Homeland Security's $29.4M purchase of 31 Examiner 6600 EDS units for multiple locations

Contract Overview

Contract Amount: $29,403,500 ($29.4M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-05-02

End Date: 2013-02-22

Contract Duration: 662 days

Daily Burn Rate: $44.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER 3: HSTS04-11-J-CT1176 FOR PURCHASE OF 31 EXAMINER 6600 EDS UNITS LIT (3), HNL (8), ORD (4), MCO (6), SNA (4), OKC (6)

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.4 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: DELIVERY ORDER 3: HSTS04-11-J-CT1176 FOR PURCHASE OF 31 EXAMINER 6600 EDS UNITS LIT (3), HNL (8), ORD (4), MCO (6), SNA (4), OKC (6) Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating a defined cost for the goods. 2. The purchase was not competed, raising questions about potential price discovery and value. 3. The contract spans multiple delivery locations across the US, suggesting a wide operational deployment. 4. The primary product category is Irradiation Apparatus Manufacturing, indicating specialized equipment. 5. The awardee, Leidos Security Detection & Automation, Inc., is a significant player in the security technology market. 6. The contract duration was 662 days, suggesting a moderate-term supply agreement.

Value Assessment

Rating: fair

The total contract value of $29.4 million for 31 units equates to approximately $948,484 per unit. Benchmarking this against similar large-scale security equipment purchases is difficult without more specific technical specifications and market data. However, the lack of competition suggests that a thorough price comparison may not have occurred, potentially impacting the overall value for money.

Cost Per Unit: Approximately $948,484 per unit (Examiner 6600 EDS unit).

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning it was awarded directly to Leidos Security Detection & Automation, Inc. without offering other vendors an opportunity to bid. Sole-source awards are typically justified when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition limits the government's ability to explore alternative solutions and potentially secure more favorable pricing through a competitive bidding process.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that could have arisen from a bidding war among multiple suppliers. This could lead to a higher overall expenditure for the procured equipment.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving advanced security screening equipment. The equipment purchased, Examiner 6600 EDS units, are likely used for threat detection and screening at various transportation hubs. The contract specifies delivery to multiple locations including HNL (Honolulu), MCO (Orlando), SNA (Santa Ana), LIT (Little Rock), ORD (Chicago), and OKC (Oklahoma City), indicating a nationwide impact on security infrastructure. The deployment of this technology supports the TSA's mission to ensure the security of travelers and commerce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
Sole-source award raises questions about the availability of alternative, potentially more cost-effective solutions.
The specific technical capabilities and necessity of the Examiner 6600 EDS units warrant further scrutiny to ensure optimal resource allocation.

Positive Signals

Award to a known entity in the security detection market suggests potential for reliable delivery.
Firm-fixed-price contract provides cost certainty for the government.
Multiple delivery locations indicate a broad application and potential for enhanced security across various transportation sectors.

Sector Analysis

The contract falls within the broader defense and security sector, specifically focusing on the manufacturing and supply of advanced screening and detection equipment. The market for such technologies is characterized by high barriers to entry due to specialized R&D, stringent performance requirements, and government procurement processes. Spending in this area is driven by evolving security threats and the need for continuous technological upgrades to maintain effective screening capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the awardee is a large corporation. There is no information provided regarding subcontracting plans for small businesses. Therefore, this specific award does not directly benefit the small business ecosystem through set-asides, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal audit and program management functions, as well as potentially the Government Accountability Office (GAO) if protests or specific inquiries arise. Transparency is limited due to the sole-source nature of the award, making detailed public scrutiny of the procurement process challenging. The firm-fixed-price structure provides some financial oversight by locking in costs.

Related Government Programs

Transportation Security Administration Equipment Procurement
Homeland Security Advanced Technology Acquisitions
Security Screening Technology
Irradiation Apparatus Manufacturing Contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Technology Alternatives

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.4 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. DELIVERY ORDER 3: HSTS04-11-J-CT1176 FOR PURCHASE OF 31 EXAMINER 6600 EDS UNITS LIT (3), HNL (8), ORD (4), MCO (6), SNA (4), OKC (6)

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 $29.4 million.

What is the period of performance?

Start: 2011-05-02. End: 2013-02-22.

What is the specific technical capability of the Examiner 6600 EDS units and how do they compare to commercially available alternatives?

The Examiner 6600 EDS (Explosives Detection System) is a type of radiation-based scanner designed for detecting trace amounts of explosives and other hazardous materials. These systems typically utilize techniques like neutron activation analysis or other spectroscopic methods to identify chemical signatures. While specific technical specifications and performance metrics are often proprietary or classified for security reasons, these units are generally considered advanced tools for high-throughput screening in sensitive environments. A comparison to commercially available alternatives is challenging without knowing the exact operational requirements and threat profiles the TSA is addressing. However, the market for such specialized detection systems is relatively niche, often dominated by a few key manufacturers capable of meeting stringent government standards for sensitivity, speed, and reliability.

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

The provided data indicates the contract was 'NOT COMPETED,' which typically implies a sole-source or limited-source justification. Common reasons for sole-source awards include that only one responsible source is available, the property or service is unique, or the award is made under urgent and compelling circumstances. Without further documentation from the Department of Homeland Security, the precise justification remains unknown. However, for specialized equipment like advanced explosives detection systems, it's possible that only Leidos Security Detection & Automation, Inc. possessed the necessary technology, intellectual property, or existing integration capabilities to meet the TSA's specific requirements at the time of award.

How does the per-unit cost of $948,484 compare to similar government or commercial purchases of EDS units?

The per-unit cost of approximately $948,484 for the Examiner 6600 EDS units is substantial. Direct comparisons are difficult without access to detailed procurement data for similar systems, as pricing can vary significantly based on specific features, technological advancements, quantity discounts, and the competitive landscape at the time of purchase. However, this figure suggests a high-value, specialized piece of equipment. Given the sole-source nature of this award, it is harder to ascertain if this price represents optimal market value. Industry benchmarks for advanced security screening technology can range widely, but costs in the hundreds of thousands to over a million dollars per unit are not uncommon for highly sophisticated systems.

What is the track record of Leidos Security Detection & Automation, Inc. in fulfilling government contracts for similar equipment?

Leidos Security Detection & Automation, Inc. (and its predecessor entities) has a significant history of providing security and detection solutions to government agencies, including the Department of Homeland Security. They are known for supplying a range of security technologies, including baggage scanners and other screening equipment. Their track record generally includes experience with large-scale government procurements. However, the specific performance history related to the Examiner 6600 EDS units under this particular contract (DO 3) would require a deeper dive into contract performance reports, past performance evaluations, and any documented issues or successes during the delivery period (2011-2013).

What are the potential risks associated with acquiring critical security equipment through a non-competitive process?

Acquiring critical security equipment through a non-competitive process, such as a sole-source award, carries several potential risks. Firstly, it can lead to higher costs for taxpayers, as the government foregoes the potential for price reductions that often result from competitive bidding. Secondly, it may limit access to the best available technology if other vendors offer superior or more cost-effective solutions that were not considered. Thirdly, it can reduce accountability, as the vendor may face less pressure to innovate or provide exceptional service when competition is absent. Finally, it raises concerns about the fairness and transparency of the procurement process, potentially undermining public trust.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

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

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,403,500

Exercised Options: $29,403,500

Current Obligation: $29,403,500

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0411DCT1115

IDV Type: IDC

Timeline