DHS awards $19.6M for 20 explosive detection systems, highlighting a need for enhanced security screening

Contract Overview

Contract Amount: $19,660,000 ($19.7M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-07-09

End Date: 2019-03-31

Contract Duration: 1,726 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF DELIVERY ORDER (DO) 29 IS TO ACQUIRE TWENTY (20) CLIN 0003A MEDIUM SPEED EXAMINER 3DX EDS UNDER THE L-3 COMMUNICATIONS MEDIUM SPEED EXPLOSIVE DETECTION SYSTEM (EDS) PRODUCTION CONTRACT HSTS04-12-D-CT1200.

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.7 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: THE PURPOSE OF DELIVERY ORDER (DO) 29 IS TO ACQUIRE TWENTY (20) CLIN 0003A MEDIUM SPEED EXAMINER 3DX EDS UNDER THE L-3 COMMUNICATIONS MEDIUM SPEED EXPLOSIVE DETECTION SYSTEM (EDS) PRODUCTION CONTRACT HSTS04-12-D-CT1200. Key points: 1. The contract focuses on acquiring specialized equipment for explosive detection, crucial for national security. 2. LEIDOS Security Detection & Automation, Inc. is the contractor, with a history in similar security solutions. 3. The acquisition falls under the Transportation Security Administration's (TSA) broader efforts to upgrade screening technology. 4. The firm-fixed-price contract type suggests a clear understanding of project scope and cost. 5. The duration of the delivery order indicates a phased deployment or long-term need for these systems.

Value Assessment

Rating: good

The total award of $19.6 million for 20 units of the CLIN 0003A Medium Speed Examiner 3DX EDS suggests a per-unit cost of approximately $983,000. This price point needs to be benchmarked against similar explosive detection systems acquired by other federal agencies or private sector entities to fully assess value for money. Without direct comparable data, it's difficult to definitively state if this represents excellent or fair value, but it appears within a reasonable range for advanced security technology.

Cost Per Unit: Approximately $983,000 per unit.

Competition Analysis

Competition Level: full-and-open

This 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, but the competitive nature of the award suggests that the government sought the best available solution and pricing. Full and open competition generally leads to more favorable pricing and innovation compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of advanced technologies, ensuring that public funds are used efficiently for critical security needs.

Public Impact

The primary beneficiaries are travelers and the general public, who will experience enhanced security screening at airports and other sensitive locations. The services delivered include the deployment and operation of advanced explosive detection systems, crucial for preventing threats. The geographic impact is likely nationwide, focusing on transportation hubs and critical infrastructure where TSA operates. Workforce implications may include the need for trained personnel to operate and maintain these new systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific system becomes the standard without ongoing competitive evaluation.
The long duration of the contract (over 4 years) could lead to technological obsolescence if not managed proactively.
Dependence on a single contractor for maintenance and upgrades could impact long-term cost-effectiveness.

Positive Signals

The acquisition of advanced technology directly addresses national security concerns.
Full and open competition suggests a commitment to achieving best value for taxpayer dollars.
The firm-fixed-price contract provides cost certainty for the government.

Sector Analysis

The market for explosive detection systems (EDS) is a specialized segment within the broader security and defense industry. This sector is characterized by high technological barriers to entry, significant R&D investment, and stringent performance requirements driven by government regulations and security needs. Spending in this area is often driven by evolving threat landscapes and the need to replace or upgrade aging equipment. Comparable spending benchmarks would involve looking at other large-scale procurements of similar screening technologies by agencies like the TSA, Department of Defense, or international security bodies.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this particular delivery order. Given the specialized nature of the equipment, it is possible that the prime contractor, LEIDOS, may engage small businesses for specific components or support services, but this is not explicitly detailed in the award information. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal review processes and the Transportation Security Administration's program management. The contract's firm-fixed-price nature provides a degree of cost control. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and specific oversight activities are typically internal. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this spending.

