DHS procures advanced imaging technology for passenger screening, costing over $74M
Contract Overview
Contract Amount: $74,828,056 ($74.8M)
Contractor: Leidos Security Detection & Automation, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2011-09-06
End Date: 2014-12-14
Contract Duration: 1,195 days
Daily Burn Rate: $62.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PASSENGER SCREENING PROGRAM ADVANCED IMAGING TECHNOLOGY PROJECT PROCURE 500 ADVANCED IMAGING TECHNOLOGY (AIT) SYSTEMS WITH THE AUTOMATIC TARGET RECOGNITION UPGRADE
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Homeland Security obligated $74.8 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: PASSENGER SCREENING PROGRAM ADVANCED IMAGING TECHNOLOGY PROJECT PROCURE 500 ADVANCED IMAGING TECHNOLOGY (AIT) SYSTEMS WITH THE AUTOMATIC TARGET RECOGNITION UPGRADE Key points: 1. The contract focuses on acquiring advanced imaging technology (AIT) systems with automatic target recognition (ATR) upgrades. 2. This procurement aims to enhance passenger screening capabilities at airports. 3. The contract was awarded to a single vendor, Leidos Security Detection & Automation, Inc. 4. The fixed-price contract structure shifts cost risk to the contractor. 5. The duration of the contract is substantial, spanning over 1000 days. 6. The North American Industry Classification System (NAICS) code indicates a focus on instruments manufacturing.
Value Assessment
Rating: fair
The total award amount of $74.8 million for 500 AIT systems represents an average cost of approximately $149,656 per system. Benchmarking this against industry standards for advanced security screening equipment is challenging without specific technical specifications and comparable contract data. However, the firm-fixed-price nature suggests that the government has negotiated a set price, which can be advantageous if the contractor's costs remain within estimates. Further analysis would require comparing the capabilities of these specific AIT systems with ATR upgrades to other available technologies and their associated pricing.
Cost Per Unit: Approximately $149,656 per system (500 systems / $74,828,056.29)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided in the data, but the 'full and open' designation suggests a competitive process was intended. This approach is generally favored to ensure the government receives the best value through market forces. The effectiveness of the competition in driving down prices would depend on the number of qualified bidders and the specific requirements of the solicitation.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring that public funds are used efficiently.
Public Impact
Passengers at airports utilizing TSA screening checkpoints will experience enhanced security screening. The Transportation Security Administration (TSA) will benefit from improved threat detection capabilities. The contract supports the manufacturing and technology sector, potentially creating or sustaining jobs in that industry. The primary beneficiaries are the traveling public and national security through improved aviation security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the technology becomes proprietary and difficult to integrate with future systems.
- The long contract duration could lead to challenges in adapting to rapidly evolving imaging technology.
- Dependence on a single vendor for a critical security function could pose risks if the vendor faces financial or operational difficulties.
Positive Signals
- Procurement of advanced imaging technology with automatic target recognition enhances threat detection.
- The firm-fixed-price contract shifts cost risk to the contractor.
- Full and open competition was utilized, suggesting a robust market engagement.
Sector Analysis
This contract falls within the Instruments and Related Products Manufacturing sector, specifically focusing on technology for measurement and control. The market for advanced security screening equipment is driven by government needs for homeland security and aviation safety. The size of this specific market segment can be substantial, with significant investment in research, development, and production of sophisticated imaging and detection systems. This contract represents a significant investment by the Department of Homeland Security in upgrading its passenger screening capabilities.
Small Business Impact
The provided data indicates that small business participation was not a primary set-aside consideration ('sb': false). The contract was awarded to a large entity (Leidos). There is no explicit information on subcontracting plans for small businesses within this specific award. Therefore, the direct impact on the small business ecosystem from this particular contract appears limited, though the prime contractor may engage small businesses in its broader supply chain.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and its Transportation Security Administration (TSA). Mechanisms likely include contract performance monitoring, milestone reviews, and financial audits. Transparency is generally facilitated through contract award databases and public reporting requirements. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Advanced Imaging Technology (AIT) procurements
- Transportation Security Administration (TSA) equipment purchases
- Homeland Security technology investments
- Airport security systems
Risk Flags
- Technological Obsolescence Risk
- Long-Term Supportability Concerns
- Vendor Performance Dependency
Tags
transportation-security-administration, department-of-homeland-security, advanced-imaging-technology, passenger-screening, aviation-security, firm-fixed-price, full-and-open-competition, instruments-and-related-products-manufacturing, large-contract, security-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $74.8 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. PASSENGER SCREENING PROGRAM ADVANCED IMAGING TECHNOLOGY PROJECT PROCURE 500 ADVANCED IMAGING TECHNOLOGY (AIT) SYSTEMS WITH THE AUTOMATIC TARGET RECOGNITION UPGRADE
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 $74.8 million.
