Homeland Security's $66.7M maintenance contract for explosive detection systems awarded to Leidos

Contract Overview

Contract Amount: $66,689,717 ($66.7M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2013-07-01

End Date: 2014-06-30

Contract Duration: 364 days

Daily Burn Rate: $183.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: "IGF::CL,CT::IGF" TASK ORDER 6 IS TO ACQUIRE PREVENTIVE AND CORRECTIVE MAINTENANCE SERVICES FOR EXAMINER 6000/6600 EXPLOSIVE DETECTION SYSTEMS (EDS), PREVENTATIVE AND CORRECTIVE MAINTENANCE SERVICES FOR UNINTERRUPTIBLE POWER SUPPLY (UPS) UNITS, AND PROGRAM MANAGEMENT SUPPORT UNDER THE L-3 INTEGRATED LOGISTICS SUPPORT (ILS) MAINTENANCE CONTRACT HSTS04-11-D-CT3083 FOR OPTION PERIOD 2. THIS TASK ORDER CONTAINS FIRM FIXED PRICE CLINS 2001A, 2002A, 2002AB AND 2002D.

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $66.7 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: "IGF::CL,CT::IGF" TASK ORDER 6 IS TO ACQUIRE PREVENTIVE AND CORRECTIVE MAINTENANCE SERVICES FOR EXAMINER 6000/6600 EXPLOSIVE DETECTION SYSTEMS (EDS), PREVENTATIVE AND CORRECTIVE MAINTENANCE SERVICES FOR UNINTERRUPTIBLE POWER SUPPLY (UPS) UNITS, AND PROGRAM MANAGEMENT SUPPORT UNDE… Key points: 1. Contract focuses on critical maintenance for explosive detection systems and power supplies. 2. Awarded to a single vendor, raising questions about competitive pricing and value. 3. Duration of one year suggests a need for ongoing, specialized support. 4. Geographic focus on California for services. 5. Contract type is Firm Fixed Price, which shifts risk to the contractor. 6. No small business set-aside, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: fair

The contract's value of $66.7 million for one year of maintenance services for explosive detection systems and related equipment appears substantial. Benchmarking this against similar contracts is difficult without more specific details on the scope of services and the exact equipment covered. However, the lack of competition suggests that the government may not have secured the most competitive pricing available in the market. The firm-fixed-price nature of the contract provides cost certainty but requires careful oversight to ensure the contractor is delivering services efficiently and effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for this approach is not provided in the data. Sole-source awards can sometimes be necessary for highly specialized services or when a specific contractor possesses unique capabilities. However, they typically result in higher prices and reduced innovation compared to competitively awarded contracts. The absence of multiple bidders means the government did not benefit from price discovery through a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as the government did not leverage multiple offers to drive down costs. This also limits transparency into whether the selected contractor's pricing is aligned with market rates.

Public Impact

Benefits the Transportation Security Administration (TSA) by ensuring the operational readiness of explosive detection systems. Services delivered include preventive and corrective maintenance, as well as program management support. Geographic impact is primarily in California, where the services are to be performed. Workforce implications include the need for specialized technicians to maintain complex electronic systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source award limits transparency and potential for better pricing.
Reliance on a single contractor for critical maintenance could pose a risk if performance issues arise.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Focus on preventive maintenance aims to reduce system downtime and costly emergency repairs.
Contract provides essential support for national security infrastructure.

Sector Analysis

This contract falls within the 'Other Electronic and Precision Equipment Repair and Maintenance' sector, specifically related to security and detection systems. The market for such specialized maintenance services is often characterized by a limited number of highly qualified providers. The total federal spending in this broad category can be significant, but specific benchmarks for explosive detection system maintenance are not readily available. This contract represents a portion of the government's investment in maintaining critical security infrastructure.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no indication of subcontracting opportunities for small businesses. The prime contractor, Leidos, is a large corporation. This suggests that the specialized nature of the maintenance services required may have limited the applicability of small business set-asides or that such opportunities were not pursued in this instance.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Specific accountability measures would be detailed in the contract's performance work statement. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Homeland Security Contracts
Transportation Security Administration Contracts
Explosive Detection Systems Maintenance
Logistics Support Contracts
Federal IT and Equipment Maintenance

