TSA Spends $58.6M on RSEDS Upgrade Kits from Reveal Imaging Technologies to Detect New Threats
Contract Overview
Contract Amount: $58,661,536 ($58.7M)
Contractor: Reveal Imaging Technologies, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2018-10-01
End Date: 2021-10-30
Contract Duration: 1,125 days
Daily Burn Rate: $52.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: THE TRANSPORTATION SECURITY ADMINISTRATION (TSA)/ACQUISITION PROGRAM MANAGEMENT (APM) OFFICE REQUIRES UPGRADE KITS TO IMPROVE THE EXISTING TSA FLEET OF REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS (RSEDS). THESE UPGRADE KITS WILL RETROFIT RSEDS UNITS THAT ARE CURRENTLY DEPLOYED AT AIRPORTS NATIONWIDE. THE UPGRADE KIT WILL INCLUDE NEW HARDWARE AND SOFTWARE, AND IT WILL ALLOW TSA TO IMPROVE THE FLEET OF RSEDS UNITS TO DETECT NEW THREATS IN THE FIELD.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Homeland Security obligated $58.7 million to REVEAL IMAGING TECHNOLOGIES, INC. for work described as: THE TRANSPORTATION SECURITY ADMINISTRATION (TSA)/ACQUISITION PROGRAM MANAGEMENT (APM) OFFICE REQUIRES UPGRADE KITS TO IMPROVE THE EXISTING TSA FLEET OF REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS (RSEDS). THESE UPGRADE KITS WILL RETROFIT RSEDS UNITS THAT ARE CURRENTLY DEPLOYED AT A… Key points: 1. The Transportation Security Administration (TSA) is procuring upgrade kits for its fleet of Reduced Size Explosive Detection Systems (RSEDS). 2. The upgrade includes new hardware and software to enhance threat detection capabilities. 3. The contract was awarded to Reveal Imaging Technologies, Inc., the original equipment manufacturer. 4. This procurement aims to improve the effectiveness of deployed RSEDS units at airports nationwide.
Value Assessment
Rating: fair
The contract value of $58.6 million for upgrade kits appears reasonable given the scope of retrofitting an existing fleet with new hardware and software. However, without specific per-unit cost data or comparison to similar fleet upgrade programs, a definitive assessment of value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to Reveal Imaging Technologies, Inc. being the original manufacturer of the RSEDS units. This sole-source approach may limit price discovery and potentially lead to higher costs than a competed procurement.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. The necessity of the upgrade for national security, however, justifies the expenditure.
Public Impact
Enhanced security at airports nationwide through improved explosive detection capabilities. Modernization of critical security equipment to counter evolving threats. Potential for faster and more accurate screening of passengers and baggage. Ensures continued operational effectiveness of the RSEDS fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of cost comparison data makes value assessment difficult.
- Potential for vendor lock-in with proprietary technology.
Positive Signals
- Addresses a critical national security need for improved threat detection.
- Upgrades existing deployed systems, leveraging prior investment.
- Enhances TSA's operational capabilities against new threats.
Sector Analysis
The Transportation Security Administration (TSA) operates within the broader federal transportation security sector. Spending on security equipment and upgrades is a significant component of this sector's budget, aimed at maintaining and enhancing national security infrastructure.
Small Business Impact
This contract was awarded directly to Reveal Imaging Technologies, Inc., and there is no indication of small business participation. The sole-source nature of the award likely precluded opportunities for small businesses to compete.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security's TSA. Oversight would typically involve contract management by the APM office to ensure timely delivery and adherence to specifications. The lack of competition raises questions about the thoroughness of oversight in ensuring best value.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Limited transparency on cost-effectiveness
- Potential for higher pricing
- Dependency on a single vendor
Tags
irradiation-apparatus-manufacturing, department-of-homeland-security, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $58.7 million to REVEAL IMAGING TECHNOLOGIES, INC.. THE TRANSPORTATION SECURITY ADMINISTRATION (TSA)/ACQUISITION PROGRAM MANAGEMENT (APM) OFFICE REQUIRES UPGRADE KITS TO IMPROVE THE EXISTING TSA FLEET OF REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS (RSEDS). THESE UPGRADE KITS WILL RETROFIT RSEDS UNITS THAT ARE CURRENTLY DEPLOYED AT AIRPORTS NATIONWIDE. THE UPGRADE KIT WILL INCLUDE NEW HARDWARE AND SOFTWARE, AND IT WILL ALLOW TSA TO IMPROVE THE FLEET OF RSEDS UNITS TO DETECT NEW THREATS IN THE FIELD.
Who is the contractor on this award?
The obligated recipient is REVEAL IMAGING TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $58.7 million.
What is the period of performance?
Start: 2018-10-01. End: 2021-10-30.
What is the specific cost per upgrade kit, and how does it compare to the original purchase price or industry benchmarks for similar technology?
The total contract value is $58.6 million over 1125 days. Without a breakdown of the number of units being upgraded, calculating the per-unit cost is not possible from the provided data. A comparison to original purchase prices or industry benchmarks would be necessary to assess if the upgrade cost represents fair value for the enhanced capabilities.
What are the risks associated with a sole-source procurement for critical security technology upgrades?
Sole-source procurements carry risks of inflated pricing due to lack of competition, potential for vendor lock-in, and reduced incentive for the vendor to innovate or provide superior service. For critical security technology, this could also mean a lack of alternative solutions if the sole provider faces issues.
How effectively will these upgrade kits improve the TSA's ability to detect new and emerging threats compared to existing systems?
The upgrade kits are designed to incorporate new hardware and software specifically to detect new threats. While the intention is clear, the actual effectiveness will depend on the sophistication of the new technology, the training provided to TSA personnel, and the ongoing evolution of threat methodologies. Independent testing and field performance data would be crucial to validate effectiveness.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 70T04018R9CAP1058
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR RM 6133, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,661,536
Exercised Options: $58,661,536
Current Obligation: $58,661,536
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $694,226
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-10-01
Current End Date: 2021-10-30
Potential End Date: 2021-10-30 00:00:00
Last Modified: 2021-05-24
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