DHS awards $18.4M for Smiths Detection upgrade kits, replacing prior cancelled order

Contract Overview

Contract Amount: $18,410,391 ($18.4M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-09-29

End Date: 2012-12-31

Contract Duration: 459 days

Daily Burn Rate: $40.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SMITHS DETECTION INC HSTS04-10-D-CT2117 AT X-RAY THE PURPOSE OF THIS PR IS TO PURCHASE AT1 TO AT2 UPGRADE KITS NOTE: THIS NEW REQUEST REPLACED 2111201CT2028 THAT WAS CANCELLED TO CORRECT FUNDING ALLOCATIONS

Place of Performance

Location: MORRISTOWN, MORRIS County, NEW JERSEY, 07960

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.4 million to SMITHS DETECTION INC. for work described as: SMITHS DETECTION INC HSTS04-10-D-CT2117 AT X-RAY THE PURPOSE OF THIS PR IS TO PURCHASE AT1 TO AT2 UPGRADE KITS NOTE: THIS NEW REQUEST REPLACED 2111201CT2028 THAT WAS CANCELLED TO CORRECT FUNDING ALLOCATIONS Key points: 1. Contract awarded to Smiths Detection Inc. for AT1 to AT2 upgrade kits. 2. The award replaces a previously cancelled order due to funding allocation corrections. 3. This purchase falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. 4. The contract was awarded under full and open competition.

Value Assessment

Rating: fair

The contract value of $18.4 million for upgrade kits appears reasonable given the specialized nature of security equipment. Benchmarking against similar advanced detection system upgrades would provide a clearer picture of value.

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 pricing and good value for the government.

Taxpayer Impact: Taxpayers are impacted by the $18.4 million expenditure for essential security equipment upgrades.

Public Impact

Enhances security screening capabilities at transportation checkpoints. Supports the Transportation Security Administration's mission to protect the nation's transportation systems. Ensures continued operational readiness of critical security infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise during upgrade.
Dependence on a single vendor for critical upgrade components.
Risk of obsolescence if technology advances rapidly post-upgrade.

Positive Signals

Addresses a clear need for equipment modernization.
Awarded through a competitive process.
Supports national security objectives.

Sector Analysis

This contract falls within the IT and Defense sectors, specifically focusing on advanced detection and navigation systems. Spending in this area is critical for national security and infrastructure protection, with benchmarks varying widely based on technological sophistication.

Small Business Impact

The data indicates the prime contractor is Smiths Detection Inc., a large business. There is no explicit mention of small business participation in this specific award, which warrants further investigation for subcontracting opportunities.

Oversight & Accountability

The cancellation and re-issuance of the order due to funding allocation corrections suggest a need for improved internal financial management processes within the agency to prevent future administrative delays and ensure efficient spending.

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

Funding allocation correction required prior cancellation.
Potential for vendor lock-in with specialized equipment.
Technology obsolescence risk.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.4 million to SMITHS DETECTION INC.. SMITHS DETECTION INC HSTS04-10-D-CT2117 AT X-RAY THE PURPOSE OF THIS PR IS TO PURCHASE AT1 TO AT2 UPGRADE KITS NOTE: THIS NEW REQUEST REPLACED 2111201CT2028 THAT WAS CANCELLED TO CORRECT FUNDING ALLOCATIONS

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 $18.4 million.

What is the period of performance?

Start: 2011-09-29. End: 2012-12-31.

What is the specific technological advancement provided by the AT1 to AT2 upgrade kits, and how does it improve threat detection capabilities compared to the previous system?

The AT1 to AT2 upgrade kits likely incorporate newer sensor technology, improved software algorithms, and enhanced processing power to provide more accurate and faster threat detection. This could translate to better identification of a wider range of prohibited items, reduced false alarm rates, and potentially higher throughput at security checkpoints, thereby improving overall security effectiveness and passenger experience.

Given the cancellation of the previous order, what measures are in place to ensure the current contract's funding and execution proceed without similar administrative issues?

The replacement of the cancelled order indicates that the funding allocation issues have been resolved. However, robust oversight mechanisms, including regular financial reviews and milestone tracking by the contracting officer's representative, are crucial. Clear communication channels between the agency and the contractor, along with proactive risk management, should be employed to preemptively address any potential administrative or technical hurdles.

How does the cost of these upgrade kits compare to the total lifecycle cost of acquiring entirely new systems, and what is the projected return on investment in terms of enhanced security?

The cost-effectiveness of upgrade kits versus new systems depends on the extent of the upgrade and the remaining useful life of the base equipment. Upgrades are typically less expensive than full replacements. The ROI is measured by improved security outcomes, reduced operational costs (e.g., fewer manual checks), and potentially extended equipment lifespan, contributing to a more secure environment and efficient use of taxpayer funds.

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

Offers Received: 1

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: $18,410,391

Exercised Options: $18,410,391

Current Obligation: $18,410,391

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0410DCT2117

IDV Type: IDC

Timeline