DHS awards $7.3M for CT systems to Analogic Corp, supporting checkpoint screening

Contract Overview

Contract Amount: $7,335,800 ($7.3M)

Contractor: Analogic Corp

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-10

End Date: 2026-04-09

Contract Duration: 1,095 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMPUTED TOMOGRAPHY (CT) SYSTEMS AND ALL ASSOCIATED SERVICES AND SUPPLIES TO SUPPORT THE CHECKPOINT PROPERTY SCREENING SYSTEM (CPSS)

Place of Performance

Location: PEABODY, ESSEX County, MASSACHUSETTS, 01960

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.3 million to ANALOGIC CORP for work described as: COMPUTED TOMOGRAPHY (CT) SYSTEMS AND ALL ASSOCIATED SERVICES AND SUPPLIES TO SUPPORT THE CHECKPOINT PROPERTY SCREENING SYSTEM (CPSS) Key points: 1. Value for money assessed against comparable screening technology procurements. 2. Competition dynamics indicate a robust bidding process for this critical security technology. 3. Risk indicators are monitored for potential supply chain disruptions and system integration challenges. 4. Performance context is tied to the operational needs of the Transportation Security Administration (TSA). 5. Sector positioning places this contract within the broader aerospace and defense instrumentation market.

Value Assessment

Rating: good

The contract value of $7.3 million for CT systems and services appears reasonable when benchmarked against similar procurements for advanced screening technologies. While specific per-unit costs are not detailed, the firm-fixed-price structure suggests a degree of cost certainty. The duration of the contract (1095 days) also allows for a spread of costs over time, potentially leading to better overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of three bidders suggests a healthy level of competition for this specialized equipment. This competitive environment generally benefits the government by driving down prices and encouraging innovation from suppliers.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently, securing advanced security technology at a fair market price.

Public Impact

Benefits the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA) by providing essential screening equipment. Delivers critical Computed Tomography (CT) systems and associated services to enhance airport security. Geographic impact is national, supporting TSA operations across various airports. Workforce implications include the need for trained personnel to operate and maintain the new CT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on support is not competitively procured.
Dependence on a single vendor for critical spare parts could lead to price increases.
Ensuring interoperability with existing TSA systems requires careful integration planning.

Positive Signals

Award to a known entity (Analogic Corp) suggests a degree of confidence in their capabilities.
Firm-fixed-price contract provides cost predictability for the government.
Long-term contract allows for sustained support and potential for volume discounts.

Sector Analysis

This contract falls within the broader instrumentation manufacturing sector, specifically focusing on search, detection, and navigation systems. The market for advanced security screening technology is driven by evolving threats and regulatory requirements. Comparable spending benchmarks in this area often involve significant investments in technology upgrades for critical infrastructure like airports.

Small Business Impact

The data provided does not indicate any specific small business set-aside provisions for this contract. However, the prime contractor, Analogic Corp, may engage small businesses for subcontracting opportunities related to specialized components or services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Transportation Security Administration (TSA), a component of DHS. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is generally maintained through federal procurement databases, though specific performance metrics may be internal.

Related Government Programs

TSA Security Equipment Procurement
DHS Advanced Technology Investments
Airport Security Infrastructure Modernization
Computed Tomography Scanner Market

Risk Flags

Supply Chain Vulnerability
Technology Obsolescence
Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.3 million to ANALOGIC CORP. COMPUTED TOMOGRAPHY (CT) SYSTEMS AND ALL ASSOCIATED SERVICES AND SUPPLIES TO SUPPORT THE CHECKPOINT PROPERTY SCREENING SYSTEM (CPSS)

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 $7.3 million.

What is the period of performance?

Start: 2023-04-10. End: 2026-04-09.

What is Analogic Corp's track record with federal contracts, particularly for security screening equipment?

Analogic Corp has a history of federal contracting, including significant work with agencies like the TSA. Their experience often involves providing advanced imaging and detection systems. Reviewing past performance on similar contracts, including on-time delivery, adherence to specifications, and overall customer satisfaction, is crucial for assessing their reliability in fulfilling this current award. Data from federal procurement databases and past performance reviews would offer deeper insights into their capabilities and any potential red flags from previous engagements.

How does the awarded price of $7.3 million compare to market rates for similar CT systems?

Benchmarking the $7.3 million award against market rates for comparable Computed Tomography (CT) systems requires detailed analysis of system specifications, capabilities, and quantities. Without specific unit counts or detailed technical requirements, a precise comparison is challenging. However, the firm-fixed-price nature of the contract suggests that the government has negotiated a set price. Comparing this to publicly available pricing for similar commercial or government-procured CT scanners, adjusted for any unique features or service requirements, would provide a clearer picture of value for money. Industry reports on security screening technology procurement can also offer comparative data points.

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

Key risks for this contract include potential supply chain disruptions for specialized CT components, integration challenges with existing TSA systems, and the possibility of cost overruns if unforeseen technical issues arise, despite the firm-fixed-price structure. Mitigation strategies likely involve robust vendor management by the TSA, clear performance milestones, contingency planning for supply chain issues, and thorough testing protocols to ensure system interoperability. The contract's duration also allows for phased implementation and issue resolution. Monitoring vendor performance and market conditions will be critical.

How effective are CT systems in enhancing checkpoint property screening compared to older technologies?

Computed Tomography (CT) systems represent a significant advancement over older screening technologies like traditional X-ray machines. CT scanners provide detailed, 360-degree imaging, allowing security personnel to more effectively identify threats, including explosives and prohibited items, within baggage and cargo. This enhanced detection capability leads to improved security outcomes and can potentially reduce the need for manual secondary screening, thereby increasing efficiency at checkpoints. The effectiveness is measured by threat detection rates, false alarm rates, and throughput speed, all areas where CT technology generally outperforms its predecessors.

What has been the historical spending pattern for CT systems and related services by the TSA or DHS?

Historical spending on CT systems and related services by the TSA and DHS has likely shown a consistent upward trend as the agency prioritizes upgrading security technology to meet evolving threats. Procurement data would reveal patterns of investment in advanced screening equipment, including CT scanners, for various airport checkpoints. Analyzing past contract awards, their values, and the frequency of such procurements would indicate the agency's commitment to this technology and provide a baseline for evaluating current spending levels. This historical context helps in understanding the strategic importance and budgetary allocation for such 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

Offers Received: 3

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: $344,576,900

Exercised Options: $15,881,300

Current Obligation: $7,335,800

Actual Outlays: $1,840,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70T04021G7672N001

IDV Type: BOA

Timeline