DHS Leases X-Ray Equipment for $2.1M, Awarded to Smiths Detection Inc

Contract Overview

Contract Amount: $2,101,717 ($2.1M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-07-30

End Date: 2026-08-31

Contract Duration: 1,858 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: X-RAY LEASE FOR FPS REGION 11

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.1 million to SMITHS DETECTION INC. for work described as: X-RAY LEASE FOR FPS REGION 11 Key points: 1. The lease for X-ray equipment represents a significant investment in security infrastructure. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration is substantial, spanning over 1800 days. 4. The sector involves specialized industrial machinery rental and leasing.

Value Assessment

Rating: fair

The lease cost of $2.1 million over approximately five years needs comparison with similar X-ray equipment leases for government agencies. Without specific unit costs or detailed equipment specifications, a precise value assessment is difficult.

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 a broad range of bidders and can lead to better price discovery. The final price reflects the outcome of this competitive process.

Taxpayer Impact: Taxpayers are funding the lease of essential security equipment, with the cost determined through a competitive bidding process.

Public Impact

Enhances security screening capabilities at ports of entry or other critical facilities. Supports the Department of Homeland Security's mission to secure borders and transportation. Provides essential technology for detecting threats and contraband.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lease vs. purchase analysis could reveal long-term cost implications.
Equipment obsolescence risk over the 5-year lease term.
Dependence on a single vendor for maintenance and support.

Positive Signals

Utilizes competitive procurement to secure equipment.
Addresses a critical operational need for security screening.
Long-term contract provides budget stability for equipment.

Sector Analysis

This contract falls within the Other Commercial and Industrial Machinery and Equipment Rental and Leasing sector. Spending in this area is driven by the need for specialized equipment across various government functions, including security and operations.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small businesses had an opportunity to participate in the bidding process.

Oversight & Accountability

The contract was managed by the Office of Procurement Operations within the Department of Homeland Security. Oversight would involve ensuring adherence to contract terms, performance standards, and financial accountability throughout the lease period.

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

Lease vs. Purchase Analysis
Technology Obsolescence
Vendor Lock-in
Long-term Cost Efficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.1 million to SMITHS DETECTION INC.. X-RAY LEASE FOR FPS REGION 11

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 $2.1 million.

What is the period of performance?

Start: 2021-07-30. End: 2026-08-31.

What is the total cost per year for this X-ray equipment lease?

The total lease cost is $2,101,717.05 over approximately 1858 days (roughly 5.1 years). This equates to an approximate annual cost of $410,000. This figure should be compared against industry benchmarks for similar equipment to assess value for money.

What are the primary risks associated with leasing rather than purchasing this X-ray equipment?

The primary risks include potential obsolescence of technology over the lease term, lack of asset ownership and equity building, and potentially higher long-term costs compared to purchasing outright. There's also a risk of vendor lock-in for future upgrades or replacements.

How does the full and open competition impact the effectiveness of this procurement?

Full and open competition generally enhances procurement effectiveness by fostering a wider pool of potential suppliers, driving innovation, and ensuring competitive pricing. This method increases the likelihood of obtaining the best value and suitable equipment for the agency's needs.

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: $2,101,717

Exercised Options: $2,101,717

Current Obligation: $2,101,717

Actual Outlays: $1,031,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQEC16D00007

IDV Type: IDC

Timeline