DHS awarded $24.1M for explosive trace detectors, with Leidos securing the contract

Contract Overview

Contract Amount: $24,158,160 ($24.2M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-11-10

End Date: 2018-03-10

Contract Duration: 1,216 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF 1170 IMPLANT SCIENCES EXPLOSIVE TRACE DETECTORS

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.2 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: PROCUREMENT OF 1170 IMPLANT SCIENCES EXPLOSIVE TRACE DETECTORS Key points: 1. The contract value of $24.1 million represents a significant investment in security screening technology. 2. The procurement was conducted under full and open competition, suggesting a robust market for these devices. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (over 3 years) indicates a sustained need for these detectors. 5. The North American Industry Classification System (NAICS) code 334511 points to specialized manufacturing capabilities. 6. The award to Leidos Security Detection & Automation, Inc. highlights a key player in the security detection market.

Value Assessment

Rating: good

The total award of $24.1 million for 1170 explosive trace detectors appears reasonable given the specialized nature of the equipment. Benchmarking against similar procurements for advanced detection systems would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific per-unit pricing or detailed feature comparisons, a definitive value assessment is challenging, but the overall investment aligns with national security needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach typically fosters a competitive environment, encouraging vendors to offer their best pricing and technical solutions. The number of bidders is not specified, but the open competition suggests a healthy market for explosive trace detectors, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by leveraging market forces to drive down costs and improve the quality of goods and services procured.

Public Impact

The primary beneficiaries are the Transportation Security Administration (TSA) and the Department of Homeland Security (DHS), enhancing their ability to detect explosives at various security checkpoints. The contract delivers 1170 explosive trace detectors, crucial for screening passengers, baggage, and cargo. The geographic impact is nationwide, supporting security operations across U.S. airports and potentially other critical infrastructure sites. The procurement supports jobs in the advanced manufacturing and security technology sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific model becomes the sole standard without ongoing competitive evaluation.
Dependence on a single contractor for maintenance and upgrades could lead to increased long-term costs.
The effectiveness of the detectors in diverse environmental conditions requires ongoing monitoring.
Ensuring adequate training for personnel operating the new equipment is critical for optimal performance.

Positive Signals

The use of firm fixed-price contracts limits the government's exposure to cost overruns.
Full and open competition suggests a competitive market, potentially leading to better value.
The procurement addresses a critical national security need for explosive detection.
The award to a known entity like Leidos may indicate a reliable supplier with established capabilities.
The contract duration suggests a stable supply chain for essential security equipment.

Sector Analysis

The procurement falls within the broader defense and security industry, specifically focusing on the manufacturing of specialized detection and navigation instruments. The market for explosive trace detectors is driven by stringent security requirements in transportation, government facilities, and critical infrastructure. Companies in this sector often invest heavily in research and development to meet evolving threat landscapes. Comparable spending benchmarks would involve analyzing other DHS or DoD contracts for similar detection technologies.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. While the prime contractor is Leidos, a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on Leidos's procurement strategy and the availability of specialized small businesses capable of providing components or services related to the detectors. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and its relevant components, such as the Transportation Security Administration (TSA). Contract performance would be monitored through regular reporting, inspections, and potentially through contract officers' representatives. Transparency is generally maintained through contract award databases and public reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DHS Explosives Detection Programs
TSA Screening Technology Procurements
Department of Defense Security Equipment Contracts
Federal Aviation Administration Aviation Security Initiatives

Risk Flags

Potential for obsolescence of technology over the contract's lifespan.
Dependence on specific maintenance and support services from the contractor.
Ensuring consistent performance across diverse environmental conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.2 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. PROCUREMENT OF 1170 IMPLANT SCIENCES EXPLOSIVE TRACE DETECTORS

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 $24.2 million.

What is the period of performance?

Start: 2014-11-10. End: 2018-03-10.

What is the historical spending pattern for explosive trace detectors by DHS?

Historical spending on explosive trace detectors by the Department of Homeland Security (DHS) shows a consistent need for advanced threat detection capabilities. Prior to this $24.1 million award in 2014, DHS had engaged in various procurements for similar technologies, often driven by evolving security threats and technological advancements. For instance, earlier contracts might have focused on different generations of detectors with varying sensitivity and operational capabilities. Analyzing spending trends over the past decade reveals a steady investment in maintaining and upgrading these critical security assets, with contract values fluctuating based on the quantity, technological sophistication, and specific requirements of each procurement cycle. This particular award represents a significant single investment within that broader pattern, aimed at equipping the TSA with a substantial number of new devices.

How does the per-unit cost of these detectors compare to similar systems on the market?

Determining the precise per-unit cost and comparing it to market rates is challenging without specific details on the model and features of the 1170 Explosive Trace Detectors procured. However, given the specialized nature of security technology, costs can range significantly. Entry-level handheld detectors might cost a few thousand dollars, while more advanced, integrated systems with higher sensitivity and faster detection times can cost substantially more. The $24.1 million award for 1170 units suggests an average cost of approximately $20,648 per unit. This figure would need to be benchmarked against comparable systems from other manufacturers (e.g., Smiths Detection, GE Security) that offer similar detection capabilities, form factors, and operational lifespans. Factors like software integration, maintenance agreements, and warranty periods also influence the total cost and must be considered in a comprehensive comparison.

What is Leidos's track record with DHS and similar security procurements?

Leidos, and its predecessor companies, have a substantial track record of working with the Department of Homeland Security (DHS) and other federal agencies on a wide array of security and technology-related contracts. The company is a significant player in the government contracting space, particularly in areas such as intelligence, cybersecurity, logistics, and advanced technology solutions. Their experience often includes providing sophisticated systems and services for critical infrastructure protection and national security. For DHS specifically, Leidos has been involved in various programs related to border security, transportation security, and information technology modernization. Their history suggests a capacity to manage large-scale procurements and deliver complex technological solutions, making them a logical choice for a contract of this nature. Past performance reviews and specific contract outcomes would provide further insight into their reliability and effectiveness in delivering on security technology contracts.

What are the key performance indicators (KPIs) for these explosive trace detectors?

Key performance indicators (KPIs) for explosive trace detectors typically revolve around their ability to accurately and rapidly detect trace amounts of explosive materials. Primary KPIs include detection sensitivity (measured in nanograms or picograms), detection speed (time to provide a result), false alarm rate (the frequency of incorrect positive identifications), and the range of explosive materials they can identify. Operational KPIs also encompass ease of use, battery life, durability in various environmental conditions (temperature, humidity), and the reliability of data logging and reporting features. For this specific contract, the TSA would likely have established specific performance thresholds for these detectors, ensuring they meet rigorous operational requirements for screening passengers and cargo effectively and efficiently, while minimizing disruptions caused by false positives.

How has the market for explosive trace detectors evolved since this contract was awarded?

The market for explosive trace detectors has continued to evolve significantly since this contract was awarded in 2014. Advancements have focused on increasing sensitivity, expanding the library of detectable explosives (including homemade explosives), improving speed of detection, and enhancing user interface and data management capabilities. Newer technologies may incorporate features like non-contact sampling, miniaturization for portability, and integration with broader security networks for real-time threat assessment. Furthermore, there has been a growing emphasis on reducing the false alarm rate, which is crucial for operational efficiency in high-throughput environments like airports. The competitive landscape has also likely shifted, with established players innovating and new entrants potentially emerging with disruptive technologies, driving further advancements and potentially influencing future procurement strategies and pricing.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3 Technologies, Inc. (UEI: 008898884)

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: $25,160,850

Exercised Options: $24,158,160

Current Obligation: $24,158,160

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0415DCT2011

IDV Type: IDC

Timeline