DHS Buys 26 Explosive Detection Systems for $37.4M via Full and Open Competition

Contract Overview

Contract Amount: $37,380,500 ($37.4M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2017-04-17

End Date: 2019-08-17

Contract Duration: 852 days

Daily Burn Rate: $43.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PURCHASE 26 CTX 9800 EXPLOSIVE DETECTION SYSTEM (EDS) UNITS FOR INSTALLATION AT AIRPORTS ACROSS THE U.S. IN SUPPORT OF CHECKED BAGGAGE SCREENING OPERATIONS.

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.4 million to SMITHS DETECTION, INC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PURCHASE 26 CTX 9800 EXPLOSIVE DETECTION SYSTEM (EDS) UNITS FOR INSTALLATION AT AIRPORTS ACROSS THE U.S. IN SUPPORT OF CHECKED BAGGAGE SCREENING OPERATIONS. Key points: 1. Spending focuses on critical airport security infrastructure. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate, with a fixed-price contract mitigating cost overruns. 4. The sector is Transportation Security, a high-priority area for DHS.

Value Assessment

Rating: good

The total award of $37.4M for 26 units averages to approximately $1.44M per unit. This price point should be benchmarked against similar advanced explosive detection systems to assess value.

Cost Per Unit: $1,437,711.54

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is taxpayer-favorable as it drives down costs through market forces.

Public Impact

Enhanced airport security through advanced baggage screening. Potential for improved passenger safety and reduced threat risks. Investment in technology to meet evolving security challenges. Standardization of screening equipment across U.S. airports.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term maintenance and upgrade costs not fully detailed.
Dependence on a single vendor for specialized equipment.

Positive Signals

Addresses a critical national security need.
Utilizes a competitive procurement process.
Fixed-price contract limits financial risk.

Sector Analysis

This purchase falls within the Transportation Security Administration's mandate to enhance aviation security. Spending benchmarks for similar advanced screening technologies should be considered to evaluate cost-effectiveness.

Small Business Impact

The data indicates the award went to a large business (Smiths Detection, Inc.) and does not show any specific set-asides or participation goals for small businesses in this particular contract.

Oversight & Accountability

The Transportation Security Administration (TSA) is responsible for this procurement. Oversight would involve ensuring timely delivery, proper installation, and system functionality as per the contract terms.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Technology obsolescence risk.
Integration challenges with existing airport infrastructure.
Potential for vendor lock-in for future upgrades/support.
Dependence on specialized personnel for operation and maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.4 million to SMITHS DETECTION, INC. THE PURPOSE OF THIS TASK ORDER IS TO PURCHASE 26 CTX 9800 EXPLOSIVE DETECTION SYSTEM (EDS) UNITS FOR INSTALLATION AT AIRPORTS ACROSS THE U.S. IN SUPPORT OF CHECKED BAGGAGE SCREENING OPERATIONS.

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 $37.4 million.

What is the period of performance?

Start: 2017-04-17. End: 2019-08-17.

What is the projected lifespan and maintenance cost of these EDS units?

The projected lifespan and associated maintenance costs for the CTX 9800 EDS units are not explicitly detailed in the provided data. Further analysis would require access to the full contract documentation, including service agreements and manufacturer specifications, to estimate long-term operational expenses and replacement cycles.

How does the per-unit cost compare to previous procurements of similar EDS technology?

Benchmarking the per-unit cost of $1.44M against previous procurements of similar EDS technology is crucial for value assessment. Without historical data or market analysis for comparable systems, it's difficult to definitively state if this price is competitive or represents a significant increase.

What are the key performance metrics for these EDS units, and how will their effectiveness be measured post-installation?

The effectiveness of the CTX 9800 EDS units will likely be measured by their detection rates for various threats, false alarm rates, and throughput capacity. The TSA would typically establish performance standards and conduct post-installation evaluations to ensure the systems meet operational requirements and enhance security.

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

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: $44,820,500

Exercised Options: $37,380,500

Current Obligation: $37,380,500

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0412DCT1173

IDV Type: IDC

Timeline