DHS awards $28.5M to AS&E for X-ray maintenance, raising questions on competition and value
Contract Overview
Contract Amount: $28,547,893 ($28.5M)
Contractor: American Science & Engineering Inc
Awarding Agency: Department of Homeland Security
Start Date: 2020-07-01
End Date: 2021-09-30
Contract Duration: 456 days
Daily Burn Rate: $62.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AMERICAN SCIENCE & ENGINEERING (AS&E) ORIGINAL EQUIPMENT MANUFACTURER MAINTENANCE SUPPORT
Place of Performance
Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821
Plain-Language Summary
Department of Homeland Security obligated $28.5 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: AMERICAN SCIENCE & ENGINEERING (AS&E) ORIGINAL EQUIPMENT MANUFACTURER MAINTENANCE SUPPORT Key points: 1. High contract value for specialized equipment maintenance. 2. Sole reliance on AS&E for original equipment maintenance. 3. Potential for higher costs due to lack of competition. 4. Focus on critical border security technology.
Value Assessment
Rating: questionable
The contract value of $28.5M for maintenance over 15 months appears high, especially without competitive bidding. Benchmarking against similar maintenance contracts for specialized equipment is difficult without more data, but the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition on this $28.5M contract means taxpayers may be paying a premium for maintenance services that could potentially be secured at a lower cost through a competitive process.
Public Impact
Ensures continued operation of critical X-ray inspection systems for border security. Supports the Department of Homeland Security's mission to prevent illicit trade. Potential for taxpayer funds to be used inefficiently due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Lack of price competition
Positive Signals
- Supports critical national security function
- Ensures operational readiness of essential equipment
Sector Analysis
This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' category. Spending in this sector can vary widely, but significant sole-source awards for specialized equipment maintenance warrant scrutiny to ensure fair pricing.
Small Business Impact
The data indicates this contract was awarded to American Science & Engineering Inc., a specific manufacturer. There is no information provided to suggest that small businesses were involved in this particular contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award raises concerns about oversight. While justified for proprietary equipment, the agency should ensure robust justification and explore future competitive opportunities where feasible to maintain accountability.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Sole-source award limits price discovery.
- High contract value without competition.
- Potential for vendor lock-in.
- Lack of transparency in pricing.
- Limited opportunity for small business participation.
Tags
other-electronic-and-precision-equipment, department-of-homeland-security, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $28.5 million to AMERICAN SCIENCE & ENGINEERING INC. AMERICAN SCIENCE & ENGINEERING (AS&E) ORIGINAL EQUIPMENT MANUFACTURER MAINTENANCE SUPPORT
Who is the contractor on this award?
The obligated recipient is AMERICAN SCIENCE & ENGINEERING 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 $28.5 million.
What is the period of performance?
Start: 2020-07-01. End: 2021-09-30.
What is the justification for awarding this maintenance contract on a sole-source basis?
The justification for a sole-source award typically stems from the proprietary nature of the equipment, requiring specialized knowledge or parts only available from the original manufacturer. Agencies must provide detailed documentation supporting this necessity to ensure taxpayer funds are used appropriately and that alternatives were considered.
What is the potential cost impact of not competing this maintenance contract?
Without competition, the government loses the benefit of market forces driving down prices. This can lead to inflated costs for maintenance services, parts, and labor. The $28.5M value suggests significant potential overspending if AS&E's pricing is not benchmarked against comparable services.
How will the effectiveness of this maintenance be measured to ensure value for money?
Effectiveness should be measured through key performance indicators (KPIs) such as system uptime, response times for service calls, and successful resolution of issues. Regular performance reviews and comparison against industry standards, even for sole-source contracts, are crucial for ensuring value and accountability.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: OSI Systems Inc (UEI: 178295812)
Address: 829 MIDDLESEX TPKE, BILLERICA, MA, 01821
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: $28,547,893
Exercised Options: $28,547,893
Current Obligation: $28,547,893
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70B04C18D00000016
IDV Type: IDC
Timeline
Start Date: 2020-07-01
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 18:47:00
Last Modified: 2021-06-30
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