DHS Awards $21.5M for Non-Intrusive Inspection Equipment to Smiths Detection Inc

Contract Overview

Contract Amount: $21,503,393 ($21.5M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-15

End Date: 2026-05-15

Contract Duration: 607 days

Daily Burn Rate: $35.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NON-INTRUSIVE INSPECTION DETECTION EQUIPMENT

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.5 million to SMITHS DETECTION INC. for work described as: NON-INTRUSIVE INSPECTION DETECTION EQUIPMENT Key points: 1. Contract awarded to a single vendor, Smiths Detection Inc., for specialized inspection equipment. 2. Significant contract value of $21.5 million over a 607-day period. 3. The procurement method is 'NOT COMPETED', raising questions about price discovery and value. 4. The sector involves electronic and precision equipment repair and maintenance, crucial for homeland security operations.

Value Assessment

Rating: questionable

The contract value of $21.5 million for 607 days suggests a substantial investment. Without competitive bidding, it's difficult to assess if this price is optimal compared to market alternatives or previous procurements for similar equipment.

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 competition is absent.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the inspection equipment and related services.

Public Impact

Ensures continued operational capability for U.S. Customs and Border Protection's inspection processes. Potential for increased security at borders through advanced detection technology. Reliance on a single vendor could lead to future supply chain vulnerabilities or price increases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competitive bidding
Potential for overpricing

Positive Signals

Essential equipment for national security
Long-term contract provides stability

Sector Analysis

This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector, supporting critical infrastructure for homeland security. Spending benchmarks for similar specialized inspection equipment are hard to establish without competitive data.

Small Business Impact

The data does not indicate any specific provisions or considerations for small business participation in this contract. The award to a single, likely large, entity suggests limited opportunity for small businesses.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement is valid and that the pricing is fair and reasonable. Accountability for the expenditure rests with the Department of Homeland Security.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award lacks transparency
Potential for inflated pricing
Limited vendor options for future needs
Dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.5 million to SMITHS DETECTION INC.. NON-INTRUSIVE INSPECTION DETECTION EQUIPMENT

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 $21.5 million.

What is the period of performance?

Start: 2024-09-15. End: 2026-05-15.

What is the specific justification for awarding this contract on a sole-source basis, and has a thorough market research been conducted to confirm no other viable sources exist?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without detailed documentation, it's presumed DHS conducted market research, but the absence of competition raises concerns about whether alternatives were truly unavailable or if the research was insufficient.

How does the unit cost or overall contract value compare to similar non-intrusive inspection equipment procured competitively by other government agencies or in the commercial market?

Benchmarking is challenging due to the sole-source nature of this award. A comparative analysis against competitively procured systems would be necessary to determine if the $21.5 million price tag represents fair market value. This analysis should consider equipment capabilities, maintenance, and support.

What are the potential risks associated with relying on a single vendor for critical inspection equipment, particularly concerning future upgrades, maintenance, and potential price escalations?

Sole-source reliance creates risks of vendor lock-in, limited negotiation leverage for future contracts, and potential price increases. It also poses a vulnerability if the vendor experiences financial difficulties or supply chain disruptions, potentially impacting national security operations.

Industry Classification

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

Offers Received: 1

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: $41,105,709

Exercised Options: $22,223,254

Current Obligation: $21,503,393

Actual Outlays: $8,544,743

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline