DHS awards $24.1M for 930 Explosive Trace Detection systems to Smiths Detection Inc

Contract Overview

Contract Amount: $24,175,350 ($24.2M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-09-29

End Date: 2013-09-28

Contract Duration: 364 days

Daily Burn Rate: $66.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURCHASE OF 930 EXPLOSIVE TRACE DETECTION (ETD) SYSTEMS WITH 25 OPTIONAL SYSTEMS WITH THE EXPANDED THREAT LIBRARY IN ACCORDANCE WITH THE UPDATED TSA DETECTION STANDARDS

Place of Performance

Location: ARLINGTON, LOUDOUN County, VIRGINIA, 20598, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.2 million to SMITHS DETECTION INC. for work described as: PURCHASE OF 930 EXPLOSIVE TRACE DETECTION (ETD) SYSTEMS WITH 25 OPTIONAL SYSTEMS WITH THE EXPANDED THREAT LIBRARY IN ACCORDANCE WITH THE UPDATED TSA DETECTION STANDARDS Key points: 1. The contract focuses on advanced Explosive Trace Detection (ETD) systems meeting updated TSA standards. 2. Smiths Detection Inc. is a key player in the security screening market. 3. Potential risks include reliance on a single vendor for a critical security function. 4. Spending is within the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.

Value Assessment

Rating: good

The total award of $24.18 million for 930 systems averages to approximately $26,000 per unit. This price appears competitive given the advanced technology and specialized nature of ETD systems, especially when compared to other high-tech security equipment.

Cost Per Unit: $26,000

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices and ensure the government receives the best value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential security equipment.

Public Impact

Enhances airport and transportation security nationwide. Supports TSA's mission to protect the nation's transportation systems. Provides critical threat detection capabilities to screen passengers and cargo. Ensures compliance with evolving security standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are sole-source.
Dependence on a single manufacturer for critical security technology.

Positive Signals

Awarded under full and open competition.
Addresses updated TSA detection standards.
Includes optional systems for future needs.

Sector Analysis

This contract falls under the specialized manufacturing of detection and navigation instruments. Spending in this sector is driven by national security needs and technological advancements in surveillance and screening.

Small Business Impact

The data indicates the primary awardee is Smiths Detection Inc., a large corporation. There is no explicit information on small business participation in this specific award, suggesting potential for limited direct involvement.

Oversight & Accountability

The Department of Homeland Security, specifically the Transportation Security Administration, is responsible for overseeing this contract. Accountability is maintained through contract performance monitoring and adherence to security standards.

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

Potential for sole-source follow-on contracts.
Dependence on a single technology provider.
Need for continuous software/library updates.
Integration challenges with existing security infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.2 million to SMITHS DETECTION INC.. PURCHASE OF 930 EXPLOSIVE TRACE DETECTION (ETD) SYSTEMS WITH 25 OPTIONAL SYSTEMS WITH THE EXPANDED THREAT LIBRARY IN ACCORDANCE WITH THE UPDATED TSA DETECTION STANDARDS

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 $24.2 million.

What is the period of performance?

Start: 2012-09-29. End: 2013-09-28.

What is the long-term cost implication of relying on Smiths Detection for ETD systems, considering potential sole-source follow-on contracts?

Long-term reliance on a single vendor like Smiths Detection could lead to increased costs if future contracts are awarded without full and open competition. While this initial award was competitive, subsequent sole-source awards for maintenance, upgrades, or additional systems might command premium pricing, potentially exceeding market rates and impacting overall value for taxpayer money.

How does the 'expanded threat library' feature in these ETD systems compare to previous generations and what is its impact on detection effectiveness?

The 'expanded threat library' signifies an upgrade in the ETD systems' capability to identify a wider range of explosive materials. This enhancement is crucial for adapting to evolving threats and improving detection accuracy. Its impact is a more robust security posture, reducing the likelihood of undetected threats passing through screening checkpoints.

What mechanisms are in place to ensure the ongoing effectiveness and maintenance of these 930 ETD systems throughout their lifecycle?

Mechanisms for ongoing effectiveness and maintenance likely involve performance-based contract clauses, regular technical reviews, and potential service agreements with Smiths Detection. The TSA would monitor system performance data, schedule preventative maintenance, and address any malfunctions promptly to ensure the systems remain operational and effective in meeting security standards.

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: 2

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,825,225

Exercised Options: $24,175,350

Current Obligation: $24,175,350

Parent Contract

Parent Award PIID: HSTS0409DCT2041

IDV Type: IDC

Timeline