DHS awards $54.7M hybrid contract for EDS engineering services to Morpho Detection, LLC
Contract Overview
Contract Amount: $54,661,369 ($54.7M)
Contractor: Morpho Detection, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2009-07-20
End Date: 2013-07-18
Contract Duration: 1,459 days
Daily Burn Rate: $37.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PER THE SYSTEM ADMINISTRATOR'S SUGGESTION, THIS HAS BEEN DESIGNATED AS A FIRM FIXED PRICE, HOWEVER, IT IS A HYBRID LETTER CONTRACT FOR THE PURCHASE OF EDS AND ENGINEERING SERVICES FOR EDS. PRICING WILL BE FIXED PRICE AND TIME AND MATERIALS. WHICH WILL BE DETERMINED UPON DEFINITIZATION.
Place of Performance
Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560
Plain-Language Summary
Department of Homeland Security obligated $54.7 million to MORPHO DETECTION, LLC for work described as: PER THE SYSTEM ADMINISTRATOR'S SUGGESTION, THIS HAS BEEN DESIGNATED AS A FIRM FIXED PRICE, HOWEVER, IT IS A HYBRID LETTER CONTRACT FOR THE PURCHASE OF EDS AND ENGINEERING SERVICES FOR EDS. PRICING WILL BE FIXED PRICE AND TIME AND MATERIALS. WHICH WILL BE DETERMINED UPON DEFINITIZ… Key points: 1. Hybrid contract structure introduces pricing uncertainty pending definitization. 2. Sole-source award limits competition and potentially inflates costs. 3. Lack of competition raises concerns about value for taxpayer money. 4. Contract duration of nearly four years suggests a significant, long-term need.
Value Assessment
Rating: questionable
The contract is a hybrid fixed-price and time-and-materials, making a direct pricing assessment difficult until definitization. The fixed-price component aims for cost certainty, but the T&M element introduces variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds.
Public Impact
Citizens rely on the Transportation Security Administration (TSA) for safe travel, making the effectiveness of its equipment crucial. The use of taxpayer funds for advanced engineering services highlights the government's investment in security technology. The long-term nature of the contract suggests a sustained need for these services, impacting future budgets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Hybrid pricing structure (FFP/T&M)
- Potential for cost overruns due to T&M component
Positive Signals
- Firm Fixed Price component aims for cost control
- Awarded to a specialized company for critical security equipment
Sector Analysis
The Transportation Security Administration (TSA) operates within the broader federal IT and security sector. Spending benchmarks for similar engineering services contracts can vary widely based on complexity and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The hybrid nature of the contract, with a T&M component, requires robust oversight to ensure costs remain reasonable and that the work is performed efficiently. Definitization will be a key oversight milestone.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Sole-source award
- Hybrid contract (FFP/T&M)
- Lack of defined unit pricing
- Potential for cost creep in T&M component
- Long contract duration
Tags
irradiation-apparatus-manufacturing, department-of-homeland-security, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $54.7 million to MORPHO DETECTION, LLC. PER THE SYSTEM ADMINISTRATOR'S SUGGESTION, THIS HAS BEEN DESIGNATED AS A FIRM FIXED PRICE, HOWEVER, IT IS A HYBRID LETTER CONTRACT FOR THE PURCHASE OF EDS AND ENGINEERING SERVICES FOR EDS. PRICING WILL BE FIXED PRICE AND TIME AND MATERIALS. WHICH WILL BE DETERMINED UPON DEFINITIZATION.
Who is the contractor on this award?
The obligated recipient is MORPHO DETECTION, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $54.7 million.
What is the period of performance?
Start: 2009-07-20. End: 2013-07-18.
What is the anticipated total cost once the Time and Materials portion is definitized?
The total cost is currently uncertain due to the hybrid contract structure. While a portion is Firm Fixed Price, the Time and Materials component's final cost will depend on the hours expended and labor rates agreed upon during definitization. This process is critical for establishing the final contract value and ensuring taxpayer funds are used appropriately.
What are the specific risks associated with a sole-source award for critical security equipment?
Sole-source awards for critical security equipment carry significant risks, including the potential for inflated pricing due to a lack of competitive pressure. It can also lead to vendor lock-in, reduced innovation, and a lack of transparency in cost justification. Without competition, the government may not be receiving the best value or the most advanced technological solutions available.
How will the effectiveness of the EDS and engineering services be measured under this hybrid contract?
Effectiveness measurement will likely involve a combination of performance metrics tied to the fixed-price deliverables and oversight of the time and materials expenditures. Key performance indicators (KPIs) related to system functionality, reliability, and integration will be crucial. Regular reviews and acceptance testing of engineering outputs will ensure the services meet the TSA's operational requirements.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
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: 205 LOWELL ST, WILMINGTON, MA, 01887
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,661,369
Exercised Options: $54,661,369
Current Obligation: $54,661,369
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-07-20
Current End Date: 2013-07-18
Potential End Date: 2013-07-18 00:00:00
Last Modified: 2016-01-28
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