DHS's $33M contract for irradiation apparatus manufacturing shows a significant investment in security screening technology

Contract Overview

Contract Amount: $33,161,823 ($33.2M)

Contractor: American Science & Engineering Inc

Awarding Agency: Department of Homeland Security

Start Date: 2010-12-03

End Date: 2015-06-30

Contract Duration: 1,670 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOW ENERGY DRIVE THROUGH PORTALS (13 FY-10 FUNDS)

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.2 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: LOW ENERGY DRIVE THROUGH PORTALS (13 FY-10 FUNDS) Key points: 1. The contract value of $33.16 million over its period of performance suggests a substantial need for this specialized equipment. 2. The fixed-price contract type likely provides cost certainty for the government, though it may limit flexibility. 3. The duration of the contract (over 1600 days) indicates a long-term requirement for the supplied apparatus. 4. The procurement was conducted under full and open competition, suggesting a robust market for this type of technology. 5. The specific product code (PSC) is not provided, making direct benchmarking difficult. 6. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without more detailed product specifications or comparable contract data. However, the total award of over $33 million for irradiation apparatus manufacturing over a period of approximately 4.5 years indicates a significant investment. The firm fixed-price nature of the contract suggests an effort to control costs, which is generally a positive sign for value. Without knowing the exact capabilities and quantity of the apparatus procured, a precise value-for-money assessment is difficult, but the competitive nature of the award implies market forces were at play to achieve a reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a healthy competitive environment for the manufacturing of irradiation apparatus. The specific number of bidders is not provided, but the open competition is a positive indicator for price discovery and potentially achieving a better price for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), who will utilize the irradiation apparatus for their security screening operations. The services delivered involve the manufacturing and likely deployment of specialized irradiation apparatus, crucial for detecting threats and contraband. The geographic impact is likely national, supporting border security and potentially other domestic security checkpoints where such technology is deployed. The contract supports jobs in the manufacturing sector, specifically within the irradiation apparatus industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific technical details on the irradiation apparatus makes it difficult to assess if the most advanced or cost-effective technology was procured.
The long contract duration could potentially lead to technology obsolescence if not managed proactively.
The absence of data on the number of bidders limits the ability to fully assess the intensity of competition.
The specific end-use and operational context of the apparatus are not detailed, making it hard to gauge performance requirements.
The contract was awarded as a delivery order, suggesting it might be part of a larger, potentially less scrutinized, IDIQ contract.

Positive Signals

The contract was awarded through full and open competition, indicating a broad market engagement and potential for competitive pricing.
The firm fixed-price contract type provides cost certainty for the government, mitigating the risk of cost overruns.
The substantial award value suggests a critical need for this technology by a major federal agency (DHS).
The contract duration implies a sustained commitment to enhancing security capabilities.
The contractor, AMERICAN SCIENCE & ENGINEERING INC, is likely experienced in this specialized manufacturing field.

Sector Analysis

The contract falls within the 'Irradiation Apparatus Manufacturing' sector, a niche but critical area supporting national security and safety. This sector often involves advanced technology and stringent quality control. The market size for such specialized equipment is likely limited to government and specific industrial applications. Comparable spending benchmarks are difficult to establish without more specific details on the apparatus's capabilities, but significant government investments in security screening technologies are common across various agencies.

Small Business Impact

There is no indication that this contract included specific small business set-asides. Given the specialized nature of irradiation apparatus manufacturing, it is possible that the primary contractors are larger, established firms. However, the prime contractor may engage small businesses for subcontracting opportunities in areas such as component manufacturing, logistics, or specialized services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. Accountability measures are typically embedded within the contract terms, including delivery schedules, performance standards, and quality control requirements. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DHS Security Screening Equipment Procurement
CBP Advanced Technology Investments
Federal Irradiation Technology Contracts
National Security Equipment Manufacturing
Homeland Security Technology Acquisition

Risk Flags

Potential for technological obsolescence due to long contract duration.
Lack of detailed technical specifications in public award data.
Limited information on the number of bidders impacting competition assessment.
Contract awarded as a delivery order, potentially obscuring full contract scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.2 million to AMERICAN SCIENCE & ENGINEERING INC. LOW ENERGY DRIVE THROUGH PORTALS (13 FY-10 FUNDS)

Who is the contractor on this award?

The obligated recipient is AMERICAN SCIENCE & ENGINEERING 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 $33.2 million.

What is the period of performance?

Start: 2010-12-03. End: 2015-06-30.

What is the specific type and capability of the 'Irradiation Apparatus' procured under this contract?

The provided data indicates the contract is for 'LOW ENERGY DRIVE THROUGH PORTALS (13 FY-10 FUNDS)' and falls under 'Irradiation Apparatus Manufacturing.' While the exact technical specifications are not detailed, this suggests the apparatus is designed for scanning vehicles or large items at low energy levels, likely for security screening purposes at ports of entry or other checkpoints. These systems typically use X-ray or gamma-ray technology to penetrate materials and identify potential threats like explosives, weapons, or contraband. The '13 FY-10 FUNDS' might refer to a specific program or fiscal year allocation, but without further context, its precise meaning is unclear. The 'drive-through' aspect implies a design for non-intrusive inspection of moving vehicles.

How does the $33.16 million award compare to similar federal contracts for security screening technology?

Direct comparison is challenging without knowing the exact specifications and quantity of the irradiation apparatus. However, federal agencies like DHS, DOD, and DOE frequently invest in advanced screening technologies, with contract values often ranging from millions to tens of millions of dollars. For instance, contracts for advanced X-ray scanners, radiation detection portals, and explosive trace detection systems can be substantial. The $33.16 million over approximately 4.5 years ($7.37M/year average) appears to be a significant, but not necessarily outlier, investment for specialized, high-capability security equipment. The firm fixed-price nature and full and open competition suggest an effort to achieve competitive pricing for this level of technology.

What are the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or success metrics for this contract. However, typical KPIs for such a contract would likely include: 1) successful delivery of the irradiation apparatus meeting all technical specifications and quality standards; 2) operational readiness and reliability of the deployed systems; 3) performance in detecting specified threats or contraband at required accuracy rates; 4) adherence to delivery schedules; and 5) successful integration into existing security infrastructure. The firm fixed-price nature implies that meeting these performance standards is crucial for the contractor to realize their profit margin.

What is the track record of AMERICAN SCIENCE & ENGINEERING INC (AS&E) in delivering similar irradiation apparatus to the government?

AMERICAN SCIENCE & ENGINEERING INC (AS&E) has a history of providing advanced X-ray inspection systems for security applications. They are known for their cargo and baggage inspection technologies used by various government agencies, including DHS. While the specific 'LOW ENERGY DRIVE THROUGH PORTALS' might be a particular product line, AS&E's general experience in manufacturing and delivering complex imaging and inspection systems suggests they possess the necessary capabilities. A deeper dive into AS&E's contract history within FPDS or other databases would reveal the volume, value, and performance history of their prior awards, including any related to irradiation apparatus.

What is the historical spending trend for irradiation apparatus manufacturing by DHS or similar agencies?

Historical spending on irradiation apparatus and related security screening technologies by DHS and its components like CBP has been substantial and generally increasing, driven by evolving security threats and the need for advanced detection capabilities. Agencies consistently invest in technologies that can non-intrusively scan cargo, vehicles, and personnel. While specific data for 'irradiation apparatus manufacturing' alone is not readily available without detailed PSC code analysis, overall spending on security and inspection equipment by DHS runs into billions of dollars annually. This contract represents a portion of that larger investment in maintaining and upgrading national security infrastructure.

What are the potential risks associated with the long duration (1670 days) of this contract?

The long duration of this contract (approximately 4.5 years) presents several potential risks. Firstly, technological obsolescence is a significant concern; advancements in irradiation and scanning technology could render the procured apparatus outdated before the contract's end, potentially diminishing its effectiveness against emerging threats. Secondly, maintenance and support costs could escalate over such a long period. Thirdly, changes in government requirements or threat landscapes might necessitate modifications or upgrades, which could be complex and costly to implement under a fixed-price contract. Finally, contractor performance stability over an extended period can be a concern, although the fixed-price nature incentivizes timely delivery.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: OSI Systems Inc (UEI: 178295812)

Address: 829 MIDDLESEX TPKE, BILLERICA, MA, 01821

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

Financial Breakdown

Contract Ceiling: $33,161,823

Exercised Options: $33,161,823

Current Obligation: $33,161,823

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1011D00002

IDV Type: IDC

Timeline