Department of the Army awards $27.7M contract for canvas and related products to Smiths Detection Inc

Contract Overview

Contract Amount: $27,691,984 ($27.7M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Defense

Start Date: 2015-05-27

End Date: 2016-12-31

Contract Duration: 584 days

Daily Burn Rate: $47.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CBPS M8E1 SYSTEMS JPM-P

Place of Performance

Location: EDGEWOOD, HARFORD County, MARYLAND, 21040

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to SMITHS DETECTION INC. for work described as: CBPS M8E1 SYSTEMS JPM-P Key points: 1. The contract value of $27.7 million represents a significant investment in specialized canvas products. 2. Competition dynamics indicate a full and open process, suggesting a competitive bidding environment. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance duration of 584 days provides a clear timeline for delivery and project completion. 5. The contract falls under the 'Other' sector due to the specialized nature of the products. 6. The award to a single contractor, Smiths Detection Inc., warrants a review of market concentration.

Value Assessment

Rating: fair

The contract value of $27.7 million for canvas and related products appears substantial. Benchmarking this against similar contracts for specialized military-grade canvas is necessary to fully assess value for money. Without specific details on the quantity and specifications of the canvas products, a precise per-unit cost comparison is difficult. However, the firm-fixed-price nature of the award suggests that the contractor assumed the risk of cost fluctuations, which can be a positive indicator of value if the price remains competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios. The number of bidders (3) suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are likely being used more efficiently by leveraging market forces to secure the best possible pricing and quality for these essential canvas products.

Public Impact

The primary beneficiaries are likely military personnel who will utilize the canvas and related products for various operational needs. The services delivered include the manufacturing and supply of specialized canvas materials and potentially related accessories. The geographic impact is primarily centered around the Department of the Army's operational bases and logistics centers. Workforce implications may include employment opportunities within Smiths Detection Inc. and its supply chain for manufacturing and logistics roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only a few specialized manufacturers can meet the stringent requirements.
Dependence on a single contractor for a critical supply item could pose a risk if performance issues arise.
The specific nature of 'canvas and related products' might indicate a niche market with fewer viable suppliers.

Positive Signals

The firm-fixed-price contract type shifts cost risk to the contractor, which is a positive sign for budget predictability.
Awarding through full and open competition suggests a robust process to identify qualified and competitive suppliers.
The contract duration of over a year allows for consistent supply and planning for the end-user.

Sector Analysis

The defense sector relies on a wide array of specialized materials for equipment, shelters, and protective gear. Canvas and related products, while seemingly basic, can involve advanced materials science for durability, weather resistance, and specific military applications. The market for such specialized defense textiles is often characterized by a mix of large defense contractors and smaller, niche manufacturers. This contract fits within the broader category of defense logistics and equipment procurement, where consistent quality and timely delivery are paramount.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is unclear from this award alone. Further investigation into the contractor's subcontracting plans would be needed to assess opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance details might be less publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Logistics and Supply Chain Management
Military Equipment Procurement
Specialty Textile Manufacturing Contracts
Defense Industrial Base Support

Risk Flags

Potential for limited competition in specialized material markets.
Contractor performance risk assessment needed for Smiths Detection Inc.
Value for money assessment requires detailed product specification comparison.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to SMITHS DETECTION INC.. CBPS M8E1 SYSTEMS JPM-P

Who is the contractor on this award?

The obligated recipient is SMITHS DETECTION INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2015-05-27. End: 2016-12-31.

What specific types of canvas and related products were procured under this contract, and what are their intended military applications?

The contract, identified by award number 314912, was for 'Canvas and Related Product Mills' and awarded to Smiths Detection Inc. While the precise specifications are not detailed in the provided data, 'canvas and related products' in a military context typically refers to durable, weather-resistant fabrics used for a variety of applications. This could include tarpaulins, equipment covers, tentage, protective coverings for vehicles or supplies, and potentially specialized bags or containers. The 'Mills' designation might imply the processing or manufacturing of the raw canvas material itself, or the creation of finished goods from it. The intended applications are broad, ranging from operational shelters and field equipment to protective measures for sensitive military assets, ensuring their integrity against environmental factors and during transport.

How does the $27.7 million contract value compare to historical spending on similar canvas and related products by the Department of the Army?

To accurately benchmark the $27.7 million contract value, historical spending data for similar 'Canvas and Related Products' procurements by the Department of the Army would be required. Without access to a comprehensive database of past contracts, including their values, quantities, and specifications, a direct comparison is challenging. However, the duration of the contract (584 days, approximately 1.6 years) suggests a sustained need for these products. If this represents a typical procurement cycle for such items, the value might be considered standard. If it is significantly higher or lower than previous awards for comparable quantities and quality, it would warrant further investigation into the reasons, such as changes in material costs, increased demand, or shifts in procurement strategy.

What is Smiths Detection Inc.'s track record with the Department of the Army and in supplying similar defense-related materials?

Smiths Detection Inc. is a known entity within the defense sector, often associated with security and detection equipment. Their involvement in supplying 'Canvas and Related Products' might indicate a diversification of their offerings or a specific division focused on material supply. A review of their contract history with the Department of the Army and other federal agencies would reveal their performance on previous awards. Key aspects to examine would include on-time delivery rates, quality compliance, and any past performance issues or commendations. Understanding their broader capabilities and experience in manufacturing or supplying textile-based defense materials is crucial for assessing their suitability and reliability for this specific contract.

Given the firm-fixed-price contract type, what are the potential risks and benefits for the government regarding cost control and contractor performance?

The firm-fixed-price (FFP) contract type offers significant benefits for government cost control. The contractor, Smiths Detection Inc., assumes the primary risk of cost overruns. This means the government knows the total cost upfront, providing budget certainty and protecting against unexpected price increases during contract performance. The benefit is a predictable expenditure. However, a potential risk is that the contractor might cut corners on quality or service to maintain profitability if the initial price was set too low or if unforeseen production challenges arise. Robust quality assurance and oversight mechanisms are therefore essential to ensure that the government receives the specified products and services at the agreed-upon quality standards, despite the fixed price.

What does the level of competition (3 bidders) suggest about the market for specialized canvas products for military use?

Having 3 bidders for this 'Canvas and Related Products' contract suggests a moderately competitive market. While 'full and open competition' implies a broad invitation, the actual number of responsive bids can indicate the level of industry interest and capability. Three bidders indicate that there are at least a few companies capable of meeting the government's requirements. This is generally preferable to a sole-source or very limited competition scenario, as it allows for some price negotiation and selection based on multiple offers. However, it also raises questions about whether the market could support even greater competition, which might drive prices down further or foster more innovation. Further analysis could explore if there are barriers to entry for other potential suppliers in this niche.

Industry Classification

NAICS: Manufacturing › Other Textile Product Mills › Canvas and Related Product Mills

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

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

Parent Company: Smiths Group PLC (UEI: 210273256)

Address: 2202 LAKESIDE BLVD, EDGEWOOD, MD, 21040

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,691,984

Exercised Options: $27,691,984

Current Obligation: $27,691,984

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52H0906D0092

IDV Type: IDC

Timeline