DHS awards $23M for CT scanner maintenance, with a significant portion allocated to a single vendor

Contract Overview

Contract Amount: $23,075,017 ($23.1M)

Contractor: Reveal Imaging Technologies, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2009-09-23

End Date: 2011-03-31

Contract Duration: 554 days

Daily Burn Rate: $41.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REVEAL IMAGING HSTS04-05-D-DEP029 PREVENTIVE AND CORRECTIVE MAINTENANCE FOR CT80, CT80 XL AND CT80 DR DEPLOYED UNITS

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.1 million to REVEAL IMAGING TECHNOLOGIES, INC. for work described as: REVEAL IMAGING HSTS04-05-D-DEP029 PREVENTIVE AND CORRECTIVE MAINTENANCE FOR CT80, CT80 XL AND CT80 DR DEPLOYED UNITS Key points: 1. The contract value of $23.1 million over approximately 1.8 years suggests a substantial investment in maintaining critical imaging equipment. 2. The firm-fixed-price contract type indicates that the government has a clear understanding of the costs involved, transferring some risk to the contractor. 3. The award to Reveal Imaging Technologies, Inc. warrants scrutiny regarding potential vendor lock-in and the availability of competitive alternatives. 4. The duration of the contract (554 days) is relatively short, which may limit long-term cost savings or strategic planning. 5. The absence of small business set-asides suggests this contract was not specifically targeted to encourage small business participation. 6. The contract's focus on preventive and corrective maintenance highlights the ongoing operational needs for deployed imaging units.

Value Assessment

Rating: fair

The total contract value of $23,075,016.91 for preventive and corrective maintenance of CT scanners over roughly 1.8 years appears to be a significant expenditure. Benchmarking this against similar maintenance contracts for specialized medical or security imaging equipment would be necessary to determine true value for money. The firm-fixed-price nature provides cost certainty but may not capture the most competitive pricing if alternatives exist. Without more detailed cost breakdowns or comparisons to market rates for similar services, assessing the pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data does not specify the number of bids received. A high level of competition typically drives down prices and encourages innovation. The fact that it was fully competed is a positive sign for price discovery, but the ultimate price achieved will depend on the number and quality of the competing offers.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it promotes a more competitive bidding environment, potentially leading to lower prices and better service quality.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its Transportation Security Administration (TSA), ensuring the operational readiness of critical CT scanning equipment. The services delivered include essential preventive maintenance to avoid breakdowns and corrective maintenance to quickly resolve issues with CT80, CT80 XL, and CT80 DR units. The geographic impact is likely nationwide, covering all locations where these specific CT scanner models are deployed by the TSA. Workforce implications may include the need for trained technicians to perform the maintenance, potentially supporting jobs within the imaging equipment service industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Reveal Imaging Technologies holds proprietary knowledge or exclusive service rights for these specific CT models.
Risk of price increases in future contract renewals if competition diminishes or if the initial pricing was not aggressively benchmarked.
Dependence on a single contractor for critical maintenance could lead to service disruptions if the contractor faces financial or operational difficulties.

Positive Signals

Awarded through full and open competition, suggesting a competitive process was utilized.
Firm-fixed-price contract type provides budget certainty for the government.
Focus on preventive maintenance can reduce costly emergency repairs and downtime.

Sector Analysis

This contract falls within the manufacturing and maintenance services sector, specifically for specialized industrial machinery. The market for maintaining advanced imaging equipment like CT scanners is often characterized by a mix of original equipment manufacturers (OEMs) and third-party service providers. The size of this specific niche market is difficult to determine without more context on the total deployed base of these CT units. Comparable spending benchmarks would involve looking at other government contracts for maintenance of similar high-value diagnostic or security screening equipment.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates the contractor, Reveal Imaging Technologies, Inc., is not a small business (implied by the large contract value and nature of the work). There is no explicit information on subcontracting plans for small businesses. This suggests that opportunities for small businesses to participate in this specific contract may be limited, potentially missing an avenue to foster small business growth within this specialized maintenance sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The firm-fixed-price nature simplifies some aspects of financial oversight. Accountability measures would be tied to performance metrics outlined in the contract's statement of work. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Homeland Security Equipment Maintenance Contracts
Transportation Security Administration Equipment Procurement
Medical and Industrial Imaging Equipment Services
Federal Government Maintenance and Repair Services

