DHS awards $5.5M R&D contract for passenger screening tech to Vanderlande Industries Inc

Contract Overview

Contract Amount: $5,539,936 ($5.5M)

Contractor: Vanderlande Industries Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-11-22

End Date: 2025-12-31

Contract Duration: 1,500 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: EO14042 VANDERLANDE - PASSENGER SELF SCREENING BAA CALL TTA 1

Plain-Language Summary

Department of Homeland Security obligated $5.5 million to VANDERLANDE INDUSTRIES INC. for work described as: EO14042 VANDERLANDE - PASSENGER SELF SCREENING BAA CALL TTA 1 Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. Contract duration of 1500 days suggests a long-term development effort. 4. Firm Fixed Price contract type aims to control costs for the government. 5. Vanderlande Industries Inc. is the sole awardee, raising questions about broader industry engagement. 6. The contract's value is modest within the context of large federal R&D spending. 7. Specific performance metrics and deliverables are not detailed in the provided data.

Value Assessment

Rating: fair

The contract value of $5.5 million for a 1500-day R&D effort appears reasonable on its face, averaging approximately $3,696 per day. Without specific deliverables or benchmarks for similar passenger screening R&D projects, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests an attempt to manage cost overruns. Further analysis would require understanding the scope of work and the technological advancements expected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' which typically means that all responsible sources were permitted to submit a bid. The data indicates three bids were received. While this suggests some level of competition, the fact that only one award was made implies that Vanderlande Industries Inc. was the most advantageous offer. The level of competition can influence price discovery, but without knowing the technical requirements and the number of technically capable bidders, it's hard to definitively say if the competition was robust enough to drive the lowest possible price.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to offer their best pricing and innovative solutions, potentially leading to a more cost-effective outcome for this R&D initiative.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security and its agencies, such as TSA, seeking to improve passenger screening processes. The contract aims to deliver advancements in physical, engineering, and life sciences related to passenger screening technology. Geographic impact is likely focused on airports and transportation hubs within the United States. Workforce implications could include specialized R&D roles within Vanderlande Industries Inc. and potential future deployment of new screening technologies impacting security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) for a full and open competition may indicate a niche market or high barriers to entry.
Sole awardee for this specific contract, raising questions about the breadth of innovation explored.
Lack of detailed performance metrics in the provided data makes it difficult to assess contractor performance proactively.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Long contract duration (1500 days) allows for in-depth research and development.
Awarded under full and open competition, theoretically allowing for the best solution to be chosen.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced security and screening technologies is driven by evolving threats and the need for efficiency in high-traffic areas like airports. Comparable spending benchmarks would typically be found within federal R&D budgets for homeland security, transportation security, and advanced technology development. The size of this contract ($5.5M) is relatively small compared to major defense or infrastructure R&D programs but significant for a specific technology development effort.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus or requirement for this specific contract. There is no indication of small business set-asides or subcontracting plans. This suggests that the nature of the R&D required may have favored larger, established firms with specialized capabilities, potentially limiting opportunities for small businesses in this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's procurement and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified outcomes within the agreed budget. Transparency is facilitated by the contract award being publicly available, though detailed project progress and specific oversight reports would likely reside within DHS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Homeland Security Research and Development Programs
Transportation Security Administration (TSA) Technology Development
Advanced Security Screening Technologies
Federal Research and Development Contracts

Risk Flags

Limited competition (3 bidders) for a full and open solicitation.
Sole awardee may limit the exploration of alternative solutions.
R&D contracts inherently carry technological and performance risks.
Lack of detailed performance metrics in public data hinders ongoing assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.5 million to VANDERLANDE INDUSTRIES INC.. EO14042 VANDERLANDE - PASSENGER SELF SCREENING BAA CALL TTA 1

Who is the contractor on this award?

The obligated recipient is VANDERLANDE INDUSTRIES 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 $5.5 million.

What is the period of performance?

