DHS awarded $41.4M for Examiner 6600 EDS systems, a sole-source procurement in FY08
Contract Overview
Contract Amount: $41,435,814 ($41.4M)
Contractor: Leidos Security Detection & Automation, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2008-06-26
End Date: 2011-07-27
Contract Duration: 1,126 days
Daily Burn Rate: $36.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: L-3 COMMUNICATIONS DTSA-20-03-D-00928 PROCUREMENT OF 42 EXAMINER 6600 EDS SYSTEMS AND ASSOCIATED UPS FY08 SPEND PLAN REQUIREMENT
Place of Performance
Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33702
State: Florida Government Spending
Plain-Language Summary
Department of Homeland Security obligated $41.4 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: L-3 COMMUNICATIONS DTSA-20-03-D-00928 PROCUREMENT OF 42 EXAMINER 6600 EDS SYSTEMS AND ASSOCIATED UPS FY08 SPEND PLAN REQUIREMENT Key points: 1. The contract value of $41.4 million represents a significant investment in security screening technology. 2. Sole-source procurement raises questions about potential overpayment and lack of competitive pressure. 3. The duration of the contract (over 3 years) suggests a long-term need for these systems. 4. The award to Leidos Security Detection & Automation, Inc. indicates a specific capability requirement. 5. The lack of competition may limit opportunities for other vendors and innovation. 6. The use of Firm Fixed Price contract type aims to control costs, but price discovery is limited without competition.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its sole-source nature and the specific nature of the equipment. Without competitive bids, it's difficult to ascertain if the $41.4 million price reflects fair market value. The 'DO' award type, often used for national defense or homeland security priorities, might justify a premium, but transparency on pricing justification is limited. Comparing this to similar procurements for advanced Explosive Detection Systems (EDS) would be necessary for a more robust value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Leidos Security Detection & Automation, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they inherently limit price discovery and can lead to higher costs for the government compared to a competed contract.
Taxpayer Impact: Taxpayers may have paid a premium for these systems due to the absence of competition. The government missed an opportunity to leverage market forces to secure the best possible price and terms.
Public Impact
Passengers and cargo screened at airports and other transportation hubs will benefit from enhanced security. The contract delivers 42 Examiner 6600 EDS systems, crucial for detecting explosives and other threats. The geographic impact is primarily within Florida, indicated by the 'ST' and 'SN' fields, suggesting deployment or support operations in that state. The procurement supports the Transportation Security Administration's (TSA) mission to ensure the security of the nation's transportation systems. This acquisition likely involves specialized technical personnel for installation, maintenance, and operation of the EDS equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
- Lack of transparency in the justification for sole-source procurement.
- Potential for vendor lock-in due to specialized equipment.
- Limited opportunities for small businesses to participate in this large sole-source contract.
- Contract duration of over three years may not align with rapidly evolving threat landscapes.
Positive Signals
- Procurement addresses a critical national security need for advanced threat detection.
- Firm Fixed Price contract type provides cost certainty once awarded.
- The specific system (Examiner 6600 EDS) is likely a proven technology for its intended purpose.
- Award to an established vendor suggests a degree of reliability and expertise.
Sector Analysis
The market for security screening technology, particularly Explosive Detection Systems (EDS), is a specialized segment within the broader aerospace and defense industry. This sector is characterized by high research and development costs, stringent performance requirements, and significant government procurement. Companies like Leidos operate in a landscape where contracts are often awarded through competitive bidding, but sole-source awards occur for unique or critical technologies. The total addressable market for such advanced security equipment is substantial, driven by global security concerns and regulatory mandates.
Small Business Impact
The contract was not competed and did not include a small business set-aside. This sole-source award to Leidos Security Detection & Automation, Inc. likely means limited direct subcontracting opportunities for small businesses on this specific contract. Without a competitive bidding process that encourages subcontracting plans, the direct impact on the small business ecosystem for this particular award is minimal. Future procurements for similar systems or components might offer better opportunities if competed.
Oversight & Accountability
Oversight for this contract would fall under the Department of Homeland Security (DHS) and specifically the Transportation Security Administration (TSA). As a sole-source award, the justification and approval process would have undergone internal DHS review. Transparency regarding the specific oversight mechanisms and accountability measures for this particular contract is limited in the provided data. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Transportation Security Administration (TSA) Equipment Procurement
- Homeland Security Advanced Research Projects Agency (HSARPA) Investments
- Explosive Detection Systems (EDS) Technology Development
- Federal Aviation Administration (FAA) Security Mandates
Risk Flags
- Sole-source award raises concerns about fair pricing and competition.
