DHS leases X-ray equipment for $234,750 over three years, awarded via full and open competition

Contract Overview

Contract Amount: $234,750 ($234.7K)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-03-01

End Date: 2027-02-28

Contract Duration: 1,094 days

Daily Burn Rate: $215/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, 20212

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $234,749.88 to SMITHS DETECTION INC. for work described as: X-RAY LEASE FOR FPS REGION 11 Key points: 1. The contract value appears reasonable for specialized equipment rental over a multi-year period. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The fixed-price contract type limits the government's exposure to cost overruns. 4. The lease duration of nearly three years provides stable access to necessary equipment. 5. The equipment category (machinery and equipment rental) is broad, requiring specific benchmarking for precise value assessment. 6. The award is a delivery order, indicating it's part of a larger contract vehicle.

Value Assessment

Rating: good

The total contract value of $234,750 for a three-year lease of X-ray equipment is approximately $78,250 per year. Without specific details on the type and capabilities of the X-ray equipment, a direct comparison to similar contracts is challenging. However, for specialized security screening equipment, this annual cost seems within a reasonable range, especially considering it includes rental and potentially maintenance. The firm fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This method generally promotes a competitive environment, allowing multiple vendors to offer their services and pricing. The number of bidders is not specified, but the chosen procurement method suggests that the agency sought to maximize competition to achieve the best value.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The Department of Homeland Security (DHS) benefits from access to necessary X-ray screening equipment. This equipment is likely used for security screening purposes within Region 11 of DHS operations. The services delivered include the rental of specialized X-ray machinery. The geographic impact is focused on the District of Columbia, where the contract is registered. The contract supports the operational readiness and security functions of DHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the X-ray equipment's capabilities and age.
The absence of the number of bidders makes it difficult to fully assess the intensity of competition.
Potential for higher costs if the equipment is highly specialized or if maintenance is not fully included.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
The lease duration of nearly three years ensures consistent availability of the equipment.

Sector Analysis

This contract falls within the 'Other Commercial and Industrial Machinery and Equipment Rental and Leasing' category. This sector encompasses a wide range of equipment leasing services. Benchmarking requires understanding the specific type of X-ray equipment (e.g., cargo scanners, baggage scanners). Spending in this broad category can vary significantly based on industry needs, from construction equipment to specialized industrial machinery. The value of this specific lease appears modest within the broader context of federal equipment leasing.

Small Business Impact

The data indicates that small business participation was not a specific requirement for this contract (ss: false, sb: false). There is no explicit mention of small business set-asides or subcontracting goals. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for support services not detailed in this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Homeland Security's Office of Procurement Operations. As a delivery order under a potentially larger contract vehicle, oversight might also be governed by the terms of that base contract. Transparency is facilitated by the public availability of contract data, but detailed operational oversight and performance monitoring are internal agency functions. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Protective Service Equipment Leases
Department of Homeland Security Security Equipment Contracts
General Services Administration (GSA) Schedule Contracts (if applicable)
Commercial and Industrial Machinery Rental

Risk Flags

Lack of Specific Equipment Details
Unknown Number of Bidders
No Explicit Performance Metrics Mentioned

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $234,749.88 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 $234,749.88.

What is the period of performance?

Start: 2024-03-01. End: 2027-02-28.

What specific type of X-ray equipment is being leased, and what are its technical specifications?

The provided data does not specify the exact type or technical specifications of the X-ray equipment being leased. The North American Industry Classification System (NAICS) code 532490, 'Other Commercial and Industrial Machinery and Equipment Rental and Leasing,' is very broad. To assess value and suitability, details such as whether it's for baggage screening, cargo inspection, or other security applications, its imaging capabilities, throughput, and age would be crucial. Without this information, it's difficult to benchmark the lease cost against market rates for comparable equipment.

How many bids were received for this delivery order, and what was the range of proposed prices?

The available data indicates the contract was awarded under 'Full and Open Competition' but does not specify the number of bids received or the range of proposed prices. A higher number of bids typically suggests more robust competition, which can lead to better pricing for the government. Knowing the number of bidders would help determine if the competition was sufficiently intense to drive down costs effectively and if the selected offer represented a strong value proposition compared to alternatives.

What is the track record of Smiths Detection Inc. in providing similar X-ray equipment leasing services to the federal government?

Smiths Detection Inc. is a known provider of security screening technology, including X-ray systems, to government agencies worldwide. While this specific award is for a lease, the company's broader experience in manufacturing and supplying such equipment suggests a level of technical expertise. A deeper analysis would involve reviewing their past performance on federal contracts, including any reported issues, contract terminations, or positive performance evaluations, to gauge their reliability and capability in fulfilling this lease agreement.

How does the annual cost of this lease compare to purchasing similar X-ray equipment outright?

The annual cost of this lease is approximately $78,250 ($234,750 / 3 years). To compare this to purchasing, one would need to estimate the purchase price of comparable X-ray equipment, factoring in its expected lifespan, maintenance costs, and potential depreciation. If the purchase price is significantly higher than three years' worth of lease payments, and the equipment is expected to remain technologically relevant beyond the lease term, purchasing might be more cost-effective. Conversely, leasing offers flexibility and avoids large upfront capital expenditures, which can be advantageous if technology evolves rapidly or operational needs change.

Are there any performance metrics or service level agreements (SLAs) associated with this lease agreement?

The provided contract data does not detail specific performance metrics or Service Level Agreements (SLAs) for this X-ray equipment lease. Typically, such agreements would outline requirements for equipment uptime, response times for maintenance and repairs, and potentially equipment performance standards. The absence of this information in the summary data makes it difficult to assess how the government will ensure the equipment is consistently operational and meets its intended security functions throughout the lease period.

What is the historical spending pattern for X-ray equipment rental or leasing by the Department of Homeland Security?

The provided data focuses solely on this specific delivery order and does not offer historical spending patterns for X-ray equipment leasing by DHS. To understand historical trends, one would need to analyze past contract awards for similar equipment, including the types of equipment leased, the duration of leases, the procuring agencies within DHS, and the total amounts spent over several fiscal years. This broader analysis would help contextualize the current $234,750 expenditure and identify any significant increases or decreases in leasing activities.

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: $414,505

Exercised Options: $234,750

Current Obligation: $234,750

Actual Outlays: $123,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP321DEH000001

IDV Type: IDC

Timeline