DHS awards $32.2M contract for ETD units and services to Morpho Detection, LLC

Contract Overview

Contract Amount: $32,252,300 ($32.3M)

Contractor: Morpho Detection, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-29

End Date: 2012-01-20

Contract Duration: 478 days

Daily Burn Rate: $67.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MORPHO CONTRACT NO.: TBD PROCUREMENT OF PRODUCTION ETD UNITS, OEM INSTALLATION AND SERVICES, AND REQUIRED ANCILLARY EQUIPMENT FOR MULTIPLE PROGRAMS IN OST

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.3 million to MORPHO DETECTION, LLC for work described as: MORPHO CONTRACT NO.: TBD PROCUREMENT OF PRODUCTION ETD UNITS, OEM INSTALLATION AND SERVICES, AND REQUIRED ANCILLARY EQUIPMENT FOR MULTIPLE PROGRAMS IN OST Key points: 1. Contract awarded for production, installation, and services of Explosives Trace Detection (ETD) units. 2. Procurement supports multiple programs within the Department of Homeland Security (DHS). 3. Full and open competition was utilized for this award. 4. The contract has a firm fixed price type, indicating predictable costs. 5. The contract duration is approximately 478 days. 6. The award value represents a significant investment in security screening technology.

Value Assessment

Rating: good

The contract value of $32.2 million for ETD units and services appears reasonable given the scope of providing OEM installation and ancillary equipment for multiple programs. Benchmarking against similar procurements for advanced detection systems would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the government has secured predictable costs for the defined deliverables, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specialized equipment. While not a large number of bidders, the open competition process generally promotes price discovery and encourages competitive pricing from the participating firms.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it allows for a broader range of potential suppliers to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome.

Public Impact

Passengers and cargo screened at airports and other transportation hubs will benefit from enhanced security. The Transportation Security Administration (TSA) will receive advanced ETD units to improve threat detection capabilities. The services include installation and ongoing support, ensuring operational readiness of the equipment. The contract supports the broader mission of DHS to secure the nation's transportation systems. The procurement may indirectly impact the aviation and logistics industries by facilitating smoother and more secure transit.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on specialized detection and navigation instruments. The market for Explosives Trace Detection (ETD) systems is driven by stringent security requirements in transportation and critical infrastructure. Spending in this area is often characterized by long-term contracts and significant R&D investment due to the evolving nature of threats. Comparable spending benchmarks would typically be found within TSA's overall procurement of security equipment and technology.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Morpho Detection, LLC, may engage small businesses for subcontracting opportunities as part of their overall supply chain management, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security, specifically the Transportation Security Administration (TSA), which is the end-user agency. The contract's firm fixed-price nature simplifies financial oversight by providing cost certainty. Accountability measures would be tied to the delivery of specified ETD units, OEM installation, and ancillary services according to the contract's performance standards. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Risk Flags

Tags

transportation-security, homeland-security, explosives-detection, tsa, dhs, firm-fixed-price, full-and-open-competition, detection-instruments, oem-installation, massachusetts, morpho-detection

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.3 million to MORPHO DETECTION, LLC. MORPHO CONTRACT NO.: TBD PROCUREMENT OF PRODUCTION ETD UNITS, OEM INSTALLATION AND SERVICES, AND REQUIRED ANCILLARY EQUIPMENT FOR MULTIPLE PROGRAMS IN OST

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 $32.3 million.

What is the period of performance?

Start: 2010-09-29. End: 2012-01-20.

What is the track record of Morpho Detection, LLC in providing ETD systems to government agencies?

Morpho Detection, LLC, now part of Smiths Detection, has a significant history of supplying advanced threat detection technologies, including ETD systems, to various government agencies, particularly within the homeland security and defense sectors. Their products are designed to detect trace amounts of explosives and narcotics. The company has been involved in numerous procurements for airport security, border control, and military applications. Past performance data, often available through government contract databases and performance assessment reports, would detail their success in meeting delivery schedules, technical specifications, and operational requirements for similar systems. This specific contract's award suggests a positive assessment of their capabilities by the TSA.

How does the $32.2 million award compare to historical spending on ETD systems by the TSA?

The $32.2 million award for production, installation, and services of ETD units represents a substantial investment. To contextualize this, historical spending data from the TSA on similar ETD procurements would be necessary. The TSA has consistently invested in advanced screening technologies to maintain security standards. The frequency and value of such contracts can fluctuate based on technology refresh cycles, evolving threat landscapes, and budget allocations. Without direct comparative data on previous ETD procurements of similar scope and quantity, it's challenging to definitively state if this award is higher or lower than historical averages. However, the consistent need for such technology suggests ongoing budgetary commitment.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential performance issues with the ETD units, such as lower-than-expected detection rates or increased false alarm rates, which could impact operational efficiency and security. There's also a risk of delays in the OEM installation and provision of ancillary equipment, potentially disrupting security operations. Given that Morpho Detection, LLC is the supplier, there's a dependency risk; if the company faces financial instability or supply chain disruptions, it could impact the availability of critical security technology. Furthermore, the long-term maintenance and upgrade costs for specialized equipment could exceed initial projections if not carefully managed.

How effective are ETD units in enhancing overall transportation security?

Explosives Trace Detection (ETD) units are a critical component of layered security strategies in transportation. They are designed to detect microscopic residues of explosives on surfaces, such as luggage, cargo, or individuals. Their effectiveness lies in their ability to provide rapid screening and identify potential threats that might be missed by other methods. ETD units complement other security measures like X-ray screening and physical searches. While not foolproof, they significantly enhance the overall security posture by providing an additional layer of detection and deterrence against explosive threats. Their widespread deployment by agencies like the TSA underscores their perceived effectiveness in mitigating risks.

What is the typical lifespan and upgrade cycle for ETD systems procured by the TSA?

The typical lifespan and upgrade cycle for ETD systems procured by the TSA can vary depending on the specific technology and manufacturer. Generally, advanced electronic systems like ETD units have an operational lifespan of 5 to 10 years, after which they may require significant upgrades or replacement to maintain optimal performance and address evolving threats. The TSA often engages in technology refresh cycles, influenced by advancements in detection capabilities, changes in security mandates, and the availability of more efficient or cost-effective solutions. Contracts like this one, with a duration of around 1.5 years for delivery and installation, often precede or are part of a larger strategy for maintaining a modern fleet of security equipment.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, 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: 2

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, 06

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: $32,252,300

Exercised Options: $32,252,300

Current Obligation: $32,252,300

Parent Contract

Parent Award PIID: HSTS0409DCT2040

IDV Type: IDC

Timeline

Start Date: 2010-09-29

Current End Date: 2012-01-20

Potential End Date: 2012-01-20 00:00:00

Last Modified: 2014-02-25

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