DHS awards $18.3K X-ray leasing contract to Smiths Detection Inc. for Lakewood, CO facility

Contract Overview

Contract Amount: $18,345 ($18.3K)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-06-01

End Date: 2030-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $10/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW ORDER FOR X-RAY LEASING, REGION 8, LAKEWOOD, CO BLDG CO0660 EO 25-07 EXCEPTION 2(D) APPLIES.

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18,345.36 to SMITHS DETECTION INC. for work described as: NEW ORDER FOR X-RAY LEASING, REGION 8, LAKEWOOD, CO BLDG CO0660 EO 25-07 EXCEPTION 2(D) APPLIES. Key points: 1. Leasing equipment offers flexibility and avoids upfront capital expenditure for the agency. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (5 years) indicates a long-term need for the leased equipment. 4. The specific equipment type (X-ray leasing) suggests a focus on security or inspection operations. 5. The contract value is relatively small, indicating a specific, localized need rather than a large-scale program.

Value Assessment

Rating: fair

The contract value of $18,345.36 for a 5-year lease of X-ray equipment appears to be for a specific, limited need. Without more information on the type and specifications of the X-ray machines, it is difficult to benchmark the value effectively. However, given the relatively low total cost over five years, the per-year cost is manageable. Further analysis would require comparing this lease rate to similar equipment leases for government or commercial entities of comparable size and scope.

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 suggests a robust bidding process where multiple vendors had the opportunity to compete for the contract. The level of competition, while not explicitly stated in terms of the number of bidders, is generally expected to drive more favorable pricing for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it promotes a competitive environment, which typically leads to better pricing and value for the government's expenditure.

Public Impact

The Department of Homeland Security (DHS) benefits from this contract by securing necessary X-ray leasing equipment. The services delivered include the provision and maintenance of X-ray leasing equipment. The geographic impact is localized to Lakewood, CO, specifically for Building CO0660. There are no direct workforce implications mentioned, as this is a leasing contract for equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for equipment obsolescence if technology advances rapidly during the lease term.
Dependence on the lessor for maintenance and repairs could lead to operational disruptions if not managed effectively.

Positive Signals

Leasing provides access to up-to-date technology without the burden of outright purchase and disposal.
The fixed-price nature of the contract provides cost certainty for the agency over the lease period.

Sector Analysis

The contract falls within the broader 'Commercial and Industrial Machinery and Equipment Rental and Leasing' sector. This sector is crucial for government operations, providing essential equipment for various functions, including security, logistics, and maintenance. The market for such leasing services is competitive, with numerous providers offering a range of equipment. Benchmarking this specific lease would involve comparing rates for similar X-ray equipment from various leasing companies.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this specific contract, as the 'sb' (small business set-aside) field is false. There is no mention of subcontracting requirements for small businesses. Therefore, this contract is unlikely to have a significant direct impact on the small business ecosystem, though the prime contractor may engage small businesses for ancillary services not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and procurement divisions. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services for the agreed price. Transparency is facilitated by the contract's award under full and open competition, with details likely available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DHS Security Equipment Procurement
Government Equipment Leasing Services
Commercial and Industrial Machinery Leasing

Risk Flags

Potential for higher long-term cost compared to purchase.
Dependence on lessor for maintenance and repairs.
Risk of technological obsolescence.
Contract awarded under an exception clause, requiring further scrutiny of competition impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18,345.36 to SMITHS DETECTION INC.. NEW ORDER FOR X-RAY LEASING, REGION 8, LAKEWOOD, CO BLDG CO0660 EO 25-07 EXCEPTION 2(D) APPLIES.

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 $18,345.36.

What is the period of performance?

Start: 2025-06-01. End: 2030-05-31.

What specific type of X-ray equipment is being leased, and what are its intended applications within DHS Region 8?

The provided data does not specify the exact type of X-ray equipment being leased, nor its precise applications. However, given the agency (Department of Homeland Security) and the location (a federal building), it is highly probable that the equipment is intended for security screening purposes. This could include baggage scanners, cargo inspection systems, or personnel screening devices. The 'Other Commercial and Industrial Machinery and Equipment Rental and Leasing' NAICS code (532490) is broad and encompasses various types of machinery. Further details on the specific equipment and its use would be found in the contract's statement of work or technical specifications, which are not included in the provided summary data.

How does the lease cost compare to purchasing similar X-ray equipment outright, considering a 5-year lifecycle?

Directly comparing the lease cost to an outright purchase is challenging without knowing the specific X-ray equipment model, its purchase price, expected lifespan, maintenance costs, and potential resale value. The total lease cost over five years is $18,345.36. If the purchase price of comparable equipment were, for example, $15,000, and it had a useful life of 5-7 years with annual maintenance costs of $1,000, the total cost of ownership (purchase + maintenance) would be $15,000 + (5 * $1,000) = $20,000. In this hypothetical scenario, leasing appears slightly more cost-effective. However, if the equipment depreciates quickly or has a longer useful life, purchasing might be cheaper. The agency's decision to lease likely considers factors beyond just the immediate cost, such as flexibility, avoiding obsolescence, and capital expenditure constraints.

What is the track record of Smiths Detection Inc. in providing similar leasing services to government agencies?

Smiths Detection Inc. is a well-established company specializing in security screening technology, including X-ray systems. They have a significant track record of supplying equipment and services to government agencies worldwide, including various branches of the U.S. military and homeland security organizations. While this specific contract is for leasing, the company's broader experience in manufacturing, selling, and maintaining X-ray and other detection systems suggests a strong capability to fulfill the requirements of this lease agreement. Their history likely includes numerous contracts for similar equipment, providing a basis for assessing their reliability and performance in delivering security solutions.

What are the potential risks associated with leasing X-ray equipment versus purchasing it, particularly for a federal agency?

Leasing X-ray equipment presents several potential risks for a federal agency compared to purchasing. One primary risk is the potential for higher long-term costs if the equipment has a very long useful life or if the lease terms are unfavorable. Another risk is dependence on the lessor for maintenance and timely repairs; any delays or service failures could disrupt critical security operations. Furthermore, the agency may not have the same level of control over equipment modifications or upgrades as they would with owned assets. Finally, if the agency's needs change significantly during the lease term, breaking the lease could incur penalties. However, leasing also mitigates the risk of technological obsolescence and the burden of equipment disposal.

How does the exception clause '2(d)' cited in the contract description impact the transparency and competition of this award?

The mention of 'EXCEPTION 2(d)' suggests that this contract award might be made under specific circumstances that allow for a deviation from standard procurement procedures, potentially impacting the level of transparency and competition. Without knowing the exact regulation or statute that 'EXCEPTION 2(d)' refers to, it's difficult to definitively assess its impact. However, such exceptions are typically invoked when there's a compelling reason, such as urgency, national security, or the unavailability of the required item through normal channels. If 'EXCEPTION 2(d)' allows for a less competitive process or limits the pool of eligible bidders, it could reduce price discovery and potentially lead to higher costs for taxpayers compared to a full and open competition. Further investigation into the specific nature of this exception is needed for a complete understanding.

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: $18,345

Current Obligation: $18,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP321DEH000001

IDV Type: IDC

Timeline