DOJ's $20.7M electrified fence contract awarded to Detekion Security Systems for USP facilities

Contract Overview

Contract Amount: $20,686,540 ($20.7M)

Contractor: Detekion Security Systems, Inc.

Awarding Agency: Department of Justice

Start Date: 2009-07-22

End Date: 2012-01-30

Contract Duration: 922 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 151003 - CONTRACTOR SHALL FURNISH ALL PERSONNEL, FACILITIES, EQUIPMENT, MATERIAL, SUPLIES AND SERVICES AND OTHERWISE FOR THE DESIGN AND CONSTRUCTION OF THE NON-LETHAL/LETHAL ELECTRIFIED FENCE SYSTEMS FOR USP VICTORVILLE, USP ATWATER, USP CANAAN.

Place of Performance

Location: VESTAL, BROOME County, NEW YORK, 13850

State: New York Government Spending

Plain-Language Summary

Department of Justice obligated $20.7 million to DETEKION SECURITY SYSTEMS, INC. for work described as: 151003 - CONTRACTOR SHALL FURNISH ALL PERSONNEL, FACILITIES, EQUIPMENT, MATERIAL, SUPLIES AND SERVICES AND OTHERWISE FOR THE DESIGN AND CONSTRUCTION OF THE NON-LETHAL/LETHAL ELECTRIFIED FENCE SYSTEMS FOR USP VICTORVILLE, USP ATWATER, USP CANAAN. Key points: 1. The contract value of $20.7 million for fence systems suggests a significant investment in correctional facility security. 2. Awarded under full and open competition, this indicates a market with multiple potential suppliers. 3. The fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 4. The duration of approximately 2.5 years (922 days) allows for phased implementation and testing. 5. The North American Industry Classification System (NAICS) code 334290 points to a specialized manufacturing sector. 6. The contract was awarded to a single entity, Detekion Security Systems, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope and technology of the electrified fence systems. However, the total award of over $20 million for security infrastructure at multiple federal prisons indicates a substantial investment. The fixed-price nature of the contract suggests that the government aimed to control costs, but the final value depends on the contractor's efficiency. Further analysis would require comparing the per-unit cost of fence installation and technology against similar projects or industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple companies were eligible to bid. The fact that two bids were received indicates a degree of competition, though it is not exceptionally high for a contract of this magnitude. This level of competition generally provides a reasonable basis for price discovery, but a higher number of bidders could have potentially led to more aggressive pricing.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best value for the government by encouraging multiple firms to offer their most competitive prices.

Public Impact

The primary beneficiaries are federal correctional facilities, specifically USP Victorville, USP Atwater, and USP Canaan, which will receive enhanced security. The services delivered include the design and construction of non-lethal/lethal electrified fence systems. The geographic impact is localized to the specific federal prison sites in California and Connecticut. The contract likely has implications for the workforce involved in the manufacturing and installation of specialized security equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may not have driven the lowest possible price.
The 'lethal' aspect of the fence systems raises ethical and safety concerns requiring stringent oversight.
The specific performance metrics and testing protocols for the fence systems are not detailed, posing a potential risk if not adequately defined.

Positive Signals

Awarded under full and open competition, ensuring a broad base of potential suppliers.
Fixed-price contract type provides cost certainty for the government.
The contract addresses critical security needs for federal correctional facilities.

Sector Analysis

This contract falls within the 'Other Communications Equipment Manufacturing' sector, specifically related to security systems. The market for correctional facility security is specialized, involving a mix of construction and advanced technology providers. While specific market size data for electrified fence systems is not readily available, the overall security and defense sector represents a significant portion of federal spending. This contract represents a targeted investment in a niche but critical area of infrastructure.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. Given the specialized nature of electrified fence systems, it is possible that larger, more experienced contractors were favored. Further investigation would be needed to determine if small businesses had opportunities to participate either as prime contractors or subcontractors.

Oversight & Accountability

Oversight of this contract would typically be managed by the Bureau of Prisons (BOP) contracting officers and project managers. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and quality control requirements. Transparency would be facilitated through contract award databases and potentially through Inspector General reviews if any issues arise. The fixed-price nature of the contract inherently places a degree of accountability on the contractor for cost and performance.

