DHS Leases X-Ray Machines for $45.9M from Smiths Detection Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $45,863 ($45.9K)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-05-01

End Date: 2027-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $25/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LEASE OF X-RAY MACHINES

Place of Performance

Location: FORT MYERS, LEE County, FLORIDA, 33912

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $45,863.4 to SMITHS DETECTION INC. for work described as: LEASE OF X-RAY MACHINES Key points: 1. Contract awarded to Smiths Detection Inc. for X-ray machine leases. 2. The contract value is $45.9 million over five years. 3. Full and open competition was utilized for this procurement. 4. The contract falls under the 'Other Commercial and Industrial Machinery and Equipment Rental and Leasing' NAICS code.

Value Assessment

Rating: good

The contract value of $45.9 million for five years of X-ray machine leases appears reasonable given the specialized nature of the equipment. Benchmarking against similar government or commercial leases would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, potentially driving down costs and ensuring fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for essential equipment.

Public Impact

Ensures operational readiness for Department of Homeland Security (DHS) security screening. Provides advanced X-ray technology for critical infrastructure protection. Supports border security and law enforcement operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized
Firm fixed price contract type

Sector Analysis

This contract falls under the rental and leasing of commercial and industrial machinery. Spending in this sector can vary widely based on technological advancements and specific agency needs. Benchmarks for similar equipment leases are not readily available.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses had the opportunity to compete or if subcontracting opportunities exist.

Oversight & Accountability

The contract is managed by the Office of Procurement Operations within DHS, suggesting established oversight mechanisms. However, ongoing monitoring of equipment performance and vendor compliance is crucial.

Related Government Programs

Other Commercial and Industrial Machinery and Equipment Rental and Leasing
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Potential vendor lock-in
Dependence on single vendor for maintenance
Lack of specific technical details on equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $45,863.4 to SMITHS DETECTION INC.. LEASE OF X-RAY MACHINES

Who is the contractor on this award?

The obligated recipient is SMITHS DETECTION INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $45,863.4.

What is the period of performance?

Start: 2022-05-01. End: 2027-04-30.

What is the specific type and capability of the X-ray machines being leased, and how do they compare to commercially available alternatives?

The specific model and technical specifications of the X-ray machines are not detailed in the provided data. Understanding their capabilities (e.g., resolution, throughput, threat detection) is crucial for assessing their value. A comparison to similar commercial systems would help determine if the government is receiving advanced technology at a competitive price or if off-the-shelf solutions could suffice.

What are the potential risks associated with relying on a single vendor for the maintenance and operation of critical X-ray screening equipment over a five-year period?

Relying on a single vendor for five years carries risks such as potential price increases upon contract renewal, vendor lock-in, and dependence on their service availability. If the vendor experiences financial difficulties or operational issues, it could disrupt DHS operations. Contingency plans for equipment failure or vendor non-performance should be robust.

How effectively will these leased X-ray machines contribute to the Department of Homeland Security's overall mission objectives, particularly in areas like border security and counter-terrorism?

The effectiveness of these leased X-ray machines hinges on their deployment locations and the specific threats they are intended to detect. If deployed at high-traffic ports of entry or critical facilities, they can significantly enhance threat detection capabilities, thereby contributing to border security and counter-terrorism efforts. Regular performance reviews and threat intelligence updates are necessary to ensure continued effectiveness.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2202 LAKESIDE BLVD, EDGEWOOD, MD, 21040

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

Financial Breakdown

Contract Ceiling: $45,863

Exercised Options: $45,863

Current Obligation: $45,863

Actual Outlays: $26,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP321DEH000001

IDV Type: IDC

Timeline