DHS awards $23M for non-intrusive inspection equipment to Smiths Detection Inc. under a non-competitive delivery order
Contract Overview
Contract Amount: $23,088,494 ($23.1M)
Contractor: Smiths Detection Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-30
End Date: 2009-01-07
Contract Duration: 1,195 days
Daily Burn Rate: $19.3K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NON-INTRUSIVE INSPECTION EQUIPMENT
Place of Performance
Location: PINE BROOK, MORRIS County, NEW JERSEY, 07058
Plain-Language Summary
Department of Homeland Security obligated $23.1 million to SMITHS DETECTION INC. for work described as: NON-INTRUSIVE INSPECTION EQUIPMENT Key points: 1. Significant contract value of $23.1 million for specialized inspection equipment. 2. Sole-source award to Smiths Detection Inc. raises questions about competition. 3. Risk of higher costs due to lack of competitive bidding. 4. Sector: Manufacturing of irradiation apparatus, a niche but critical area for homeland security.
Value Assessment
Rating: questionable
The contract value of $23.1 million for non-intrusive inspection equipment appears high given the non-competitive nature of the award. Without comparable contracts or a competitive bidding process, it's difficult to definitively assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source delivery order, meaning competition was not sought. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer value.
Public Impact
Enhances border security capabilities by providing advanced inspection technology. Supports the Department of Homeland Security's mission to prevent illicit trade and protect national security. Potential for increased efficiency in cargo and baggage screening processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in award justification
Positive Signals
- Provides critical homeland security equipment
- Established vendor with specialized technology
Sector Analysis
The contract falls within the manufacturing sector, specifically for irradiation apparatus, which is crucial for advanced non-intrusive inspection systems. Spending in this niche area is often driven by specific technological needs and security requirements, sometimes leading to less competitive markets.
Small Business Impact
The award was made to a large business (Smiths Detection Inc.) and there is no indication of small business participation. This contract does not appear to support small business goals.
Oversight & Accountability
The sole-source nature of this delivery order warrants scrutiny. Further justification for bypassing competitive procedures should be available and reviewed to ensure accountability and responsible use of funds.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in justification.
- No small business participation.
- Limited data on long-term costs.
Tags
irradiation-apparatus-manufacturing, department-of-homeland-security, nj, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $23.1 million to SMITHS DETECTION INC.. NON-INTRUSIVE INSPECTION EQUIPMENT
Who is the contractor on this award?
The obligated recipient is SMITHS DETECTION INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $23.1 million.
What is the period of performance?
Start: 2005-09-30. End: 2009-01-07.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions or vendors considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without access to the specific documentation, it's impossible to confirm the rationale. However, the absence of competition raises concerns about whether all potential vendors and solutions were adequately explored, potentially impacting the government's ability to secure the best value.
How does the unit cost of this equipment compare to similar systems procured competitively by other agencies or internationally?
Benchmarking the unit cost is challenging without specific product details and comparable contract data. Given this was a sole-source award, direct price comparisons are difficult. A thorough review would require access to the specific equipment specifications and pricing details to identify potential deviations from market norms or competitively procured alternatives.
What is the long-term operational and maintenance cost associated with this equipment, and how does it compare to alternatives?
Information on long-term operational and maintenance costs is not provided in the data. For sole-source contracts, these associated costs are often not as transparently negotiated as in competitive bids. Understanding these future expenses is crucial for a complete assessment of the total cost of ownership and value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 30 HOOK MOUNTAIN ROAD, PINE BROOK, NJ, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $46,197,294
Exercised Options: $46,197,294
Current Obligation: $23,088,494
Parent Contract
Parent Award PIID: HSBP1005D00991
IDV Type: IDC
Timeline
Start Date: 2005-09-30
Current End Date: 2009-01-07
Potential End Date: 2009-01-07 00:00:00
Last Modified: 2014-05-29
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