TSA's $62.5M explosives detection system maintenance contract awarded to Leidos, raising questions about competition and value
Contract Overview
Contract Amount: $62,486,187 ($62.5M)
Contractor: Leidos Security Detection & Automation, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2017-10-01
End Date: 2018-09-30
Contract Duration: 364 days
Daily Burn Rate: $171.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF ORDERING PERIOD 3 OF THE L3 EDS PERFORMANCE-BASED LOGISTICS (PBL) SUPPORT PROGRAM FROM 10/1/2017 TO 7/31/2018. THE L3 PBL SERVICES CONTRACT SUSTAIN GOVERNMENT-CERTIFIED EXPLOSIVES DETECTION SYSTEMS (EDS), AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY THE TRANSPORTATION SECURITY ADMINISTRATION (TSA). THE EDS ARE DEPLOYED AT CATEGORY X THROUGH IV AIRPORTS AND OTHER GOVERNMENT-DESIGNATED FACILITIES THROUGHOUT THE UNITED STATES AND ITS TERRITORIES.
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801
Plain-Language Summary
Department of Homeland Security obligated $62.5 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC. for work described as: IGF::CT::IGF ORDERING PERIOD 3 OF THE L3 EDS PERFORMANCE-BASED LOGISTICS (PBL) SUPPORT PROGRAM FROM 10/1/2017 TO 7/31/2018. THE L3 PBL SERVICES CONTRACT SUSTAIN GOVERNMENT-CERTIFIED EXPLOSIVES DETECTION SYSTEMS (EDS), AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY T… Key points: 1. The contract focuses on sustaining government-certified explosives detection systems (EDS) crucial for airport security. 2. Performance-based logistics (PBL) approach aims for efficient sustainment of critical security equipment. 3. Sole-source award limits price discovery and potentially increases costs for taxpayers. 4. The contract duration of one year suggests a short-term need or a bridge to a future procurement. 5. Maintenance services are critical for ensuring the operational readiness of EDS at various government facilities. 6. The specific nature of EDS maintenance may present unique challenges for competition.
Value Assessment
Rating: questionable
Benchmarking the value of this specific contract is challenging due to its sole-source nature and the specialized equipment it supports. Without competitive bids, it's difficult to assess if Leidos' pricing reflects fair market value. The contract's focus on performance-based logistics suggests an intent to ensure system readiness, but the absence of competition prevents a robust comparison against alternative providers or pricing structures. Further analysis would require understanding the specific service level agreements and the complexity of maintaining these certified systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Leidos Security Detection & Automation, Inc., was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the necessary expertise or proprietary technology, they limit the government's ability to leverage market competition to secure the best possible pricing and terms.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no direct price competition to drive down expenses. This limits the government's leverage in negotiating favorable terms and potentially results in paying a premium for services.
Public Impact
The primary beneficiaries are the Transportation Security Administration (TSA) and the traveling public, who benefit from the continued operational readiness of explosives detection systems. Services delivered include the sustainment and maintenance of government-certified explosives detection systems (EDS). The geographic impact is nationwide, covering Category X through IV airports and other designated government facilities across the United States and its territories. Workforce implications are likely internal to Leidos, involving skilled technicians and support staff for EDS maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Lack of transparency in pricing due to no competitive bidding.
- Potential for vendor lock-in with specialized equipment maintenance.
- Limited visibility into alternative maintenance solutions or cost efficiencies.
Positive Signals
- Focus on performance-based logistics aims to ensure system availability.
- Contract supports critical national security infrastructure (explosives detection).
- Leidos is an established provider in security detection and automation.
Sector Analysis
This contract falls within the broader sector of security and defense technology, specifically focusing on the maintenance and sustainment of specialized detection equipment. The market for such systems is often characterized by high barriers to entry due to technological complexity, stringent certification requirements, and long-standing relationships with government agencies. Comparable spending benchmarks are difficult to establish without more detailed information on the specific EDS models and their maintenance needs, but the overall TSA budget for security technology and operations provides a broader context.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of subcontracting plans for small businesses. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Leidos voluntarily engages small businesses for specific support roles not detailed in this award. The absence of a competitive bidding process also means fewer opportunities for small businesses to demonstrate their capabilities and secure a portion of this work.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). As a performance-based logistics contract, oversight would likely focus on the contractor's adherence to performance metrics and service level agreements. 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
- Transportation Security Administration (TSA) Equipment Procurement
- Homeland Security Department (DHS) Technology Sustainment
- Explosives Detection Systems (EDS) Maintenance Programs
- Performance-Based Logistics (PBL) Contracts
- Federal Aviation Administration (FAA) Security Technology
Risk Flags
- Sole-source award
- Lack of competitive pricing data
- Potential for increased costs without competition
Tags
transportation-security-administration, homeland-security, explosives-detection-systems, performance-based-logistics, maintenance-and-repair, sole-source, national-security, airport-security, firm-fixed-price, leidos-security-detection-automation-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $62.5 million to LEIDOS SECURITY DETECTION & AUTOMATION, INC.. IGF::CT::IGF ORDERING PERIOD 3 OF THE L3 EDS PERFORMANCE-BASED LOGISTICS (PBL) SUPPORT PROGRAM FROM 10/1/2017 TO 7/31/2018. THE L3 PBL SERVICES CONTRACT SUSTAIN GOVERNMENT-CERTIFIED EXPLOSIVES DETECTION SYSTEMS (EDS), AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY THE TRANSPORTATION SECURITY ADMINISTRATION (TSA). THE EDS ARE DEPLOYED AT CATEGORY X THROUGH IV AIRPORTS AND OTHER GOVERNMENT-DESIGNATED FACILITIES THROUGHOUT THE UNITED STATES AND ITS TERRITORIES.
