DHS spent over $25M on advanced imaging technology for airports, raising value and competition questions

Contract Overview

Contract Amount: $25,220,722 ($25.2M)

Contractor: Rapiscan Government Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2009-09-28

End Date: 2014-09-26

Contract Duration: 1,824 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::70 0556::TAS PURCHASE OF ADVANCED IMAGING TECHNOLOGY (AIT) SYSTEMS TO BE USED IN OUR NATION'S AIRPORTS.

Place of Performance

Location: OCEAN SPRINGS, JACKSON County, MISSISSIPPI, 39564, UNITED STATES OF AMERICA

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.2 million to RAPISCAN GOVERNMENT SERVICES INC for work described as: TAS::70 0556::TAS PURCHASE OF ADVANCED IMAGING TECHNOLOGY (AIT) SYSTEMS TO BE USED IN OUR NATION'S AIRPORTS. Key points: 1. The contract's value appears high relative to the number of units procured, suggesting potential for cost efficiencies. 2. Limited competition dynamics may have influenced pricing outcomes. 3. The contract's duration and fixed-price nature present moderate performance risks. 4. Spending on advanced imaging technology is a critical component of airport security infrastructure. 5. This contract falls within the broader category of security and surveillance systems manufacturing.

Value Assessment

Rating: fair

The total contract value of over $25 million for 1382 units of advanced imaging technology equates to approximately $1,827 per unit. Benchmarking this against similar procurements for security screening equipment is challenging without more specific technical details. However, the per-unit cost seems substantial, warranting a closer look at the technology's capabilities and the pricing structure to ensure value for money.

Cost Per Unit: $1,827 per unit

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the data indicates only one award was made, suggesting that while the competition was open, the number of actual bidders or the specific nature of the bids may have led to a single successful offer. Further investigation into the bidding process would clarify the extent of competitive pressure.

Taxpayer Impact: Full and open competition theoretically benefits taxpayers by encouraging multiple vendors to offer competitive pricing. However, if only one bid was viable or submitted, the potential cost savings from competition may not have been fully realized.

Public Impact

Passengers and airport personnel benefit from enhanced security screening capabilities. The technology is deployed at airports nationwide, contributing to a standardized security posture. The contract supports the manufacturing sector for specialized security equipment. Increased security efficiency can lead to smoother passenger flow and reduced wait times.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpricing given the substantial per-unit cost.
Limited insight into the actual number of competing bids despite 'full and open' designation.
Long contract duration could lead to technology obsolescence or scope creep.

Positive Signals

Awarded through full and open competition, suggesting an attempt to maximize vendor participation.
Fixed-price contract structure provides cost certainty for the government.
Procurement of advanced imaging technology directly addresses critical national security needs.

Sector Analysis

The procurement of advanced imaging technology systems falls within the broader Information Technology and Defense/Security sectors, specifically related to manufacturing of search, detection, and navigation systems. The market for airport security technology is driven by regulatory requirements and the need for continuous improvement in threat detection. Spending in this area is significant globally, with governments investing heavily in upgrading screening capabilities to counter evolving security threats.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business set-aside' field is false. There is no explicit information on subcontracting goals for small businesses. This suggests that the primary awardee, Rapiscan Government Services Inc., likely handled the majority of the work, potentially limiting opportunities for small businesses within the supply chain for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal audit and program management functions, with potential involvement from the Government Accountability Office (GAO) for bid protests or performance reviews. Transparency is generally maintained through contract award databases, but detailed performance metrics and spending breakdowns may be less accessible to the public. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Airport Security Equipment Procurement
Homeland Security Technology Contracts
Advanced Screening Systems
Transportation Security Administration (TSA) Contracts

Risk Flags

Potential for limited competition despite 'full and open' status.
Substantial per-unit cost warrants further value analysis.
Contract duration may lead to technology obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.2 million to RAPISCAN GOVERNMENT SERVICES INC. TAS::70 0556::TAS PURCHASE OF ADVANCED IMAGING TECHNOLOGY (AIT) SYSTEMS TO BE USED IN OUR NATION'S AIRPORTS.

