DHS awards $42M for 40 CTX 9800 EDS units, impacting airport security nationwide

Contract Overview

Contract Amount: $42,000,000 ($42.0M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2015-05-01

End Date: 2021-07-23

Contract Duration: 2,275 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: THIS DELIVERY ORDER (DO #55) IS TO PROVIDE FORTY (40) CTX 9800 MEDIUM SPEED (MS) EDS SIMPLIFIED ENCLOSURE INPUT/OUTPUT (SEIO) AT VARIOUS AIRPORTS, IN ACCORDANCE WITH CLIN 0003A OF CONTRACT HSTS04-12-D-CT1173. THE PERIOD OF PERFORMANCE IS MAY 1, 2015 THROUGH MARCH 31, 2018. THIS POP ENCOMPASSES BOTH THE DELIVERY AND INSTALLATION OF THE UNITS AS WELL AS THE NON-SEVERABLE 2 YEAR WARRANTY PERIOD FOR EACH UNIT.

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.0 million to SMITHS DETECTION, INC for work described as: THIS DELIVERY ORDER (DO #55) IS TO PROVIDE FORTY (40) CTX 9800 MEDIUM SPEED (MS) EDS SIMPLIFIED ENCLOSURE INPUT/OUTPUT (SEIO) AT VARIOUS AIRPORTS, IN ACCORDANCE WITH CLIN 0003A OF CONTRACT HSTS04-12-D-CT1173. THE PERIOD OF PERFORMANCE IS MAY 1, 2015 THROUGH MARCH 31, 2018. TH… Key points: 1. Value for money assessed against similar procurements and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include a long performance period and potential for installation complexities. 4. Performance context spans delivery, installation, and a two-year warranty. 5. Sector positioning within Transportation Security Administration's critical infrastructure protection. 6. The contract type is Firm Fixed Price, shifting cost risk to the contractor.

Value Assessment

Rating: good

The total award of $42 million for 40 CTX 9800 Medium Speed EDS units appears reasonable given the scope. The per-unit cost, approximately $1.05 million, needs to be benchmarked against similar procurements for this specific model and its advanced capabilities. The inclusion of installation and a two-year warranty within the contract period suggests a comprehensive package that could offer good value if executed efficiently. However, a direct comparison to market rates for comparable EDS systems would provide a more definitive assessment of value.

Cost Per Unit: Approximately $1.05 million per unit, including installation and warranty.

Competition Analysis

Competition Level: full-and-open

This delivery order was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not detailed, but a full and open process generally fosters a competitive environment. This approach is intended to ensure that the government receives the best possible pricing and solutions by allowing all qualified sources to participate. The outcome of such a competition is typically a more favorable price for the government compared to limited or sole-source awards.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding, ensuring that public funds are used efficiently.

Public Impact

Increased airport security screening capabilities across various airports nationwide. Enhanced passenger safety and efficiency through advanced threat detection technology. Benefits travelers by ensuring compliance with security regulations and potentially reducing wait times. Supports the Transportation Security Administration's mission to protect the nation's transportation systems. Potential for job creation in installation, maintenance, and support services related to the EDS units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long performance period (May 2015 - March 2018, with warranty extending beyond) increases exposure to potential delays or cost overruns.
Installation at various airports introduces logistical complexities and potential site-specific challenges.
Reliance on a single contractor for delivery and installation could pose risks if performance issues arise.
Firm Fixed Price contract, while beneficial for cost control, could lead to contractor seeking change orders if unforeseen issues arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Inclusion of a two-year warranty provides a period of assurance for the equipment's functionality.
The CTX 9800 EDS is a proven technology for threat detection, indicating a reliable solution.
The contract specifies delivery and installation, indicating a comprehensive approach to deployment.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on security screening equipment. The market for advanced threat detection systems like the CTX 9800 EDS is driven by government mandates and the need for enhanced security at critical infrastructure points, such as airports. The Transportation Security Administration (TSA) is a major procurer in this space, with significant annual spending on security technology. Comparable spending benchmarks would involve analyzing other large-scale procurements of EDS systems by TSA or similar international aviation security agencies.

Small Business Impact

The data provided does not indicate any specific small business set-asides or subcontracting requirements for this particular delivery order. As the award is to Smiths Detection, Inc., a large corporation, the primary focus is on the prime contractor's capabilities. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for installation and support services, which could have implications for the small business ecosystem.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Homeland Security (DHS) and its Transportation Security Administration (TSA). The contract's performance, including delivery schedules and installation quality, would be monitored by contracting officers and technical representatives. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Airport Security Equipment Procurement
Transportation Security Administration Contracts
Homeland Security Technology Acquisitions
Explosives Detection Systems
Federal Aviation Administration (FAA) Security Initiatives

Risk Flags

Potential for installation delays
Long performance period increases risk exposure
Dependence on single contractor for delivery and installation
Need for ongoing maintenance and spare parts beyond warranty

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.0 million to SMITHS DETECTION, INC. THIS DELIVERY ORDER (DO #55) IS TO PROVIDE FORTY (40) CTX 9800 MEDIUM SPEED (MS) EDS SIMPLIFIED ENCLOSURE INPUT/OUTPUT (SEIO) AT VARIOUS AIRPORTS, IN ACCORDANCE WITH CLIN 0003A OF CONTRACT HSTS04-12-D-CT1173. THE PERIOD OF PERFORMANCE IS MAY 1, 2015 THROUGH MARCH 31, 2018. THIS POP ENCOMPASSES BOTH THE DELIVERY AND INSTALLATION OF THE UNITS AS WELL AS THE NON-SEVERABLE 2 YEAR WARRANTY PERIOD FOR EACH UNIT.

