable of meeting stringent government requirements. Benchmarking against similar logistics support contracts for critical infrastructure or security systems would provide further context, but these are often sensitive and not publicly detailed.
Small Business Impact
This contract does not appear to have a small business set-aside component. As a sole-source award to a large prime contractor, it is unlikely to directly benefit small businesses through subcontracting opportunities unless explicitly mandated or pursued by the prime. The impact on the small business ecosystem is minimal in this specific award.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and contract management processes. Transparency is limited due to the sole-source nature of the award. Accountability measures would be defined in the contract's terms and conditions, with potential oversight from the DHS Office of Inspector General if performance issues or fraud are suspected.
Related Government Programs
- TSA Security Equipment Maintenance
- DHS Logistics and Sustainment Contracts
- Federal Engineering Services Procurement
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Limited transparency on justification
Tags
logistics-support, security-equipment, tsa, department-of-homeland-security, leidos-security-detection-automation-inc, sole-source, firm-fixed-price, engineering-services, transportation, florida, sustainment
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $30.0 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. LOGISTICS SUPPORT PROGRAM TO SUSTAIN THE SECURITY EQUIPMENT DEPLOYED AND UTILIZED BY TSA
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 $30.0 million.
What is the period of performance?
Start: 2006-03-10. End: 2006-09-30.
What is the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a justification, such as the existence of only one responsible source capable of providing the required services, or a national security emergency. Without access to the contract's justification document, the specific reasons remain unknown. This lack of competition limits the government's ability to ensure it is obtaining the best value through a competitive process, potentially leading to higher costs for taxpayers.
How does the $30 million value compare to similar logistics support contracts for security equipment?
Direct comparison is difficult without access to a database of similar sole-source or competed contracts for TSA security equipment logistics. However, $30 million for approximately seven months of support (March 10, 2006, to September 30, 2006) represents a significant daily expenditure. The absence of competition means this figure was not validated against market rates or alternative providers, making it hard to assess value for money. Further analysis would require benchmarking against contracts for similar equipment sustainment across federal agencies or within the private sector, considering the specialized nature of TSA's security technology.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, logistics support contracts would include metrics related to response times for maintenance, equipment uptime, parts availability, and successful repair rates. The firm-fixed-price nature suggests that the contractor is responsible for meeting certain performance standards to achieve the agreed-upon price. Without these details, it's challenging to objectively assess the contractor's performance and the overall effectiveness of the logistics support provided.
What is Leidos Security Detection & Automation, Inc.'s track record with TSA or similar agencies for logistics support?
Leidos Security Detection & Automation, Inc. (and its predecessors/related entities) has a history of providing security technology and related services to government agencies, including TSA. Their track record would typically be assessed through past performance evaluations during any competitive procurement process. For sole-source awards, the justification often relies on the contractor's existing relationship, specialized knowledge, or unique capabilities. A review of past performance reviews and any prior contracts with TSA would offer insight into their reliability and effectiveness in fulfilling similar logistics support roles.
What is the historical spending pattern for logistics support of TSA security equipment?
The provided data only includes a single award for $30 million ending in September 2006. To understand historical spending patterns, one would need to examine contract awards over multiple years for the same or similar services. This would involve searching federal procurement databases for contracts related to TSA security equipment logistics, maintenance, and sustainment. Analyzing trends in spending, contract types (competed vs. sole-source), and award values over time would reveal patterns and potential changes in procurement strategies or needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $234,122,891
Exercised Options: $66,804,471
Current Obligation: $29,978,711
Parent Contract
Parent Award PIID: HSTS0405DDEP009
IDV Type: IDC
Timeline
Start Date: 2006-03-10
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2010-03-22
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