DoD's $211M Army Contract for Search & Detection Instruments Awarded to Smiths Detection Inc
Contract Overview
Contract Amount: $211,117,691 ($211.1M)
Contractor: Smiths Detection Inc.
Awarding Agency: Department of Defense
Start Date: 2007-09-12
End Date: 2017-10-31
Contract Duration: 3,702 days
Daily Burn Rate: $57.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION YEAR 6
Place of Performance
Location: EDGEWOOD, HARFORD County, MARYLAND, 21040
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $211.1 million to SMITHS DETECTION INC. for work described as: PRODUCTION YEAR 6 Key points: 1. Significant contract value of over $211 million awarded to a single vendor. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract spans a decade, indicating long-term reliance on the vendor's products. 4. The sector is focused on specialized defense instrumentation, critical for military operations.
Value Assessment
Rating: fair
The contract's total value is substantial. Without specific unit cost data or benchmarks for similar systems, assessing the pricing's fairness is difficult. The firm fixed-price structure provides cost certainty but doesn't inherently guarantee optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can drive competitive pricing. However, the long duration and specific nature of the equipment may limit the number of truly capable competitors.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers, as it aims to secure the best possible price through market forces. The long-term nature of the contract, however, warrants scrutiny to ensure continued value.
Public Impact
Ensures availability of critical search and detection equipment for the Army. Supports advanced technology in navigation and guidance systems for military applications. Potential for technological advancements driven by long-term defense contracts. Impacts the defense industrial base and specialized manufacturing capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 57 / 10
Warning Flags
- Long contract duration (10 years) may reduce flexibility and lock in potentially suboptimal pricing.
- Lack of detailed unit cost data makes value assessment challenging.
- Sole vendor for a decade could stifle innovation from competitors.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Firm fixed-price contract provides budget predictability.
- Supports critical national defense capabilities.
Sector Analysis
This contract falls within the defense sector, specifically manufacturing instruments for search, detection, and navigation. Spending in this area is driven by national security needs and technological advancements in military hardware. Benchmarks are difficult without specific system comparisons, but large, long-term defense contracts are common.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract's long duration and significant value necessitate robust oversight to ensure performance, adherence to specifications, and fair pricing throughout its lifecycle. Regular reviews and performance metrics are crucial for accountability.
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
- Long-term commitment may lead to price inflexibility.
- Potential for technology obsolescence over the contract's 10-year span.
- Limited visibility into specific unit costs hinders value assessment.
- Dependence on a single vendor for a decade could reduce future competitive options.
Tags
search-detection-navigation-guidance-aer, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $211.1 million to SMITHS DETECTION INC.. PRODUCTION YEAR 6
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 $211.1 million.
What is the period of performance?
Start: 2007-09-12. End: 2017-10-31.
What specific technological capabilities does this contract procure, and how do they compare to current industry standards?
The contract covers 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' This broad category likely includes advanced sensors, communication equipment, and integrated systems. A detailed analysis would require comparing the specific technical specifications outlined in the contract against the latest available technologies from Smiths Detection and its competitors to assess if the procured systems represent state-of-the-art capabilities or are becoming outdated.
Given the 10-year duration, what mechanisms are in place to ensure the government is not overpaying as technology evolves or competition increases?
The firm fixed-price (FFP) contract provides cost certainty but can become a liability if market prices decrease or technology advances rapidly. Mechanisms like periodic reviews, potential for contract modifications (though less likely with FFP), or incorporating clauses for technological refresh could mitigate this. However, without explicit contract details on such provisions, the risk of overpayment due to obsolescence or changing market dynamics remains a concern.
How effective has Smiths Detection Inc. been in fulfilling previous similar contracts with the Department of Defense or other agencies?
Assessing the effectiveness requires reviewing past performance records, delivery timeliness, quality control, and any documented issues or disputes related to Smiths Detection's prior contracts. Information on past performance, including CPARS (Contractor Performance Assessment Reporting System) ratings, would provide crucial insights into the company's reliability and capability to meet the demanding requirements of this significant, long-term defense 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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911SR06R0031
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Smiths Group PLC (UEI: 210273256)
Address: 2202 LAKESIDE BLVD, EDGEWOOD, MD, 21040
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $235,848,472
Exercised Options: $211,117,691
Current Obligation: $211,117,691
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-12
Current End Date: 2017-10-31
Potential End Date: 2017-10-31 00:00:00
Last Modified: 2017-05-09
More Contracts from Smiths Detection Inc.
- Jcad Lrip — $324.2M (Department of Defense)
- GE Homeland Protection, Inc. Hsts04-05-D-Dep008 Modification: Hsts0408jct3026 Preventative and Correctvie Maintenance for GE CTX Deployed Units. Specifically, CTX 2500, CTX 5500, CTX 9000, and CTX 9400 — $182.1M (Department of Homeland Security)
- Delivery Order 70t04019f5cap1065 (DO3) IS Issued for the Purchase of Medium Speed Explosive Detection Systems (mseds), Ancillary Equipment and Installation to Support Airport Projects Nationwide — $103.8M (Department of Homeland Security)
- Purchase and Installation of Medium Speed Explosive Detection Systems — $98.7M (Department of Homeland Security)
- This Firm Fixed Price Contract IS for the Contractor to Provide the Transportation Security Administration (TSA) With Advanced Technology / Computed Tomography (at/Ct) Systems, Simulators, Warranties, Configuration Management Services, Program Management, Shipping and Installation, AS Well AS ANY Other Labor, Travel, and Materials Required to Meet the Requirements of the Statement of Work (SOW) — $96.0M (Department of Homeland Security)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)