TSA's $69.7M Morpho EDS PBL Contract Awarded to Smiths Detection, Inc. for Explosives Detection System Support

Contract Overview

Contract Amount: $69,751,740 ($69.8M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2017-08-01

End Date: 2018-07-31

Contract Duration: 364 days

Daily Burn Rate: $191.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF ORDERING PERIOD 3 OF THE MORPHO EDS PERFORMANCE-BASED LOGISTICS (PBL) SUPPORT PROGRAM FROM 8/1/2017 TO 7/31/2018. THE MORPHO PBL SERVICES CONTRACT SUSTAIN GOVERNMENT-CERTIFIED EXPLOSIVES DETECTION SYSTEMS (EDS), AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY THE TRANSPORTATION SECURITY ADMINISTRATION (TSA). THE EDS ARE DEPLOYED AT CATEGORY X THROUGH IV AIRPORTS AND OTHER GOVERNMENT-DESIGNATED FACILITIES THROUGHOUT THE UNITED STATES AND ITS TERRITORIES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $69.8 million to SMITHS DETECTION, INC for work described as: IGF::CT::IGF ORDERING PERIOD 3 OF THE MORPHO EDS PERFORMANCE-BASED LOGISTICS (PBL) SUPPORT PROGRAM FROM 8/1/2017 TO 7/31/2018. THE MORPHO PBL SERVICES CONTRACT SUSTAIN GOVERNMENT-CERTIFIED EXPLOSIVES DETECTION SYSTEMS (EDS), AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERAT… Key points: 1. Contract supports critical explosives detection systems for TSA at airports nationwide. 2. Single award to Smiths Detection, Inc. raises questions about competition and pricing. 3. The contract's firm-fixed-price structure aims to control costs for a vital security function. 4. Focus on performance-based logistics suggests a strategy to ensure system readiness and reduce downtime.

Value Assessment

Rating: fair

The contract value of $69.7M for a one-year period appears substantial for maintenance and support services. Benchmarking against similar contracts for specialized equipment maintenance is difficult without more detailed service scope and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these essential maintenance services.

Public Impact

Ensures the operational readiness of explosives detection systems at major US airports. Supports national security by maintaining critical screening technology. Impacts traveler safety and efficiency through reliable equipment performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to sole-source award

Positive Signals

Performance-based logistics structure
Supports critical national security infrastructure

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 for government operations, particularly in security and defense.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made directly to a large, established company.

Oversight & Accountability

The contract's performance-based logistics (PBL) structure implies a focus on outcomes and readiness, which can be a form of oversight. However, the lack of competition warrants closer scrutiny of performance and pricing.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competitive bidding.
Limited transparency on performance metrics and cost justification.
Dependence on a single vendor for critical security equipment support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $69.8 million to SMITHS DETECTION, INC. IGF::CT::IGF ORDERING PERIOD 3 OF THE MORPHO EDS PERFORMANCE-BASED LOGISTICS (PBL) SUPPORT PROGRAM FROM 8/1/2017 TO 7/31/2018. THE MORPHO PBL SERVICES CONTRACT SUSTAIN GOVERNMENT-CERTIFIED EXPLOSIVES DETECTION SYSTEMS (EDS), AND ASSOCIATED PERIPHERAL EQUIPMENT DEPLOYED AND OPERATED BY THE TRANSPORTATION SECURITY ADMINISTRATION (TSA). THE EDS ARE DEPLOYED AT CATEGORY X THROUGH IV AIRPORTS AND OTHER GOVERNMENT-DESIGNATED FACILITIES THROUGHOUT THE UNITED STATES AND ITS TERRITORIES.

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 $69.8 million.

What is the period of performance?

Start: 2017-08-01. End: 2018-07-31.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where competition is not feasible. Without specific documentation, it's difficult to assess the steps taken to ensure fair pricing. However, agencies often use historical pricing, independent government cost estimates, or benchmark data to validate prices in sole-source situations.

How does the performance of Smiths Detection, Inc. under this contract compare to industry benchmarks for similar equipment maintenance?

Assessing performance against industry benchmarks requires detailed metrics on system uptime, repair turnaround times, and overall operational effectiveness. The contract's performance-based logistics (PBL) structure suggests that specific performance standards were likely established. However, without access to those metrics and comparative industry data, a direct comparison is not possible from the provided information.

What is the long-term strategy for ensuring competitive sourcing of EDS maintenance and support services to mitigate future sole-source risks?

A long-term strategy to mitigate sole-source risks would involve market research to identify potential competitors, developing contract vehicles that encourage competition, and potentially breaking down services into smaller, more accessible components. The TSA should explore opportunities to foster competition for future EDS support contracts to ensure better value and innovation.

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: $69,751,740

Exercised Options: $69,751,740

Current Obligation: $69,751,740

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0415DCT3002

IDV Type: IDC

Timeline