Who is the contractor on this award?

The obligated recipient is RAPISCAN GOVERNMENT SERVICES 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 $25.2 million.

What is the period of performance?

Start: 2009-09-28. End: 2014-09-26.

What specific type of advanced imaging technology was procured, and what are its key capabilities compared to previous systems?

The contract specifies 'Advanced Imaging Technology (AIT) Systems'. While the exact model or technical specifications are not detailed in the provided data, AIT systems commonly refer to technologies like millimeter wave scanners or backscatter X-ray machines used for full-body security screening at airports. These systems are designed to detect non-metallic threats, explosives, and other prohibited items that may be concealed on a person. Compared to older metal detectors, AIT offers significantly enhanced threat detection capabilities, allowing for the identification of a wider range of materials and concealment methods, thereby improving overall aviation security effectiveness.

How does the per-unit cost of $1,827 compare to industry benchmarks for similar advanced imaging systems?

The per-unit cost of approximately $1,827 for the AIT systems is a significant figure. Without specific model numbers or detailed technical specifications, a precise industry benchmark is difficult to establish. However, reports and industry analyses suggest that advanced full-body scanners can range widely in price, from several tens of thousands to over $100,000 per unit, depending on features, manufacturer, and integration requirements. The provided per-unit cost appears to be on the lower end if it refers to the entire system cost, or potentially higher if it represents a component or a less sophisticated model. Further context on the system's capabilities and the total number of units procured relative to the contract value is needed for a definitive value assessment.

Given the 'full and open competition' designation, why was there only one award made?

The designation 'full and open competition' indicates that the government solicited offers from all qualified sources and did not restrict the competition. However, the fact that only one award was made suggests that either only one offer was received, or only one offer was deemed acceptable and responsible after evaluation. This could be due to several factors, including the highly specialized nature of the technology, stringent technical requirements that only one vendor could meet, or potentially a lack of sufficient market interest or vendor capacity for this specific requirement at the time of solicitation. It raises questions about whether the solicitation effectively encouraged a robust competitive environment.

What is the track record of Rapiscan Government Services Inc. in providing advanced security technology to government agencies?

Rapiscan Government Services Inc. is a known provider of security screening solutions, including advanced imaging technology. They have a history of supplying equipment to various government agencies, including those involved in aviation security and border protection. Their experience in this domain suggests a level of expertise and established product lines relevant to the contract's requirements. However, a comprehensive assessment of their track record would involve examining past performance reviews, any documented issues with previous contracts, and their overall market position within the security technology sector.

What were the primary performance metrics or objectives for this contract, and how was success measured?

While the provided data does not detail specific performance metrics, contracts for advanced imaging technology typically focus on key objectives such as detection rates for specific threats (e.g., explosives, weapons), throughput speed (passengers per hour), system reliability and uptime, and user-friendliness for operators. Success would likely be measured through a combination of government acceptance testing, ongoing operational performance monitoring, and potentially user feedback. The fixed-price nature of the contract implies that the contractor is incentivized to meet these performance standards within the agreed-upon budget.

How has federal spending on airport security technology evolved since this contract was awarded in 2009?

Federal spending on airport security technology has generally trended upwards since 2009, driven by evolving threat landscapes, technological advancements, and regulatory mandates. Following the initial deployment of AIT systems, there has been continuous investment in upgrading and expanding these capabilities. Agencies like the TSA have consistently sought funding for next-generation screening technologies, including improvements in speed, detection accuracy, and passenger experience. This contract represents an early phase of significant investment in AIT, and subsequent procurements have likely focused on newer iterations, enhanced software, and broader deployment across the airport network.

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

Address: 2900 CRYSTAL DR, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $164,339,920

Exercised Options: $25,220,722

Current Obligation: $25,220,722

Parent Contract

Parent Award PIID: HSTS0409DCT2077

IDV Type: IDC

Timeline