DHS awards $20.6M for advanced technology machines, with a 1465-day duration

Contract Overview

Contract Amount: $20,573,365 ($20.6M)

Contractor: Smiths Detection, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-26

End Date: 2011-09-30

Contract Duration: 1,465 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TBD- ADDITIONAL ADVANCED TECHNOLOGY MACHINES

Place of Performance

Location: WARREN, SOMERSET County, NEW JERSEY, 07059

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.6 million to SMITHS DETECTION, INC. for work described as: TBD- ADDITIONAL ADVANCED TECHNOLOGY MACHINES Key points: 1. Value for money assessed against contract duration and scope. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include contract type and duration. 4. Performance context is within the Transportation Security Administration's mission. 5. Sector positioning is in advanced technology for security. 6. Spending is concentrated on a single awardee.

Value Assessment

Rating: fair

The contract value of $20.6 million over 1465 days averages to approximately $14,000 per day. Without specific details on the 'advanced technology machines' and their per-unit cost or operational lifespan, a precise value-for-money assessment is challenging. However, the firm fixed-price nature suggests cost certainty for the government. Benchmarking against similar advanced detection equipment would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This typically leads to a more competitive pricing environment and a wider selection of potential solutions. The fact that there was only one awardee, despite the open competition, could imply that only one bidder met all the stringent requirements or offered the most advantageous proposal.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving advanced technology machines. These machines are intended to enhance security screening operations. The contract's performance is located in New Jersey. The acquisition of new technology may lead to updated training requirements for personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1465 days) could lead to technology obsolescence or increased maintenance costs.
Firm Fixed Price contracts can sometimes lead to less flexibility if requirements change significantly during the performance period.
Lack of specific details on the 'advanced technology machines' makes it difficult to assess their true value and necessity.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract provides cost certainty for the government.
Single awardee may indicate a highly specialized or technically superior solution was selected.

Sector Analysis

This contract falls within the broader sector of security and detection systems manufacturing, specifically focusing on advanced technological instruments. The market for such systems is driven by evolving threats and the need for enhanced screening capabilities in transportation and other critical infrastructure. Comparable spending benchmarks would involve analyzing other government procurements for similar sophisticated detection and navigation equipment.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary awardee is likely a large business, and the direct impact on the small business ecosystem may be limited unless significant subcontracting opportunities arise organically.

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 specific performance issues arise. Transparency is generally maintained through contract award databases, though detailed operational performance metrics may not be publicly disclosed.

Related Government Programs

Transportation Security Equipment
Advanced Technology Procurement
Homeland Security Technology
Detection and Navigation Systems

Risk Flags

Long contract duration may lead to technology obsolescence.
Lack of specific technical details hinders comprehensive value assessment.
Potential for contractor to build in significant cost contingency due to FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.6 million to SMITHS DETECTION, INC.. TBD- ADDITIONAL ADVANCED TECHNOLOGY MACHINES

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 $20.6 million.

What is the period of performance?

Start: 2007-09-26. End: 2011-09-30.

What specific type of 'advanced technology machines' were procured under this contract?

The provided data does not specify the exact nature of the 'advanced technology machines.' The North American Industry Classification System (NAICS) code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' suggests the machines are related to systems and instruments used for these purposes. However, without further details, it's impossible to determine if these are for airport security screening, maritime navigation, or another specialized application. Further investigation into contract line item numbers (CLINs) or associated documentation would be required to identify the specific equipment.

How does the average daily cost of this contract compare to similar procurements for advanced technology machines?

The contract's average daily cost is approximately $14,000 ($20.6M / 1465 days). Benchmarking this against similar procurements is difficult without knowing the specific type of technology. If these are highly specialized, custom-built machines, the daily cost might be reasonable. However, if they are more standardized components, this daily rate could be on the higher side. A comparative analysis would require identifying contracts for comparable advanced detection, navigation, or guidance systems, considering factors like technological sophistication, quantity, and vendor.

What is the track record of Smiths Detection, Inc. with the Department of Homeland Security and similar contracts?

Smiths Detection, Inc. is a known entity in the security and detection market, often supplying equipment to government agencies. Their track record with DHS and TSA would likely include numerous awards for various security screening technologies. A thorough review would involve examining their past performance ratings, any past performance issues or disputes, and the overall volume and value of contracts they have held with DHS. This specific contract, awarded in 2007, suggests a long-standing relationship and a history of successful performance, though specific details would need to be verified through official performance records.

What are the potential risks associated with a 1465-day contract duration for advanced technology?

A contract duration of 1465 days (nearly four years) for advanced technology carries several risks. Firstly, technological advancements can rapidly outpace deployed systems, potentially rendering the procured machines obsolete before the contract ends or shortly thereafter. Secondly, maintenance and support costs could escalate over such a long period. Thirdly, if the technology requires significant software updates or integration with newer systems, managing these changes over an extended period can become complex and costly. Finally, the government might miss opportunities to acquire more cost-effective or superior technologies that emerge during the contract's life.

How does the 'full and open competition' designation impact the value received by taxpayers?

A 'full and open competition' designation is generally beneficial for taxpayers. It means that all responsible sources were permitted to submit a bid, fostering a competitive environment. This competition typically drives down prices as vendors vie for the contract, ensuring the government secures the best possible value for its expenditure. Furthermore, it increases the likelihood that the government will receive innovative solutions and high-quality products or services, as vendors are motivated to differentiate themselves. The presence of only one awardee, despite open competition, suggests that either the requirements were highly specialized, or one bidder significantly outperformed others.

What is the significance of the 'Firm Fixed Price' contract type in this context?

The 'Firm Fixed Price' (FFP) contract type is significant because it places the primary risk of cost overruns on the contractor, Smiths Detection, Inc. This means the government agrees to pay a set price regardless of the contractor's actual costs incurred. For taxpayers, this offers budget certainty and predictability, as the total expenditure is known upfront. However, it can also mean that the government might pay a premium compared to cost-reimbursement contracts, as the contractor will likely build in a contingency for unforeseen expenses. The FFP type is generally preferred for procurements where the scope of work is well-defined and risks are manageable.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Smiths Group PLC (UEI: 210273256)

Address: 30 TECHNOLOGY DR, WARREN, NJ, 07

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,573,365

Exercised Options: $20,573,365

Current Obligation: $20,573,365

Parent Contract

Parent Award PIID: HSTS0407DDEP347

IDV Type: IDC

Timeline