DHS awards $2.2M R&D contract for CWMD OBAA to American Science and Engineering Inc

Contract Overview

Contract Amount: $2,211,577 ($2.2M)

Contractor: American Science & Engineering Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-01-04

End Date: 2026-08-15

Contract Duration: 1,319 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CWMD OBAA CPFF CONTRACT AWARD TO AMERICAN SCIENCE AND ENGINEERING IN RESPONSE TO TOPIC SOLICITATION 11.

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.2 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: CWMD OBAA CPFF CONTRACT AWARD TO AMERICAN SCIENCE AND ENGINEERING IN RESPONSE TO TOPIC SOLICITATION 11. Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control. 4. Performance period spans over three years, indicating a significant project duration. 5. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services. 6. The contractor, American Science and Engineering Inc., has secured this award from DHS. 7. The contract is a definitive contract, suggesting a firm commitment from the agency.

Value Assessment

Rating: fair

Benchmarking the value of this $2.2 million contract is challenging without more specific details on the deliverables and scope of work. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the contractor's costs plus a fixed fee, which can sometimes lead to higher overall costs if not managed carefully. Comparing this to similar R&D contracts for Countering Weapons of Mass Destruction (CWMD) capabilities would provide better insight into whether the pricing is competitive for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The solicitation process likely involved a public announcement, allowing multiple companies to compete for the award. The presence of three bidders (no) suggests a moderate level of competition for this specific R&D requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions. It ensures that the government explores a wide range of capabilities and avoids potential overpayment associated with less competitive procurement methods.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, seeking advancements in Countering Weapons of Mass Destruction (CWMD) capabilities. The contract will fund research and development activities, potentially leading to new technologies or improved methods for detecting or mitigating WMD threats. The geographic impact is primarily within the United States, where the R&D will be conducted and its outcomes applied. Workforce implications may include specialized R&D personnel employed by the contractor, contributing to the scientific and technical workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can sometimes lead to cost overruns if not closely monitored.
The specific deliverables and success metrics for this R&D effort are not detailed, making performance assessment difficult.
Reliance on a single contractor for a multi-year R&D project could pose risks if the contractor faces challenges.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract duration of over three years allows for in-depth research and development.
The contractor, American Science and Engineering Inc., is likely selected based on relevant expertise in R&D.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for CWMD technologies is a specialized niche within the broader defense and security industry. Comparable spending benchmarks would involve looking at other DHS or DoD contracts for similar R&D efforts related to threat detection, analysis, and mitigation. The total contract value of $2.2 million is moderate for an R&D project of this nature.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, American Science and Engineering Inc., is likely a mid-to-large-sized business. The impact on the small business ecosystem would be indirect, potentially through competition for future R&D opportunities or by the development of technologies that may later be commercialized or adopted by smaller entities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's contracting officers and program managers. Accountability measures will be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including cost reporting and progress milestones. Transparency is facilitated by the public award notice. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Homeland Security R&D Programs
Countering Weapons of Mass Destruction Initiatives
Federal Research and Development Contracts
Scientific and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to manage potential cost overruns.
Specific technical objectives and performance metrics are not detailed in the award notice.
Contractor's past performance on similar CWMD R&D projects is not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.2 million to AMERICAN SCIENCE & ENGINEERING INC. CWMD OBAA CPFF CONTRACT AWARD TO AMERICAN SCIENCE AND ENGINEERING IN RESPONSE TO TOPIC SOLICITATION 11.

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2023-01-04. End: 2026-08-15.

What is the specific technical objective of the CWMD OBAA contract awarded to American Science and Engineering Inc.?

The provided data indicates the contract is for 'CWMD OBAA CPFF CONTRACT AWARD TO AMERICAN SCIENCE AND ENGINEERING IN RESPONSE TO TOPIC SOLICITATION 11.' While 'CWMD' stands for Countering Weapons of Mass Destruction, and 'OBAA' likely refers to a specific program or initiative within DHS, the exact technical objective is not detailed. The NAICS code 541715 suggests research and development in physical, engineering, and life sciences. To understand the specific objective, one would need to review Solicitation 11 and any associated documentation released by the Department of Homeland Security, which would outline the precise research questions, desired outcomes, and technological areas to be explored.

How does the Cost Plus Fixed Fee (CPFF) contract structure influence the risk and reward for American Science and Engineering Inc. and the Department of Homeland Security?

In a CPFF contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. For American Science and Engineering Inc., this structure offers a guaranteed profit margin (the fixed fee) regardless of the final cost, reducing their financial risk. However, it also means their potential for higher profits is capped by the fixed fee, unlike incentive fee contracts. For the Department of Homeland Security (DHS), the primary risk is that costs could exceed initial estimates, potentially leading to a higher total expenditure than anticipated if cost controls are not robustly managed. The reward for DHS is that the contractor is incentivized to complete the work within the estimated cost range to maximize their fee, and the fixed fee provides cost certainty for the profit component.

What is the historical spending pattern of the Department of Homeland Security on Countering Weapons of Mass Destruction (CWMD) research and development?

The provided data does not include historical spending patterns for DHS CWMD R&D. To assess this, one would need to analyze historical contract awards and budget allocations for DHS over several fiscal years. This would involve searching federal procurement databases (like USASpending.gov) for contracts related to CWMD, R&D, and specific DHS components responsible for such initiatives. Understanding past spending would help contextualize the $2.2 million award, indicating whether it represents a typical investment, an increase, or a decrease in funding for this area. It would also reveal trends in technology focus and contractor engagement within the CWMD R&D domain.

What are the potential implications of awarding this R&D contract to American Science and Engineering Inc. given their track record?

The provided data does not include information on American Science and Engineering Inc.'s specific track record relevant to CWMD or the scope of this contract. A thorough assessment would require reviewing their past performance on similar government contracts, particularly those involving research and development in physical, engineering, and life sciences. Key factors to consider would include their history of meeting deadlines, staying within budget, delivering quality results, and any past performance issues or commendations. A strong track record would suggest a lower risk for this contract, while a history of problems could indicate potential challenges for DHS in achieving the contract's objectives.

How does the $2.2 million contract value compare to the overall budget allocated by DHS for CWMD initiatives?

The provided data does not include the overall budget allocated by DHS for CWMD initiatives. This $2.2 million contract represents a specific award for research and development. To compare it to the overall budget, one would need access to DHS's annual budget appropriations and specific allocations for CWMD programs. This would allow for an assessment of whether this R&D contract constitutes a significant portion of the CWMD budget, a minor investment, or is part of a larger, multi-year funding strategy. Without that broader budgetary context, it is difficult to determine the relative scale of this particular award.

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

Solicitation ID: 70RWMD22R00000007

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: OSI Systems Inc

Address: 829, MIDDLESEX TURNPIKE, BILLERICA, MA, 01821

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,211,577

Exercised Options: $2,211,577

Current Obligation: $2,211,577

Actual Outlays: $1,500,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline