DHS awards $25.7M contract for irradiation apparatus to American Science & Engineering Inc
Contract Overview
Contract Amount: $25,719,721 ($25.7M)
Contractor: American Science & Engineering Inc
Awarding Agency: Department of Homeland Security
Start Date: 2006-09-19
End Date: 2009-11-30
Contract Duration: 1,168 days
Daily Burn Rate: $22.0K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CAARS
Place of Performance
Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821
Plain-Language Summary
Department of Homeland Security obligated $25.7 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: CAARS Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. The contract value is substantial, requiring careful oversight. 3. The sector is specialized, potentially limiting the number of qualified bidders. 4. The use of a Cost Plus Fixed Fee contract type warrants scrutiny for cost control.
Value Assessment
Rating: fair
The contract value of $25.7M for irradiation apparatus is significant. Without comparable contract data or a clear justification for the pricing structure, it is difficult to definitively assess its value. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a non-competitive basis, indicating a sole-source or limited competition scenario. This method of procurement limits price discovery and may result in higher costs compared to a fully competitive process.
Taxpayer Impact: The lack of competition suggests taxpayers may not have received the best possible price for the irradiation apparatus.
Public Impact
Potential for higher costs due to non-competitive award. Limited transparency on the justification for sole-source procurement. Impact on small businesses in the irradiation apparatus manufacturing sector is unclear.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Cost Plus Fixed Fee contract type
- Lack of clear justification for sole-source
Positive Signals
- Award to established vendor
- Specific equipment requirement
Sector Analysis
The contract falls under Irradiation Apparatus Manufacturing, a niche sector within industrial equipment. Benchmarking spending in this specific area is challenging due to its specialized nature and limited public data.
Small Business Impact
The data does not indicate whether small businesses were considered or participated in this procurement. The sole-source nature of the award suggests limited opportunity for small business involvement.
Oversight & Accountability
The non-competitive nature of this award necessitates robust oversight to ensure the government received fair value and that the contractor adhered to the terms of the Cost Plus Fixed Fee agreement.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for inflated costs due to sole-source award.
- Lack of transparency regarding procurement justification.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
- Limited visibility into small business participation.
Tags
irradiation-apparatus-manufacturing, department-of-homeland-security, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $25.7 million to AMERICAN SCIENCE & ENGINEERING INC. CAARS
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 (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $25.7 million.
What is the period of performance?
Start: 2006-09-19. End: 2009-11-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation from the Department of Homeland Security, the exact reason remains speculative, but it is crucial for ensuring fair and efficient government spending.
How were costs controlled under the Cost Plus Fixed Fee structure?
Cost Plus Fixed Fee contracts require stringent oversight to manage costs effectively. The government must monitor the contractor's expenditures closely, ensuring they are reasonable and allowable. Fixed fees provide an incentive for efficiency, but the 'cost plus' element means the government bears the risk of cost increases. Regular audits and performance reviews are essential to prevent overspending and ensure value.
What is the long-term strategic value of this irradiation apparatus acquisition?
The long-term strategic value depends on the specific application and operational needs of the Department of Homeland Security. Irradiation apparatus can be used for various purposes, including sterilization, material modification, or security screening. Understanding the intended use and its contribution to the agency's mission is key to assessing its enduring importance and justifying the investment beyond the initial acquisition cost.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 829 MIDDLESEX TPKE, BILLERICA, MA, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $25,719,721
Exercised Options: $25,719,721
Current Obligation: $25,719,721
Contract Characteristics
Consolidated Contract: Yes
Parent Contract
Parent Award PIID: HSHQDC06D00073
IDV Type: IDC
Timeline
Start Date: 2006-09-19
Current End Date: 2009-11-30
Potential End Date: 2009-11-30 00:00:00
Last Modified: 2014-08-13
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