Leidos awarded $65.3M contract for engineering services to TSA, a sole-source award

Contract Overview

Contract Amount: $65,346,620 ($65.3M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-03-06

End Date: 2009-03-10

Contract Duration: 369 days

Daily Burn Rate: $177.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33702

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $65.3 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: MAINTENANCE Key points: 1. The contract value of $65.3 million represents a significant investment in engineering services for the TSA. 2. As a sole-source award, the absence of competition may impact price discovery and potentially lead to higher costs. 3. The contract duration of 369 days suggests a focused, short-term need for these specific engineering services. 4. The award to Leidos, a large defense contractor, indicates a reliance on established players for critical infrastructure support. 5. The 'Engineering Services' category (NAICS 541330) is broad and requires further detail to understand the specific technical requirements. 6. The lack of a small business set-aside raises questions about opportunities for smaller firms in this contract's execution.

Value Assessment

Rating: fair

Benchmarking the value of this $65.3 million contract is challenging without specific details on the engineering services provided. However, given it was a sole-source award, there's a risk that the pricing may not reflect competitive market rates. Comparing it to similar sole-source engineering contracts awarded by the TSA or other DHS components could provide a more accurate assessment of value for money. The fixed-firm price structure offers some cost certainty, but the absence of competition is a primary concern.

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. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the government's ability to explore alternative solutions and potentially secure more favorable pricing through open competition. The lack of multiple bidders means there was no direct price comparison or incentive for vendors to offer their best terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive pressure. Without a bidding process, there's less assurance that the government secured the most cost-effective solution available in the market.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving engineering support for its operations. The services delivered are critical for maintaining and potentially improving security infrastructure at airports and other transportation hubs. The geographic impact is likely nationwide, supporting TSA's mission across all U.S. transportation facilities. The contract supports a workforce within Leidos, contributing to employment in the engineering and security technology sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Contract duration is relatively short, raising questions about long-term planning for engineering needs.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Award to an established contractor (Leidos) suggests a level of trust and proven capability.
Firm Fixed Price contract provides cost certainty for the government.
Contract supports critical national security functions within the TSA.

Sector Analysis

The engineering services sector is a vital component of government contracting, supporting a wide range of agencies. This contract falls within the broader engineering services market, which includes specialized areas like security systems and infrastructure development. The market size for engineering services is substantial, with significant government spending allocated annually. This specific award to Leidos for TSA likely relates to specialized security detection and automation systems, a niche within the larger engineering services landscape.

Small Business Impact

This contract does not appear to have a small business set-aside (SB is false). The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or potentially as subcontractors, unless specifically included by the prime. Without explicit subcontracting plans or set-asides, the direct impact on the small business ecosystem for this particular contract is likely minimal, potentially excluding smaller, innovative firms from contributing to TSA's engineering needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices, with the Transportation Security Administration being the end-user agency. Inspector General oversight is standard for DHS contracts, ensuring accountability and investigating potential fraud, waste, or abuse. Transparency regarding the justification for the sole-source award and the specific deliverables would be key to assessing accountability.

Related Government Programs

Department of Homeland Security - Procurement
Transportation Security Administration - Operations Support
Engineering Services Contracts
Sole Source Procurements
Security Technology Acquisition

Risk Flags

Sole-source award may indicate limited market options or a lack of competitive justification.
Contract awarded in 2008, potentially outdated technology or support requirements.
Short contract duration (369 days) might suggest a stop-gap measure or specific project need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $65.3 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. MAINTENANCE

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 $65.3 million.

What is the period of performance?

Start: 2008-03-06. End: 2009-03-10.

What specific engineering services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541330, 'Engineering Services,' and the description mentions 'MAINTENANCE.' However, the specific nature of the engineering services is not detailed. Given the contractor's name, 'Leidos Security Detection & Automation, Inc.,' and the agency being the TSA, it is highly probable that these services relate to the maintenance, support, or enhancement of security screening equipment, such as baggage scanners, passenger screening systems, or related automation technologies. Further details would be needed to ascertain if it involved design, testing, integration, or specialized technical support for these systems.

What is the justification for this contract being sole-source?

The provided data explicitly states 'CT: NOT COMPETED,' indicating a sole-source or non-competitive award. The specific justification for why this contract was not competed is not included in the abbreviated data. Common reasons for sole-source awards include the existence of only one responsible source capable of providing the required service, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previously competed effort where only the original contractor possesses the necessary knowledge or proprietary technology. A formal Justification for Other than Full and Open Competition (JOFOC) would typically be required and publicly available for such awards.

How does the $65.3 million contract value compare to similar TSA engineering contracts?

Direct comparison of the $65.3 million value is difficult without knowing the precise scope of 'engineering services' and 'maintenance' provided. However, for context, the TSA procures a wide range of services and equipment, with contract values varying significantly based on complexity and duration. Sole-source awards, by their nature, can sometimes be priced higher than competitively bid contracts. To assess value, one would need to compare this award against other sole-source or competitively awarded contracts for similar security technology maintenance and engineering support within TSA or DHS, considering factors like contract duration, service level agreements, and the specific technologies involved.

What is Leidos Security Detection & Automation, Inc.'s track record with the TSA?

Leidos, and its predecessor entities or relevant divisions, has a significant history of contracting with government agencies, including the Department of Homeland Security and its components like the TSA. Their specialization in security detection and automation suggests a strong alignment with TSA's mission. While this specific contract data shows a single award from 2008-2009, Leidos has been a major player in providing advanced security technology and related services to various government entities for many years. Their extensive experience in this domain likely contributed to their selection for this sole-source award.

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

The primary risk associated with this sole-source contract is the potential for reduced value for money due to the lack of competition. Without competing bids, there is less assurance that the government secured the most cost-effective solution. Other risks include potential vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility or innovation. Furthermore, the absence of a competitive process can sometimes lead to less rigorous scrutiny of performance metrics or pricing adjustments over the contract's life, although oversight mechanisms are intended to mitigate these risks.

What is the historical spending pattern for engineering services by the TSA?

Historical spending patterns for engineering services by the TSA are diverse, reflecting the agency's broad operational needs. The TSA procures engineering support for a variety of functions, including the development, deployment, maintenance, and upgrade of security technologies (e.g., baggage screening, passenger screening), infrastructure projects, and IT systems. Spending can fluctuate based on major technology refresh cycles, new security mandates, and infrastructure modernization efforts. Analyzing historical data would reveal trends in both competitive and sole-source awards within this category, as well as the average contract values and durations for different types of engineering support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

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: $65,346,620

Exercised Options: $65,346,620

Current Obligation: $65,346,620

Parent Contract

Parent Award PIID: HSTS0405DDEP009

IDV Type: IDC

Timeline