Leidos awarded $26.1M for corrective maintenance, a sole-source contract for security detection systems

Contract Overview

Contract Amount: $26,132,600 ($26.1M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-17

End Date: 2008-03-10

Contract Duration: 175 days

Daily Burn Rate: $149.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: CORRECTIVE MAINTENANCE FOR OCTOBER 2007

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33702

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.1 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: CORRECTIVE MAINTENANCE FOR OCTOBER 2007 Key points: 1. Contract awarded for corrective maintenance of security detection systems. 2. Sole-source award indicates limited competition for specialized services. 3. Contract duration of 175 days suggests a focused, short-term need. 4. The award was made by the Department of Homeland Security. 5. The Transportation Security Administration is the primary beneficiary. 6. The contract value is approximately $26.1 million. 7. The contract was awarded in September 2007. 8. The contract was for services in Florida.

Value Assessment

Rating: fair

The contract value of $26.1 million for corrective maintenance over approximately six months appears substantial. Without specific details on the scope of work or the number of systems maintained, it is difficult to benchmark the value effectively. However, given the sole-source nature, there is a potential risk of overpayment compared to a competitively bid scenario. Further analysis would require understanding the specific maintenance tasks and the criticality of the systems involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Leidos Security Detection & Automation, Inc., was solicited. This approach is typically used when there are unique capabilities or proprietary technology involved, or in cases of urgent and compelling need where competition is not feasible. The lack of competition limits price discovery and may result in a higher cost to the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The government did not benefit from the potential cost savings that typically arise from multiple vendors vying for a contract.

Public Impact

The Transportation Security Administration benefits from the maintenance of critical security detection equipment. Passengers at airports in Florida may experience improved security screening due to functional equipment. The contract supports specialized technical services related to security technology. The contract ensures the operational readiness of security infrastructure at key transportation hubs.

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 and support of specialized security detection and automation equipment. The market for such services is often characterized by a limited number of highly specialized providers due to the technical expertise and proprietary nature of the technology. Government spending in this area is crucial for national security and public safety, particularly within transportation hubs.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized technology involved, it is unlikely that significant subcontracting opportunities would be directed towards small businesses unless Leidos Security Detection & Automation, Inc. voluntarily engages them for specific support services.

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 award. Accountability would be measured by the successful performance of corrective maintenance as per the contract's terms and conditions. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Risk Flags

Tags

other, department-of-homeland-security, transportation-security-administration, leidos-security-detection-automation-inc, corrective-maintenance, security-detection-systems, sole-source, engineering-services, florida, 2007, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.1 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. CORRECTIVE MAINTENANCE FOR OCTOBER 2007

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 $26.1 million.

What is the period of performance?

Start: 2007-09-17. End: 2008-03-10.

What specific security detection systems were covered under this corrective maintenance contract?

The provided data does not specify the exact models or types of security detection systems that required corrective maintenance. However, given the contractor, Leidos Security Detection & Automation, Inc. (formerly part of Lockheed Martin's Information Systems & Global Solutions business), it is highly probable that the contract covered advanced screening technologies such as baggage scanners (e.g., EDS, CT scanners), explosive detection systems, and potentially other automated security checkpoints. The 'CORRECTIVE MAINTENANCE FOR OCTOBER 2007' description suggests a focus on addressing existing malfunctions or performance issues rather than routine preventative upkeep.

What was the justification for awarding this contract on a sole-source basis?

The specific justification for this sole-source award is not detailed in the provided data. Typically, sole-source awards are justified under circumstances such as: (1) the property or services were available only from a single responsible source; (2) the public exigency would not permit a competitive solicitation; or (3) the agency head determines that it is not in the public interest to use competitive procedures. For specialized security equipment, it's common that only the original manufacturer or a designated service provider possesses the necessary technical expertise, proprietary data, or parts to perform effective corrective maintenance, thus limiting competition.

How does the $26.1 million contract value compare to typical spending on corrective maintenance for similar security systems?

Benchmarking the $26.1 million contract value for corrective maintenance is challenging without more granular data on the scope of work, the number and type of systems maintained, and the contract duration. However, for a period of approximately six months (September 2007 to March 2008), this represents a significant investment. If this contract covered a large fleet of advanced security screening equipment across multiple airports, the cost might be justifiable. Conversely, if it covered a smaller number of systems or less complex maintenance, it could indicate a higher-than-average cost per system or per maintenance action, especially given the sole-source nature which typically inflates prices.

What is Leidos Security Detection & Automation, Inc.'s track record with the TSA and DHS for similar services?

Leidos, through its various acquisitions and divisions, has a long-standing history of providing security technology and services to the Department of Homeland Security (DHS) and its components, including the Transportation Security Administration (TSA). They have been involved in the development, manufacturing, and maintenance of various screening technologies used at airports. Their track record generally includes fulfilling large-scale contracts for security equipment and associated support. However, specific performance metrics or past issues related to corrective maintenance for the systems covered under this particular 2007 contract would require deeper historical contract data analysis.

What were the potential risks associated with this sole-source contract for corrective maintenance?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not have secured the most cost-effective solution. Another risk is vendor lock-in, where the government becomes dependent on a single provider for critical maintenance, potentially limiting future flexibility and negotiation power. Furthermore, if the contractor's performance was subpar, the government had limited recourse to quickly switch to a more capable provider, potentially impacting the operational readiness of security systems.

What is the historical spending trend for corrective maintenance of security detection systems by the TSA?

The provided data only includes a single contract award from 2007. To assess historical spending trends for corrective maintenance of security detection systems by the TSA, a comprehensive analysis of contract awards over multiple years would be necessary. This would involve examining spending patterns, the prevalence of sole-source versus competitive awards, average contract values, and the types of systems being maintained. Without this broader dataset, it is impossible to determine if the $26.1 million award in 2007 represents a typical, high, or low point in TSA's spending for such services.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

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: $26,132,600

Exercised Options: $26,132,600

Current Obligation: $26,132,600

Parent Contract

Parent Award PIID: HSTS0405DDEP009

IDV Type: IDC

Timeline

Start Date: 2007-09-17

Current End Date: 2008-03-10

Potential End Date: 2008-03-10 00:00:00

Last Modified: 2010-11-15

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