DHS awards $43.4M contract to Smiths Detection for search and detection systems

Contract Overview

Contract Amount: $43,404,484 ($43.4M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-15

End Date: 2013-06-30

Contract Duration: 1,019 days

Daily Burn Rate: $42.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: (AT) SMITHS DETECTION CONTRACT NO.: TBD THE PURPOSE OF THIS PR IS TO PURCHASE AT 2 FIRST ARTICLE UNIT AND SUBSEQUENT PRODUCTION UNITS UNDER NEW CONTRACT NOTE: THIS NEW REQUEST REPLACED 2110200REC215 THAT WAS CANCELLED

Place of Performance

Location: MORRISTOWN, MORRIS County, NEW JERSEY, 07960, UNITED STATES OF AMERICA

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.4 million to SMITHS DETECTION INC. for work described as: (AT) SMITHS DETECTION CONTRACT NO.: TBD THE PURPOSE OF THIS PR IS TO PURCHASE AT 2 FIRST ARTICLE UNIT AND SUBSEQUENT PRODUCTION UNITS UNDER NEW CONTRACT NOTE: THIS NEW REQUEST REPLACED 2110200REC215 THAT WAS CANCELLED Key points: 1. Contract awarded to Smiths Detection Inc. for search, detection, navigation, guidance, and related systems. 2. The contract has a duration of 1019 days, spanning from September 15, 2010, to June 30, 2013. 3. This procurement replaced a previously cancelled request, indicating a potential need for the systems. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The contract value of $43.4M for a period of approximately 3 years appears reasonable for specialized detection equipment. However, without specific unit details or performance metrics, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.

Public Impact

Enhanced security screening capabilities at transportation hubs. Potential for improved detection of threats, contributing to public safety. Supports the operational needs of the Transportation Security Administration (TSA). Investment in advanced technology for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics for the detection systems.
Potential for obsolescence of technology over the contract period.
Dependence on a single contractor for critical security equipment.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type limits cost overruns.
Supports TSA's mission to ensure transportation security.

Sector Analysis

This contract falls within the manufacturing sector for search, detection, navigation, guidance, and related systems. Spending in this area is driven by national security and public safety requirements, often involving specialized and high-cost equipment.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The prime contractor is Smiths Detection Inc., a large corporation.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security, specifically the Transportation Security Administration. Oversight would typically involve contract management and performance monitoring to ensure delivery and effectiveness of the systems.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Lack of detailed technical specifications.
Unclear reason for prior contract cancellation.
Limited information on performance metrics.
Potential for technology obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.4 million to SMITHS DETECTION INC.. (AT) SMITHS DETECTION CONTRACT NO.: TBD THE PURPOSE OF THIS PR IS TO PURCHASE AT 2 FIRST ARTICLE UNIT AND SUBSEQUENT PRODUCTION UNITS UNDER NEW CONTRACT NOTE: THIS NEW REQUEST REPLACED 2110200REC215 THAT WAS CANCELLED

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 $43.4 million.

What is the period of performance?

Start: 2010-09-15. End: 2013-06-30.

What is the specific type and capability of the search and detection equipment being procured under this contract?

The contract number TBD and description indicate the purchase of first article and production units for search, detection, navigation, guidance, aeronautical, and nautical systems. While the NAICS code 334511 covers these instruments, specific details on the technology, its detection capabilities (e.g., explosives, chemical agents, biological threats), and intended use cases are not provided in the summary data.

What was the reason for the cancellation of the previous contract (2110200REC215) and how does this impact the current procurement's risk?

The provided data does not specify the reason for the cancellation of the prior contract. This lack of information introduces a risk, as the cancellation could stem from issues related to the contractor, the technology, or changing requirements. Understanding the cause would better inform the assessment of risks associated with the current procurement, such as potential delays or performance issues.

How does the $43.4M contract value compare to industry benchmarks for similar detection systems, considering the contract duration?

Benchmarking this $43.4M contract, awarded over approximately 3 years, requires detailed comparison with similar procurements for advanced detection systems. Factors like system sophistication, quantity, and specific threat detection capabilities are crucial. Without this granular data, it's challenging to definitively assess if the price represents excellent value or is inflated. However, for specialized national security equipment, such figures are not uncommon.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Smiths Group PLC (UEI: 210273256)

Address: 2202 LAKESIDE BLVD, EDGEWOOD, MD, 21040

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: $43,404,484

Exercised Options: $43,404,484

Current Obligation: $43,404,484

Parent Contract

Parent Award PIID: HSTS0410DCT2117

IDV Type: IDC

Timeline