DHS awards $38.4M for 32 explosive detection systems to Smiths Detection, Inc

Contract Overview

Contract Amount: $38,377,500 ($38.4M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2011-09-22

End Date: 2012-08-31

Contract Duration: 344 days

Daily Burn Rate: $111.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: DELIVERY ORDER HSTS04-11-J-CT1208 (DO 10) TO THE MORPHO DETECTION, INC EDS PRODUCTION CONTRACT NUMBER HSTS04-11-D-CT1165 IS TO ACQUIRE THIRTY-TWO (32) CLIN 0003BC CTX-9800 EXPLOSIVE DETECTION SYSTEMS (EDS).

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.4 million to SMITHS DETECTION, INC for work described as: DELIVERY ORDER HSTS04-11-J-CT1208 (DO 10) TO THE MORPHO DETECTION, INC EDS PRODUCTION CONTRACT NUMBER HSTS04-11-D-CT1165 IS TO ACQUIRE THIRTY-TWO (32) CLIN 0003BC CTX-9800 EXPLOSIVE DETECTION SYSTEMS (EDS). Key points: 1. This award represents a significant investment in transportation security infrastructure. 2. The sole-source nature of this award warrants scrutiny regarding price justification. 3. Potential risks include vendor lock-in and limited opportunities for competitive pricing. 4. The sector is critical for national security and public safety.

Value Assessment

Rating: questionable

The contract value of $38.4 million for 32 units suggests a per-unit cost of approximately $1.2 million. Without specific feature comparisons or market data, it's difficult to definitively assess pricing, but this appears to be a high cost for detection systems.

Cost Per Unit: $1,200,000

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition for this significant award raises concerns about whether the government obtained the best possible value for taxpayer funds.

Public Impact

Enhanced airport and transportation hub security through advanced explosive detection. Potential for increased passenger screening efficiency and reduced wait times. Ensures compliance with federal security mandates for critical infrastructure. Supports the government's ongoing efforts to counter terrorist threats.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
High per-unit cost requires strong justification.
Potential for vendor lock-in with specialized equipment.

Positive Signals

Addresses critical national security needs.
Acquisition of advanced detection technology.
Supports transportation security infrastructure.

Sector Analysis

The Transportation Security Administration (TSA) operates within the broader federal spending sector focused on national security and infrastructure. Spending in this area is often driven by threat assessments and regulatory requirements, with a focus on acquiring advanced technology for screening and surveillance.

Small Business Impact

This award was made directly to Smiths Detection, Inc. and does not indicate any subcontracting opportunities for small businesses. The nature of specialized security equipment procurement often involves large, established manufacturers.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight from the Department of Homeland Security to ensure the necessity of the purchase and the fairness of the price, even without competition.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Lack of competition may lead to inflated pricing.
Potential for vendor lock-in and limited future sourcing options.
High per-unit cost requires strong justification and oversight.
Limited transparency into the procurement decision-making process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.4 million to SMITHS DETECTION, INC. DELIVERY ORDER HSTS04-11-J-CT1208 (DO 10) TO THE MORPHO DETECTION, INC EDS PRODUCTION CONTRACT NUMBER HSTS04-11-D-CT1165 IS TO ACQUIRE THIRTY-TWO (32) CLIN 0003BC CTX-9800 EXPLOSIVE DETECTION SYSTEMS (EDS).

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 $38.4 million.

What is the period of performance?

Start: 2011-09-22. End: 2012-08-31.

What specific technological advancements or unique capabilities justify the sole-source procurement and the high per-unit cost of these explosive detection systems?

The justification for a sole-source award and the associated cost would typically hinge on proprietary technology, unique performance characteristics, or essential integration with existing systems that only the awarded vendor can provide. Without detailed documentation, it's presumed that Smiths Detection, Inc. possesses exclusive capabilities critical for the TSA's mission, necessitating this procurement approach despite the lack of competition and the significant financial outlay.

What measures are in place to ensure the long-term cost-effectiveness and value for money, given the absence of competitive bidding for this acquisition?

To ensure long-term cost-effectiveness, the government likely relies on contract clauses for maintenance, support, and potential future upgrades. Robust performance metrics and service level agreements are crucial. Periodic market research and reviews of alternative technologies, even post-award, can inform future procurement strategies and negotiations, mitigating the risks associated with a non-competed contract.

How does the acquisition of these specific explosive detection systems align with the TSA's broader strategy for evolving security threats and technological modernization?

The acquisition of these 32 CTX-9800 EDS units suggests a strategic decision by the TSA to enhance its current screening capabilities with proven technology. This aligns with a strategy of maintaining a baseline of effective threat detection while potentially integrating these systems into a larger network. The specific model indicates a focus on reliable, established technology for critical security checkpoints.

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: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Safran Power USA LLC (UEI: 275374015)

Address: 7151 GATEWAY BLVD, NEWARK, CA, 94560

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $38,377,500

Exercised Options: $38,377,500

Current Obligation: $38,377,500

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0411DCT1165

IDV Type: IDC

Timeline