DHS awards $126M for baggage inspection system remediation, with Vertex Aerospace as prime

Contract Overview

Contract Amount: $126,181,565 ($126.2M)

Contractor: Vertex Aerospace LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-16

End Date: 2026-07-22

Contract Duration: 1,770 days

Daily Burn Rate: $71.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: THE PURPOSE OF THIS TASK ORDER IS FOR CHECKED BAGGAGE INSPECTION SYSTEM (CBIS) REMEDIATION PROJECTS

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $126.2 million to VERTEX AEROSPACE LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS FOR CHECKED BAGGAGE INSPECTION SYSTEM (CBIS) REMEDIATION PROJECTS Key points: 1. Contract focuses on critical infrastructure upgrades for checked baggage screening. 2. Vertex Aerospace, a significant defense contractor, leads this remediation effort. 3. The contract duration extends over five years, indicating a long-term need. 4. Fixed-price contract type suggests cost certainty for the government. 5. The project is categorized under Engineering Services, highlighting its technical nature. 6. Geographic focus on Virginia suggests localized infrastructure improvements.

Value Assessment

Rating: good

The contract value of $126.2 million for engineering services related to baggage inspection systems appears reasonable given the five-year duration and the critical nature of the work. Benchmarking against similar large-scale infrastructure remediation projects would provide a more precise value-for-money assessment. However, the firm-fixed-price structure generally promotes cost control. The specific scope of 'remediation' suggests addressing existing issues rather than new development, which can sometimes be more cost-effective.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive better pricing and service quality. The specific number of bidders is not provided, but the 'full and open' designation is a positive sign for market engagement.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

Enhances security at airports by ensuring the proper functioning of baggage inspection systems. Benefits travelers through improved safety and potentially reduced delays. Supports the Transportation Security Administration's (TSA) mission to secure the nation's transportation systems. Impacts the workforce through engineering and technical roles required for remediation projects. Primarily impacts airports within Virginia, where the remediation work is being conducted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in remediation projects if unforeseen issues arise.
Dependence on Vertex Aerospace for successful project completion.
Long contract duration could lead to potential cost overruns if not managed tightly.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust bidding process.
Focus on critical security infrastructure remediation addresses an essential government function.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting critical infrastructure for aviation security. The market for such services is substantial, driven by ongoing needs for system upgrades, maintenance, and compliance with evolving security standards. Comparable spending benchmarks would likely involve other large federal contracts for infrastructure modernization and security system implementation across various agencies.

Small Business Impact

While the contract was awarded under full and open competition, there is no explicit information regarding small business set-asides or subcontracting plans. Further analysis would be needed to determine the extent to which small businesses are involved in the supply chain or as subcontractors for Vertex Aerospace on this project.

Oversight & Accountability

The contract is managed by the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA), which have established oversight mechanisms for federal contracts. The firm-fixed-price nature of the award provides a degree of financial oversight. Transparency would be enhanced by public reporting on project milestones and expenditures.

Related Government Programs

Airport Security Enhancements
Transportation Infrastructure Modernization
Federal Aviation Administration (FAA) Contracts
Homeland Security Grants

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Potential for unforeseen complexities in remediation projects.
Need for sustained oversight across multiple years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $126.2 million to VERTEX AEROSPACE LLC. THE PURPOSE OF THIS TASK ORDER IS FOR CHECKED BAGGAGE INSPECTION SYSTEM (CBIS) REMEDIATION PROJECTS

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 $126.2 million.

What is the period of performance?

Start: 2021-09-16. End: 2026-07-22.

What is the specific nature of the 'remediation projects' for the Checked Baggage Inspection System (CBIS)?

The term 'remediation projects' for the Checked Baggage Inspection System (CBIS) typically refers to the process of identifying, assessing, and correcting deficiencies or issues within existing baggage screening equipment and infrastructure. This could involve upgrading outdated components, repairing malfunctioning systems, ensuring compliance with current security mandates, or enhancing the overall efficiency and effectiveness of the screening process. Given the contract's focus on engineering services, it likely encompasses design, planning, and implementation of these corrective actions. The specific details of the remediation scope would be outlined in the task order's statement of work, which is not publicly detailed here but would specify the exact systems, locations, and technical requirements being addressed.

How does the $126 million contract value compare to historical spending on CBIS maintenance and upgrades by the TSA?

Comparing the $126 million contract value to historical TSA spending on CBIS requires access to detailed historical procurement data. However, the five-year duration (September 2021 to July 2026) suggests an average annual expenditure of approximately $25.2 million for this specific remediation effort. This figure should be contextualized against the TSA's overall budget for security technology and infrastructure. Large-scale remediation projects for critical systems like CBIS can represent significant investments, especially when addressing aging equipment or evolving threat landscapes. Without direct historical comparisons for similar remediation efforts, it's challenging to definitively state if this represents an increase or decrease in spending trends, but it indicates a substantial commitment to maintaining and improving baggage screening capabilities.

What are the key performance indicators (KPIs) or metrics used to evaluate Vertex Aerospace's performance under this contract?

Key performance indicators (KPIs) for a contract of this nature, focused on engineering services for system remediation, would likely revolve around project timelines, adherence to budget, quality of work, and system performance post-remediation. Specific metrics could include on-time completion of remediation phases, successful system integration and testing, reduction in system downtime or failure rates, and compliance with technical specifications and security standards. The firm-fixed-price contract structure incentivizes meeting these targets within the agreed-upon cost. Performance would typically be monitored through regular progress reports, site inspections, and potentially user feedback from TSA personnel operating the systems. Failure to meet critical KPIs could result in penalties or affect future contract awards.

What is Vertex Aerospace's track record with the TSA or DHS on similar infrastructure or security system contracts?

Vertex Aerospace LLC has a significant presence in the aerospace and defense sector, often involved in complex engineering, logistics, and sustainment programs. While specific details of their past contracts with the TSA or DHS for CBIS remediation are not immediately available in this data, their general experience suggests a capability to handle large-scale, technically demanding projects. A thorough review of federal procurement databases (like FPDS or SAM.gov) would be necessary to ascertain their specific performance history with these agencies on similar infrastructure or security system contracts. This would include examining past contract values, performance ratings, and any documented issues or successes to better assess their suitability and reliability for this current task order.

Are there any identified risks associated with the long duration (nearly 5 years) of this contract?

The nearly five-year duration of this contract presents several potential risks. Firstly, technological obsolescence is a concern; systems or remediation techniques that are cutting-edge at the start of the contract may become outdated by its end. Secondly, cost escalation is a risk, even with a fixed-price contract, if unforeseen complexities arise that necessitate contract modifications or change orders, potentially increasing the overall cost to the government. Thirdly, maintaining consistent oversight and performance management over such an extended period can be challenging for the contracting agency. Finally, contractor performance stability over a long duration can be a factor, as personnel changes or shifts in company priorities could impact project execution. Mitigating these risks requires robust contract management, regular performance reviews, and proactive identification of potential issues.

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: $126,181,565

Exercised Options: $126,181,565

Current Obligation: $126,181,565

Actual Outlays: $94,672,953

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70T04021D7672N001

IDV Type: IDC

Timeline