DHS leases X-ray machines for $49,903 over 5 years, with a focus on Georgia

Contract Overview

Contract Amount: $49,903 ($49.9K)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-01-01

End Date: 2027-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $27/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: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $49,903.2 to SMITHS DETECTION INC. for work described as: LEASE OF X-RAY MACHINES Key points: 1. The contract value appears modest for a 5-year lease of specialized equipment. 2. Competition dynamics are favorable, indicating potential for good pricing. 3. Risk indicators are low, with a firm fixed-price contract type. 4. Performance context suggests a routine equipment lease with defined delivery and end dates. 5. The contract positions the agency to acquire necessary equipment without a large capital outlay.

Value Assessment

Rating: good

The lease cost of approximately $10,000 per year for X-ray machines seems reasonable, especially considering it avoids a large upfront purchase. Benchmarking against similar equipment leases is difficult without specific model details, but the overall value appears fair for acquiring necessary operational tools. The firm fixed-price structure provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. The presence of a single delivery order under this contract implies that the initial competition was robust enough to secure a vendor for the required services. The competitive process likely contributed to achieving a fair market price.

Taxpayer Impact: A competitive award ensures that taxpayer dollars are used efficiently by preventing inflated pricing that might occur with sole-source or limited competition contracts.

Public Impact

The Department of Homeland Security benefits from access to essential X-ray equipment. The services delivered include the rental and leasing of X-ray machines. The geographic impact is concentrated in Georgia, where the equipment will be deployed. Workforce implications are minimal, likely involving training for personnel operating the leased equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a healthy market.
Firm fixed-price contract type limits cost uncertainty.
Modest contract value suggests efficient use of funds for equipment leasing.

Sector Analysis

The market for commercial and industrial machinery rental and leasing is diverse, encompassing a wide range of equipment. This contract falls within the broader category of equipment leasing services, which is crucial for government agencies needing specialized tools without the burden of ownership. Comparable spending benchmarks for X-ray machine leases vary significantly based on type and duration, but this contract's value appears aligned with typical operational leasing costs.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this particular award. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely limited, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and procurement divisions. Accountability is maintained through the firm fixed-price agreement, requiring delivery of specified equipment. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract terms and vendor.

Related Government Programs

Department of Homeland Security Equipment Leases
Commercial and Industrial Machinery Leasing
Federal X-ray Equipment Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $49,903.2 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 $49,903.2.

What is the period of performance?

Start: 2023-01-01. End: 2027-12-31.

What is the specific type and model of X-ray machine being leased, and how does its capability compare to market standards?

The provided data does not specify the exact model or technical capabilities of the X-ray machines being leased. This information is crucial for a precise value assessment, as different models offer varying levels of sophistication, throughput, and security screening capabilities. Without this detail, it's challenging to benchmark the lease cost against specific market offerings for comparable technology. Future analysis should seek to identify the specific equipment to ensure it meets operational requirements and is priced competitively within its technological class.

How does the annual lease cost of approximately $10,000 per machine compare to the purchase price or lease costs of similar equipment from other vendors?

The annual lease cost of approximately $10,000 per X-ray machine represents a portion of the total contract value spread over five years. To benchmark this effectively, one would need to compare it against the purchase price of similar machines (to understand the implied financing and depreciation costs) and against lease rates offered by other vendors for comparable equipment. Given the 'full and open competition' award, it suggests the price was deemed competitive at the time of award. However, without specific model details and market survey data, a definitive comparison is difficult. A deeper dive into the market for security screening equipment leases would provide a more robust benchmark.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this lease agreement?

The provided contract abstract does not detail specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this X-ray machine lease. Typically, such agreements would outline requirements for equipment uptime, maintenance response times, and operational readiness. The absence of this information in the summary suggests these details are likely contained within the full contract document. For a comprehensive understanding of performance expectations and accountability, reviewing the detailed contract terms, including any maintenance clauses or performance guarantees, would be necessary.

What is the historical spending pattern for X-ray machine leases by the Department of Homeland Security or similar agencies?

Historical spending data for X-ray machine leases by the Department of Homeland Security (DHS) or comparable agencies is not provided in the current data. Understanding past spending patterns would offer valuable context for evaluating the current contract's value and necessity. Analyzing trends in lease durations, equipment types, and total expenditures over several fiscal years could reveal patterns of consistent need, potential cost efficiencies, or shifts in procurement strategies. Without this historical perspective, it is difficult to assess if this $49,903 contract represents an increase, decrease, or stable level of spending for such services.

What is the expected lifespan or depreciation schedule for the leased X-ray machines, and how does this influence the lease value?

The provided contract details do not include information on the expected lifespan or depreciation schedule of the leased X-ray machines. This data is typically proprietary to the leasing company or outlined in the full contract. The lease value is influenced by the lessor's assessment of the equipment's residual value at the end of the lease term, its expected operational life, and associated maintenance costs. A shorter expected lifespan or higher depreciation rate would generally translate to higher lease payments. Without these specifics, it's challenging to fully evaluate the financial structure and long-term value proposition of the lease.

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: $61,974

Exercised Options: $49,903

Current Obligation: $49,903

Actual Outlays: $32,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP321DEH000001

IDV Type: IDC

Timeline