Homeland Security awards $35.8M for autonomous surveillance towers to Anduril Industries

Contract Overview

Contract Amount: $35,834,763 ($35.8M)

Contractor: Anduril Industries, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-02

End Date: 2021-09-01

Contract Duration: 364 days

Daily Burn Rate: $98.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USBP - SBIR PHASE III - AUTONOMOUS SURVEILLANCE TOWERS - DELIVERY ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.8 million to ANDURIL INDUSTRIES, INC. for work described as: USBP - SBIR PHASE III - AUTONOMOUS SURVEILLANCE TOWERS - DELIVERY ORDER Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract value of $35.8 million is for a single delivery order, suggesting a focused scope. 3. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 4. The contract duration of 364 days suggests a project with a defined, relatively short timeline. 5. The award to Anduril Industries, Inc. places this within the defense technology and surveillance sector. 6. The fixed-price contract type aims to control costs for the government. 7. The contract was awarded by U.S. Customs and Border Protection (CBP), a component of DHS.

Value Assessment

Rating: good

The contract value of $35.8 million for autonomous surveillance towers appears reasonable given the specialized nature of the technology and the provider. Benchmarking against similar advanced surveillance systems is challenging due to the proprietary nature of such technologies. However, the fixed-price contract type suggests an effort to manage costs effectively. The award was made after exclusion of sources, which warrants further investigation into the justification for limiting competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial solicitation may have been open, specific sources were later excluded, or the competition was limited to a pre-selected group. The exact number of bidders is not specified, but the 'exclusion of sources' suggests a potentially narrower competitive field than a truly full and open competition.

Taxpayer Impact: The exclusion of sources could potentially lead to higher prices for taxpayers if it limited the number of competitive bids received. Transparency in the justification for excluding sources is crucial for ensuring fair pricing.

Public Impact

This contract directly benefits U.S. Customs and Border Protection (CBP) by enhancing their surveillance capabilities along borders. The services delivered include the provision of autonomous surveillance towers, likely incorporating advanced sensor and data processing technologies. The geographic impact is primarily focused on border regions requiring enhanced monitoring and security. The contract supports the development and deployment of advanced technology, potentially impacting the workforce in specialized technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method raises concerns about potential limitations on competitive pricing and innovation.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of the autonomous surveillance towers.
The specific capabilities and operational deployment of these towers are not fully detailed, limiting a comprehensive risk assessment.

Positive Signals

The use of a firm fixed-price contract type provides cost certainty for the government.
The award to a single vendor for a specific technology suggests a focused approach to acquiring specialized capabilities.
The contract is for a defined period, allowing for reassessment of needs and vendor performance upon completion.

Sector Analysis

The defense and security sector is characterized by significant government investment in advanced technologies for surveillance, reconnaissance, and border protection. Companies like Anduril Industries are at the forefront of developing AI-driven autonomous systems. This contract fits within the broader trend of modernizing border security infrastructure with technological solutions, moving beyond traditional methods to incorporate unmanned and intelligent systems. Comparable spending benchmarks are difficult to ascertain due to the niche and evolving nature of autonomous surveillance technology.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and the contractor, Anduril Industries, Inc., is a large business. There is no information available regarding subcontracting plans for small businesses within this specific delivery order. Therefore, the direct impact on the small business ecosystem from this particular award appears minimal, though larger prime contractors often engage small businesses for specialized components or services in broader programs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal review processes and potentially the U.S. Customs and Border Protection's program management. Inspector General oversight from DHS is likely applicable to ensure the proper use of funds and contract compliance. Transparency is facilitated by the contract award notice, but detailed operational oversight and performance monitoring mechanisms are not explicitly detailed in the provided data.

Related Government Programs

Border Security Technology
Autonomous Systems
Surveillance and Reconnaissance
Department of Homeland Security Procurement
Defense Technology Contracts

Risk Flags

Limited Competition Justification
Lack of Detailed Performance Metrics
Cybersecurity Vulnerability Potential
Ethical Considerations of Autonomous Systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.8 million to ANDURIL INDUSTRIES, INC.. USBP - SBIR PHASE III - AUTONOMOUS SURVEILLANCE TOWERS - DELIVERY ORDER

Who is the contractor on this award?