Risk Flags

Potential vendor lock-in
Limited competition dynamics
Dependence on single supplier for critical maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.1 million to REVEAL IMAGING TECHNOLOGIES, INC.. REVEAL IMAGING HSTS04-05-D-DEP029 PREVENTIVE AND CORRECTIVE MAINTENANCE FOR CT80, CT80 XL AND CT80 DR DEPLOYED UNITS

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 $23.1 million.

What is the period of performance?

Start: 2009-09-23. End: 2011-03-31.

What is the track record of Reveal Imaging Technologies, Inc. with federal contracts, particularly in providing maintenance for imaging equipment?

Reveal Imaging Technologies, Inc. has been awarded federal contracts, including this significant one from the Department of Homeland Security (DHS) for CT scanner maintenance. A deeper analysis would involve examining their contract history across various agencies, including the value, duration, and performance ratings of past contracts. Understanding their experience with similar imaging systems (CT80, CT80 XL, CT80 DR) and their success in meeting delivery schedules and technical requirements is crucial. Reviewing any past performance issues, contract disputes, or terminations would provide a more comprehensive picture of their reliability as a federal contractor in this specialized field.

How does the awarded price of $23.1 million compare to industry benchmarks for similar CT scanner maintenance services?

Benchmarking the $23.1 million contract value requires comparing it against industry standards for preventive and corrective maintenance of CT scanners, specifically models CT80, CT80 XL, and CT80 DR. This comparison should consider factors such as the number of units under contract, the scope of services (preventive vs. corrective, response times), and the geographic distribution of the units. Without access to proprietary pricing data or a broader market survey of similar government or commercial contracts, it is difficult to definitively state whether this price represents excellent, fair, or questionable value. However, the firm-fixed-price structure suggests an attempt to control costs.

What are the potential risks associated with relying on a single vendor, Reveal Imaging Technologies, Inc., for the maintenance of these critical imaging systems?

Relying on a single vendor like Reveal Imaging Technologies, Inc. for critical CT scanner maintenance introduces several risks. Firstly, there's the risk of vendor lock-in, where the government becomes dependent on this specific provider, potentially limiting future negotiation power and increasing costs over time. Secondly, service quality or response times could degrade if the vendor faces internal challenges or lacks sufficient competitive pressure. Thirdly, if the vendor experiences financial instability or goes out of business, it could lead to significant operational disruptions for the TSA, requiring an emergency procurement of services. Finally, the lack of alternative providers could hinder the adoption of newer technologies or more efficient maintenance practices.

What is the historical spending pattern for CT scanner maintenance within the TSA or DHS, and how does this contract fit into that trend?

Analyzing historical spending patterns for CT scanner maintenance within the TSA or DHS is essential to contextualize this $23.1 million award. This would involve examining previous contracts for similar equipment maintenance, noting the total amounts spent annually or over multi-year periods, the vendors involved, and the contract types. Understanding whether spending has been increasing, decreasing, or remaining stable provides insight into the agency's long-term strategy and budget allocation for equipment upkeep. This current contract's value and duration should be compared to these historical figures to determine if it represents a typical expenditure, a significant increase, or a decrease in investment in this area.

Given the 'full and open competition' award, how many bids were actually received, and what does this imply about the market for CT scanner maintenance services?

While the contract was awarded under 'full and open competition,' the number of bids received is a critical piece of information not provided in the summary data. If a large number of bids were submitted (e.g., five or more), it strongly suggests a healthy and competitive market for CT scanner maintenance services, likely resulting in a favorable price for the government. Conversely, if only one or two bids were received, it could indicate a more concentrated market, potential barriers to entry for other firms, or a lack of interest from qualified vendors, which might raise concerns about long-term competition and pricing.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $23,075,017

Exercised Options: $23,075,017

Current Obligation: $23,075,017

Parent Contract

Parent Award PIID: HSTS0405DDEP029

IDV Type: IDC

Timeline