DHS awards $67.3M for TSA explosive detection system maintenance under sole-source IDIQ

Contract Overview

Contract Amount: $67,279,808 ($67.3M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2015-08-01

End Date: 2016-10-31

Contract Duration: 457 days

Daily Burn Rate: $147.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF THIS TASK ORDER IS ISSUED UNDER IDIQ HSTS04-15-D-CT3002 TO PROVIDE MAINTENANCE SUPPORT SERVICES FOR TSA'S FLEET OF MORPHO DETECTION EXPLOSIVE DETECTION SYSTEMS (EDS) THROUGH 7/31/2017.

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $67.3 million to SMITHS DETECTION, INC for work described as: IGF::CT::IGF THIS TASK ORDER IS ISSUED UNDER IDIQ HSTS04-15-D-CT3002 TO PROVIDE MAINTENANCE SUPPORT SERVICES FOR TSA'S FLEET OF MORPHO DETECTION EXPLOSIVE DETECTION SYSTEMS (EDS) THROUGH 7/31/2017. Key points: 1. Maintenance support for TSA's explosive detection systems. 2. Contract awarded to Smiths Detection, Inc. 3. Sole-source award under existing IDIQ contract. 4. Focus on ensuring operational readiness of critical security equipment.

Value Assessment

Rating: fair

The contract value of $67.3M for approximately 15 months of support appears high. Without specific details on the scope of maintenance and the number of systems supported, it's difficult to benchmark against similar contracts. The firm fixed-price structure provides cost certainty but may not reflect the most economical pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award under an existing IDIQ. This limits price discovery and potentially leads to higher costs for taxpayers as competition is bypassed.

Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a fully competed contract.

Public Impact

Ensures the continued operation of explosive detection systems at TSA checkpoints. Supports national security by maintaining critical screening technology. Potential for increased costs due to sole-source nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High contract value for maintenance services.
Contract duration is relatively short, potentially leading to frequent re-procurement costs.

Positive Signals

Supports critical national security infrastructure.
Firm fixed-price contract provides cost certainty.

Sector Analysis

This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' NAICS code. Spending in this sector is driven by the need to maintain complex technological systems, particularly in government and defense. Benchmarks are difficult without specific system details, but large-scale maintenance contracts can represent significant investment.

Small Business Impact

The awardee, Smiths Detection, Inc., is a large business. There is no indication that small businesses were involved in this specific task order, which is common for specialized maintenance of proprietary systems.

Oversight & Accountability

The contract is managed by the Department of Homeland Security (DHS) for the Transportation Security Administration (TSA). Oversight would typically involve contract performance monitoring and financial reviews to ensure services are delivered as specified and within budget.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency on scope of work
Reliance on sole-source provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $67.3 million to SMITHS DETECTION, INC. IGF::CT::IGF THIS TASK ORDER IS ISSUED UNDER IDIQ HSTS04-15-D-CT3002 TO PROVIDE MAINTENANCE SUPPORT SERVICES FOR TSA'S FLEET OF MORPHO DETECTION EXPLOSIVE DETECTION SYSTEMS (EDS) THROUGH 7/31/2017.

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 $67.3 million.

What is the period of performance?

Start: 2015-08-01. End: 2016-10-31.

What is the specific scope of maintenance services provided under this contract, and how many systems are covered?

The provided data indicates maintenance support for TSA's fleet of Morpho Detection explosive detection systems. However, the exact scope of services (e.g., preventative maintenance, repairs, software updates) and the precise number of systems covered are not detailed. This information is crucial for assessing the value and reasonableness of the $67.3 million contract price.

What is the justification for awarding this contract on a sole-source basis, especially given the significant value?

Sole-source awards are typically justified when only one vendor can provide the required goods or services, often due to proprietary technology, unique expertise, or existing infrastructure. For this contract, the justification likely stems from Smiths Detection, Inc. being the original equipment manufacturer or having exclusive rights to maintain the Morpho Detection EDS systems. This limits competition and potentially increases costs.

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

Without knowing the specific model of Morpho Detection EDS, the number of systems maintained, and the detailed service level agreements, it is impossible to establish a reliable per-unit cost benchmark. The total contract value of $67.3 million over approximately 15 months suggests a substantial investment, but its effectiveness and efficiency relative to industry standards remain unverified without more granular data.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $67,279,808

Exercised Options: $67,279,808

Current Obligation: $67,279,808

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0415DCT3002

IDV Type: IDC

Timeline