The obligated recipient is ANDURIL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $35.8 million.

What is the period of performance?

Start: 2020-09-02. End: 2021-09-01.

What specific justification was provided for excluding other potential sources in the competition for this contract?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation typically implies that while the initial solicitation might have been open, specific vendors or types of vendors were subsequently excluded from consideration. The precise justification for such exclusions is usually detailed in the contract award justification documents, often citing reasons such as unique capabilities, proprietary technology, or specific performance requirements that only a limited number of entities could meet. Without access to these specific justification documents, it is difficult to ascertain the exact rationale. However, such exclusions can sometimes limit price competition and raise concerns about whether the government secured the best possible value.

How does the $35.8 million contract value compare to similar autonomous surveillance tower procurements by federal agencies?

Directly comparing the $35.8 million value of this single delivery order for autonomous surveillance towers is challenging due to the nascent and rapidly evolving nature of this technology. Procurements for such advanced systems are often highly customized and depend on specific capabilities, sensor payloads, integration requirements, and deployment scales. Unlike more standardized equipment, autonomous surveillance towers involve significant R&D, software development, and integration costs. While $35.8 million represents a substantial investment, it is difficult to benchmark without detailed specifications of the system's capabilities, quantity, and duration of service. It is advisable to look at other CBP or DHS procurements for similar advanced surveillance technologies, or contracts awarded by agencies like the Department of Defense for comparable systems, to establish a more relevant comparison.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of these autonomous surveillance towers?

The provided data does not include specific Key Performance Indicators (KPIs) for the autonomous surveillance towers procured under this contract. Typically, for such systems, KPIs would focus on metrics like detection range and accuracy, false alarm rates, system uptime and reliability, data processing speed and quality, ease of maintenance, and integration capabilities with existing command and control systems. Evaluating the effectiveness would require access to performance reports, operational data, and potentially post-award reviews conducted by U.S. Customs and Border Protection. Without these details, assessing the true value and impact of the technology remains limited.

What is Anduril Industries' track record with similar government contracts, particularly in autonomous surveillance?

Anduril Industries, Inc. has established a significant presence in the defense technology sector, particularly in developing AI-powered autonomous systems for defense and security applications. They are known for their Lattice operating system and various hardware platforms, including sentry towers and unmanned aerial vehicles. The company has secured numerous contracts with various government agencies, including the Department of Defense and Department of Homeland Security, for surveillance, reconnaissance, and border security solutions. Their track record often involves rapid prototyping and deployment of advanced technologies. While specific details of past performance on contracts directly comparable to this USBP award are not provided here, their overall portfolio indicates substantial experience in the domain of autonomous surveillance technology for government clients.

What are the potential risks associated with deploying autonomous surveillance towers, and how are they mitigated?

Potential risks associated with deploying autonomous surveillance towers include technological failures (e.g., sensor malfunction, AI misinterpretation), cybersecurity vulnerabilities, ethical concerns regarding autonomous decision-making, potential for mission creep, and public perception issues. Mitigation strategies typically involve rigorous testing and validation protocols, robust cybersecurity measures, clear operational guidelines and human oversight mechanisms, regular software updates, and transparent communication with stakeholders. For this specific contract, the firm fixed-price nature helps mitigate cost overrun risks for the government. However, the effectiveness of other risk mitigation strategies would depend on the specific implementation details and oversight by CBP.

How has spending on autonomous surveillance technology evolved within DHS and CBP over the past five years?

Spending on autonomous surveillance technology within the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) has likely seen a significant upward trend over the past five years, mirroring broader government investments in advanced defense and security capabilities. Agencies are increasingly seeking to leverage AI, robotics, and unmanned systems to enhance situational awareness, improve operational efficiency, and address complex security challenges, particularly at the border. While specific historical spending figures for 'autonomous surveillance towers' are not readily available in this dataset, the increasing focus on technological modernization suggests a growing allocation of resources towards such solutions. This $35.8 million award represents a notable investment in this specific category of technology.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2722 MICHELSON DR, IRVINE, CA, 92612

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,834,763

Exercised Options: $35,834,763

Current Obligation: $35,834,763

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B02C20D00000019

IDV Type: IDC

Timeline