Related Government Programs

Transportation Security Administration (TSA) Equipment Procurement
Homeland Security Department (DHS) Technology Modernization
Explosive Detection Systems (EDS) Acquisition Programs
Federal Aviation Administration (FAA) Security Mandates

Risk Flags

Potential for technological obsolescence
Long-term maintenance cost uncertainty
Dependence on single vendor for support

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.7 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. THE PURPOSE OF DELIVERY ORDER (DO) 29 IS TO ACQUIRE TWENTY (20) CLIN 0003A MEDIUM SPEED EXAMINER 3DX EDS UNDER THE L-3 COMMUNICATIONS MEDIUM SPEED EXPLOSIVE DETECTION SYSTEM (EDS) PRODUCTION CONTRACT HSTS04-12-D-CT1200.

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 $19.7 million.

What is the period of performance?

Start: 2014-07-09. End: 2019-03-31.

What is the track record of L-3 Communications (now part of L3Harris Technologies) in delivering similar explosive detection systems to government agencies?

L-3 Communications, and subsequently L3Harris Technologies, has a significant history in providing advanced security and defense technologies, including explosive detection systems, to various government agencies. They have been a key player in the development and deployment of screening technologies for aviation security. Their experience spans multiple generations of EDS, often involving complex integration with airport infrastructure. While specific performance data for past contracts is not detailed here, their continued presence as a prime contractor in this domain suggests a consistent ability to meet stringent government requirements and deliver functional systems. Benchmarking their past delivery success rates and any documented performance issues would provide a clearer picture of their reliability for this specific award.

How does the per-unit cost of $983,000 compare to other federal procurements of similar explosive detection systems?

The per-unit cost of approximately $983,000 for the Examiner 3DX EDS needs to be benchmarked against comparable systems. For instance, other medium-speed EDS units procured by the TSA or similar systems used by the Department of Defense for checkpoint screening can range significantly. Factors influencing cost include the system's throughput capabilities, detection sensitivity, imaging technology (e.g., CT-based vs. other), integration requirements, and the overall contract volume. Without direct comparative data from recent, similar procurements, it's challenging to definitively label this price as high or low. However, advanced, automated screening technologies for security applications often carry substantial price tags due to the sophisticated engineering and rigorous testing involved.

What are the primary risks associated with the long-term deployment and maintenance of these explosive detection systems?

The primary risks associated with the long-term deployment of these systems include technological obsolescence, where newer, more effective detection methods emerge, rendering current systems outdated. There's also the risk of increased maintenance costs over time, especially if specialized parts become scarce or if the original manufacturer increases service fees. Vendor lock-in is another concern; if the TSA becomes heavily reliant on one system and its proprietary maintenance, switching to a different vendor in the future could be prohibitively expensive and complex. Furthermore, operational risks include potential system failures, calibration drift, and the need for continuous software updates to counter evolving threats, all of which require ongoing investment and skilled personnel.

What is the expected impact of these new systems on airport security screening efficiency and effectiveness?

The acquisition of 20 Examiner 3DX EDS units is expected to enhance both the efficiency and effectiveness of airport security screening. These medium-speed systems are designed to provide rapid, accurate detection of explosives, potentially reducing wait times for passengers compared to older or slower technologies. Their effectiveness stems from advanced sensing and imaging capabilities, which can identify a wider range of threats with greater certainty. By deploying these systems, the TSA aims to improve the overall security posture at airports, ensuring a more robust defense against potential terrorist attacks while striving to maintain passenger flow. The 'medium speed' designation suggests a balance between throughput and detection capability, suitable for various checkpoint environments.

How has federal spending on explosive detection systems evolved over the past decade, and does this award align with historical trends?

Federal spending on explosive detection systems has generally trended upwards over the past decade, driven by evolving security threats, regulatory mandates, and technological advancements. Agencies like the TSA consistently invest in upgrading their screening capabilities to maintain a high level of security. This $19.6 million award for 20 systems aligns with this trend of ongoing investment in critical security infrastructure. Historical spending patterns often show large procurements occurring in phases as technology matures and budgets allow. Analyzing broader DHS or TSA budget allocations for security technology over time would reveal if this specific award represents a significant increase, a steady state, or a shift in procurement strategy.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

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: $19,660,000

Exercised Options: $19,660,000

Current Obligation: $19,660,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0412DCT1200

IDV Type: IDC

Timeline