DHS awards $25.6M contract for CT scanner upgrades, replacing a cancelled prior action
Contract Overview
Contract Amount: $25,635,250 ($25.6M)
Contractor: Reveal Imaging Technologies, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2011-09-22
End Date: 2014-12-31
Contract Duration: 1,196 days
Daily Burn Rate: $21.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REVEAL IMAGING TECHNOLOGIES HSTS04-05-D-DEP029 EDS UPGRADE 212 CT80 UNITS TO CT80DR, DECOMMISSION AND RIGGING OVERSIGHT, DISPOSAL OF EXCESS PARTS AS WELL AS REPLACEMENT OF NECESSARY PARTS TO COMPLETE RETROFIT UPGRADES. THIS PR REPLACES CT1283, WHICH HAS BEEN CANCELLED. AIRPORT: MULTIPLE
Place of Performance
Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Homeland Security obligated $25.6 million to REVEAL IMAGING TECHNOLOGIES, INC. for work described as: REVEAL IMAGING TECHNOLOGIES HSTS04-05-D-DEP029 EDS UPGRADE 212 CT80 UNITS TO CT80DR, DECOMMISSION AND RIGGING OVERSIGHT, DISPOSAL OF EXCESS PARTS AS WELL AS REPLACEMENT OF NECESSARY PARTS TO COMPLETE RETROFIT UPGRADES. THIS PR REPLACES CT1283, WHICH HAS BEEN CANCELLED. AIRPO… Key points: 1. Value for money assessed through fixed-price contract, though specific cost savings from upgrades are not detailed. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Risk indicators include the replacement of a cancelled contract, suggesting potential planning or execution challenges. 4. Performance context involves upgrading existing imaging equipment to enhance security screening capabilities. 5. Sector positioning within miscellaneous manufacturing, specifically related to specialized equipment upgrades.
Value Assessment
Rating: fair
The contract value of $25.6 million for upgrading 212 CT scanner units appears substantial. Benchmarking against similar large-scale equipment modernization projects would be necessary for a precise value-for-money assessment. The firm-fixed-price structure provides cost certainty for the government, but the absence of detailed cost breakdowns or comparisons to market rates for such upgrades makes a definitive value judgment difficult. The replacement of a cancelled contract (CT1283) also introduces a layer of uncertainty regarding the initial cost estimates and project scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment. The open competition suggests that the Transportation Security Administration (TSA) sought the best available pricing and technical solutions from the market, which should theoretically lead to more favorable terms for the government compared to less competitive procurement methods.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, driving down costs and increasing the likelihood of securing a good deal.
Public Impact
The primary beneficiaries are the Transportation Security Administration (TSA) and the traveling public, through enhanced airport security screening capabilities. The contract delivers upgraded CT scanner units (CT80DR) and associated services, including decommissioning, rigging oversight, and parts disposal/replacement. The geographic impact is widespread, as the contract specifies 'multiple' airports, implying a national scope for the security upgrades. Workforce implications may include specialized technicians for installation, decommissioning, and maintenance of the new imaging equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Replacement of a cancelled contract (CT1283) raises questions about initial planning and execution.
- Lack of detailed cost breakdowns or market comparisons makes independent value assessment challenging.
- The scope includes decommissioning and disposal, which can introduce logistical and environmental considerations.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a robust bidding process.
- Upgrading to newer technology (CT80DR) likely improves security screening effectiveness.
Sector Analysis
This contract falls within the miscellaneous manufacturing sector, specifically focusing on the upgrade and maintenance of specialized security screening equipment. The market for airport security technology is driven by evolving threats, regulatory requirements, and technological advancements. Spending in this area is significant globally, with governments investing heavily in advanced imaging and detection systems to ensure passenger safety. Comparable spending benchmarks would typically involve large-scale procurements of similar security equipment by other federal agencies or international airport authorities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, the prime contractor, Reveal Imaging Technologies, Inc., may engage small businesses as subcontractors for specialized services or parts, depending on their subcontracting plans and the nature of the work required. The overall impact on the small business ecosystem would depend on the extent of any subcontracting opportunities created.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and its Transportation Security Administration (TSA). As a firm-fixed-price contract, oversight would focus on ensuring deliverables meet specifications, adherence to the schedule, and proper completion of all contractual obligations, including decommissioning and disposal. Transparency is facilitated through contract award databases, but detailed performance metrics and specific oversight reports are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Airport Security Equipment Procurement
- Transportation Security Administration Technology Upgrades
- Federal Imaging Technology Contracts
- Homeland Security Equipment Modernization
Risk Flags
- Contract Replacement
- Logistical Complexity
- Technical Integration Risk
- Scope Definition Uncertainty
Tags
dhs, tsa, transportation-security, imaging-equipment, ct-scanner, upgrade, firm-fixed-price, full-and-open-competition, miscellaneous-manufacturing, airport-security, national-scope, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $25.6 million to REVEAL IMAGING TECHNOLOGIES, INC.. REVEAL IMAGING TECHNOLOGIES HSTS04-05-D-DEP029 EDS UPGRADE 212 CT80 UNITS TO CT80DR, DECOMMISSION AND RIGGING OVERSIGHT, DISPOSAL OF EXCESS PARTS AS WELL AS REPLACEMENT OF NECESSARY PARTS TO COMPLETE RETROFIT UPGRADES. THIS PR REPLACES CT1283, WHICH HAS BEEN CANCELLED. AIRPORT: MULTIPLE
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 $25.6 million.
