DHS awarded $21.9M for explosive detection systems, with 1 bid received under full and open competition

Contract Overview

Contract Amount: $21,878,192 ($21.9M)

Contractor: Reveal Imaging Technologies, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-06-07

End Date: 2008-10-31

Contract Duration: 877 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: 65 REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.9 million to REVEAL IMAGING TECHNOLOGIES, INC. for work described as: 65 REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS Key points: 1. The contract value of $21.9 million for explosive detection systems appears to be a significant investment in security technology. 2. With only one bid received, the dynamics of competition for this contract warrant further investigation to ensure optimal pricing. 3. The contract duration of approximately 877 days suggests a substantial implementation or service period. 4. The award date in 2006 indicates this is a historical contract, and its current relevance to market benchmarks may be limited. 5. The procurement falls under miscellaneous manufacturing, suggesting a specialized product category. 6. The contract was awarded to Reveal Imaging Technologies, Inc., a single vendor, highlighting potential concentration risk.

Value Assessment

Rating: fair

Benchmarking the value for money is challenging without more specific details on the system's capabilities and the market at the time of award. The single bid received raises concerns about whether the government secured the best possible price. Comparing this to similar contracts for explosive detection systems, especially those awarded more recently, would provide better context for assessing value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows any interested vendor to bid. However, only one bid was received. This could indicate a lack of market interest, high barriers to entry for potential competitors, or that the incumbent was uniquely positioned. The limited competition may have impacted the government's ability to negotiate the most favorable terms.

Taxpayer Impact: A single bid limits the government's leverage in price negotiations, potentially leading to higher costs for taxpayers than if multiple vendors had competed.

Public Impact

The primary beneficiaries are likely the Transportation Security Administration (TSA) and the Department of Homeland Security (DHS), enhancing their explosive detection capabilities. The services delivered involve the provision of 65 reduced size explosive detection systems, crucial for airport and transportation security. The geographic impact is likely nationwide, as TSA operates at airports and transportation hubs across the United States. The contract may have implications for the workforce involved in the manufacturing, installation, and maintenance of these specialized systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (one bid) raises concerns about potential price inflation and lack of vendor innovation.
The age of the contract (awarded 2006) means current market prices and technological advancements may not be reflected.
Reliance on a single vendor for 65 systems could pose supply chain or support risks if the vendor faces issues.

Positive Signals

Awarded under full and open competition, indicating an initial intent to maximize market participation.
The contract specifies a clear deliverable (65 systems), providing a defined scope of work.
The contract was awarded to a specific entity, Reveal Imaging Technologies, Inc., suggesting a clear point of accountability.

Sector Analysis

This contract falls within the miscellaneous manufacturing sector, specifically related to security and detection equipment. The market for explosive detection systems is driven by government security mandates and technological advancements. Spending in this area is often substantial due to the critical nature of national security. Comparable spending benchmarks would involve analyzing other contracts for similar security screening technologies across various federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no specific information on subcontracting. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor utilized small businesses for components or services, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal review processes and potentially the Government Accountability Office (GAO) if protests or audits were initiated. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Specific oversight mechanisms for performance and quality assurance would be detailed in the contract's terms and conditions.

Related Government Programs

Transportation Security Administration (TSA) Equipment Procurement
Department of Homeland Security (DHS) Security Technology
Explosive Detection Systems
Manufacturing Contracts

Risk Flags

Limited competition
Potential for price non-competitiveness
Dated technology/market relevance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.9 million to REVEAL IMAGING TECHNOLOGIES, INC.. 65 REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS

Who is the contractor on this award?

The obligated recipient is REVEAL IMAGING TECHNOLOGIES, 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 $21.9 million.

What is the period of performance?

Start: 2006-06-07. End: 2008-10-31.

What was the specific type and capability of the 'reduced size explosive detection systems' procured?

The provided data identifies the item as 'REDUCED SIZE EXPLOSIVE DETECTION SYSTEMS' and notes the quantity as 65. However, specific technical specifications, capabilities (e.g., detection limits, speed, imaging technology), and the exact model or type of system are not detailed in the summary data. Further investigation into the contract's statement of work or technical exhibits would be necessary to understand the precise nature of these systems and their intended application within the TSA's security screening processes.

How does the awarded price of approximately $21.9 million compare to the market value of similar systems at the time of award?

Directly comparing the $21.9 million award for 65 systems (averaging roughly $337,000 per system) to market values at the time (2006) is difficult without access to contemporaneous market research or pricing data for comparable explosive detection systems. The fact that only one bid was received under full and open competition suggests potential challenges in establishing a competitive price. A thorough analysis would require benchmarking against other government or commercial procurements of similar technology from that era, considering factors like technological sophistication, manufacturer, and volume discounts.

What were the reasons for only one bid being submitted for this 'full and open competition' contract?

The limited competition, with only one bid received despite a 'full and open' solicitation, could stem from several factors. Potential reasons include high research and development costs for competitors, stringent technical requirements that only one firm could meet, a lack of market interest due to perceived low profitability, or the possibility that Reveal Imaging Technologies, Inc. held a dominant market position or proprietary technology at the time. Without further documentation from the solicitation process, the exact cause remains speculative but points to potential market concentration or barriers to entry.

What is the track record of Reveal Imaging Technologies, Inc. in providing similar security equipment to the government?

Reveal Imaging Technologies, Inc. was awarded this contract for 65 explosive detection systems. To assess their track record, one would need to examine other contracts awarded to this company, particularly for similar security or detection equipment. Information on past performance, delivery timeliness, product quality, and any history of contract disputes or modifications would be crucial. A review of federal procurement databases and contract award histories for Reveal Imaging Technologies, Inc. would provide insights into their experience and reliability as a government supplier.

What was the intended operational deployment and expected impact of these 65 systems on transportation security?

The procurement of 65 'reduced size explosive detection systems' by the TSA, under the Department of Homeland Security, was intended to enhance security screening capabilities at various transportation points, likely including airports. The 'reduced size' aspect may imply deployment in space-constrained areas or for specific screening roles. The expected impact would be an improved ability to detect threats, potentially increasing the speed and efficiency of screening processes while maintaining or enhancing security levels. The exact deployment strategy and anticipated security improvements would be detailed in the contract's objectives and performance metrics.

How has federal spending on explosive detection systems evolved since this contract was awarded in 2006?

Federal spending on explosive detection systems has likely evolved significantly since 2006, driven by technological advancements, changing threat landscapes, and evolving security protocols. Post-9/11 security initiatives spurred substantial investment, and subsequent years have seen continuous upgrades and procurements. Spending patterns may have shifted towards more integrated systems, AI-driven analysis, and potentially different types of detection technologies (e.g., trace detection, advanced imaging). Analyzing historical spending data from agencies like DHS and DoD would reveal trends in contract values, quantities, and the types of technologies being prioritized over time.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 201 BURLINGTON RD, BEDFORD, MA, 06

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,878,192

Exercised Options: $21,878,192

Current Obligation: $21,878,192

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HSTS0405DDEP029

IDV Type: IDC

Timeline