DHS Awards $46.8M for Non-Intrusive Equipment Maintenance, Sole-Sourced

Contract Overview

Contract Amount: $46,803,611 ($46.8M)

Contractor: American Science & Engineering Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-07-01

End Date: 2024-09-14

Contract Duration: 441 days

Daily Burn Rate: $106.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LARGE AND SMALL SCALE NON-INTRUSIVE EQUIPMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $46.8 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: LARGE AND SMALL SCALE NON-INTRUSIVE EQUIPMENT Key points: 1. Significant contract value for equipment maintenance. 2. Sole-source award raises questions about competition. 3. Focus on non-intrusive equipment suggests security applications. 4. Long duration indicates ongoing operational needs.

Value Assessment

Rating: fair

The contract value of $46.8M over 14 months appears high for repair and maintenance services. Benchmarking against similar contracts for electronic equipment maintenance is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these services.

Public Impact

Ensures operational readiness of critical security equipment for Customs and Border Protection. Supports national security by maintaining advanced scanning and detection systems. Potential for increased costs due to sole-source procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' category. Spending in this sector is often driven by the need to maintain specialized government equipment, particularly in defense and security.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses had an opportunity to compete.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. Regular performance reviews and justification for the sole-source award are essential.

Related Government Programs

Risk Flags

Tags

other-electronic-and-precision-equipment, department-of-homeland-security, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $46.8 million to AMERICAN SCIENCE & ENGINEERING INC. LARGE AND SMALL SCALE NON-INTRUSIVE EQUIPMENT

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 $46.8 million.

What is the period of performance?

Start: 2023-07-01. End: 2024-09-14.

What is the justification for the sole-source award, and how does it ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available alternatives. Agencies must demonstrate that competition is not feasible. Fair pricing is then assessed through mechanisms like cost analysis, historical pricing, or comparison to similar, albeit non-identical, services to mitigate the absence of a competitive bidding process.

What are the specific types of non-intrusive equipment being maintained under this contract?

The contract specifies 'LARGE AND SMALL SCALE NON-INTRUSIVE EQUIPMENT,' which likely refers to advanced imaging and detection systems used at ports of entry and borders. This could include X-ray scanners, radiation detectors, and other technologies designed to inspect cargo and individuals without physical intrusion.

How does the $46.8M contract value compare to industry benchmarks for similar maintenance services?

Without specific details on the equipment and service level agreements, a precise benchmark is difficult. However, $46.8M for 14 months of maintenance suggests a high per-unit cost or a very large fleet of complex equipment. A detailed cost breakdown and comparison with industry standards for similar security technology maintenance are necessary for a thorough value assessment.

Industry Classification

NAICS: Other Services (except Public Administration)Electronic and Precision Equipment Repair and MaintenanceOther Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - END USER

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

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: $46,803,611

Exercised Options: $46,803,611

Current Obligation: $46,803,611

Actual Outlays: $46,386,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B04C18D00000016

IDV Type: IDC

Timeline

Start Date: 2023-07-01

Current End Date: 2024-09-14

Potential End Date: 2024-09-14 10:31:57

Last Modified: 2024-08-30

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