Start: 2021-11-22. End: 2025-12-31.

What is Vanderlande Industries Inc.'s track record with federal R&D contracts, particularly in security or transportation technology?

Vanderlande Industries Inc. is primarily known for its expertise in baggage handling and logistics systems for airports and distribution centers. While their core business is in material handling and automation, their capabilities in complex system integration and technology development could be leveraged for R&D in areas like passenger screening. Specific federal R&D contract history for Vanderlande in the security sector would require a deeper dive into federal procurement databases beyond the provided summary data. However, their established presence in the aviation infrastructure sector suggests a capacity for undertaking large-scale technological projects.

How does the $5.5 million contract value compare to similar R&D efforts in passenger screening technology?

Assessing the value of this $5.5 million contract against similar R&D efforts in passenger screening technology is challenging without access to detailed project scopes and market benchmarks. Federal R&D contracts can vary significantly in cost based on the maturity of the technology, the complexity of the research, and the duration of the development cycle. Generally, $5.5 million over approximately four years (1500 days) represents a moderate investment for a specific technological advancement. Larger, more comprehensive R&D programs in areas like AI-driven threat detection or advanced sensor technology could command tens or even hundreds of millions of dollars. This contract likely targets a specific component or innovative approach within the broader passenger screening ecosystem.

What are the key risks associated with this R&D contract, and how are they being mitigated?

Key risks for this R&D contract include technological feasibility (will the developed technology work as intended?), schedule delays (R&D is inherently unpredictable), cost overruns (despite FFP, scope creep or unforeseen technical challenges can arise), and contractor performance (Vanderlande's ability to deliver innovative solutions). Mitigation strategies include the firm fixed-price contract type to incentivize cost control, the long duration allowing for iterative development, and the government's oversight. However, the inherent uncertainty of R&D means that some risks, particularly around technological success, cannot be fully eliminated. The limited number of bidders might also suggest a risk if the chosen solution proves inadequate.

What is the expected program effectiveness or impact of the technology developed under this contract?

The expected program effectiveness hinges on the successful development of advanced passenger screening technologies. If successful, this could lead to more efficient, accurate, and potentially less intrusive screening processes at airports and other transportation hubs. This could translate to reduced wait times for passengers, improved detection of threats, and enhanced overall security. The specific impact will depend on the nature of the R&D; for instance, improvements in self-screening technologies could streamline passenger flow, while advancements in detection algorithms could increase security effectiveness. The ultimate measure of effectiveness will be the successful integration and deployment of the developed technology.

How does this contract fit into the broader historical spending patterns for passenger screening technology by DHS?

This $5.5 million contract represents a specific investment within the Department of Homeland Security's broader portfolio for enhancing security technologies. DHS historically spends significant amounts on security infrastructure, including screening equipment, software, and research. Contracts for passenger screening technology can range from incremental upgrades to foundational research for next-generation systems. This particular award appears to be focused on the research and development phase, suggesting a forward-looking investment rather than an immediate procurement of off-the-shelf solutions. Its value is modest compared to large-scale procurements of established screening systems but is indicative of ongoing efforts to innovate within the security domain.

What is the potential impact of this contract on the competitive landscape for passenger screening technology providers?

This contract, awarded to Vanderlande Industries Inc., could influence the competitive landscape by potentially validating their approach to passenger screening R&D. If Vanderlande develops a successful technology, it could position them as a key player in this niche. However, with only three bids received and one award made, it suggests that the market for this specific type of R&D might be concentrated among a few specialized firms or that the barriers to entry are high. The long-term impact will depend on whether this R&D leads to a commercially viable product and whether other companies are spurred to develop competing technologies or alternative solutions.

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: 70RSAT20RB00000002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Toyota Industries Corporation

Address: 1975 W OAK CIR, MARIETTA, GA, 30062

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: $5,539,936

Exercised Options: $5,539,936

Current Obligation: $5,539,936

Actual Outlays: $3,147,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline