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
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
- Lack of competition
- High contract value for maintenance
Positive Signals
- Supports critical national security functions
- Ensures equipment availability
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
- 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 competition.
- Potential for inflated pricing due to lack of competition.
- High contract value requires scrutiny.
- Lack of small business participation noted.
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 Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT 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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