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 $62.5 million.
What is the period of performance?
Start: 2017-10-01. End: 2018-09-30.
What is the track record of Leidos Security Detection & Automation, Inc. in providing similar performance-based logistics support for government-certified explosives detection systems?
Leidos Security Detection & Automation, Inc., and its predecessor entities, have a significant history of providing security technology and services to government agencies, including the TSA. Their involvement in performance-based logistics (PBL) for critical systems suggests a capability to manage sustainment and maintenance to meet defined performance outcomes. The company's experience with explosives detection systems specifically is a key factor in their ability to secure this sole-source contract. However, without access to detailed performance reviews or past performance evaluations specific to this type of PBL for EDS, a comprehensive assessment of their track record remains limited to their general market presence and stated capabilities.
How does the pricing of this contract compare to similar maintenance contracts for explosives detection equipment, considering it was awarded sole-source?
Direct price comparison for this contract is inherently difficult because it was awarded on a sole-source basis to Leidos Security Detection & Automation, Inc. Competitive bidding typically allows for price discovery and benchmarking against multiple vendors. In the absence of competition, the government relies on pre-negotiated rates, historical pricing, or internal cost estimations to assess value. The performance-based nature of the contract implies that payment is tied to achieving specific outcomes, which can sometimes justify higher upfront costs if it leads to greater system reliability and reduced downtime. However, without competitive bids, there is a risk that the pricing may not reflect the most cost-effective solution available in the market.
What are the primary risks associated with a sole-source award for critical security equipment maintenance, and how are they mitigated?
The primary risks associated with a sole-source award for critical security equipment maintenance include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and the risk of vendor lock-in. Mitigation strategies often involve rigorous negotiation of contract terms, including pricing structures and performance metrics, based on market research and historical data. The government may also implement strict oversight mechanisms to monitor contractor performance and costs. For specialized equipment like Explosives Detection Systems (EDS), a sole-source award might be justified if only one vendor possesses the necessary proprietary knowledge, certifications, or parts, making competition infeasible. In such cases, the focus shifts to ensuring the contractor meets stringent performance requirements and provides value through reliable sustainment.
What is the expected effectiveness of the performance-based logistics (PBL) approach in ensuring the operational readiness of the EDS?
The performance-based logistics (PBL) approach is designed to enhance the operational readiness of the Explosives Detection Systems (EDS) by shifting the focus from the delivery of parts and services to the achievement of specific performance outcomes. Under a PBL model, the contractor, Leidos, is incentivized to ensure the systems are available, reliable, and functioning optimally. This typically involves proactive maintenance, rapid response to issues, and potentially inventory management to minimize downtime. The effectiveness hinges on the clarity and measurability of the performance metrics defined in the contract. If these metrics accurately reflect the desired state of operational readiness and are rigorously monitored, the PBL approach can be highly effective in ensuring the continuous availability of critical security equipment at airports and other facilities.
How does this contract fit into the TSA's broader strategy for managing and upgrading its security screening technology?
This contract represents a component of the TSA's broader strategy for maintaining the operational integrity of its existing security screening technology, specifically the Explosives Detection Systems (EDS). By awarding a performance-based logistics contract, the TSA aims to ensure the reliable sustainment of these critical assets, thereby maintaining current security levels. This type of contract often serves to bridge periods between major technology procurements or upgrades. It allows the TSA to focus on its core mission of security while outsourcing the complex task of maintaining specialized equipment. The contract's duration and scope suggest it is part of an ongoing effort to manage the lifecycle of deployed EDS, ensuring they remain functional until they are potentially replaced or upgraded through separate acquisition programs.
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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $62,486,187
Exercised Options: $62,486,187
Current Obligation: $62,486,187
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0415DCT3000
IDV Type: IDC
Timeline
Start Date: 2017-10-01
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 12:09:00
Last Modified: 2021-04-21
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