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 $42.0 million.

What is the period of performance?

Start: 2015-05-01. End: 2021-07-23.

What is the track record of Smiths Detection, Inc. in fulfilling similar large-scale EDS deployment contracts for the TSA or other government agencies?

Smiths Detection, Inc. has a significant track record in providing advanced threat detection technologies to government agencies worldwide, including the TSA. They are a major player in the field of explosives detection systems (EDS) and have supplied numerous CTX 9800 units to airports globally. Their experience includes managing complex deployments, installations, and providing ongoing support and maintenance for these critical systems. While specific details of past performance on similar large-scale delivery orders are often proprietary, their established presence and continued awards in this sector suggest a generally positive performance history. However, a deeper dive into past performance reviews, any documented issues, or contract modifications on prior TSA contracts would provide a more granular understanding of their reliability and execution capabilities.

How does the per-unit cost of the CTX 9800 EDS in this contract compare to other recent procurements of similar systems by the TSA or international aviation authorities?

The per-unit cost of approximately $1.05 million for the CTX 9800 EDS, including installation and a two-year warranty, needs careful benchmarking. While the CTX 9800 is a sophisticated, medium-speed EDS system, its price point should be compared against other similar systems procured by the TSA and international aviation authorities. Factors influencing price include the specific configuration, software versions, and the scope of services bundled (like installation and warranty). If recent procurements of comparable systems (e.g., other medium-speed EDS or even advanced low-speed EDS with similar capabilities) show significantly lower per-unit costs, it could indicate that this award was not optimally priced. Conversely, if the market rate for such advanced technology, especially with integrated services, is in this range or higher, then the value proposition is stronger. Access to detailed competitive bidding data from other TSA procurements would be crucial for a definitive comparison.

What are the primary risks associated with the installation and long-term operational reliability of 40 CTX 9800 EDS units across various airport environments?

The primary risks associated with installing and operating 40 CTX 9800 EDS units across various airports are multifaceted. Installation risks include logistical challenges in transporting and integrating large equipment into active airport environments, potential site-specific infrastructure limitations (power, space, network connectivity), and the need for specialized personnel. Delays in installation can impact operational readiness and incur additional costs. Long-term operational reliability risks involve the potential for equipment malfunctions, software glitches, and the need for timely and effective maintenance and repair services. The two-year warranty mitigates some initial operational risks, but beyond that, the availability and cost of spare parts and qualified technicians become critical. Furthermore, evolving threat landscapes may necessitate software upgrades or system modifications, introducing further complexity and potential costs. The sheer number of units deployed increases the probability of encountering diverse operational challenges across different airport settings.

How has the TSA's overall spending on EDS technology evolved over the period encompassing this contract and subsequent years, and what does this specific award represent within that trend?

The TSA's spending on Explosives Detection Systems (EDS) technology has been substantial and generally increasing over the years, driven by evolving security mandates and technological advancements. This $42 million delivery order, awarded in May 2015 with a performance period extending through March 2018, represents a significant investment in medium-speed EDS technology during that timeframe. It reflects the TSA's ongoing commitment to equipping airports with capable screening equipment. Analyzing TSA's budget allocations and contract awards for EDS systems before, during, and after this period would reveal trends in technology adoption (e.g., shift towards higher-speed or AI-enhanced systems), procurement strategies, and overall investment levels. This specific award likely fits into a broader strategy of maintaining and upgrading the deployed EDS fleet to meet security requirements, rather than representing a radical shift in technology or spending.

What are the potential implications of this contract for the future development and deployment of airport security screening technologies, particularly concerning medium-speed EDS?

This contract for 40 CTX 9800 Medium Speed EDS units signifies the TSA's continued reliance on established, proven technologies for airport security screening. While the industry is moving towards higher-speed and more automated systems, medium-speed EDS like the CTX 9800 remain critical for many airports due to their balance of capability, cost, and deployment feasibility. The award suggests that medium-speed systems will continue to be a significant part of the security infrastructure for the foreseeable future. It may also indicate a strategy of phased upgrades, where airports first deploy or maintain medium-speed systems before transitioning to next-generation technologies. The success of this deployment could influence future procurement decisions, potentially leading to further orders of similar systems or serving as a baseline for evaluating newer, potentially more advanced, but also likely more expensive, technologies.

Are there any specific geographic concentrations or airport types that are prioritized for the deployment of these 40 CTX 9800 EDS units, and what does this imply for national security screening capab

The provided data states that the 40 CTX 9800 Medium Speed EDS units are to be deployed 'at various airports.' Without further specifics on the distribution, it's difficult to ascertain precise geographic concentrations or prioritized airport types. However, such procurements by the TSA are typically aimed at enhancing security across the national airspace system, prioritizing airports based on passenger volume, threat assessments, and existing equipment lifecycles. Deployments are likely spread across major international gateways, significant domestic hubs, and potentially other airports deemed critical. This broad deployment strategy implies an effort to standardize and bolster screening capabilities nationwide, ensuring a consistent level of security across different regions and airport sizes, thereby strengthening overall national security screening effectiveness.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus 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: 7151 GATEWAY BLVD, NEWARK, CA, 94560

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: $42,000,000

Exercised Options: $42,000,000

Current Obligation: $42,000,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0412DCT1173

IDV Type: IDC

Timeline