DHS awards $15.1M for High Energy Gantry X-Ray Cargo Inspection Systems to Varian Medical Systems
Contract Overview
Contract Amount: $15,108,048 ($15.1M)
Contractor: Varian Medical Systems, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2007-09-27
End Date: 2012-09-28
Contract Duration: 1,828 days
Daily Burn Rate: $8.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HIGH ENERGY GANTRY X-RAY CARGO INSPECTION SYSTEMS
Place of Performance
Location: LINCOLNSHIRE, LAKE County, ILLINOIS, 60069
State: Illinois Government Spending
Plain-Language Summary
Department of Homeland Security obligated $15.1 million to VARIAN MEDICAL SYSTEMS, INC. for work described as: HIGH ENERGY GANTRY X-RAY CARGO INSPECTION SYSTEMS Key points: 1. Spending of $15.1M over 5 years for specialized inspection systems. 2. Varian Medical Systems is the sole awardee, raising competition questions. 3. Fixed-price contract aims to control costs, but long duration poses risk. 4. Focus on cargo inspection highlights critical infrastructure security needs.
Value Assessment
Rating: fair
The award of $15.1M over 5 years for these specialized systems appears reasonable given the niche technology. Benchmarking is difficult without more specific contract details and comparable systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was awarded as a competitive delivery order, suggesting some level of competition existed. However, the single awardee implies limited market participation or a specific capability requirement.
Taxpayer Impact: Taxpayer funds are used for critical border security technology, aiming to enhance inspection efficiency and effectiveness.
Public Impact
Enhances U.S. Customs and Border Protection's ability to inspect cargo. Supports national security by detecting illicit materials and threats. Utilizes advanced X-ray technology for efficient cargo screening.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition indicated by single awardee.
- Long contract duration (5 years) may lead to price escalation or obsolescence.
- Lack of detailed cost breakdown makes value assessment difficult.
Positive Signals
- Addresses a critical need for cargo inspection technology.
- Firm fixed-price contract provides cost certainty.
- Awarded to a known entity in the medical systems field.
Sector Analysis
The acquisition falls within the Irradiation Apparatus Manufacturing sector, often associated with specialized government procurements for security and defense. Benchmarks are difficult without specific comparable systems.
Small Business Impact
No specific information is provided regarding small business participation in this contract. The awardee, Varian Medical Systems, is a large corporation.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security, U.S. Customs and Border Protection, agencies with established oversight mechanisms. However, the limited competition warrants scrutiny.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Limited competition
- Long contract duration
- Potential for technology obsolescence
- Lack of detailed cost transparency
Tags
irradiation-apparatus-manufacturing, department-of-homeland-security, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $15.1 million to VARIAN MEDICAL SYSTEMS, INC.. HIGH ENERGY GANTRY X-RAY CARGO INSPECTION SYSTEMS
Who is the contractor on this award?
The obligated recipient is VARIAN MEDICAL SYSTEMS, 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 $15.1 million.
What is the period of performance?
Start: 2007-09-27. End: 2012-09-28.
What was the rationale for limiting competition to a single awardee for this critical technology?
The rationale for limiting competition to a single awardee likely stems from specific technical requirements, proprietary technology, or existing vendor relationships. Further investigation into the solicitation documents and justification for other-than-full-and-open competition would be necessary to confirm the precise reasons and assess if alternatives were adequately explored.
How does the cost of these systems compare to similar cargo inspection technologies available on the market?
A direct cost comparison is challenging without access to detailed pricing structures and specifications for alternative systems. However, the $15.1M award over five years suggests a significant investment. Benchmarking against other large-scale government procurements for similar inspection equipment, if available, would provide a more informed assessment of value for money.
What measures are in place to ensure the technology remains effective and up-to-date throughout the 5-year contract period?
The contract's 5-year duration necessitates proactive management to ensure technological relevance. Measures may include performance-based requirements, scheduled technology refresh clauses, or options for upgrades. The agency should have processes for monitoring technological advancements and addressing potential obsolescence to maintain the system's effectiveness.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Varian Medical Systems, Inc (UEI: 009120817)
Address: 425 BARCLAY BLVD, LINCOLNSHIRE, IL, 60069
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business
Financial Breakdown
Contract Ceiling: $15,108,048
Exercised Options: $15,108,048
Current Obligation: $15,108,048
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1005D00985
IDV Type: IDC
Timeline
Start Date: 2007-09-27
Current End Date: 2012-09-28
Potential End Date: 2012-09-28 00:00:00
Last Modified: 2017-07-30
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