DHS awards $77.2M for Explosive Detection System maintenance to Smiths Detection, Inc

Contract Overview

Contract Amount: $77,223,075 ($77.2M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2014-07-01

End Date: 2015-07-31

Contract Duration: 395 days

Daily Burn Rate: $195.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER TO PROCURE EXPLOSIVE DETECTION SYSTEM (EDS) MAINTENANCE THROUGH JUNE 30, 2015 IN SUPPORT OF BAGGAGE SCREENING OPERATIONS. IGF::CT::IGF

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $77.2 million to SMITHS DETECTION, INC for work described as: TASK ORDER TO PROCURE EXPLOSIVE DETECTION SYSTEM (EDS) MAINTENANCE THROUGH JUNE 30, 2015 IN SUPPORT OF BAGGAGE SCREENING OPERATIONS. IGF::CT::IGF Key points: 1. Spending focused on essential baggage screening maintenance. 2. Sole-source award to incumbent provider Smiths Detection. 3. Risk of price escalation due to lack of competition. 4. Sector: Security Systems Services.

Value Assessment

Rating: fair

The contract value of $77.2M for one year of maintenance appears high for security systems services. Benchmarking against similar maintenance contracts for specialized detection equipment is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this essential service.

Public Impact

Ensures continued security at airports through EDS maintenance. Potential for increased costs due to sole-source award. Reliance on a single vendor for critical security equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for overpayment without competitive bidding
High contract value for a single year

Positive Signals

Maintains critical security infrastructure
Ensures operational readiness of EDS

Sector Analysis

This contract falls within the Security Systems Services sector, which includes maintenance for specialized security equipment. Spending benchmarks for this niche area are difficult to ascertain without more specific data on EDS maintenance.

Small Business Impact

No indication of small business involvement in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential contractor overreach. Oversight should focus on performance and justification for continued sole-source status.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
High contract value for a single year
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $77.2 million to SMITHS DETECTION, INC. TASK ORDER TO PROCURE EXPLOSIVE DETECTION SYSTEM (EDS) MAINTENANCE THROUGH JUNE 30, 2015 IN SUPPORT OF BAGGAGE SCREENING OPERATIONS. IGF::CT::IGF

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 $77.2 million.

What is the period of performance?

Start: 2014-07-01. End: 2015-07-31.

What is the justification for the sole-source award, and was a market research conducted to confirm no other capable vendors exist?

The justification for a sole-source award is critical for ensuring taxpayer value. Agencies must demonstrate that only one responsible source can provide the required supplies or services. This typically involves thorough market research to confirm the uniqueness of the offering or the incumbent's indispensable role. Without this, the award raises concerns about potential missed opportunities for cost savings through competition.

How does the per-unit maintenance cost compare to industry benchmarks for similar Explosive Detection Systems?

Comparing the per-unit maintenance cost against industry benchmarks is essential for assessing value for money. If this contract's rates are significantly higher than comparable systems, it suggests potential overpricing. This analysis requires detailed knowledge of the specific EDS model, the scope of maintenance included, and prevailing market rates for similar services, which are not fully detailed in the provided data.

What is the long-term strategy for procuring EDS maintenance to ensure future cost-effectiveness and security?

A long-term strategy is crucial for managing the lifecycle costs of critical security equipment like EDS. This should involve exploring options beyond sole-source awards, such as competitive re-procurement, performance-based contracts, or even considering alternative technologies. Proactive planning can mitigate risks associated with vendor lock-in and ensure sustained cost-effectiveness and operational security for baggage screening.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

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, 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: $77,223,075

Exercised Options: $77,223,075

Current Obligation: $77,223,075

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0411DCT3072

IDV Type: IDC

Timeline