DHS awards $7.6M for Multi-Energy Portal System to Smiths Detection Inc. for Peace Bridge

Contract Overview

Contract Amount: $7,630,006 ($7.6M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-30

End Date: 2027-07-31

Contract Duration: 1,765 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MULTI-ENERGY PORTAL (MEP) SYSTEM FOR PORT OF BUFFALO, PEACE BRIDGE

Place of Performance

Location: BUFFALO, ERIE County, NEW YORK, 14213

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.6 million to SMITHS DETECTION INC. for work described as: MULTI-ENERGY PORTAL (MEP) SYSTEM FOR PORT OF BUFFALO, PEACE BRIDGE Key points: 1. The contract value of $7.6 million appears reasonable for a specialized security system. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract duration of nearly five years indicates a long-term need for the system. 4. The system is intended for the Port of Buffalo, a critical border crossing. 5. The award was a delivery order under a larger contract vehicle. 6. The contractor, Smiths Detection Inc., is a known entity in the security screening market.

Value Assessment

Rating: good

The contract value of $7.6 million for a Multi-Energy Portal (MEP) system is within a typical range for advanced security screening equipment. Benchmarking against similar systems for border crossings or high-traffic ports of entry suggests this is a fair price. The firm-fixed-price nature of the contract helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a healthy level of competition for this specialized system, which generally leads to better pricing and innovation.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and improves the quality of goods and services procured.

Public Impact

Enhances border security and inspection capabilities at the Peace Bridge, a major U.S.-Canada crossing. Facilitates more efficient and thorough screening of cargo and vehicles entering the U.S. Supports the mission of U.S. Customs and Border Protection in safeguarding national security. Potentially impacts the flow of trade and commerce by improving inspection processes. The system is located in Buffalo, New York, impacting the local port of entry operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single delivery order might obscure the overall value and performance of the parent contract.
The specific performance metrics and acceptance criteria for the MEP system are not detailed here.

Positive Signals

Awarded under full and open competition, suggesting a robust procurement process.
The contractor, Smiths Detection Inc., has a recognized presence in the security technology sector.
The system addresses a critical national security need at a key border crossing.

Sector Analysis

The contract falls within the Irradiation Apparatus Manufacturing sector, which is a niche but critical part of the broader security and defense industry. The market for advanced screening technologies is driven by government demand for enhanced border security and threat detection. Comparable spending in this sector often involves significant investments in sophisticated equipment for ports, airports, and critical infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Customs and Border Protection (CBP) and potentially the Department of Homeland Security's Office of Inspector General. The firm-fixed-price contract type provides some cost control, and the delivery order structure implies adherence to the terms of the parent contract, which should have its own oversight mechanisms.

Related Government Programs

Border Security Technology
Cargo Screening Systems
Port of Entry Equipment
Homeland Security Technology Procurement
Customs and Border Protection Systems

Risk Flags

Long contract duration may lead to technological obsolescence.
Potential for vendor lock-in with a single supplier over an extended period.
Specific performance metrics and acceptance criteria not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.6 million to SMITHS DETECTION INC.. MULTI-ENERGY PORTAL (MEP) SYSTEM FOR PORT OF BUFFALO, PEACE BRIDGE

Who is the contractor on this award?

The obligated recipient is SMITHS DETECTION 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 $7.6 million.

What is the period of performance?

Start: 2022-09-30. End: 2027-07-31.

What is the specific type of "Multi-Energy Portal (MEP) System" being procured, and what are its key capabilities?

The Multi-Energy Portal (MEP) System is a type of non-intrusive inspection (NII) technology designed to screen cargo and vehicles for contraband, weapons, and other threats. It typically utilizes multiple energy sources (e.g., X-ray, gamma-ray) and advanced imaging techniques to create detailed internal views of scanned objects. Key capabilities often include high-throughput scanning, automatic target recognition (ATR) for identifying suspicious items, and the ability to penetrate dense materials. For the Peace Bridge, this system would enhance U.S. Customs and Border Protection's ability to efficiently and effectively inspect the high volume of traffic crossing the border, improving security while minimizing delays.

How does the $7.6 million contract value compare to similar security portal systems procured by federal agencies?

The $7.6 million contract value for a Multi-Energy Portal (MEP) system appears to be within a reasonable range for specialized, high-end security equipment. Similar systems for border crossings or large ports of entry can range from several hundred thousand to several million dollars, depending on the technology, throughput requirements, and vendor. Factors influencing cost include the sophistication of the imaging technology, the speed of scanning, integration capabilities with existing systems, and the manufacturer's reputation. Given the critical nature of border security at a major crossing like the Peace Bridge, this investment aligns with typical federal spending for such essential infrastructure.

What is the track record of Smiths Detection Inc. in providing similar security systems to government agencies?

Smiths Detection Inc. is a well-established global leader in the security screening market, with a significant track record of supplying advanced detection and screening technologies to government agencies worldwide, including U.S. Customs and Border Protection (CBP) and other Department of Homeland Security (DHS) components. They are known for providing a wide range of solutions, including checkpoint screening, cargo inspection systems, and trace detection equipment. Their experience encompasses numerous large-scale deployments at airports, seaports, and land borders, indicating a strong capability to deliver and support complex systems like the MEP for the Peace Bridge.

What are the potential risks associated with a nearly five-year contract duration for this type of technology?

A contract duration of nearly five years (1765 days) for a technology system like the MEP presents several potential risks. Firstly, technological obsolescence is a concern; advancements in screening technology could render the procured system outdated before the contract term concludes. Secondly, there's a risk of vendor lock-in, where the government becomes heavily reliant on Smiths Detection Inc. for maintenance, upgrades, and future procurements, potentially limiting future competitive opportunities. Lastly, long-term contracts can sometimes mask inefficiencies or performance issues if robust oversight and performance metrics are not consistently applied throughout the contract's life.

How does the 'full and open competition' procurement method benefit taxpayers in this specific contract?

The 'full and open competition' method is designed to maximize value for taxpayers by ensuring that the government receives the best possible price and quality. In this case, it means that Smiths Detection Inc. had to compete against other qualified vendors, driving them to offer competitive pricing and superior technology to win the contract. This process prevents sole-source awards, which can often be more expensive, and encourages innovation as companies strive to differentiate their offerings. The presence of three bidders indicates a healthy market response, suggesting that the chosen system represents a strong value proposition achieved through competitive pressure.

What is the historical spending pattern for similar Multi-Energy Portal systems by U.S. Customs and Border Protection?

Historical spending by U.S. Customs and Border Protection (CBP) on Multi-Energy Portal (MEP) systems and similar non-intrusive inspection (NII) technologies has been substantial, reflecting the agency's continuous need to upgrade and expand its border security capabilities. While specific figures for MEP systems alone are not readily available without deeper analysis, CBP has consistently invested hundreds of millions of dollars annually in NII equipment, including large-scale systems for scanning trucks, railcars, and shipping containers at ports of entry. The $7.6 million award for the Peace Bridge fits within this established pattern of significant investment in advanced screening technologies to manage border security effectively.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2202 LAKESIDE BLVD, EDGEWOOD, MD, 21040

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $7,630,006

Exercised Options: $7,630,006

Current Obligation: $7,630,006

Actual Outlays: $2,698,410

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B03C21D00000005

IDV Type: IDC

Timeline