DHS awards $156M for L3 EDS/TRX unit maintenance, lacking competition
Contract Overview
Contract Amount: $156,228,061 ($156.2M)
Contractor: Leidos Security Detection & Automation, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2009-03-11
End Date: 2011-06-30
Contract Duration: 841 days
Daily Burn Rate: $185.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: L-3 COMMUNICATIONS HSTS04-04-D-DEP009 ILS PREVENTING AND CORRECTIVE MAINTENANCE SERVICES FOR FIELDED L3 EDS AND TRX UNITS ON CLIN ITEMS 401AA, 4011AB, 4011BA AND 401BB
Place of Performance
Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33702
State: Florida Government Spending
Plain-Language Summary
Department of Homeland Security obligated $156.2 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: L-3 COMMUNICATIONS HSTS04-04-D-DEP009 ILS PREVENTING AND CORRECTIVE MAINTENANCE SERVICES FOR FIELDED L3 EDS AND TRX UNITS ON CLIN ITEMS 401AA, 4011AB, 4011BA AND 401BB Key points: 1. Contract awarded to Leidos for maintenance of L3 EDS and TRX units. 2. Significant spending of $156M over the contract period. 3. Lack of competition raises concerns about price discovery and value. 4. Engineering services sector, with a focus on transportation security.
Value Assessment
Rating: questionable
The contract value of $156M for approximately 2.3 years of service appears high given the lack of competition. Benchmarking is difficult without comparable contracts, but the absence of competitive bidding suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to achieve the best price.
Taxpayer Impact: The lack of competition likely resulted in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continued operational readiness of critical security screening equipment. Supports the Transportation Security Administration's mission at airports. Potential for taxpayer funds to be used inefficiently due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
Positive Signals
- Ensures critical equipment maintenance
- Supports national security mission
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to the maintenance of specialized security equipment. Spending benchmarks for such niche maintenance services are hard to establish without more data, but the scale of this award is notable.
Small Business Impact
The contract was awarded to Leidos, a large prime contractor, and there is no indication of small business participation in this specific award. The non-competitive nature further limits opportunities for small businesses.
Oversight & Accountability
The non-competitive award raises questions about the oversight processes that led to this decision. Further review would be needed to understand if justification for a sole-source award was adequately documented and approved.
Related Government Programs
- Engineering Services
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited transparency
- No small business participation indicated
Tags
engineering-services, department-of-homeland-security, fl, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $156.2 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. L-3 COMMUNICATIONS HSTS04-04-D-DEP009 ILS PREVENTING AND CORRECTIVE MAINTENANCE SERVICES FOR FIELDED L3 EDS AND TRX UNITS ON CLIN ITEMS 401AA, 4011AB, 4011BA AND 401BB
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 $156.2 million.
What is the period of performance?
Start: 2009-03-11. End: 2011-06-30.
What was the justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a strong justification, such as a unique capability or urgent need, that cannot be met by other sources. Without access to the contract file and justification documentation, it's impossible to confirm the validity or adequacy of the reasoning behind this non-competitive award.
How does the per-unit maintenance cost compare to industry benchmarks for similar equipment, given the lack of competitive pricing?
Directly comparing per-unit costs is challenging without access to specific maintenance task breakdowns and industry benchmarks for L3 EDS and TRX units. However, the absence of competition inherently prevents the government from leveraging market forces to secure the most cost-effective pricing, suggesting this contract may not represent the best value achievable.
What is the long-term impact on TSA's operational effectiveness if maintenance costs are inflated due to non-competitive awards?
Inflated maintenance costs due to non-competitive awards can divert funds that could otherwise be used for acquiring new technology, expanding screening capabilities, or other critical operational needs. This could indirectly impact TSA's long-term effectiveness by limiting resources available for modernization and strategic improvements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION
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: $156,228,061
Exercised Options: $156,228,061
Current Obligation: $156,228,061
Parent Contract
Parent Award PIID: HSTS0405DDEP009
IDV Type: IDC
Timeline
Start Date: 2009-03-11
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2013-10-14
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