DHS awards $75M for ILS maintenance services to Morpho Detection, Inc. for 365 days

Contract Overview

Contract Amount: $75,164,522 ($75.2M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2011-07-01

End Date: 2012-06-30

Contract Duration: 365 days

Daily Burn Rate: $205.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MORPHO DETECTION, INC HSTS04-11-R-CT3005 (DO 1) ILS MAINTENANCE SERVICES FOR FIELDED MDI EDS, MUX, UPS AND PROGRAM MANAGEMENT FROM 6/1/2011 TO 12/31/2011

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $75.2 million to SMITHS DETECTION, INC for work described as: MORPHO DETECTION, INC HSTS04-11-R-CT3005 (DO 1) ILS MAINTENANCE SERVICES FOR FIELDED MDI EDS, MUX, UPS AND PROGRAM MANAGEMENT FROM 6/1/2011 TO 12/31/2011 Key points: 1. Contract awarded to Morpho Detection, Inc. for $75.16 million. 2. Services include maintenance for fielded MDI EDS, MUX, UPS, and program management. 3. Contract duration is 365 days, from June 1, 2011, to December 31, 2011. 4. The contract was not competed, raising potential concerns about price discovery.

Value Assessment

Rating: questionable

The contract value of $75.16 million for a 365-day period appears high for maintenance services. Benchmarking against similar contracts for security system maintenance is difficult without more detailed service scope and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This method may lead to higher prices as there is no competitive pressure to ensure cost-effectiveness for the government.

Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these essential maintenance services.

Public Impact

Ensures continued operation of critical security equipment at transportation facilities. Supports the Transportation Security Administration's mission to protect the nation's transportation systems. Potential for increased costs to taxpayers due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value for maintenance services
Short contract duration with potential for follow-on sole-source awards

Positive Signals

Ensures critical security systems remain operational
Supports TSA's security mission

Sector Analysis

This contract falls under Security Systems Services, a sector critical for national security and public safety. Spending in this sector can vary significantly based on technological advancements and threat levels.

Small Business Impact

The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The non-competitive nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and justification for sole-source procurement.

Related Government Programs

Security Systems Services (except Locksmiths)
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Sole-source award
High contract value
Lack of transparency in pricing
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $75.2 million to SMITHS DETECTION, INC. MORPHO DETECTION, INC HSTS04-11-R-CT3005 (DO 1) ILS MAINTENANCE SERVICES FOR FIELDED MDI EDS, MUX, UPS AND PROGRAM MANAGEMENT FROM 6/1/2011 TO 12/31/2011

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 $75.2 million.

What is the period of performance?

Start: 2011-07-01. End: 2012-06-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves factors such as unique capabilities of the contractor, urgent and compelling needs, or the unavailability of other sources. Without specific documentation, it is difficult to ascertain the precise reason for this non-competitive award, but it raises questions about whether a competitive process was truly not feasible or explored.

How does the per-unit cost of maintenance compare to industry benchmarks for similar security systems?

Benchmarking the per-unit cost is challenging without detailed service breakdowns and performance metrics. However, the overall contract value of $75.16 million for 365 days of maintenance for fielded equipment suggests a potentially high cost. A thorough analysis comparing specific maintenance tasks and their associated costs against industry standards would be necessary for a definitive assessment.

What is the long-term strategy for maintaining these systems, and will future contracts also be sole-source?

The long-term strategy is unclear from this data. If these systems are critical and Morpho Detection, Inc. remains the sole provider or has unique maintenance capabilities, future contracts might also be sole-source. This pattern could limit competition and potentially increase long-term costs for the government, necessitating careful review of procurement strategies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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, 17

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: $75,164,522

Exercised Options: $75,164,522

Current Obligation: $75,164,522

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0411DCT3072

IDV Type: IDC

Timeline