Related Government Programs

Federal Prison System Infrastructure Upgrades
Correctional Facility Security Technology
Department of Justice Capital Investments
Secure Perimeter Systems Contracts

Risk Flags

Limited Competition
Potential Safety Risks (Lethal Capability)
Specialized Technology Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20.7 million to DETEKION SECURITY SYSTEMS, INC.. 151003 - CONTRACTOR SHALL FURNISH ALL PERSONNEL, FACILITIES, EQUIPMENT, MATERIAL, SUPLIES AND SERVICES AND OTHERWISE FOR THE DESIGN AND CONSTRUCTION OF THE NON-LETHAL/LETHAL ELECTRIFIED FENCE SYSTEMS FOR USP VICTORVILLE, USP ATWATER, USP CANAAN.

Who is the contractor on this award?

The obligated recipient is DETEKION SECURITY SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2009-07-22. End: 2012-01-30.

What is the track record of Detekion Security Systems, Inc. with federal contracts, particularly in security systems?

Detekion Security Systems, Inc. has been awarded federal contracts, including this significant contract with the Department of Justice for electrified fence systems. A comprehensive review of their federal contracting history would involve examining databases like FPDS or SAM.gov to identify past performance, contract values, agencies served, and any reported issues or awards. Understanding their experience with similar security installations, their on-time delivery rates, and their history of compliance with contract terms would provide crucial context for assessing their reliability on this project. Without specific data on their prior federal performance, it's difficult to definitively gauge their track record beyond this single award.

How does the cost per linear foot or per facility for these electrified fence systems compare to industry benchmarks?

Determining the cost per linear foot or per facility for these electrified fence systems requires detailed project specifications, which are not fully available in the provided data. The total contract value of $20.7 million was for three facilities (USP Victorville, USP Atwater, USP Canaan). To benchmark effectively, one would need to know the total linear footage of fencing installed at each location, the complexity of the terrain, the specific technology employed (e.g., detection capabilities, power requirements, integration with other security systems), and the labor costs associated with installation. Comparing this contract's cost to publicly available data on similar correctional facility security upgrades or commercial perimeter security projects would be necessary. Given the specialized nature and the 'lethal/non-lethal' capability, costs could be significantly higher than standard fencing.

What are the specific risks associated with the 'lethal/non-lethal' capability of the fence systems, and how are they mitigated?

The 'lethal/non-lethal' designation for the electrified fence systems introduces significant risks related to safety, unintended harm, and potential legal liabilities. Risks include accidental electrocution of inmates, staff, or even unauthorized individuals, as well as the potential for system malfunction leading to unintended lethality or failure to deter. Mitigation strategies would typically involve stringent design and engineering standards, rigorous testing protocols, fail-safe mechanisms, clear operational procedures, comprehensive staff training on system use and de-escalation, and robust maintenance schedules. The contract likely specifies adherence to relevant safety regulations and standards, and oversight by the Bureau of Prisons would be critical to ensure these risks are managed effectively.

What was the historical spending pattern for similar security infrastructure upgrades within the Federal Bureau of Prisons?

Analyzing historical spending patterns for similar security infrastructure upgrades within the Federal Bureau of Prisons (BOP) would require accessing historical contract data over several fiscal years. This would involve searching for contracts related to perimeter security, fence systems, electronic surveillance, and other physical security enhancements at federal correctional institutions. Key metrics to examine would include the average contract value for such projects, the number of bidders typically involved, the types of technologies procured, and the agencies or contractors most frequently awarded these types of contracts. Understanding these patterns can help contextualize the $20.7 million award for the electrified fence systems, indicating whether it represents a typical investment, an increase in spending, or a deviation from past procurement strategies.

How does the number of bidders (2) in this 'full and open' competition potentially impact the final price and value for taxpayers?

While 'full and open' competition theoretically allows any qualified vendor to bid, receiving only two bids suggests that the market for this specific type of specialized security system may be limited, or that other potential bidders chose not to participate for various reasons. A lower number of bidders generally reduces competitive pressure, which can lead to higher prices than might be achieved with more robust competition. For taxpayers, this means there is a greater risk that the contract price may not reflect the lowest possible cost for the required goods and services. While the government still aims for value, the lack of intense competition might mean less aggressive pricing from the awarded contractor compared to a scenario with, for example, five or more bidders vying for the contract.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFP X00-0564

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 PLAZA DR STE 1, VESTAL, NY, 19

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,686,540

Exercised Options: $20,686,540

Current Obligation: $20,686,540

Timeline