What is the period of performance?
Start: 2011-09-22. End: 2014-12-31.
What is the track record of Reveal Imaging Technologies, Inc. with federal contracts, particularly with the TSA?
Reveal Imaging Technologies, Inc. has a history of federal contracting, primarily with agencies like the Department of Homeland Security (DHS) and the Department of Defense. Their contract portfolio often includes maintenance, repair, and upgrade services for imaging and diagnostic equipment. For the TSA specifically, prior contracts may have involved similar equipment or services. Analyzing their past performance on similar contracts, including on-time delivery, adherence to budget, and quality of work, would provide insight into their reliability for this significant upgrade project. A review of contract performance reports (CPARS) or any documented disputes or terminations would be crucial for a comprehensive assessment of their track record.
How does the cost of this upgrade compare to similar federal procurements for CT scanner modernization?
Directly comparing the $25.6 million cost for 212 CT scanner upgrades without detailed cost breakdowns or specific unit costs is challenging. However, the average cost per unit for this upgrade is approximately $120,920 ($25,635,250 / 212 units). Federal procurement data for similar large-scale equipment modernization projects, especially those involving specialized medical or security imaging technology, would be needed for a robust benchmark. Factors influencing cost include the specific model being upgraded (CT80 to CT80DR), the complexity of the retrofit, the scope of decommissioning and disposal services, and the competitive landscape at the time of award. If comparable contracts show significantly lower or higher per-unit costs for similar work, it would indicate whether this contract represents a strong or weak value.
What are the primary risks associated with upgrading 212 CT scanner units across multiple airports?
The primary risks associated with this contract are multifaceted. Firstly, the logistical complexity of coordinating upgrades across numerous airports nationwide presents significant scheduling and operational challenges. Delays at one location could cascade. Secondly, the technical risk involves ensuring seamless integration of the new CT80DR components with existing airport infrastructure and security systems, minimizing downtime. Thirdly, the replacement of a cancelled contract (CT1283) suggests potential risks related to scope definition, vendor capability assessment, or unforeseen technical hurdles in the initial planning phase. Finally, ensuring the secure and environmentally compliant decommissioning and disposal of old equipment and parts adds another layer of risk management.
What is the expected improvement in security screening effectiveness resulting from these CT80DR upgrades?
The upgrade from CT80 to CT80DR units is expected to enhance security screening effectiveness by leveraging newer imaging technology. While specific technical specifications of the CT80DR are not detailed here, upgrades typically aim to improve image resolution, processing speed, and the ability to detect a wider range of threats, including explosives and prohibited items. This could lead to more accurate threat identification, potentially reducing false positives and improving throughput at security checkpoints. The enhanced capabilities of the CT80DR are designed to meet evolving security standards and counter emerging threats more effectively than the older CT80 models.
How has federal spending on airport security technology evolved, and where does this contract fit in?
Federal spending on airport security technology has steadily increased over the past two decades, driven by post-9/11 security mandates, technological advancements, and evolving threat landscapes. This contract, valued at $25.6 million for CT scanner upgrades by the TSA, represents a significant investment in maintaining and modernizing critical screening infrastructure. It fits within the broader category of federal spending on transportation security and homeland defense equipment. This specific procurement reflects a focus on upgrading existing assets rather than acquiring entirely new systems, suggesting a strategy of lifecycle management and technological refresh to ensure continued effectiveness and compliance with current security standards.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 201 BURLINGTON RD, BEDFORD, MA, 01730
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,635,250
Exercised Options: $25,635,250
Current Obligation: $25,635,250
Parent Contract
Parent Award PIID: HSTS0405DDEP029
IDV Type: IDC
Timeline
Start Date: 2011-09-22
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2015-09-21
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