DHS awards $31.2M for 200 AIT units using ARRA stimulus funds to Leidos

Contract Overview

Contract Amount: $31,253,607 ($31.3M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-04-23

End Date: 2011-03-31

Contract Duration: 342 days

Daily Burn Rate: $91.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: (AIT) L-3 COMMUNICATIONS HSTS04-10-D-ST2003 AMENDMENT PR TO REMOVE REMAINING COMMITMENT BALANCE ON THE TSA BOOKS. THIS ACTION DOES NOT AFFECT THE AWARD.) ARRA STIMULUS FUNDING THE PURPOSE OF THIS PR IS TO PROCURE 200 AIT UNITS UNDER THE ARRA FUNDS ALLOCATED

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.3 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: (AIT) L-3 COMMUNICATIONS HSTS04-10-D-ST2003 AMENDMENT PR TO REMOVE REMAINING COMMITMENT BALANCE ON THE TSA BOOKS. THIS ACTION DOES NOT AFFECT THE AWARD.) ARRA STIMULUS FUNDING THE PURPOSE OF THIS PR IS TO PROCURE 200 AIT UNITS UNDER THE ARRA FUNDS ALLOCATED Key points: 1. Significant ARRA stimulus funding directed towards security equipment. 2. Leidos Security Detection & Automation, Inc. is the sole awardee. 3. The contract is for 200 Advanced Imaging Technology (AIT) units. 4. This amendment removes a remaining commitment balance, not affecting the award.

Value Assessment

Rating: good

The award amount of $31.2M for 200 AIT units appears reasonable given the context of stimulus funding for critical security infrastructure. Benchmarking against similar large-scale procurements for advanced security screening technology would provide further validation.

Cost Per Unit: $156,268

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices for the procured goods.

Taxpayer Impact: The use of ARRA stimulus funds indicates a focus on economic recovery and job creation, with this spending contributing to the security sector.

Public Impact

Enhances airport security screening capabilities nationwide. Supports the TSA's mission to protect transportation systems. Represents a significant investment in advanced security technology. Procurement under ARRA stimulus funds aims to boost economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This procurement falls within the Instruments and Related Products Manufacturing sector, specifically for measuring and controlling industrial process variables. Spending in this sector is often driven by government contracts for defense, security, and infrastructure.

Small Business Impact

The data indicates the awardee is Leidos Security Detection & Automation, Inc., a large business. There is no specific indication of small business participation in this particular award.

Oversight & Accountability

The amendment to remove a remaining commitment balance suggests ongoing financial management. Further oversight would involve tracking the delivery and performance of the 200 AIT units against the contract terms.

Related Government Programs

Risk Flags

Tags

instruments-and-related-products-manufac, department-of-homeland-security, ma, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.3 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. (AIT) L-3 COMMUNICATIONS HSTS04-10-D-ST2003 AMENDMENT PR TO REMOVE REMAINING COMMITMENT BALANCE ON THE TSA BOOKS. THIS ACTION DOES NOT AFFECT THE AWARD.) ARRA STIMULUS FUNDING THE PURPOSE OF THIS PR IS TO PROCURE 200 AIT UNITS UNDER THE ARRA FUNDS ALLOCATED

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 $31.3 million.

What is the period of performance?

Start: 2010-04-23. End: 2011-03-31.

What was the specific justification for awarding the full commitment balance to Leidos under this amendment, given it does not affect the award?

The amendment's primary purpose was to formally remove the remaining commitment balance from the TSA's books, likely for accounting and financial reporting clarity. This action ensures that the outstanding financial obligation is accurately reflected and managed, even though the underlying award and its terms remain unchanged.

How does the per-unit cost of these AIT units compare to industry benchmarks for similar security screening technology?

The per-unit cost of approximately $156,268 is a significant figure. A thorough benchmark analysis against comparable AIT systems procured by other federal agencies or in the private sector would be necessary to determine if this represents a competitive price point or if there is potential for cost savings in future procurements.

What is the long-term effectiveness and operational impact of these 200 AIT units on transportation security efficiency?

The effectiveness will depend on the specific capabilities of the AIT units and their integration into TSA's operational workflow. While intended to enhance security, their long-term impact on efficiency, passenger throughput, and threat detection accuracy requires ongoing monitoring and evaluation post-deployment.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingInstruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables

Product/Service Code: NONMETALLIC FABRICATED MATERIALS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 10E COMMERCE WAY, WOBURN, MA, 05

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,253,607

Exercised Options: $31,253,607

Current Obligation: $31,253,607

Parent Contract

Parent Award PIID: HSTS0410DST2003

IDV Type: IDC

Timeline

Start Date: 2010-04-23

Current End Date: 2011-03-31

Potential End Date: 2011-03-31 00:00:00

Last Modified: 2014-02-25

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