DoD Spends $15.7M on CBPS-M3 Systems from Smiths Detection Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $15,719,259 ($15.7M)
Contractor: Smiths Detection Inc.
Awarding Agency: Department of Defense
Start Date: 2008-08-26
End Date: 2017-04-30
Contract Duration: 3,169 days
Daily Burn Rate: $5.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF CBPS-M3 SYSTEMS
Place of Performance
Location: EDGEWOOD, HARFORD County, MARYLAND, 21040
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $15.7 million to SMITHS DETECTION INC. for work described as: PURCHASE OF CBPS-M3 SYSTEMS Key points: 1. Significant investment in specialized detection systems for defense. 2. Single awardee suggests potential for concentrated market power. 3. Long contract duration (2008-2017) warrants review of evolving technology needs. 4. Firm Fixed Price contract provides cost certainty but limits flexibility. 5. High value contract requires robust oversight.
Value Assessment
Rating: fair
The contract value of $15.7M over nearly 9 years suggests a substantial investment. Benchmarking against similar advanced detection systems would be necessary to fully assess value, especially considering the firm fixed price structure which locks in costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the single awardee for this specific system implies that only one entity could meet the technical requirements, potentially limiting price discovery in later stages.
Taxpayer Impact: Taxpayers funded a significant investment in specialized defense equipment through a competitive process, aiming for best value. The long duration and single awardee warrant scrutiny to ensure continued cost-effectiveness.
Public Impact
Enhances national security capabilities through advanced detection technology. Supports military readiness by providing essential equipment. Potential for technological obsolescence over the contract's long lifespan. Impact on defense budget allocation for specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to outdated technology.
- Single awardee could indicate limited market competition for this specific system.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Significant investment in critical defense technology.
Sector Analysis
This spending falls within the Defense sector, specifically related to specialized equipment procurement. Benchmarks for similar complex systems can vary widely, but a $15.7M outlay over nearly a decade for detection systems is a considerable investment.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests the prime contractor is a large entity, and there's no indication of subcontracting opportunities for small businesses in this specific award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, oversaw this award. The long duration and significant value necessitate ongoing oversight to ensure performance, manage risks, and verify continued need and cost-effectiveness.
Related Government Programs
- Canvas and Related Product Mills
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for technological obsolescence.
- Limited visibility into specific system capabilities and performance metrics.
- Lack of small business participation.
- Long contract duration without clear evidence of ongoing competition or review.
Tags
canvas-and-related-product-mills, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.7 million to SMITHS DETECTION INC.. PURCHASE OF CBPS-M3 SYSTEMS
Who is the contractor on this award?
The obligated recipient is SMITHS DETECTION INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.7 million.
What is the period of performance?
Start: 2008-08-26. End: 2017-04-30.
What was the specific nature of the CBPS-M3 systems and their criticality to defense operations?
The CBPS-M3 systems likely refer to Chemical, Biological, and Radiological Protective Systems, or similar advanced detection and protection equipment crucial for safeguarding personnel and assets against WMD threats. Their criticality lies in enabling mission accomplishment in hazardous environments and ensuring force protection, making them a high-priority procurement for national security.
How did the firm fixed price contract impact the government's ability to benefit from potential cost reductions over the contract's long duration?
A firm fixed price contract provides cost certainty for the government, protecting against cost overruns by the contractor. However, it can limit the government's ability to benefit from potential cost reductions if the contractor achieves efficiencies or lower input costs over the contract's long lifespan, as savings are retained by the contractor.
What mechanisms were in place to ensure the technology remained relevant and effective throughout the nearly nine-year contract period?
Given the long duration, mechanisms like contract modification clauses for upgrades, periodic technical reviews, or performance-based requirements tied to evolving threats would be crucial. Without specific details, it's difficult to ascertain the exact measures, but ensuring technological relevance over such a period typically requires proactive contract management and potential renegotiation.
Industry Classification
NAICS: Manufacturing › Other Textile Product Mills › Canvas and Related Product Mills
Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Smiths Group PLC (UEI: 210273256)
Address: 2202 LAKESIDE BLVD, EDGEWOOD, MD, 21040
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,824,381
Exercised Options: $15,824,381
Current Obligation: $15,719,259
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52H0906D0092
IDV Type: IDC
Timeline
Start Date: 2008-08-26
Current End Date: 2017-04-30
Potential End Date: 2017-04-30 00:00:00
Last Modified: 2018-04-13
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