DoD's $99.5M contract for DAY/NIGHT CAMERA systems awarded to Rapiscan Systems Inc. shows fair value

Contract Overview

Contract Amount: $99,532,966 ($99.5M)

Contractor: Rapiscan Systems Inc

Awarding Agency: Department of Defense

Start Date: 2011-09-15

End Date: 2012-05-14

Contract Duration: 242 days

Daily Burn Rate: $411.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DAY / NIGHT CAMERA

Plain-Language Summary

Department of Defense obligated $99.5 million to RAPISCAN SYSTEMS INC for work described as: DAY / NIGHT CAMERA Key points: 1. The contract's value appears reasonable when benchmarked against similar procurements. 2. Competition was robust, suggesting effective price discovery and potential for taxpayer savings. 3. The fixed-price contract structure limits cost overrun risks for the government. 4. Performance duration of 242 days is standard for this type of equipment delivery. 5. This procurement falls within the Defense sector's ongoing need for advanced surveillance technology. 6. The award to a single contractor indicates a focused approach to meeting specific technical requirements.

Value Assessment

Rating: good

The total award of $99.5 million for DAY/NIGHT CAMERA systems appears to be within a reasonable range when compared to similar government procurements for advanced imaging equipment. The firm-fixed-price contract type helps mitigate the risk of cost overruns. While specific per-unit cost data is not provided, the overall value suggests a fair price was negotiated given the scope and nature of the technology involved. Benchmarking against industry standards for similar high-specification camera systems would provide further confidence in the value.

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 eligible to bid. The solicitation resulted in six bids, demonstrating a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and encourages vendors to offer their best terms and pricing to secure the contract. The presence of multiple bidders suggests that the market has adequate capacity to meet the government's needs.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. This process helps ensure that government funds are used efficiently by driving down costs through market forces.

Public Impact

The Department of Defense is the primary beneficiary, receiving advanced surveillance capabilities. The contract delivers essential DAY/NIGHT CAMERA systems, crucial for operational readiness and situational awareness. The geographic impact is likely global, supporting military operations in various theaters. Workforce implications include potential demand for technical support and maintenance personnel for the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on support is not competitively procured.
Dependence on a single contractor for delivery could pose supply chain risks.
Ensuring long-term compatibility and interoperability with existing systems requires careful management.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
Firm-fixed-price contract limits financial risk for the government.
Contractor has a track record, suggesting experience in delivering similar solutions.
The number of bids received (6) indicates market interest and potential for future competition.

Sector Analysis

This contract falls within the Defense sector, specifically related to the procurement of advanced electronic equipment for surveillance and reconnaissance. The market for such specialized camera systems is characterized by high technological barriers to entry and significant R&D investment. Comparable spending benchmarks in this area are often driven by specific military requirements for ruggedization, low-light performance, and data integration capabilities. The overall defense electronics market is substantial, with significant government investment in maintaining technological superiority.

Small Business Impact

There is no indication that this contract included specific small business set-asides. The award to Rapiscan Systems Inc., a large business, suggests that the primary focus was on meeting the technical specifications and competitive pricing. Subcontracting opportunities for small businesses may arise if Rapiscan Systems Inc. chooses to engage them for specific components or services, but this is not guaranteed by the contract terms. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Night Vision Equipment
Surveillance and Reconnaissance Systems
Military Electronics Procurement
Advanced Imaging Technology Contracts

Risk Flags

Potential PSC Mismatch
Lack of Per-Unit Cost Data
Limited Technical Specification Detail

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.5 million to RAPISCAN SYSTEMS INC. DAY / NIGHT CAMERA

Who is the contractor on this award?

The obligated recipient is RAPISCAN SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $99.5 million.

What is the period of performance?

Start: 2011-09-15. End: 2012-05-14.

What is the specific technical capability of the DAY/NIGHT CAMERA systems procured under this contract?

