DHS awards $98.9M contract for non-intrusive inspection systems, with 4 bidders competing

Contract Overview

Contract Amount: $98,902,163 ($98.9M)

Contractor: Astrophysics Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-21

End Date: 2027-01-29

Contract Duration: 1,956 days

Daily Burn Rate: $50.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE.

Place of Performance

Location: WALNUT, LOS ANGELES County, CALIFORNIA, 91789

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $98.9 million to ASTROPHYSICS INC for work described as: LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE. Key points: 1. The contract value of $98.9 million over its period of performance represents a significant investment in border security technology. 2. With 4 bidders participating, the competition level suggests a moderately competitive market for these specialized inspection systems. 3. The firm-fixed-price contract type aims to control costs by shifting risk to the contractor. 4. The contract is for irradiation apparatus manufacturing, indicating a focus on advanced technology for inspection. 5. The duration of 1956 days (approximately 5.3 years) allows for sustained deployment and support of the systems. 6. The contract's geographic focus is California, aligning with specific border security needs in that region.

Value Assessment

Rating: good

Benchmarking the value of this contract requires detailed analysis of comparable systems and their pricing. However, the presence of multiple bidders in a full and open competition suggests that pricing was likely scrutinized. The firm-fixed-price structure further supports cost control. Without specific per-unit cost data or direct comparisons to similar systems procured by other agencies, a definitive value assessment is challenging, but the competitive nature provides a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four distinct bidders vying for the opportunity. This level of competition is generally favorable as it encourages multiple vendors to offer their best pricing and technical solutions. The presence of four bidders indicates a healthy, though not overly saturated, market for these specialized inspection systems, allowing for price discovery and a reasonable selection of qualified providers.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation. The selection of a qualified contractor from a pool of four bidders suggests a good balance between achieving a competitive price and ensuring the government receives a high-quality solution.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) personnel who will utilize these advanced inspection systems. The contract delivers critical services including the provision of low energy non-intrusive inspection systems, along with essential training and ongoing maintenance. The geographic impact is concentrated in California, supporting border security operations in that specific region. Workforce implications include the need for trained operators and maintenance personnel for the new systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if training and maintenance are exclusively tied to the initial system provider.
The specialized nature of the technology might limit the pool of qualified maintenance personnel.
Reliance on a single contractor for both systems and maintenance could pose supply chain risks.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
The contract includes training and maintenance, ensuring operational readiness and longevity of the systems.

Sector Analysis

The market for non-intrusive inspection systems is a specialized segment within the broader security and defense technology sector. This contract falls under irradiation apparatus manufacturing, indicating a focus on technologies that use radiation for detection and screening. The global market for security and inspection equipment is substantial, driven by increasing needs for border control, cargo screening, and threat detection. Comparable spending benchmarks would involve analyzing other large-scale procurements of similar inspection technologies by government agencies.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' (small business set-aside) field is false. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for specialized support or components.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's existing procurement and contract management frameworks. Accountability measures are embedded in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified systems and services within the agreed-upon price. Transparency is generally maintained through contract award notices and public databases, though specific performance metrics and oversight activities may not be fully public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Border Security Technology
U.S. Customs and Border Protection Equipment Procurement
Irradiation Apparatus Manufacturing Contracts
Non-Intrusive Inspection Systems
Federal Security Technology Spending

Risk Flags

Contract duration is long, potentially leading to technology obsolescence.
Reliance on a single vendor for specialized systems and maintenance could create dependencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $98.9 million to ASTROPHYSICS INC. LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is ASTROPHYSICS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $98.9 million.

What is the period of performance?

Start: 2021-09-21. End: 2027-01-29.

What is the specific type of 'low energy non-intrusive inspection system' being procured, and what are its key technical specifications?

The provided data identifies the contract as being for 'LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE.' However, it does not specify the exact technology or its technical parameters. Typically, such systems might include advanced X-ray, gamma-ray, or other radiation-based scanners designed to detect contraband, weapons, or other illicit materials without requiring physical unpacking of cargo or baggage. Low energy systems are often preferred for certain applications to minimize radiation exposure and operational complexity. Detailed specifications would be found in the contract's Statement of Work (SOW) and technical exhibits, which are not included in this summary data. These would outline resolution, penetration depth, imaging capabilities, and operational throughput requirements.

How does the per-unit cost of these inspection systems compare to similar systems procured by other federal agencies or in the commercial market?

The provided data does not include per-unit cost information or allow for direct comparison to other procurements. The total contract value is $98.9 million over approximately 5.3 years (1956 days). To assess per-unit cost, one would need to know the number of systems being procured. Without this quantity, calculating a meaningful per-unit cost is impossible. Furthermore, benchmarking requires access to pricing data for comparable systems from other agencies (e.g., Department of Defense, other DHS components) or commercial market intelligence. Factors like system capabilities, manufacturer, and volume discounts significantly influence pricing, making direct comparisons complex without detailed context.

What is Astrophysics Inc.'s track record with Department of Homeland Security or similar government contracts, particularly in providing inspection systems?

Astrophysics Inc. is identified as the contractor. A thorough assessment of their track record would involve reviewing their past performance on federal contracts, specifically those involving the Department of Homeland Security (DHS) or other agencies with similar security needs. This includes examining past contract awards, performance evaluations (e.g., CPARS reports), and any history of contract disputes or issues. Their specialization in 'Irradiation Apparatus Manufacturing' suggests relevant expertise. However, without access to specific performance data or a history of their prior contracts with DHS, it is difficult to definitively assess their track record beyond their stated industry focus.

What are the potential risks associated with a firm-fixed-price contract for complex technology like inspection systems, and how are they mitigated?

Firm-fixed-price (FFP) contracts are designed to provide cost certainty to the government by shifting most of the cost risk to the contractor. For complex technology, potential risks include the contractor underestimating development or production costs, leading to potential quality compromises or contractor default if they cannot deliver at the agreed price. Mitigation strategies employed by the government often include rigorous technical evaluations during the solicitation phase to ensure realistic proposals, clear and detailed performance specifications in the SOW, and robust contract administration to monitor progress and quality. The government may also include clauses for termination for default or convenience, and require performance bonds to protect against contractor failure.

How does the $98.9 million spending on these inspection systems fit within the broader context of DHS's overall budget for border security technology?

The $98.9 million contract represents a significant, but likely not dominant, portion of the Department of Homeland Security's (DHS) overall budget for border security technology. DHS, and specifically U.S. Customs and Border Protection (CBP), invests billions annually in a wide array of technologies, including surveillance systems, sensors, vehicles, aircraft, and various types of inspection equipment. This contract focuses on a specific niche: low energy non-intrusive inspection systems. To understand its relative scale, one would need to compare it against DHS's total budget appropriations for technology and equipment procurement in fiscal years 2021 through 2027 (the contract period). It is a substantial investment in a critical capability but should be viewed within the larger portfolio of border security investments.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21481 FERRERO PKWY, CITY OF INDUSTRY, CA, 91789

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $98,902,163

Exercised Options: $98,902,163

Current Obligation: $98,902,163

Actual Outlays: $69,939,396

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B03C21D00000035

IDV Type: IDC

Timeline