What is the period of performance?
Start: 2011-09-06. End: 2014-12-14.
What is the track record of Leidos Security Detection & Automation, Inc. in delivering similar advanced imaging technology systems to government agencies?
Leidos, and its predecessor companies, have a significant history of providing security and detection solutions to government agencies, including the TSA. They have been involved in the development and deployment of various screening technologies, including AIT systems. Their experience encompasses manufacturing, integration, and support services for complex security equipment. The company's established presence in the security technology market suggests a capacity to handle large-scale procurements like this one. However, specific performance metrics and past issues related to AIT system delivery would require a deeper dive into contract performance reports and agency evaluations.
How does the per-unit cost of these AIT systems compare to similar systems procured by other agencies or in the commercial market?
The average per-unit cost of approximately $149,656 for these AIT systems with ATR upgrades is a significant figure. Direct comparisons are difficult without knowing the exact specifications, capabilities, and age of the technology being benchmarked. Commercial off-the-shelf (COTS) advanced imaging systems can vary widely in price. However, government procurements often involve customization, integration, and long-term support, which can increase costs. It would be beneficial to compare this price against other TSA procurements of AIT systems or similar security screening technologies acquired by other federal agencies (e.g., CBP, DOD) or large international airport authorities to establish a more robust value-for-money assessment.
What are the primary risks associated with the long duration (1195 days) of this contract for the government?
The long duration of 1195 days (approximately 3.3 years) for this contract presents several risks. Firstly, technological obsolescence is a significant concern; imaging and detection technologies evolve rapidly, and systems procured today might be outdated before the contract concludes. Secondly, there's a risk of cost escalation if the firm-fixed-price contract doesn't adequately account for potential unforeseen increases in material or labor costs over such an extended period, although the FFP structure aims to mitigate this. Thirdly, maintaining and upgrading systems over this timeframe could become complex and costly. Finally, the government might be locked into a specific technology, potentially hindering the adoption of more advanced or cost-effective solutions that emerge during the contract period.
What is the expected impact of these advanced imaging technology systems on the effectiveness of passenger screening at airports?
The introduction of Advanced Imaging Technology (AIT) systems with Automatic Target Recognition (ATR) is intended to significantly enhance the effectiveness of passenger screening. AIT systems are designed to detect a wider range of threats, including non-metallic threats, concealed explosives, and weapons, that might be missed by traditional metal detectors. The ATR upgrade aims to automate the detection process, reducing reliance on human interpretation and potentially increasing the speed and accuracy of threat identification. This should lead to improved security outcomes by providing TSA officers with more comprehensive information about potential threats, thereby strengthening aviation security.
How has TSA's spending on passenger screening technology evolved over time, and does this contract represent a significant shift or continuation?
TSA's spending on passenger screening technology has evolved considerably since its inception. Early investments focused on basic metal detection, followed by the introduction of millimeter wave (MMW) AIT systems and explosive trace detection (ETD) units. This contract, procuring 500 AIT systems with ATR upgrades, represents a significant investment in enhancing existing AIT capabilities rather than a radical departure. It signifies a continuation of the TSA's strategy to leverage advanced imaging and automated detection technologies to improve security effectiveness and efficiency. Historical spending data would reveal trends in the adoption rate of AIT and the increasing sophistication of required features like ATR.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION
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, 01801
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: $74,828,056
Exercised Options: $74,828,056
Current Obligation: $74,828,056
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0410DST2003
IDV Type: IDC
Timeline
Start Date: 2011-09-06
Current End Date: 2014-12-14
Potential End Date: 2014-12-14 00:00:00
Last Modified: 2015-09-01
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