DHS awards $70M for explosive detection systems nationwide to Smiths Detection, Inc

Contract Overview

Contract Amount: $69,986,250 ($70.0M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2018-06-29

End Date: 2023-09-28

Contract Duration: 1,917 days

Daily Burn Rate: $36.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF DELIVERY ORDER 70T04018F5CAP1017(DO84) UNDER IDIQ HSTS04-12-D-CT1173 IS FOR THE PURCHASE AND INSTALLATION OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (MSEDS) AT LOCATIONS NATIONWIDE.

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $70.0 million to SMITHS DETECTION, INC for work described as: THE PURPOSE OF DELIVERY ORDER 70T04018F5CAP1017(DO84) UNDER IDIQ HSTS04-12-D-CT1173 IS FOR THE PURCHASE AND INSTALLATION OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (MSEDS) AT LOCATIONS NATIONWIDE. Key points: 1. Significant investment in national security infrastructure. 2. Sole awardee suggests potential lack of competition or specialized capability. 3. Long contract duration (5 years) requires ongoing performance monitoring. 4. Focus on transportation security aligns with agency mission.

Value Assessment

Rating: fair

The contract value of $70M over five years for MSEDS is substantial. Benchmarking against similar large-scale security system procurements is difficult without more specific cost breakdowns, but the per-unit cost appears high given the duration and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors could have bid. However, the award to a single entity, Smiths Detection, Inc., raises questions about the effectiveness of the competition in driving down price or ensuring the best value.

Taxpayer Impact: Taxpayer funds are being used for critical security infrastructure. The effectiveness of the competition in securing the best price for these systems will directly impact the overall value for taxpayers.

Public Impact

Enhanced security at transportation hubs nationwide. Potential for improved detection of explosive threats. Investment in advanced technology for public safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite 'full and open' designation.
High contract value requires diligent oversight.
Long performance period increases risk of obsolescence or cost overruns.

Positive Signals

Addresses a critical national security need.
Utilizes advanced detection technology.

Sector Analysis

This procurement falls within the broader defense and security sector, specifically focusing on specialized equipment for transportation security. Spending benchmarks for such niche systems are hard to establish, but the scale suggests a significant national priority.

Small Business Impact

The data indicates this contract was awarded to a large business (Smiths Detection, Inc.) and does not show any specific set-asides for small businesses. Therefore, the direct impact on small businesses is likely minimal unless they are subcontractors.

Oversight & Accountability

The Department of Homeland Security, through the Transportation Security Administration, is responsible for this contract. Oversight will be crucial to ensure proper installation, maintenance, and performance of the MSEDS throughout the contract's five-year duration.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Potential for vendor lock-in due to specialized equipment.
Risk of cost overruns on a long-term, high-value contract.
Effectiveness of competition in achieving best value is unclear.
Dependence on a single supplier for critical security technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $70.0 million to SMITHS DETECTION, INC. THE PURPOSE OF DELIVERY ORDER 70T04018F5CAP1017(DO84) UNDER IDIQ HSTS04-12-D-CT1173 IS FOR THE PURCHASE AND INSTALLATION OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (MSEDS) AT LOCATIONS NATIONWIDE.

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $70.0 million.

What is the period of performance?

Start: 2018-06-29. End: 2023-09-28.

What specific technical capabilities differentiate the MSEDS systems procured, justifying the significant investment and potential limited competition?

The specific technical capabilities of the Medium Speed Explosive Detection Systems (MSEDS) are not detailed in the provided data. However, such systems typically involve advanced sensor technology, sophisticated algorithms for threat identification, and integration with existing security infrastructure. The justification for the investment likely lies in their ability to detect a wider range of threats with greater accuracy and speed than previous generations of equipment, thereby enhancing national security.

How was the pricing determined to be fair and reasonable given the award to a single entity under full and open competition?

While awarded under 'full and open competition,' the data shows a single awardee. Agencies typically determine pricing as fair and reasonable by comparing proposed costs to historical prices for similar items, analyzing independent cost estimates, or using market research data. The specific methods used for this $70M contract are not detailed, but the agency would have had to justify the price based on available data, even with limited bids or a sole awardee.

What are the key performance indicators (KPIs) and metrics used to measure the effectiveness of the MSEDS and the contractor's performance over the contract's five-year term?

Key performance indicators for explosive detection systems typically include detection rates (true positives), false alarm rates (false positives), system uptime, response time to threats, and ease of maintenance. The contract likely specifies these metrics, along with penalties for non-performance and incentives for exceeding targets. Regular performance reviews and operational testing would be conducted to ensure the systems are effective and the contractor is meeting its obligations.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Smiths Group PLC

Address: 7151 GATEWAY BLVD, NEWARK, CA, 94560

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: $69,986,250

Exercised Options: $69,986,250

Current Obligation: $69,986,250

Actual Outlays: $1,205,139

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0412DCT1173

IDV Type: IDC

Timeline