State Dept. Awards $26M High Intensity Scanner Contract to AS&E, Sole-Source
Contract Overview
Contract Amount: $26,094,824 ($26.1M)
Contractor: American Science & Engineering Inc
Awarding Agency: Department of State
Start Date: 2017-03-30
End Date: 2024-04-30
Contract Duration: 2,588 days
Daily Burn Rate: $10.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HIGH INTENSITY SCANNER CONTRACT - SUEZ CANAL AND QOSTAL
Place of Performance
Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821
Plain-Language Summary
Department of State obligated $26.1 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: HIGH INTENSITY SCANNER CONTRACT - SUEZ CANAL AND QOSTAL Key points: 1. Contract awarded to American Science & Engineering Inc. for $26.1M. 2. Sole-source award raises questions about competition and price discovery. 3. Long contract duration (2017-2024) may impact price competitiveness. 4. Sector is irradiation apparatus manufacturing, potentially IT-related.
Value Assessment
Rating: questionable
The contract value of $26.1M over seven years needs further benchmarking against similar high-intensity scanner systems. Without competitive bids, it's difficult to assess if this price represents fair market value.
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 there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $26.1M contract suggests potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying more than necessary due to the sole-source nature of the award. Lack of transparency in the procurement process could indicate potential inefficiencies. The long duration of the contract might not reflect the most current technological advancements or pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
Positive Signals
- Specific equipment for a critical need (Suez Canal/Qostal)
Sector Analysis
The contract falls under irradiation apparatus manufacturing, which can have applications in security and inspection. Benchmarking against similar government contracts for specialized scanning equipment is recommended.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the price paid is justified and that future procurements consider competitive options.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration may lead to price inefficiencies.
- Potential for higher costs due to lack of market pressure.
- Missed opportunity for small business participation.
Tags
irradiation-apparatus-manufacturing, department-of-state, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $26.1 million to AMERICAN SCIENCE & ENGINEERING INC. HIGH INTENSITY SCANNER CONTRACT - SUEZ CANAL AND QOSTAL
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 $26.1 million.
What is the period of performance?
Start: 2017-03-30. End: 2024-04-30.
What is the justification for the sole-source award for this high-intensity scanner?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements. Without specific documentation, it's difficult to ascertain the precise reason, but it implies that competitive alternatives were deemed unsuitable or unavailable by the Department of State.
What is the risk associated with a sole-source contract of this magnitude and duration?
The primary risk is paying a premium price due to the absence of competitive bidding. Over an extended period, this can lead to significant financial inefficiency. Additionally, there's a risk of technological obsolescence if the chosen vendor's solution is not regularly updated or if superior alternatives emerge during the contract's life.
How effective is this contract likely to be in meeting the Department of State's needs?
Assuming American Science & Engineering Inc. provides a functional and reliable high-intensity scanner, the contract can be effective in meeting the stated needs. However, the effectiveness in terms of value for money is questionable due to the lack of competition, which might have secured better pricing or more advanced features.
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: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: OSI Systems Inc
Address: 829 MIDDLESEX TPKE, BILLERICA, MA, 01821
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: $26,094,824
Exercised Options: $26,094,824
Current Obligation: $26,094,824
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2017-03-30
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2025-03-06
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