State Dept. Awards $58.5M for Gaza/Egypt Border Security Equipment to American Science & Engineering Inc
Contract Overview
Contract Amount: $58,462,315 ($58.5M)
Contractor: American Science & Engineering Inc
Awarding Agency: Department of State
Start Date: 2009-09-15
End Date: 2018-01-31
Contract Duration: 3,060 days
Daily Burn Rate: $19.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INSTALLATION OF BORDER SECURITY EQUIPMENT ON THE GAZA/EGYPT BORDER.
Plain-Language Summary
Department of State obligated $58.5 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: INSTALLATION OF BORDER SECURITY EQUIPMENT ON THE GAZA/EGYPT BORDER. Key points: 1. The contract value of $58.5 million is significant for specialized border security equipment. 2. American Science & Engineering Inc. is the sole awardee, raising questions about competition. 3. The long duration (2009-2018) suggests a substantial project with potential for cost overruns. 4. The sector is IT/Defense, focusing on specialized security apparatus manufacturing.
Value Assessment
Rating: fair
The contract value is substantial. Without comparable contracts for similar border security equipment, it's difficult to definitively assess if the pricing is optimal. The firm fixed-price nature provides some cost certainty.
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 compared to a competitive process.
Taxpayer Impact: The lack of competition for a nearly $58.5 million contract may result in taxpayers paying more than necessary for the border security equipment.
Public Impact
Enhanced border security equipment could impact regional stability and security operations. The specific technology deployed may have implications for surveillance and interdiction capabilities. Long-term maintenance and operational costs associated with this equipment are not detailed but represent a future taxpayer burden.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Firm fixed-price contract
- Specialized equipment
Sector Analysis
The Department of State's investment in border security equipment falls within the broader defense and security sector. Spending benchmarks for such specialized irradiation apparatus manufacturing are not readily available, but the scale of this award suggests a significant national security interest.
Small Business Impact
The data indicates this contract was awarded to American Science & Engineering Inc. and does not specify any subcontracting to small businesses. Further investigation would be needed to determine if small business participation was a requirement or opportunity.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny regarding the justification for not competing the award. Oversight should focus on ensuring the necessity and effectiveness of the procured equipment and the reasonableness of the price paid.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing due to non-competition
- Long contract duration may indicate scope creep or inefficiencies
- Lack of transparency in justification for sole-sourcing
- Unclear small business participation
Tags
irradiation-apparatus-manufacturing, department-of-state, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $58.5 million to AMERICAN SCIENCE & ENGINEERING INC. INSTALLATION OF BORDER SECURITY EQUIPMENT ON THE GAZA/EGYPT BORDER.
Who is the contractor on this award?
The obligated recipient is AMERICAN SCIENCE & ENGINEERING INC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $58.5 million.
What is the period of performance?
Start: 2009-09-15. End: 2018-01-31.
What was the specific justification for awarding this contract on a sole-source basis, and were there any attempts to explore competitive options?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear why this contract bypassed the competitive bidding process. Exploring competitive options is crucial for ensuring taxpayer value and fostering innovation in the defense contracting market.
How does the cost of this border security equipment compare to similar systems procured by other government agencies or international partners?
Benchmarking the cost against similar systems is essential for assessing value. Without access to pricing data for comparable irradiation apparatus or border security solutions, it's difficult to determine if the $58.5 million expenditure was cost-effective. This comparison would highlight potential overpricing or identify cost-saving opportunities for future procurements.
What is the long-term operational effectiveness and maintenance cost of the installed border security equipment, and has it met the Department of State's security objectives?
The effectiveness and long-term costs are critical metrics for evaluating the success of this investment. Understanding the operational performance, reliability, and ongoing maintenance expenses will determine if the equipment has truly enhanced border security as intended and provided a worthwhile return on the significant taxpayer investment.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: OSI Systems Inc (UEI: 178295812)
Address: 829 MIDDLESEX TPKE, BILLERICA, MA, 01821
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,462,324
Exercised Options: $58,462,324
Current Obligation: $58,462,315
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-15
Current End Date: 2018-01-31
Potential End Date: 2018-01-31 00:00:00
Last Modified: 2019-07-24
More Contracts from American Science & Engineering Inc
- 200612!500651!1700!m67854!commanding General !M6785406C5163 !A!N! !N! ! !20060831!20070430!001767763!001767763!001767763!n!american Science and Engineeri!829 Middlesex Tpke !billerica !ma!01821!05770!017!25!billerica !middlesex !mass !+000011242512!n!n!000047657700!ad24!rdte/Services-Demo/Valid !S1 !services !000 !NOT Discernable !334517!A!A!3! ! ! ! ! !99990909!B! ! !A! !d!u!j!1!001!n!1d!c!n!z! ! !Y!C!N! ! ! !z!z!a!a!000!a!b!n! ! ! ! !1700!M67854!0001! ! — $68.6M (Department of Defense)
- LEP — $63.6M (Department of Homeland Security)
- Z Backscatter VAN — $56.6M (Department of Defense)
- Large and Small Scale Non-Intrusive Equipment — $46.8M (Department of Homeland Security)
- Awarding the 3RD and Last Ordering Period Under the Base Contract — $44.8M (Department of Defense)
View all American Science & Engineering Inc federal contracts →
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)