DHS Awards $47.4M for CT Scanners to Analogic Corp, Extending to 2033
Contract Overview
Contract Amount: $47,355,230 ($47.4M)
Contractor: Analogic Corp
Awarding Agency: Department of Homeland Security
Start Date: 2022-03-18
End Date: 2033-03-17
Contract Duration: 4,017 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS PROCUREMENT IS TO PROCURE AND DEPLOY FULL-SIZED COMPUTED TOMOGRAPHY (CT) SYSTEMS AND ALL ASSOCIATED ANCILLARY EQUIPMENT.
Place of Performance
Location: PEABODY, ESSEX County, MASSACHUSETTS, 01960
Plain-Language Summary
Department of Homeland Security obligated $47.4 million to ANALOGIC CORP for work described as: THE PURPOSE OF THIS PROCUREMENT IS TO PROCURE AND DEPLOY FULL-SIZED COMPUTED TOMOGRAPHY (CT) SYSTEMS AND ALL ASSOCIATED ANCILLARY EQUIPMENT. Key points: 1. Significant investment in critical security technology for TSA. 2. Analogic Corp secures a long-term contract for essential equipment. 3. Potential for future technology upgrades and maintenance needs. 4. Focus on search and detection systems within the transportation sector.
Value Assessment
Rating: good
The contract value of $47.4 million over 11 years suggests a substantial but potentially reasonable price for advanced CT systems. Benchmarking against similar large-scale procurements for medical imaging equipment would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: Taxpayers benefit from a competitive process likely leading to a fair market price for essential security equipment.
Public Impact
Enhanced airport security screening capabilities. Improved detection of threats and prohibited items. Long-term availability of critical technology for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to technology obsolescence.
- Reliance on a single vendor for critical equipment.
Positive Signals
- Full and open competition ensures fair pricing.
- Long-term commitment provides supply chain stability.
Sector Analysis
This procurement falls within the IT and Defense sectors, specifically focusing on advanced search and detection instruments. Spending benchmarks for similar large-scale imaging system procurements are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data does not indicate specific set-asides for small businesses in this particular contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract is managed by the Department of Homeland Security's Transportation Security Administration, which has established oversight mechanisms for major procurements. Accountability is maintained through contract performance monitoring and delivery schedules.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Long contract duration (11 years) increases risk of technology obsolescence.
- Potential for vendor lock-in if maintenance and support are not competitively bid.
- Lack of specific performance metrics in the provided data.
- No clear indication of small business participation.
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $47.4 million to ANALOGIC CORP. THE PURPOSE OF THIS PROCUREMENT IS TO PROCURE AND DEPLOY FULL-SIZED COMPUTED TOMOGRAPHY (CT) SYSTEMS AND ALL ASSOCIATED ANCILLARY EQUIPMENT.
Who is the contractor on this award?
The obligated recipient is ANALOGIC CORP.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $47.4 million.
What is the period of performance?
Start: 2022-03-18. End: 2033-03-17.
What is the projected cost per unit for the CT systems, and how does it compare to industry averages?
The provided data does not detail the number of units procured, making a precise per-unit cost calculation impossible. However, with a total contract value of $47.4 million over 11 years, the average annual spend is approximately $4.3 million. A thorough analysis would require knowing the quantity of systems and comparing the implied per-unit cost to benchmarks for similar medical imaging equipment in the public and private sectors.
What are the risks associated with a 11-year contract duration for advanced CT systems?
A significant risk is technological obsolescence. CT scanner technology evolves rapidly, and systems deployed for over a decade may become outdated, less effective, or more costly to maintain compared to newer models. This could necessitate early replacement or costly upgrades, potentially negating initial cost savings and impacting operational effectiveness.
How effectively will these new CT systems enhance the TSA's threat detection capabilities compared to existing technology?
The effectiveness hinges on the specific capabilities of the procured 'full-sized computed tomography (CT) systems.' If these systems represent a significant technological leap, offering higher resolution, faster scanning, or advanced material identification, they could substantially improve threat detection. However, without detailed specifications, it's difficult to quantify the improvement over current systems.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 70T04021R7672N042
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8 CENTENNIAL DR, PEABODY, MA, 01960
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: $499,734,586
Exercised Options: $51,128,230
Current Obligation: $47,355,230
Actual Outlays: $31,988,742
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70T04021G7672N001
IDV Type: BOA
Timeline
Start Date: 2022-03-18
Current End Date: 2033-03-17
Potential End Date: 2033-03-17 06:24:42
Last Modified: 2026-03-27
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