DHS awards $14.47M for 390 ETD units to Smiths Detection Inc. over 7 years

Contract Overview

Contract Amount: $14,472,601 ($14.5M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-14

End Date: 2012-09-13

Contract Duration: 2,556 days

Daily Burn Rate: $5.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Transportation

Official Description: 390 ETD FULL PRODUCTION UNITS

Place of Performance

Location: PINE BROOK, MORRIS County, NEW JERSEY, 07058

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.5 million to SMITHS DETECTION INC. for work described as: 390 ETD FULL PRODUCTION UNITS Key points: 1. Significant contract value over a long duration. 2. Sole-source award limits competitive pricing. 3. Potential for cost overruns with Time and Materials. 4. Focus on critical Transportation Security Administration (TSA) equipment.

Value Assessment

Rating: questionable

The contract's Time and Materials (T&M) pricing structure, combined with a lack of competition, raises concerns about cost efficiency. Without a fixed price or competitive bidding, it's difficult to benchmark against similar procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition in this sole-source award likely results in a higher overall cost to taxpayers than if multiple vendors had vied for the contract.

Public Impact

Ensures continued operation of airport security screening. Supports national security by providing essential detection equipment. Impacts traveler experience through screening technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials pricing
Long contract duration
No small business participation noted

Positive Signals

Essential equipment for national security
Established vendor relationship

Sector Analysis

This contract falls under Engineering Services, specifically related to Explosives Trace Detection (ETD) units for the TSA. Spending in this sector is critical for national security and infrastructure protection.

Small Business Impact

There is no indication of small business participation in this contract. Future procurements should explore opportunities for small businesses to contribute to this critical area.

Oversight & Accountability

The long duration and sole-source nature of this contract warrant close oversight to ensure continued value and prevent potential cost creep. Regular performance reviews are essential.

Related Government Programs

Engineering Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Lack of competition
Time and Materials pricing
Long contract duration
Potential for cost overruns
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.5 million to SMITHS DETECTION INC.. 390 ETD FULL PRODUCTION UNITS

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 $14.5 million.

What is the period of performance?

Start: 2005-09-14. End: 2012-09-13.

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

The justification for the sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Agencies must document the rationale, and competitive strategies are usually explored unless specific exceptions apply, such as urgent and compelling needs or unique capabilities.

How does the per-unit cost compare to industry benchmarks for similar ETD units, considering the T&M structure?

Without a fixed price or competitive bids, establishing a precise per-unit cost benchmark is challenging. The Time and Materials structure means costs are based on labor hours and material costs incurred, which can fluctuate. A thorough cost analysis would be needed to compare this to market rates for comparable technology.

What measures are in place to ensure the effectiveness and reliability of the ETD units over the 7-year contract period?

The contract likely includes performance standards and acceptance testing for the ETD units. However, the long duration necessitates ongoing monitoring and potential sustainment planning to ensure the technology remains effective against evolving threats and that maintenance is adequately addressed.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Smiths Group PLC (UEI: 210273256)

Address: 30 HOOK MOUNTAIN ROAD, PINE BROOK, NJ, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,875,364

Exercised Options: $14,472,601

Current Obligation: $14,472,601

Parent Contract

Parent Award PIID: HSTS0405DDEP843

IDV Type: IDC

Timeline