DHS awards $38.96M for High Speed Integrated EDS Units to Smiths Detection, Inc

Contract Overview

Contract Amount: $38,960,000 ($39.0M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2008-07-02

End Date: 2009-02-28

Contract Duration: 241 days

Daily Burn Rate: $161.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: HIGH SPEED INTEGRATED EDS UNIT (CTX 9400 DSI) (SEE SPECIFICATION 3.1.2 AND ECP 5389)

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.0 million to SMITHS DETECTION, INC for work described as: HIGH SPEED INTEGRATED EDS UNIT (CTX 9400 DSI) (SEE SPECIFICATION 3.1.2 AND ECP 5389) Key points: 1. The contract value is $38.96 million. 2. The sole awardee is Smiths Detection, Inc. 3. The contract was not competed, raising potential value concerns. 4. The sector is Transportation Security Administration (TSA) within DHS.

Value Assessment

Rating: questionable

The contract value of $38.96 million for specialized EDS units lacks a clear benchmark due to the sole-source nature. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning no competition was sought. This limits price discovery and potentially leads to higher costs for taxpayers as the government did not explore alternative vendors or pricing.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these integrated EDS units.

Public Impact

Enhances airport security screening capabilities. Procurement of advanced detection technology. Potential for increased efficiency in baggage handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of price benchmark.
Potential for overpayment due to no competition.

Positive Signals

Acquisition of critical security technology.
Supports TSA's mission.

Sector Analysis

This contract falls within the security and screening technology sector, specifically for airport baggage inspection systems. Spending in this area is critical for national security and public safety, but often involves high-value, specialized equipment.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received fair value and that competition was appropriately waived.

Related Government Programs

Architectural Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.0 million to SMITHS DETECTION, INC. HIGH SPEED INTEGRATED EDS UNIT (CTX 9400 DSI) (SEE SPECIFICATION 3.1.2 AND ECP 5389)

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 $39.0 million.

What is the period of performance?

Start: 2008-07-02. End: 2009-02-28.

What was the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's presumed that Smiths Detection, Inc. possessed exclusive rights or capabilities deemed essential by the TSA at the time of the award.

How does the $38.96 million price compare to similar systems acquired competitively?

Without competitive data, a direct comparison is challenging. However, sole-source contracts often carry a price premium. A thorough review would involve benchmarking against publicly available data for similar, albeit potentially less advanced, systems or seeking cost breakdowns from the vendor.

What is the expected operational lifespan and effectiveness of these EDS units?

The contract duration is 241 days, suggesting a focus on delivery and initial setup rather than long-term operational support within this specific award. The effectiveness would be measured by TSA's operational metrics for threat detection and screening efficiency post-implementation.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › Community and Regional Development R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

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: $38,960,000

Exercised Options: $38,960,000

Current Obligation: $38,960,000

Parent Contract

Parent Award PIID: DTSA2003C01900

IDV Type: IDC

Timeline