After successfully getting the Transportation Security Administration (TSA) to terminate a potential $578 million contract with Peraton, incumbent contractor Leidos [LDOS] has received a potential $196.5 million bridge contract from the agency to continue providing maintenance for airport checkpoint screening equipment while a new competition is held.
TSA last week said the bridge contract runs from Aug. 1 until Nov. 30, 2019, including a four-month option period.
“TSA has determined the proposed bridge contract period of performance provides adequate time to conduct a full and open competitive procurement for the follow-on services and allows a sufficient transition period necessary for regulatory compliance to DHS cybersecurity policy,” the agency said in a Sept. 5 FedBizOpps notice.
In May, TSA terminated its contract with Peraton, which was awarded the integrated logistics support work last fall. TSA said it was “in the best interest of the U.S. government” to withdraw the award, although the agency has not provided specifics as to why it terminated the award. The rationale for doing so was redacted in the bridge notice last week.
The termination was a blow to Peraton as it was the largest contract in the company’s short history so far and would have represented about a 10 percent increase in annual sales over the five-year period of the award.
TSA operates various screening equipment at airport checkpoints to scan airline travelers and their carry-on bags for potential weapons and explosive threats.
Leidos originally won the maintenance support contract with TSA in 2013.