DHS awards $13.7M for baggage screening equipment program management, with Vertex Aerospace LLC

Contract Overview

Contract Amount: $13,739,521 ($13.7M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-04-01

End Date: 2027-03-31

Contract Duration: 2,190 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHECKED BAGGAGE SCREENING EQUIPMENT DEPLOYMENT SERVICES PROGRAM MANAGEMENT

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.7 million to VERTEX AEROSPACE LLC for work described as: CHECKED BAGGAGE SCREENING EQUIPMENT DEPLOYMENT SERVICES PROGRAM MANAGEMENT Key points: 1. Contract value appears reasonable for program management services over a multi-year period. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risks include performance variations and scope creep over the contract duration. 4. Services are critical for ensuring the efficiency and effectiveness of airport security. 5. This contract falls within the engineering services sector, supporting federal infrastructure. 6. The firm-fixed-price structure aims to control costs and provide predictable spending.

Value Assessment

Rating: good

The contract value of $13.7 million over approximately six years for program management services seems within a reasonable range for a federal contract of this nature. Benchmarking against similar program management contracts for large-scale equipment deployment would provide a more precise value-for-money assessment. The firm-fixed-price (FFP) structure is generally favorable for cost control, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the method itself suggests a robust competition.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially leading to cost savings and higher quality services.

Public Impact

Benefits the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA) by ensuring effective program management for critical security equipment. Services delivered include program management, likely encompassing planning, execution, monitoring, and control of the baggage screening equipment deployment. Geographic impact is national, as TSA operates at airports across the United States. Workforce implications may include the need for specialized program managers and technical staff, potentially both within the contractor's organization and supporting federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting deployment timelines.
Risk of cost overruns if the scope of work expands beyond initial estimates.
Dependence on contractor expertise for successful program execution.

Positive Signals

Award to an established entity like Vertex Aerospace LLC suggests a degree of vetting.
Firm-fixed-price contract provides cost certainty for the government.
Full and open competition indicates a commitment to seeking the best value.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of the federal contracting landscape, particularly for agencies like DHS. The market for program management services supporting large-scale technology and infrastructure deployment is competitive, with numerous firms capable of providing these specialized skills. The total federal spending on engineering services is substantial, and this contract represents a specific allocation towards enhancing transportation security infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, the direct impact on small businesses through this specific award is likely minimal unless Vertex Aerospace LLC engages them as subcontractors. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Transportation Security Administration (TSA) and the Department of Homeland Security (DHS). Performance monitoring, regular reporting, and adherence to contract terms are standard accountability measures. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Airport Security Equipment Procurement
Transportation Infrastructure Management
Federal Program Management Services
Homeland Security Technology Deployment

Risk Flags

Performance Risk
Cost Overrun Potential
Scope Creep Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.7 million to VERTEX AEROSPACE LLC. CHECKED BAGGAGE SCREENING EQUIPMENT DEPLOYMENT SERVICES PROGRAM MANAGEMENT

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 $13.7 million.

What is the period of performance?

Start: 2021-04-01. End: 2027-03-31.

What is Vertex Aerospace LLC's track record with similar federal contracts, particularly in program management for security equipment?

Vertex Aerospace LLC has a history of performing various federal contracts, often related to aerospace and defense. While specific details on their program management experience for baggage screening equipment deployment are not immediately available from the provided data, their general experience in complex federal projects suggests a capacity to handle such requirements. A deeper dive into their past performance evaluations and contract history with agencies like the Department of Defense or other components of DHS would be necessary to fully assess their suitability and track record for this specific program. Reviewing their performance on similar-sized or technically complex contracts would provide further insight into their capabilities and reliability.

How does the awarded amount of $13.7 million compare to the estimated value or budget for similar TSA program management contracts?

Without access to the government's initial cost estimates or data on comparable TSA program management contracts for baggage screening equipment, a direct comparison is challenging. However, $13.7 million spread over approximately six years (2190 days) equates to roughly $2 million per year. This figure needs to be evaluated in the context of the complexity, scope, and duration of the program management services required. Factors such as the number of deployment sites, the type and quantity of equipment, and the level of technical and logistical support needed would influence the reasonableness of this amount. Benchmarking against industry standards for program management fees on large infrastructure or technology projects would offer a more robust assessment of value for money.

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

Key performance risks for this program management contract include potential delays in equipment deployment, contractor underperformance in managing project timelines and budgets, and scope creep where the requirements expand beyond the initial agreement. Mitigation strategies typically involve clearly defined performance metrics and deliverables in the contract, regular progress reviews, and strong government oversight. The firm-fixed-price nature of the contract incentivizes the contractor to manage costs effectively. However, the government must maintain vigilant oversight to ensure the contractor meets all contractual obligations and to address any emerging issues promptly to prevent significant impact on security operations.

What is the expected effectiveness of the baggage screening equipment deployment program managed under this contract?

The effectiveness of the baggage screening equipment deployment program is expected to be enhanced through dedicated program management by Vertex Aerospace LLC. Effective management should lead to timely and efficient deployment of necessary screening technologies, thereby improving airport security and passenger throughput. The success will be measured by the contractor's ability to meet deployment schedules, stay within budget, and ensure the equipment functions as intended. Ultimately, the program's effectiveness contributes to the TSA's broader mission of ensuring the security of air travel.

How has federal spending on baggage screening equipment and related services evolved over the past five years?

Analyzing federal spending trends on baggage screening equipment and related services over the past five years would require accessing historical contract data from agencies like DHS and TSA. Such an analysis would likely reveal fluctuations based on technological advancements, security mandates, and infrastructure upgrade cycles. Spending may have increased following major security events or shifts in regulatory requirements. Understanding these historical patterns can provide context for the current $13.7 million award, indicating whether it represents an increase, decrease, or stable level of investment in this critical security area. Without specific historical data, it's difficult to provide precise figures or trends.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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: $13,739,521

Exercised Options: $13,739,521

Current Obligation: $13,739,521

Actual Outlays: $7,074,232

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70T04021D7672N001

IDV Type: IDC

Timeline