DHS awards $51.6M for 43 Explosive Detection Systems to Smiths Detection, Inc

Contract Overview

Contract Amount: $51,600,000 ($51.6M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-05-30

End Date: 2010-03-10

Contract Duration: 1,745 days

Daily Burn Rate: $29.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 43 HIGH-SPEED INTEGRATED EXPLOSIVE DETECTION SYSTEMS (EDS)

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $51.6 million to SMITHS DETECTION, INC for work described as: 43 HIGH-SPEED INTEGRATED EXPLOSIVE DETECTION SYSTEMS (EDS) Key points: 1. High cost per unit for specialized detection equipment. 2. Sole-source award limits competitive pricing and innovation. 3. Long contract duration may not reflect evolving threats. 4. Focus on a single vendor raises potential supply chain risks.

Value Assessment

Rating: questionable

The contract price of $51.6 million for 43 systems averages over $1.2 million per unit. Benchmarking against similar advanced detection systems is difficult without more specific technical details, but this appears to be a high price point.

Cost Per Unit: $1,200,000

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method bypasses competitive bidding, potentially leading to higher prices and reduced incentive for cost efficiency.

Taxpayer Impact: The absence of competition likely resulted in taxpayers paying a premium for these systems.

Public Impact

Enhances security at transportation hubs by detecting explosives. Relies on a single vendor for critical security technology. Potential for outdated technology if upgrades are not managed effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High unit cost
Long contract duration
Lack of competition

Positive Signals

Addresses critical security need
Established vendor

Sector Analysis

This contract falls under the 'Other' sector, specifically related to security and defense equipment. Spending benchmarks for specialized detection systems vary widely based on technology and quantity, but the per-unit cost here is notable.

Small Business Impact

The contract was awarded to a large, established company, Smiths Detection, Inc. There is no indication of small business participation in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government obtained the best possible value and that the vendor's pricing was justified. Oversight should focus on performance and any potential for future competition.

Related Government Programs

Architectural Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Sole-source award limits competition and potentially inflates cost.
High per-unit cost requires strong justification.
Technology may become outdated over the contract's lifespan.
Dependency on a single vendor for critical security equipment.
Lack of transparency in the procurement process due to sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $51.6 million to SMITHS DETECTION, INC. 43 HIGH-SPEED INTEGRATED EXPLOSIVE DETECTION SYSTEMS (EDS)

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $51.6 million.

What is the period of performance?

Start: 2005-05-30. End: 2010-03-10.

What was the justification for the sole-source award, and were alternative solutions considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without specific documentation, it's difficult to ascertain the exact reasoning. However, the TSA should have thoroughly explored if any other vendors could provide comparable systems or if a competitive process was feasible, even with unique requirements.

How does the performance of these systems compare to industry standards and newer technologies?

The contract duration spans from 2005 to 2010, meaning the technology procured may be several years old by the end of its term. Regular performance reviews and comparisons against emerging technologies are crucial to ensure the systems remain effective against current threats and that the government isn't locked into using outdated equipment.

What is the long-term cost implication of relying on a single vendor for maintenance and upgrades?

Sole-source contracts can lead to higher long-term costs for maintenance, support, and upgrades, as the vendor faces no competitive pressure. The TSA should have contingency plans or negotiate favorable terms for future support to mitigate these potential cost escalations and ensure continued operational effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Safran Power USA LLC (UEI: 275374015)

Address: 7151 GATEWAY BLVD, NEWARK, CA, 17

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $641,470,000

Exercised Options: $253,112,933

Current Obligation: $51,600,000

Parent Contract

Parent Award PIID: DTSA2003C01900

IDV Type: IDC

Timeline