DHS awards $33.2M for L-3 Communications Explosives Detection Systems to Leidos
Contract Overview
Contract Amount: $33,168,551 ($33.2M)
Contractor: Leidos Security Detection & Automation, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2007-06-28
End Date: 2011-05-23
Contract Duration: 1,425 days
Daily Burn Rate: $23.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TO ORDER 32 INTEGRATED AN-6600 EXPLOSIVES DETECTION SYSTEMS (EDS) WITH DETECTION ALGORITHM SOFTWARE VERSION 65.3, POWERED 1-METER WIDE ENTRANCE TUNNELS, POWERED EXIT CONVEYOR TUNNELS AND BAGGAGE VIEWING STATIONS MANUFACTURED BY L-3 COMMUNICATIONS.
Place of Performance
Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33702
State: Florida Government Spending
Plain-Language Summary
Department of Homeland Security obligated $33.2 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: TO ORDER 32 INTEGRATED AN-6600 EXPLOSIVES DETECTION SYSTEMS (EDS) WITH DETECTION ALGORITHM SOFTWARE VERSION 65.3, POWERED 1-METER WIDE ENTRANCE TUNNELS, POWERED EXIT CONVEYOR TUNNELS AND BAGGAGE VIEWING STATIONS MANUFACTURED BY L-3 COMMUNICATIONS. Key points: 1. High value contract for specialized security equipment. 2. Sole-source award to Leidos, formerly L-3 Communications. 3. Significant risk due to lack of competition and potential for price inflation. 4. IT/Security sector with a focus on transportation security.
Value Assessment
Rating: questionable
The contract value of $33.2 million for 32 systems appears high given the sole-source nature. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar systems or if it includes a premium.
Cost Per Unit: $1,036,517 per system
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition in this sole-source award raises concerns about the efficient use of taxpayer funds, potentially leading to overpayment for the equipment.
Public Impact
Enhances airport security by providing advanced explosives detection. Ensures compliance with federal aviation security mandates. Potential for increased costs to taxpayers due to sole-source procurement. Impacts the efficiency of baggage screening processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for price inflation
- Limited transparency in pricing
Positive Signals
- Acquisition of critical security technology
- Addresses specific national security needs
Sector Analysis
This contract falls within the Information Technology and Security sector, specifically focusing on transportation security equipment. Benchmarks for similar integrated detection systems are difficult to establish due to the sole-source nature of this award.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both the prime contractor (Leidos) and the original manufacturer (L-3 Communications) are large corporations. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the government received fair value. Accountability for the pricing and justification for the lack of competition should be thoroughly reviewed.
Related Government Programs
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to no competition.
- Limited transparency on pricing justification.
- No small business participation indicated.
- Contract duration is lengthy (1425 days).
Tags
department-of-homeland-security, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $33.2 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. TO ORDER 32 INTEGRATED AN-6600 EXPLOSIVES DETECTION SYSTEMS (EDS) WITH DETECTION ALGORITHM SOFTWARE VERSION 65.3, POWERED 1-METER WIDE ENTRANCE TUNNELS, POWERED EXIT CONVEYOR TUNNELS AND BAGGAGE VIEWING STATIONS MANUFACTURED BY L-3 COMMUNICATIONS.
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 $33.2 million.
What is the period of performance?
Start: 2007-06-28. End: 2011-05-23.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions or competitive procurements ever considered?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would be needed to understand the specific justification, such as proprietary technology or unique capabilities of the L-3 system. Without this, it's impossible to definitively say if alternatives were considered or if this was the only viable option.
How does the per-unit cost of $1,036,517 compare to similar explosives detection systems procured competitively by other government agencies or in the private sector?
Without access to a broader market analysis or data on competitively procured, similar systems, a direct comparison is challenging. However, given the sole-source nature, this per-unit cost is likely higher than what could be achieved through competitive bidding. Further research into industry benchmarks is recommended.
What is the expected lifespan and maintenance cost of these AN-6600 EDS systems, and how do these factors contribute to the overall value proposition?
The provided data does not include information on the expected lifespan or ongoing maintenance costs for the AN-6600 EDS systems. This information is crucial for a comprehensive value assessment, as high initial purchase prices can be offset by long service life and reasonable upkeep, or exacerbated by short lifespans and expensive maintenance.
Competition & Pricing
Extent Competed: NOT COMPETED
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: $33,168,551
Exercised Options: $33,168,551
Current Obligation: $33,168,551
Parent Contract
Parent Award PIID: DTSA2003D00928
IDV Type: IDC
Timeline
Start Date: 2007-06-28
Current End Date: 2011-05-23
Potential End Date: 2011-05-23 00:00:00
Last Modified: 2011-05-23
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