DHS awards $12.2M R&D contract to Micro-X Inc. for passenger self-screening technology

Contract Overview

Contract Amount: $12,200,005 ($12.2M)

Contractor: Micro-X Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-28

End Date: 2026-05-28

Contract Duration: 1,703 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: MICRO-X - PASSENGER SELF SCREENING BAA CALL TTA 1

Place of Performance

Location: SEATAC, KING County, WASHINGTON, 98148

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.2 million to MICRO-X INC for work described as: MICRO-X - PASSENGER SELF SCREENING BAA CALL TTA 1 Key points: 1. Contract focuses on research and development for advanced passenger screening. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Long contract duration of 1703 days indicates a phased development or long-term research effort. 4. Firm Fixed Price contract type aims to control costs and provide predictability. 5. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services. 6. Contract value of $12.2 million is moderate for R&D in this sector. 7. The awardee, Micro-X Inc., is a single entity, implying a focused research partnership.

Value Assessment

Rating: fair

The contract value of $12.2 million for a nearly five-year R&D effort appears reasonable given the specialized nature of developing advanced screening technology. Benchmarking against similar R&D contracts in homeland security or advanced sensor development would provide a clearer picture of value for money. The firm fixed-price structure suggests an attempt to manage cost overruns, but the inherent risks in R&D can sometimes lead to scope adjustments or unforeseen expenses.

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 bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The agency sought proposals from a broad range of qualified research and development entities.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of innovative solutions, potentially leading to more cost-effective outcomes.

Public Impact

The primary beneficiaries are the Department of Homeland Security and potentially future travelers through enhanced security screening. The contract aims to deliver advancements in passenger self-screening technology, improving security efficiency and effectiveness. The geographic impact is primarily within the United States, focusing on research and development activities. Workforce implications may include specialized R&D personnel, engineers, and scientists employed by Micro-X Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

R&D projects inherently carry risks of technical challenges and potential delays.
The long contract duration could present challenges in adapting to rapidly evolving security threats or technological advancements.
Reliance on a single contractor for this specific technology development requires careful monitoring of performance and progress.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Awarding under full and open competition suggests a robust selection process.
The focus on R&D indicates a commitment to future security enhancements.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced security screening technologies is driven by government needs for enhanced safety and efficiency. Comparable spending benchmarks would involve looking at other government R&D contracts for sensor technology, artificial intelligence in security, or advanced detection systems. The total federal spending on R&D is substantial, with significant portions allocated to defense and homeland security.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. As it was awarded under full and open competition, it is unlikely that small businesses were excluded, but there is no explicit mechanism to ensure their participation or subcontracting. The impact on the small business ecosystem would depend on whether Micro-X Inc. engages small businesses as subcontractors, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security. Accountability measures are embedded in the contract's performance requirements and milestones. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General's office for DHS would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract.

Related Government Programs

Homeland Security Advanced Research Projects Agency (HSARPA) initiatives
Transportation Security Administration (TSA) technology development programs
Department of Defense research contracts
National Science Foundation (NSF) R&D grants

Risk Flags

Long contract duration may lead to technology obsolescence.
R&D projects carry inherent technical and schedule risks.
Dependence on a single contractor for critical technology development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.2 million to MICRO-X INC. MICRO-X - PASSENGER SELF SCREENING BAA CALL TTA 1

Who is the contractor on this award?

The obligated recipient is MICRO-X 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 $12.2 million.

What is the period of performance?

Start: 2021-09-28. End: 2026-05-28.

What is the specific technological advancement Micro-X Inc. is expected to deliver under this contract?

The contract, identified as 'MICRO-X - PASSENGER SELF SCREENING BAA CALL TTA 1,' suggests a focus on developing or enhancing passenger self-screening capabilities. This could involve technologies that allow passengers to interact with screening equipment more autonomously, potentially speeding up the process or improving accuracy. Specific details on the exact technological advancements, such as the type of sensors, algorithms, or user interface improvements, are not publicly detailed in the award abstract but would be outlined in the Broad Agency Announcement (BAA) call and subsequent proposal. The goal is likely to improve the efficiency and effectiveness of security checkpoints by leveraging innovative R&D.

How does the $12.2 million contract value compare to similar R&D efforts in passenger screening technology?

Benchmarking the $12.2 million contract value requires comparing it to similar Research and Development (R&D) contracts for advanced passenger screening technologies. While specific comparable contracts are not provided, R&D efforts in this specialized field can vary significantly in cost depending on the maturity of the technology, the scope of work, and the duration. Contracts for fundamental research might be smaller, while those for prototype development and testing of complex systems, like advanced imaging or AI-driven threat detection, can reach tens of millions of dollars. Given the nearly five-year duration (1703 days) and the focus on developing new capabilities, $12.2 million appears to be a moderate investment for this type of specialized R&D within the homeland security sector.

What are the key performance indicators (KPIs) or milestones for this contract?

Key performance indicators (KPIs) and milestones for this specific contract are not detailed in the provided award abstract. However, for a Research and Development (R&D) contract of this nature, typical KPIs would likely revolve around technical achievements, such as the successful development of specific technological components, meeting performance specifications for detection rates or false alarm rates, successful integration of subsystems, and timely completion of prototypes. Milestones would likely be tied to phases of development, such as preliminary design reviews, critical design reviews, prototype demonstrations, and final testing and evaluation. The contracting officer and program managers within the Department of Homeland Security would monitor progress against these defined benchmarks.

What is Micro-X Inc.'s track record in government contracting, particularly in R&D for security applications?

Information regarding Micro-X Inc.'s specific track record in government contracting, particularly within R&D for security applications, is not detailed in the provided award abstract. To assess their suitability, a review of their past performance on similar federal contracts, their history of innovation, and their success in delivering complex R&D projects would be necessary. Their ability to secure this contract suggests they possess the requisite technical expertise and capabilities deemed necessary by the Department of Homeland Security for developing passenger self-screening technology. Further investigation into their contract history and project outcomes would provide a more comprehensive understanding of their capabilities.

What are the potential risks associated with the long duration of this contract (1703 days)?

The long duration of 1703 days (approximately 4.67 years) for this R&D contract presents several potential risks. Firstly, the rapid pace of technological advancement in security and screening could render the developed technology obsolete or less effective by the time the contract concludes. Secondly, evolving threat landscapes may necessitate changes in requirements that are difficult to accommodate within a fixed-price contract over an extended period. Thirdly, maintaining consistent focus and momentum from the contractor over such a long timeframe can be challenging. Finally, long-term R&D projects carry inherent technical risks, where the desired outcomes may prove more difficult or impossible to achieve than initially anticipated, potentially leading to delays or cost overruns if not managed proactively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › Transportation R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70RSAT20RB0000002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 319 S 295TH PLACE, FEDERAL WAY, WA, 98003

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

Financial Breakdown

Contract Ceiling: $18,319,913

Exercised Options: $12,661,827

Current Obligation: $12,200,005

Actual Outlays: $9,004,518

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline