DHS awards $14.8M engineering services contract to Vertex Aerospace LLC for TEDS Central CT Installation

Contract Overview

Contract Amount: $14,799,659 ($14.8M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-07-18

End Date: 2021-12-31

Contract Duration: 1,262 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TEDS CENTRAL CT INSTALLATION REQUIREMENTS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.8 million to VERTEX AEROSPACE LLC for work described as: TEDS CENTRAL CT INSTALLATION REQUIREMENTS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1262 days indicates a significant, long-term need for these engineering services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. Vertex Aerospace LLC, the contractor, will provide installation requirements for TEDS Central CT. 5. The contract falls under Engineering Services (NAICS 541330), a critical sector for infrastructure and technology. 6. The award was made by the Transportation Security Administration (TSA) under the Department of Homeland Security (DHS).

Value Assessment

Rating: good

The contract value of $14.8 million over approximately 3.5 years appears reasonable for specialized engineering services. Benchmarking against similar large-scale installation projects would provide further insight into value for money. The firm-fixed-price structure is generally favorable for controlling costs on projects with defined scopes. Without specific per-unit cost data or detailed comparisons to market rates for similar installation requirements, a precise value assessment is challenging, but the overall award size seems aligned with complex technical projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which should lead to better pricing and quality. The open competition suggests that the TSA sought the best possible solution and price from the market, rather than restricting options.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for the TEDS Central CT installation requirements, potentially leading to savings compared to non-competitive awards.

Public Impact

The primary beneficiaries are the Transportation Security Administration and the Department of Homeland Security, who will receive the installed TEDS Central CT system. The services delivered involve the installation of critical technology infrastructure, likely enhancing security screening capabilities. The geographic impact is centered around the installation sites for TEDS Central CT, which are not specified but are likely within TSA operational areas. Workforce implications may include the need for specialized engineering and installation personnel, potentially creating jobs in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if installation complexities are underestimated.
Dependence on Vertex Aerospace LLC for timely and quality installation.
Risk of schedule delays impacting operational readiness of TEDS Central CT.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting a robust selection process.
Long contract duration allows for thorough implementation and testing.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing specialized engineering expertise for design, development, and implementation of complex systems. The market for such services is substantial, driven by government needs for infrastructure upgrades, technological advancements, and operational support. Comparable spending benchmarks would involve other large-scale installation and engineering contracts within the federal government, particularly those related to security and transportation infrastructure.

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 arising from a set-aside provision. The primary contractor, Vertex Aerospace LLC, is likely a large business. The absence of a small business set-aside means opportunities for small business participation would depend on Vertex Aerospace's own subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Transportation Security Administration. Accountability measures are embedded in the firm-fixed-price contract terms, requiring Vertex Aerospace LLC to deliver specified installation services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Transportation Security Administration Technology Programs
Department of Homeland Security Infrastructure Modernization
Federal Engineering Services Contracts
TEDS System Installations

Risk Flags

Potential for scope creep if installation requirements are not precisely defined.
Dependence on contractor performance for timely delivery of critical security infrastructure.
Need for robust government oversight to ensure quality and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.8 million to VERTEX AEROSPACE LLC. TEDS CENTRAL CT INSTALLATION REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is VERTEX AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2018-07-18. End: 2021-12-31.

What is Vertex Aerospace LLC's track record with similar large-scale installation projects for federal agencies?

Assessing Vertex Aerospace LLC's track record requires a review of their past performance on federal contracts, particularly those involving complex installations and engineering services. Information on their successful completion of similar projects, adherence to schedules and budgets, and overall client satisfaction would be crucial. While this specific contract is for TEDS Central CT installation, their experience with other security or transportation-related technology deployments would be highly relevant. A deeper dive into their contract history, including any past performance evaluations or disputes, would provide a clearer picture of their capabilities and reliability for this significant undertaking.

How does the $14.8 million award compare to the estimated cost of similar TEDS Central CT installation projects?

Comparing the $14.8 million award to the estimated cost of similar TEDS Central CT installation projects is essential for evaluating value for money. Without access to the government's original cost estimates or data on previous, comparable installations, a direct comparison is difficult. However, the duration of the contract (1262 days) suggests a substantial scope of work. If this is a new or expanded deployment, the cost would reflect the complexity, number of sites, and specific technical requirements. Benchmarking against industry standards for large-scale technology installations, adjusted for the specific security and operational context of the TSA, would be necessary for a comprehensive assessment.

What are the primary risks associated with the installation of TEDS Central CT, and how are they mitigated by this contract?

The primary risks associated with installing a system like TEDS Central CT often include technical integration challenges, potential delays in procurement or deployment of components, site readiness issues, and cybersecurity vulnerabilities during the installation phase. This contract, being firm-fixed-price, shifts much of the financial risk of cost overruns to Vertex Aerospace LLC, provided the scope is well-defined. The long duration allows for phased implementation and testing, potentially mitigating schedule risks. However, the government must ensure robust oversight to monitor progress, address technical hurdles promptly, and verify that security protocols are maintained throughout the installation process.

What is the expected effectiveness or impact of the TEDS Central CT installation on TSA's operational capabilities?

The TEDS Central CT installation is expected to enhance the Transportation Security Administration's operational capabilities by improving the efficiency, accuracy, and potentially the scope of its threat detection and screening processes. The specific impact depends on the functionalities of the TEDS Central CT system itself, such as its ability to detect a wider range of threats, process passengers or cargo more quickly, or provide better data for security analysis. Successful installation, as managed under this contract, is a prerequisite for realizing these intended operational improvements and bolstering overall transportation security.

What has been the historical spending trend for TEDS Central CT installation and related engineering services by the TSA?

Analyzing historical spending trends for TEDS Central CT installation and related engineering services by the TSA is crucial for understanding budget allocation and identifying patterns. This $14.8 million award represents a significant investment. To assess trends, one would need to examine past contract awards for TEDS systems or similar security technology installations over several fiscal years. This would reveal whether spending in this area is increasing, decreasing, or remaining stable, and whether this current award is consistent with or deviates from historical patterns, providing context for its scale and importance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 555 INDUSTRIAL DR S, MADISON, MS, 39110

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,799,659

Exercised Options: $14,799,659

Current Obligation: $14,799,659

Actual Outlays: $14,556

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0415DCT4059

IDV Type: IDC

Timeline