- Lack of detailed justification for sole-source procurement.
- Potential for higher costs due to absence of competitive bidding.
- Limited transparency on specific performance metrics and risks of the procured system.
Tags
dhs, tsa, homeland-security, explosive-detection-systems, sole-source, firm-fixed-price, fy08, leidos-security-detection-automation, examiner-6600-eds, florida, transportation-security, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $41.4 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. L-3 COMMUNICATIONS DTSA-20-03-D-00928 PROCUREMENT OF 42 EXAMINER 6600 EDS SYSTEMS AND ASSOCIATED UPS FY08 SPEND PLAN REQUIREMENT
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 $41.4 million.
What is the period of performance?
Start: 2008-06-26. End: 2011-07-27.
What is the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED' and has an 'AW' (Award Type) of 'DO'. An 'AW' code of 'DO' typically signifies a priority rating for national defense or homeland security needs, often associated with the Defense Priorities and Allocations System (DPAS). While this suggests an urgent or critical requirement, the specific technical or operational reasons necessitating a sole-source award to Leidos Security Detection & Automation, Inc. for the Examiner 6600 EDS systems are not detailed. Such justifications usually involve unique capabilities, proprietary technology, essential integration with existing systems, or extreme urgency where competition is not feasible. Further investigation into DHS acquisition records would be required to ascertain the precise rationale.
How does the $41.4 million cost compare to similar EDS procurements?
Direct comparison of the $41.4 million cost is difficult without knowing the exact configuration, quantity, and specific capabilities of the 42 Examiner 6600 EDS systems procured. Furthermore, the sole-source nature of this award means there was no competitive bidding to establish a market-driven price. However, advanced EDS units can range from several hundred thousand to over a million dollars each, depending on their sophistication and intended use (e.g., checkpoint screening vs. cargo screening). If the average cost per unit is around $1 million ($41.4M / 42 units), this falls within the expected range for high-end EDS technology. A more precise benchmark would require comparing against other sole-source or competitively awarded contracts for the same or functionally equivalent EDS models, considering factors like system upgrades, software licenses, and maintenance packages.
What are the performance risks associated with the Examiner 6600 EDS system?
The provided data does not detail specific performance risks for the Examiner 6600 EDS system. However, general risks associated with EDS technology include false positive/negative rates, detection limits for specific threat materials, operational speed impacting throughput, and susceptibility to environmental factors (e.g., vibration, temperature). The contract's duration (over three years) and the award to an established vendor like Leidos suggest a degree of confidence in the system's reliability. Potential risks could also stem from integration challenges with existing security infrastructure, maintenance requirements, and the need for ongoing software updates to counter evolving threats. The 'DO' award type might imply a critical operational need where system failure could have significant security implications.
What is the historical spending trend for similar security screening equipment by DHS/TSA?
Historical spending data for similar security screening equipment by DHS/TSA would reveal trends in technology adoption, procurement volumes, and average costs. Without access to specific historical databases, it's challenging to provide exact figures. However, post-9/11, there has been a consistent and significant investment in advanced screening technologies, including EDS, CT scanners, and other threat detection systems, to meet evolving security mandates. Spending often fluctuates based on technological advancements, budget allocations, and identified security gaps. Sole-source awards like this one, while potentially efficient for urgent needs, represent a departure from the typical competitive procurement strategy often employed for large-scale technology rollouts, suggesting either a unique requirement or a specific strategic decision.
What is the track record of Leidos Security Detection & Automation, Inc. in fulfilling similar government contracts?
Leidos Security Detection & Automation, Inc. (and its predecessors/related entities) has a substantial track record in providing security and detection solutions to government agencies, including DHS and TSA. They are known for developing and supplying advanced screening technologies, including EDS. Their experience typically encompasses system design, manufacturing, integration, and support services. While specific performance metrics for this particular contract (L-3 COMMUNICATIONS DTSA-20-03-D-00928) are not detailed here, Leidos is generally considered a major player in this market. Government contract databases and past performance reviews would offer more granular insights into their historical success rates, on-time delivery, and adherence to technical specifications across various contracts.
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: $41,435,814
Exercised Options: $41,435,814
Current Obligation: $41,435,814
Parent Contract
Parent Award PIID: DTSA2003D00928
IDV Type: IDC
Timeline
Start Date: 2008-06-26
Current End Date: 2011-07-27
Potential End Date: 2011-07-27 00:00:00
Last Modified: 2011-08-01
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