DHS awards $32.9M contract for radiation portal monitors, with Smiths Detection Inc. as the primary contractor

Contract Overview

Contract Amount: $32,897,201 ($32.9M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-13

End Date: 2024-09-13

Contract Duration: 1,096 days

Daily Burn Rate: $30.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RADIATION PORTAL MONITORS REPLACEMENT PROGRAM.

Place of Performance

Location: EDGEWOOD, HARFORD County, MARYLAND, 21040

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.9 million to SMITHS DETECTION INC. for work described as: RADIATION PORTAL MONITORS REPLACEMENT PROGRAM. Key points: 1. The contract value of $32.9 million over approximately three years suggests a significant investment in radiation detection technology. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The fixed-price contract type aims to control costs by establishing a set price for the goods or services. 4. The program focuses on replacing existing radiation portal monitors, implying a need for updated or enhanced security capabilities. 5. The primary contractor, Smiths Detection Inc., is a known entity in the security and detection market. 6. The contract duration of 1096 days (approximately 3 years) provides a clear timeline for delivery and implementation.

Value Assessment

Rating: good

The contract value of $32.9 million for radiation portal monitors over three years appears reasonable given the specialized nature of the equipment and the contractor's market position. Benchmarking against similar large-scale security equipment procurements would provide further context, but the fixed-price structure suggests an effort to manage costs effectively. The absence of raw per-unit cost data makes a precise value-for-money assessment challenging without further details on the number and type of units procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach typically fosters a competitive environment, which can lead to better pricing and innovation. The specific number of bidders is not provided, but the designation implies a robust process designed to ensure fair market access.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of suppliers to offer their best value.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving upgraded radiation detection capabilities. The contract will deliver replacement radiation portal monitors, enhancing security at various points of entry or sensitive locations. The geographic impact is likely nationwide, covering facilities managed or overseen by DHS. The procurement supports the manufacturing and technology sectors involved in producing advanced security equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the replacement program is extensive and requires specific integration.
Reliance on a single primary contractor for a critical security function could pose risks if performance issues arise.
The long-term maintenance and support costs for the new equipment are not detailed in this award.

Positive Signals

The use of full and open competition suggests a deliberate effort to secure competitive pricing.
The fixed-price contract type provides cost certainty for the government.
The replacement program indicates a commitment to maintaining and improving national security infrastructure.

Sector Analysis

This contract falls within the broader defense and security sector, specifically focusing on specialized electronic equipment for threat detection. The market for radiation detection systems is driven by government security needs, international regulations, and technological advancements in sensor technology. Comparable spending benchmarks would involve other large procurements for security screening equipment or advanced surveillance systems by agencies like DHS, TSA, or DOD.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this specific contract, as indicated by 'sb': false. However, the prime contractor, Smiths Detection Inc., may engage small businesses as subcontractors for specific components or services. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the broader small business ecosystem within the defense and security supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's procurement and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are often internal to the agency.

Related Government Programs

DHS Radiation Detection Equipment Procurements
Homeland Security Technology Acquisitions
National Security Infrastructure Upgrades
Customs and Border Protection Equipment

Risk Flags

Potential for long-term maintenance costs not fully detailed.
Dependence on a single supplier for critical security equipment.
Risk of technological obsolescence if replacement cycles are not maintained.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.9 million to SMITHS DETECTION INC.. RADIATION PORTAL MONITORS REPLACEMENT PROGRAM.

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2021-09-13. End: 2024-09-13.

What is the track record of Smiths Detection Inc. in fulfilling similar government contracts for radiation detection equipment?

Smiths Detection Inc. has a significant history of providing security and detection solutions to government agencies worldwide, including the Department of Homeland Security. They are a well-established player in the radiation portal monitor market. Past performance data, often available through government contract databases like SAM.gov or through agency-specific past performance reviews, would detail their success in delivering similar equipment, meeting technical specifications, adhering to schedules, and managing costs on previous contracts. While this specific award is for replacement, their broader experience in manufacturing and deploying such systems suggests a strong capability. However, a thorough review would involve examining specific contract performance metrics, any past disputes or contract modifications, and customer satisfaction feedback from prior DHS or similar agency engagements.

How does the awarded price of $32.9 million compare to the market value of similar radiation portal monitor systems?

Determining the precise market value comparison for the $32.9 million award requires detailed specifications of the radiation portal monitors procured (e.g., model, capabilities, quantity) and the contract duration. However, as a general benchmark, large-scale procurements for advanced security screening equipment, including radiation detection systems, can range from tens of thousands to hundreds of thousands of dollars per unit, depending on sophistication. Given the total value and the approximate three-year duration, this suggests a substantial number of units or a highly advanced system. Smiths Detection Inc. is a major manufacturer, and their pricing is generally competitive within the specialized security market. Without specific unit counts and technical details, a definitive value-for-money assessment is difficult, but the fixed-price nature of the contract provides a degree of cost control for the government.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential technical obsolescence of the new equipment over its lifecycle, contractor performance issues (delays, quality defects), and integration challenges with existing security infrastructure. Mitigation strategies are likely embedded within the contract terms and DHS oversight. The fixed-price nature helps mitigate cost overrun risks. The full and open competition process aims to select a capable contractor, and performance standards within the contract would define acceptable quality and delivery timelines. DHS program managers would conduct regular reviews and inspections to monitor progress and address any emerging issues proactively. Furthermore, the contract likely includes clauses for acceptance testing and warranties to ensure the equipment meets specifications before final payment.

What is the expected effectiveness of these new radiation portal monitors in enhancing national security?

The effectiveness of the new radiation portal monitors is expected to be high, as they are intended to replace older systems, implying an upgrade in detection sensitivity, speed, and potentially data analysis capabilities. Enhanced radiation detection is crucial for preventing the illicit trafficking of radioactive materials, which could be used in radiological dispersal devices ('dirty bombs') or improvised nuclear devices. Improved monitors can lead to faster screening of individuals and cargo at ports of entry, critical infrastructure sites, and other sensitive locations, thereby strengthening border security and counter-terrorism efforts. The specific effectiveness will depend on the technological advancements incorporated into the new models and their successful deployment and integration into existing security protocols.

How does this contract's spending compare to historical DHS spending on similar radiation detection technologies?

Historical spending data for DHS radiation detection technologies would reveal trends in investment in this critical security area. This $32.9 million award over approximately three years represents a significant, but potentially consistent, level of investment for a major program like the replacement of radiation portal monitors. DHS has consistently invested in security technologies to maintain and enhance its capabilities. Comparing this award to previous procurements of similar systems (e.g., the initial deployment or previous upgrade cycles) would indicate whether spending is increasing, decreasing, or remaining stable. Factors such as inflation, technological advancements, and evolving threat assessments influence these spending patterns over time.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Smiths Group PLC

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: $32,897,201

Exercised Options: $32,897,201

Current Obligation: $32,897,201

Actual Outlays: $50,505,283

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RDND18D00000003

IDV Type: IDC

Timeline