DHS awards $7.2M contract for CT systems to SureScan Corp, supporting checkpoint screening

Contract Overview

Contract Amount: $7,215,233 ($7.2M)

Contractor: Surescan Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-10

End Date: 2026-04-09

Contract Duration: 1,095 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Place of Performance

Location: BOXBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01719

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.2 million to SURESCAN CORPORATION 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. Contract value of $7.2 million over three years for CT systems and services. 2. Sole awardee SureScan Corporation, suggesting potential for limited competition. 3. Contract type is a delivery order under a larger contract vehicle. 4. Performance period spans from April 2023 to April 2026. 5. The contract supports the Checkpoint Property Screening System (CPSS) for TSA. 6. Pricing is firm-fixed-price, providing cost certainty for the government.

Value Assessment

Rating: good

The contract value of $7.2 million over three years for CT systems and associated services appears reasonable given the specialized nature of checkpoint screening technology. Benchmarking against similar procurements for advanced security screening equipment is challenging without more specific technical details. However, the firm-fixed-price structure suggests that the government has negotiated a set price, which is generally favorable for managing costs. The total award value of $6.59 million (br) indicates the base value of the contract, with potential for growth.

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 had the opportunity to bid. The presence of 5 bids (no) suggests a competitive process, although the specific details of the competition, such as the technical capabilities of the other bidders, are not provided. A competitive award generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially leading to cost savings and improved technology adoption.

Public Impact

Enhances security screening capabilities at transportation checkpoints. Supports the Transportation Security Administration's (TSA) mission to ensure safety. Benefits travelers by improving the efficiency and effectiveness of baggage screening. Contributes to the modernization of airport security infrastructure. Potential impact on the workforce involved in operating and maintaining the systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependence on a single vendor for specialized CT systems and services could pose supply chain risks.
The long-term sustainability and upgrade path for the technology may be tied to SureScan Corporation's future product development.

Positive Signals

The firm-fixed-price contract provides cost certainty for the duration of the performance period.
Award under full and open competition suggests a robust selection process.
The contract supports a critical national security function for the TSA.

Sector Analysis

The market for advanced security screening technology, including Computed Tomography (CT) systems, is a specialized segment within the broader industrial controls and systems manufacturing sector. This contract falls under North American Industry Classification System (NAICS) code 334511, which covers Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. The Transportation Security Administration (TSA) is a significant procurer of such technologies to enhance aviation and transportation security. Spending in this area is driven by evolving threat landscapes and the need for more efficient and effective screening solutions.

Small Business Impact

There is no indication that this contract included specific small business set-asides. The award to SureScan Corporation, a single entity, does not immediately suggest subcontracting opportunities for small businesses, though this would depend on SureScan's own supply chain practices. Further analysis would be needed to determine if small businesses are involved in the delivery of services or components under this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). As a delivery order under a larger contract vehicle, the initial contract vehicle likely has its own oversight mechanisms. The firm-fixed-price nature of the contract simplifies some aspects of financial oversight. Transparency is generally maintained through contract award databases, but detailed performance metrics and specific oversight activities are not publicly detailed.

Related Government Programs

TSA Security Equipment Procurement
Homeland Security Technology Contracts
Advanced Screening Technology
Computed Tomography Systems for Security

Risk Flags

Potential for vendor lock-in
Supply chain dependency
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.2 million to SURESCAN CORPORATION. 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 SURESCAN CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.2 million.

What is the period of performance?

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

What is the track record of SureScan Corporation in delivering similar CT systems for government security applications?

SureScan Corporation specializes in advanced X-ray imaging technology, including CT systems designed for security screening. Their products are often aimed at improving threat detection capabilities in various security environments. While specific details on past government contracts are not provided in this data snippet, their focus on this niche suggests they possess relevant expertise. A deeper dive into their contract history with DHS, TSA, or other federal agencies would reveal their performance record, including any past issues with delivery, performance, or quality. Understanding their experience with large-scale deployments and integration into existing security infrastructure would be crucial for assessing their capability to fulfill this contract successfully.

How does the per-unit cost of these CT systems compare to market rates or similar government procurements?

The provided data does not include per-unit cost information for the CT systems, making a direct comparison to market rates or similar government procurements impossible. The total contract value of $7.2 million is for the systems and all associated services and supplies over a three-year period. To assess value for money, one would need to know the number of units procured and their individual cost. Benchmarking would require access to data on other CT system procurements by agencies like the TSA or Department of Defense, considering factors such as system capabilities, age, and vendor. Without this granular data, it's difficult to definitively state if the pricing is competitive.

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

Key risks include potential vendor lock-in due to the specialized nature of the technology, supply chain disruptions affecting delivery, and the possibility of technological obsolescence if upgrades are not managed effectively. The mitigation strategies are not explicitly detailed but can be inferred. The firm-fixed-price contract helps mitigate cost overrun risks. The full and open competition process, with 5 bidders, suggests a degree of market vetting. However, ongoing monitoring of SureScan's performance, proactive supply chain management, and clear contract clauses for upgrades or replacements would be essential for comprehensive risk mitigation. The TSA's oversight role is critical in identifying and addressing emerging risks throughout the contract lifecycle.

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

Computed Tomography (CT) systems represent a significant advancement in checkpoint property screening technology, offering superior threat detection capabilities compared to traditional X-ray systems. CT scanners generate 3D images of scanned items, allowing security personnel to better identify and differentiate between prohibited items (like explosives) and benign objects. This enhanced detection accuracy can lead to fewer false alarms and a more efficient screening process. The Checkpoint Property Screening System (CPSS) likely leverages these benefits to improve overall security effectiveness at transportation checkpoints, contributing to a safer travel environment. The effectiveness is also tied to the training of operators and the integration of the technology into the broader security workflow.

What is the historical spending trend for similar security screening equipment by the TSA or DHS?

Historical spending data for similar security screening equipment by the TSA and DHS would reveal trends in investment in advanced detection technologies. The TSA, in particular, has consistently invested in upgrading its screening technology to counter evolving threats. This includes procurements of advanced X-ray systems, millimeter-wave scanners, and CT-based solutions. Analyzing past spending patterns would show the frequency of such procurements, the average contract values, and the types of technologies prioritized. This context helps in evaluating whether the current $7.2 million award is consistent with historical investment levels or represents a significant shift in spending priorities or technological adoption.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 ELDREDGE ST, BINGHAMTON, NY, 13901

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: $271,963,208

Exercised Options: $7,302,833

Current Obligation: $7,215,233

Actual Outlays: $5,881,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70T04023G7672N004

IDV Type: BOA

Timeline