DHS awards $4.27M R&D contract for CT-XRAY system integration to SureScan Corporation

Contract Overview

Contract Amount: $4,268,369 ($4.3M)

Contractor: Surescan Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-29

End Date: 2026-09-28

Contract Duration: 2,190 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CT-XRAY SYSTEM INTEGRATION WITH AN IN-LINE X-RAY DIFFRACTION SYSTEM - LRBAA

Place of Performance

Location: BOXBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01719

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.3 million to SURESCAN CORPORATION for work described as: CT-XRAY SYSTEM INTEGRATION WITH AN IN-LINE X-RAY DIFFRACTION SYSTEM - LRBAA Key points: 1. Contract focuses on integrating advanced imaging technologies for potential security applications. 2. Research and Development in Physical, Engineering, and Life Sciences is a key sector for innovation. 3. The contract duration of 2190 days suggests a long-term development and integration effort. 4. Cost Plus Fixed Fee pricing structure allows for flexibility in R&D but requires careful cost management. 5. The award was made by the Office of Procurement Operations within DHS, indicating a centralized procurement approach. 6. The North American Industry Classification System (NAICS) code 541715 points to specialized scientific research services.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the 'Cost Plus Fixed Fee' structure, which can lead to cost overruns if not managed diligently. The initial award amount of $4.27M over approximately six years suggests a moderate investment in this specific technological integration. Without comparable contracts for similar integrated CT-XRAY and diffraction systems, a precise value-for-money assessment is difficult. However, the fixed fee component provides some cost certainty for the contractor's effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring that the government receives competitive offers. The presence of a single award suggests that SureScan Corporation's proposal was deemed the most advantageous based on the evaluation criteria, which likely included technical merit, past performance, and price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by fostering a competitive environment among potential offerors.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security, which will receive the integrated CT-XRAY and diffraction system for its operational needs. The services delivered involve research and development, specifically the integration of advanced imaging technologies. The geographic impact is primarily within the United States, where the research and development activities will take place and where the system will ultimately be deployed. The contract may have implications for the specialized workforce in scientific research and development, particularly in imaging technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
The long duration of the contract (2190 days) increases the risk of scope creep or technological obsolescence.
The specialized nature of the R&D may limit the pool of qualified contractors, potentially impacting future competition.
Reliance on a single contractor for this integration could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract is for research and development, which can lead to significant technological advancements.
The fixed fee component provides a degree of cost predictability for the contractor's effort.
The specific focus on integrating CT-XRAY and diffraction systems addresses a niche technological need.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced imaging and security screening technologies is highly specialized, driven by government and commercial demand for improved threat detection and analysis. Comparable spending benchmarks are difficult to establish without more specific details on the technology's application, but R&D spending in advanced sensor and imaging systems can range from millions to billions depending on the scope and maturity of the technology.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the competition was open to all responsible sources, and there is no explicit requirement for subcontracting with small businesses. The impact on the small business ecosystem is therefore neutral to minimal for this specific award, as it was not designed to promote small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of Homeland Security. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract award databases, though specific project details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Advanced Imaging Technology Development
Homeland Security Research Programs
Scientific Instrument Integration
Physical Science Research Contracts
Engineering Services for Security Applications

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Long Contract Duration
Potential Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.3 million to SURESCAN CORPORATION. CT-XRAY SYSTEM INTEGRATION WITH AN IN-LINE X-RAY DIFFRACTION SYSTEM - LRBAA

Who is the contractor on this award?

The obligated recipient is SURESCAN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2020-09-29. End: 2026-09-28.

What is the specific technological advancement expected from integrating a CT-XRAY system with an in-line X-ray diffraction system?

The integration of a CT-XRAY (Computed Tomography X-ray) system with an in-line X-ray diffraction system aims to combine the strengths of both technologies for enhanced material analysis and threat detection. CT-XRAY provides detailed cross-sectional imaging, revealing the internal structure and density of objects. X-ray diffraction, on the other hand, can identify the chemical composition and crystalline structure of materials by analyzing how X-rays scatter off them. By integrating these, the system could potentially offer not only high-resolution imaging of an object's physical form but also real-time identification of the substances within it. This dual capability is particularly valuable in security screening (e.g., at airports or borders) for detecting explosives, illicit drugs, or other hazardous materials with greater certainty and speed than either technology could achieve alone. The 'in-line' aspect suggests a seamless workflow where diffraction analysis occurs as the object passes through the CT scanner, optimizing throughput.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type compare to other R&D contract types in terms of risk and value for the government?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work is not precisely defined at the outset, and costs are difficult to estimate accurately. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure shifts much of the cost risk to the government, as the final contract price can exceed initial estimates if costs escalate. However, it allows the government to pursue innovative projects that might be too risky under fixed-price contracts. For the government, the value lies in accessing cutting-edge R&D capabilities. The key to managing risk with CPFF is robust oversight, clear performance metrics, and stringent cost controls to ensure the fixed fee remains appropriate for the effort expended and that costs are reasonable and allocable.

What are the potential risks associated with a long-duration contract (2190 days) for R&D in advanced imaging technology?

A long-duration contract, such as this 2190-day (approximately 6-year) R&D effort, carries several potential risks. Firstly, technological obsolescence is a significant concern; the field of advanced imaging is rapidly evolving, and the technology being developed might be surpassed by newer innovations before the contract even concludes. Secondly, scope creep is a common issue in long R&D projects. As the project progresses, new requirements or unforeseen challenges may emerge, leading to modifications that increase costs and extend timelines beyond initial projections. Thirdly, maintaining contractor engagement and focus over such an extended period can be challenging. Contractor personnel may change, institutional knowledge can be lost, and motivation might wane. Finally, the government's needs or strategic priorities could shift over six years, potentially rendering the developed technology less relevant or even obsolete by the time of delivery.

Given the 'full and open competition' award, what does this imply about the market for CT-XRAY and X-ray diffraction system integration?

An award made under 'full and open competition' suggests that the market for integrating CT-XRAY systems with in-line X-ray diffraction systems is sufficiently developed to attract multiple capable bidders. This implies that there are likely several companies possessing the necessary expertise in both advanced imaging (CT-XRAY) and materials analysis (X-ray diffraction), as well as the systems integration capabilities required for such a specialized project. The fact that the Department of Homeland Security opted for this procurement method indicates confidence that a competitive process would yield the best value. It also suggests that the technology, while specialized, is not so niche that only one or two entities could realistically perform the work. This competitive landscape is generally favorable for the government, potentially leading to better pricing and innovative solutions.

What is the significance of the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' precisely categorizes the nature of the work being performed under this contract. It signifies that the contract is focused on scientific inquiry and experimentation aimed at discovering or interpreting facts, principles, or theories, or developing new applications based on such knowledge, within the physical and engineering domains. This classification helps government agencies track spending across different R&D sectors, informs budget allocation, and allows for benchmarking against similar research efforts. For contractors, it helps identify relevant solicitations and demonstrates their specialization in advanced scientific and technical research.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 85 SWANSON RD STE 110, BOXBOROUGH, MA, 01719

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: $4,594,702

Exercised Options: $4,268,369

Current Obligation: $4,268,369

Actual Outlays: $1,477,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline