Army Awards $324M JCAD LRIP Contract to Smiths Detection Inc. for Search and Detection Systems
Contract Overview
Contract Amount: $324,151,460 ($324.2M)
Contractor: Smiths Detection Inc.
Awarding Agency: Department of Defense
Start Date: 2007-06-30
End Date: 2011-09-16
Contract Duration: 1,539 days
Daily Burn Rate: $210.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JCAD LRIP
Place of Performance
Location: EDGEWOOD, HARFORD County, MARYLAND, 21040
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $324.2 million to SMITHS DETECTION INC. for work described as: JCAD LRIP Key points: 1. The contract value of $324.15 million for the JCAD LRIP program represents a significant investment in defense technology. 2. The sole awardee, Smiths Detection Inc., indicates a lack of competition for this specific contract. 3. The absence of competition raises potential risks regarding price discovery and overall value for taxpayer money. 4. The sector is focused on advanced manufacturing for critical defense systems, specifically search and detection instruments.
Value Assessment
Rating: questionable
Without competitive bidding, it's difficult to assess if the $324.15 million awarded represents fair market value. Benchmarking against similar, competitively procured systems would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning only one source, Smiths Detection Inc., was considered. This limits price discovery and potentially leads to higher costs than if multiple vendors had bid.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds, as a competitive process could have potentially secured a lower price.
Public Impact
Enhances military capabilities in search and detection, crucial for personnel and equipment safety. Supports advanced manufacturing and technological development within the defense industrial base. Potential for increased costs to taxpayers due to the sole-source nature of the award. Impacts the market for specialized detection equipment, potentially limiting opportunities for other manufacturers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpricing
Positive Signals
- Acquisition of critical defense technology
- Award to established defense contractor
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on advanced instruments for search, detection, navigation, guidance, and related systems. Spending benchmarks in this niche area are highly dependent on technological complexity and program scale.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the sole-source nature of this large contract likely means limited direct opportunities for small businesses to participate as prime contractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program management reviews, quality assurance, and financial audits to ensure contract compliance and performance.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited market access for other vendors
- Dependency on a single supplier
Tags
search-detection-navigation-guidance-aer, department-of-defense, md, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $324.2 million to SMITHS DETECTION INC.. JCAD LRIP
Who is the contractor on this award?
The obligated recipient is SMITHS DETECTION INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $324.2 million.
What is the period of performance?
Start: 2007-06-30. End: 2011-09-16.
What is the specific technological advantage or unique capability that justified a sole-source award for the JCAD LRIP?
A sole-source award is typically justified when only one responsible source can provide the required supplies or services. For the JCAD LRIP, this could be due to proprietary technology, unique manufacturing capabilities, or a critical need for a specific, already-qualified system that no other vendor can replicate within the required timeframe or specifications.
How does the absence of competition impact the long-term sustainment and upgrade costs of the JCAD system?
The lack of competition can lead to higher long-term sustainment and upgrade costs. Without competitive pressure, the incumbent contractor may face less incentive to offer competitive pricing for spare parts, maintenance, and future technology refreshes. This could result in the government paying a premium over the system's lifecycle.
What mechanisms are in place to ensure the effectiveness and performance of the JCAD system despite the sole-source award?
Despite the sole-source award, effectiveness and performance are typically ensured through rigorous contract oversight, performance metrics, acceptance testing, and quality assurance procedures. The government would still hold the contractor accountable for meeting all specified technical requirements and performance standards outlined in the contract.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument 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: Smiths Group PLC (UEI: 210273256)
Address: 2202 LAKESIDE BLVD, EDGEWOOD, MD, 01
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $324,420,491
Exercised Options: $324,420,491
Current Obligation: $324,151,460
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-30
Current End Date: 2011-09-16
Potential End Date: 2011-09-16 00:00:00
Last Modified: 2013-05-29
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