Risk Flags

Sole-source award
Lack of competition
High contract value for a single year

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $66.7 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. "IGF::CL,CT::IGF" TASK ORDER 6 IS TO ACQUIRE PREVENTIVE AND CORRECTIVE MAINTENANCE SERVICES FOR EXAMINER 6000/6600 EXPLOSIVE DETECTION SYSTEMS (EDS), PREVENTATIVE AND CORRECTIVE MAINTENANCE SERVICES FOR UNINTERRUPTIBLE POWER SUPPLY (UPS) UNITS, AND PROGRAM MANAGEMENT SUPPORT UNDER THE L-3 INTEGRATED LOGISTICS SUPPORT (ILS) MAINTENANCE CONTRACT HSTS04-11-D-CT3083 FOR OPTION PERIOD 2. THIS TASK ORDER CONTAINS FIRM FIXED PRICE CLINS 2001A, 2002A, 2002AB AND 2002D.

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 $66.7 million.

What is the period of performance?

Start: 2013-07-01. End: 2014-06-30.

What is the track record of Leidos Security Detection & Automation, Inc. in performing similar maintenance services for the TSA or other federal agencies?

Leidos Security Detection & Automation, Inc., and its predecessors, have a significant history of providing security technology and services to government agencies, including the TSA. They are known for their work on various screening technologies, including explosive detection systems. While specific performance metrics for this particular task order are not detailed in the provided data, Leidos generally has a substantial presence in the federal contracting space for security and logistics. Their experience suggests a capability to perform the required maintenance. However, the absence of competition for this specific task order means that direct comparisons of their performance against other potential bidders on this contract are not available. Further review of past performance evaluations and contract close-out reports would be necessary for a comprehensive assessment.

How does the cost of this contract compare to similar maintenance contracts for explosive detection systems in the federal government or private sector?

Directly comparing the cost of this $66.7 million contract for a one-year period is challenging without detailed service level agreements and specific equipment models. The federal government often pays a premium for specialized maintenance services, especially when contracts are not competitively bid. The lack of competition for this sole-source award suggests that the government may not have achieved the most favorable pricing. Benchmarking against private sector contracts is also difficult due to variations in service scope, equipment age, and vendor pricing structures. Typically, competitive solicitations allow for price discovery and negotiation, leading to more market-aligned rates. Without such a process, it's presumed this contract's pricing may be higher than what could have been achieved through open competition.

What are the primary risks associated with this contract, particularly given its sole-source nature?

The primary risks associated with this contract stem from its sole-source award. Firstly, there is a significant risk of inflated pricing, as the government did not benefit from competitive bidding to ensure the best value. Secondly, there's a potential for reduced service quality or responsiveness, as the contractor faces less pressure to perform compared to a competitive environment. Thirdly, there's a dependency risk; if Leidos fails to perform adequately or encounters financial difficulties, the TSA could face disruptions in maintaining critical security equipment, with limited immediate alternatives. Finally, a lack of transparency inherent in sole-source awards makes it harder to assess the contractor's efficiency and the overall value for taxpayer money.

What is the expected effectiveness of these maintenance services in ensuring the operational readiness of TSA's explosive detection systems?

The effectiveness of these maintenance services is crucial for ensuring the operational readiness of the TSA's explosive detection systems (EDS). Preventive maintenance aims to identify and address potential issues before they lead to system failures, thereby minimizing downtime and ensuring systems are available for use. Corrective maintenance addresses issues that have already occurred. Program management support ensures that these maintenance activities are coordinated efficiently. Given that this is a task order under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract (HSTS04-11-D-CT3083), it implies a recognized need for these ongoing services. The effectiveness will ultimately depend on the quality of the work performed by Leidos, adherence to maintenance schedules, and the responsiveness to corrective actions, all of which should be monitored by the TSA.

How has federal spending on explosive detection system maintenance evolved over time, and does this contract represent a significant shift?

Analyzing the historical evolution of federal spending specifically on explosive detection system (EDS) maintenance is complex without access to detailed historical spending databases. However, it's reasonable to assume that spending in this area has likely increased over time, driven by technological advancements, the expansion of screening infrastructure, and evolving security threats. This particular $66.7 million task order for one year represents a substantial investment. Whether it signifies a 'shift' depends on prior spending levels and the overall TSA budget for maintenance. If previous years saw significantly lower spending on EDS maintenance, this could indicate an increased focus or a need for more intensive upkeep. Conversely, if this amount is consistent with previous years, it reflects ongoing, steady investment in maintaining critical security assets.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

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: $66,689,717

Exercised Options: $66,689,717

Current Obligation: $66,689,717

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0411DCT3083

IDV Type: IDC

Timeline