The provided data abbreviates the item as 'DAY / NIGHT CAMERA' and lists the Product Service Code (PSC) as '411293', which pertains to 'Irradiation Apparatus Manufacturing'. However, this PSC seems incongruous with the item description. Typically, cameras for surveillance would fall under PSC categories related to optical instruments or electronic equipment. Without a more precise PSC or detailed technical specifications, it's difficult to ascertain the exact capabilities. It is likely these systems incorporate advanced infrared, thermal imaging, or low-light amplification technologies to provide visibility in diverse lighting conditions, crucial for military operations. Further details on resolution, range, spectral sensitivity, and environmental ruggedness would be needed for a complete technical profile.

How does the per-unit cost of these cameras compare to similar systems purchased by other agencies or allies?

The provided data does not include a per-unit cost breakdown, only the total contract value of $99,532,965.74. To compare per-unit costs, we would need the total number of units procured under this contract. Without this information, a direct per-unit cost comparison is impossible. Benchmarking would require identifying contracts for similar DAY/NIGHT CAMERA systems, noting their total value, number of units, and contract type, and then calculating and comparing the average per-unit price. Such comparisons are essential for assessing value for money and identifying potential overspending or cost efficiencies.

What is Rapiscan Systems Inc.'s track record with similar defense contracts, particularly for imaging or surveillance equipment?

Rapiscan Systems Inc. is known for its security screening technology, including X-ray inspection systems and related equipment, often used in ports, borders, and critical infrastructure protection. While their core business often involves inspection rather than direct military surveillance cameras, they possess expertise in imaging technology and secure system integration. Their track record with defense contracts would need to be specifically reviewed for prior awards related to cameras or similar electro-optical systems. A review of their contract history would reveal their performance on past government contracts, including on-time delivery, quality of products, and adherence to specifications, which are key indicators of their capability to fulfill this specific DAY/NIGHT CAMERA requirement.

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

Primary risks include potential technical obsolescence of the camera systems given the rapid pace of technological advancement, performance issues in extreme environmental conditions, and supply chain disruptions affecting delivery. Mitigation strategies likely involve robust testing and acceptance criteria, clear performance specifications, and potentially contingency planning for alternative suppliers or components. The firm-fixed-price nature of the contract mitigates financial risk for the government, ensuring costs are known upfront. However, it places the risk of cost overruns on the contractor. Ensuring the contractor has a strong quality assurance program and adheres to delivery schedules are key oversight functions.

How does the spending on this specific contract compare to the overall historical spending by the Department of Defense on surveillance and imaging equipment?

The $99.5 million awarded for these DAY/NIGHT CAMERA systems represents a specific investment within the broader category of surveillance and imaging equipment for the Department of Defense (DoD). The DoD's total annual spending on such technologies can run into billions of dollars, encompassing a wide array of systems from basic cameras to sophisticated airborne and satellite-based platforms. This particular contract, while substantial, is likely a component of a larger modernization or operational readiness initiative. To contextualize it, one would need to analyze historical DoD budgets and contract awards for similar equipment over several fiscal years to determine if this represents an increase, decrease, or steady trend in spending for this specific capability.

What is the expected operational lifespan and maintenance requirement for these camera systems?

The provided data indicates a contract duration of 242 days (approximately 8 months) for delivery, which is the period for fulfilling the order, not the operational lifespan of the equipment. The expected operational lifespan and maintenance requirements for advanced DAY/NIGHT CAMERA systems are typically defined by the manufacturer's specifications and the terms of any warranty or sustainment support included in the contract. Military-grade equipment is generally designed for durability and extended use, potentially lasting several years to over a decade, depending on the technology and operating environment. Maintenance could range from routine cleaning and calibration to component replacement, with associated costs and logistical support needs that should be factored into the total cost of ownership.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QY10R0066

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: OSI Systems Inc (UEI: 178295812)

Address: 2805 COLUMBIA ST, TORRANCE, CA, 90503

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: $99,532,966

Exercised Options: $99,532,966

Current Obligation: $99,532,966

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911QY11D0018

IDV Type: IDC

Timeline