DHS Awards $56.4M for Smiths Detection Maintenance, Sole-Source Contract

Contract Overview

Contract Amount: $56,428,276 ($56.4M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2018-08-01

End Date: 2019-05-31

Contract Duration: 303 days

Daily Burn Rate: $186.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SMITHS EDS MAINTENANCE ORDERING PERIOD 3 TASK ORDER

Place of Performance

Location: JAMAICA, QUEENS County, NEW YORK, 11432

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $56.4 million to SMITHS DETECTION, INC for work described as: SMITHS EDS MAINTENANCE ORDERING PERIOD 3 TASK ORDER Key points: 1. Significant award to Smiths Detection, Inc. for maintenance services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of 303 days for task order. 4. Focus on 'Other Electronic and Precision Equipment Repair and Maintenance' sector.

Value Assessment

Rating: questionable

The award amount of $56.4M for a 303-day period suggests a high per-unit cost. Without specific details on the services rendered, it's difficult to benchmark against similar contracts, but the lack of competition is a primary concern.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Smiths Detection, Inc. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these maintenance services.

Public Impact

TSA relies on Smiths Detection for critical maintenance, impacting transportation security. Potential for increased costs due to sole-source nature of the award. Lack of transparency in the procurement process may hinder public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High dollar value for short duration

Positive Signals

Essential maintenance services provided
Established vendor relationship

Sector Analysis

This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' category. Spending in this sector can vary widely based on the complexity and criticality of the equipment being maintained. The $56.4M award for a less than one-year period is substantial.

Small Business Impact

The contract was awarded to Smiths Detection, Inc., a large business. There is no indication that small businesses were involved in this specific task order, missing an opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that future requirements are competed to maximize value.

Related Government Programs

Other Electronic and Precision Equipment Repair and Maintenance
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of small business participation.
High dollar value for a short contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $56.4 million to SMITHS DETECTION, INC. SMITHS EDS MAINTENANCE ORDERING PERIOD 3 TASK ORDER

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $56.4 million.

What is the period of performance?

Start: 2018-08-01. End: 2019-05-31.

What specific maintenance services were provided under this $56.4M task order, and how do they justify the cost given the sole-source award?

The provided data does not detail the specific maintenance services. However, a $56.4M award for a 303-day period, awarded sole-source, suggests highly specialized or critical equipment maintenance. Further investigation into the scope of work is needed to assess the cost justification and ensure it aligns with market rates for similar specialized services.

What are the risks associated with relying on a sole-source provider for critical maintenance, particularly concerning potential price inflation and service disruptions?

Sole-source contracts carry inherent risks of price inflation due to the absence of competitive pressure. This can lead to taxpayers overpaying for services. Additionally, over-reliance on a single provider can create vulnerabilities; if the provider experiences financial difficulties or service issues, it could disrupt essential operations, posing a risk to national security or public services.

How effective is the TSA in ensuring value for money when awarding sole-source maintenance contracts of this magnitude?

The effectiveness of the TSA in ensuring value for money on this sole-source contract is questionable due to the lack of competition. While the vendor may be the only qualified provider, the absence of a competitive bidding process limits the agency's ability to negotiate the best possible price. Robust internal review and justification processes are crucial to mitigate this risk.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Safran Power USA LLC (UEI: 275374015)

Address: 7151 GATEWAY BLVD, NEWARK, CA, 94560

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

Financial Breakdown

Contract Ceiling: $56,428,276

Exercised Options: $56,428,276

Current Obligation: $56,428,276

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0415DCT3002

IDV Type: IDC

Timeline