DHS awards $66M for explosive trace detection systems, impacting airport security nationwide

Contract Overview

Contract Amount: $65,952,812 ($66.0M)

Contractor: Leidos Security Detection & Automation, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-09-13

End Date: 2021-04-30

Contract Duration: 1,690 days

Daily Burn Rate: $39.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PURCHASE EXPLOSIVE TRACE DETECTION (ETD) SYSTEMS; INITIALLY 1,353 ETD SYSTEMS WITH WARRANTY AND OPTIONAL CLINS OF UP TO 2,073 WITH WARRANTY.

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $66.0 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PURCHASE EXPLOSIVE TRACE DETECTION (ETD) SYSTEMS; INITIALLY 1,353 ETD SYSTEMS WITH WARRANTY AND OPTIONAL CLINS OF UP TO 2,073 WITH WARRANTY. Key points: 1. The contract focuses on acquiring critical security equipment for enhanced threat detection. 2. A significant portion of the award is for initial system procurement, with options for expansion. 3. The chosen systems are designed to detect explosive traces, bolstering aviation security protocols. 4. This procurement aligns with ongoing efforts to modernize security infrastructure within the TSA. 5. The contract duration spans several years, indicating a long-term need for these systems. 6. The firm-fixed-price structure aims to provide cost certainty for the government.

Value Assessment

Rating: good

The awarded amount of $65.95 million for 1,353 initial systems and up to 2,073 with warranty appears reasonable given the specialized nature of Explosive Trace Detection (ETD) systems. Benchmarking against similar large-scale procurements of advanced security technology suggests that the per-unit cost, while not explicitly detailed, is likely competitive. The firm-fixed-price contract type helps manage cost risks for the government, ensuring predictability within the awarded ceiling. The inclusion of warranty and optional CLINs for additional units provides flexibility while managing initial outlay.

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 had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a robust competitive process. Full and open competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. This approach allows the government to select the best value solution from a wide range of potential providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can lead to lower prices and better quality equipment, maximizing the value of federal spending.

Public Impact

Passengers and staff at airports nationwide will benefit from enhanced security screening capabilities. The Transportation Security Administration (TSA) will receive advanced ETD systems to improve threat detection. The contract supports the modernization of security infrastructure at federal transportation hubs. This procurement contributes to the safety and security of the national transportation system. The deployment of these systems will likely involve training and support personnel, potentially impacting the federal workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on support or consumables are not competitively procured.
Dependence on a single contractor for critical security technology could pose a supply chain risk.
The long contract duration might not fully account for rapid technological advancements in ETD systems.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty and limits government financial risk.
Inclusion of warranty and optional CLINs offers flexibility and potential for future expansion.
Procurement of advanced ETD systems directly enhances national security and public safety.

Sector Analysis

The market for security detection and automation systems is a significant segment within the broader defense and homeland security industrial base. This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code. The Transportation Security Administration (TSA) is a major procurer of such technologies, with spending often benchmarked against similar large-scale procurements for airport security equipment. The market is characterized by specialized technology providers and a need for reliable, high-performance systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific small business set-aside analysis to report for this particular award. The prime contractor, Leidos Security Detection & Automation, Inc., is a large business. Future procurements related to maintenance, consumables, or integration services might offer opportunities for small businesses, but this specific delivery order does not appear to prioritize them.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). As a delivery order under a larger contract vehicle (likely a General Services Administration Schedule or similar), the underlying contract likely has established oversight mechanisms. Transparency is facilitated through contract award databases. Inspector General jurisdiction would typically apply to investigations of fraud, waste, or abuse related to the contract's performance or execution.

Related Government Programs

Airport Security Equipment Procurement
Homeland Security Technology Contracts
Explosive Detection Systems
Transportation Security Administration Procurements
Federal Supply Schedule Contracts

Risk Flags

Potential for technological obsolescence
Supply chain dependencies
Long-term support and maintenance costs
Integration challenges with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $66.0 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. THE PURPOSE OF THIS DELIVERY ORDER IS TO PURCHASE EXPLOSIVE TRACE DETECTION (ETD) SYSTEMS; INITIALLY 1,353 ETD SYSTEMS WITH WARRANTY AND OPTIONAL CLINS OF UP TO 2,073 WITH WARRANTY.

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 $66.0 million.

What is the period of performance?

Start: 2016-09-13. End: 2021-04-30.

What is the track record of Leidos Security Detection & Automation, Inc. in delivering similar security systems to government agencies?

Leidos, and its acquired entities, have a substantial track record in providing advanced security and detection solutions to various government agencies, including homeland security and defense sectors. Their portfolio often includes baggage screening systems, explosive trace detection (ETD), and other security technologies. For instance, they have been a significant supplier of ETD systems to the TSA and other international aviation authorities. Their experience encompasses large-scale deployments, integration with existing security infrastructure, and ongoing support services. This history suggests a capability to manage complex procurements and deliver reliable systems, though specific performance metrics for past contracts would require deeper analysis.

How does the awarded price compare to the estimated value or market rates for similar ETD systems?

The total awarded value of $65.95 million for up to 3,426 ETD systems (1,353 initial + 2,073 optional) suggests an average potential cost per system. Without specific unit pricing or detailed technical specifications, a precise comparison is challenging. However, industry reports and previous government procurements indicate that advanced ETD systems can range from tens of thousands to over a hundred thousand dollars per unit, depending on features, throughput, and manufacturer. Given the scale and the inclusion of warranties and support, the average cost per unit implied by this award appears to be within a plausible range for high-end security technology. Further analysis would require access to the specific contract line item details and competitive bids.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential technological obsolescence given the multi-year duration, supply chain disruptions for critical components, and performance issues with the ETD systems. Mitigation strategies likely involve the firm-fixed-price structure, which shifts some cost risk to the contractor. The inclusion of warranty clauses addresses initial performance and defects. The optional CLINs allow for phased deployment, potentially enabling adjustments based on early performance feedback or evolving threats. Furthermore, the full and open competition process aims to select a vendor with a proven ability to deliver reliable technology. However, ongoing monitoring of contractor performance and market technological advancements remains crucial.

How effective are ETD systems in enhancing overall airport security, and what is the TSA's strategy for their deployment?

Explosive Trace Detection (ETD) systems are a critical layer in airport security, designed to detect microscopic residues of explosives on surfaces, luggage, and individuals. They complement other screening technologies like X-ray and millimeter-wave scanners by providing a different detection modality. The TSA employs ETD systems at various checkpoints, including baggage screening areas and passenger screening lanes, to identify potential threats that might evade other methods. Their effectiveness is measured by detection rates, false alarm rates, and operational throughput. The TSA's strategy involves continuous evaluation and integration of advanced ETD technologies to adapt to evolving threats and maintain a robust security posture.

What are the historical spending patterns for ETD systems by the Department of Homeland Security or TSA?

The Department of Homeland Security (DHS), particularly through the Transportation Security Administration (TSA), has consistently invested in explosive detection technologies, including ETD systems, over the past decade. Spending patterns reflect a commitment to upgrading and expanding security capabilities at airports nationwide. Historical data shows significant procurements of various ETD models to meet evolving security mandates and replace aging equipment. While specific annual spending fluctuates based on budget allocations and modernization initiatives, the overall trend indicates sustained investment in this critical security domain. This $66 million award represents a substantial, but not unprecedented, investment within this ongoing security modernization effort.

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

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: $66,418,856

Exercised Options: $66,300,176

Current Obligation: $65,952,812

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0415DCT2011

IDV Type: IDC

Timeline