DHS Awards $96M AT/CT Systems Contract to Smiths Detection Inc. for TSA Security Enhancements

Contract Overview

Contract Amount: $96,016,756 ($96.0M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-28

End Date: 2027-12-08

Contract Duration: 3,177 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: THIS FIRM FIXED PRICE CONTRACT IS FOR THE CONTRACTOR TO PROVIDE THE TRANSPORTATION SECURITY ADMINISTRATION (TSA) WITH ADVANCED TECHNOLOGY / COMPUTED TOMOGRAPHY (AT/CT) SYSTEMS, SIMULATORS, WARRANTIES, CONFIGURATION MANAGEMENT SERVICES, PROGRAM MANAGEMENT, SHIPPING AND INSTALLATION, AS WELL AS ANY OTHER LABOR, TRAVEL, AND MATERIALS REQUIRED TO MEET THE REQUIREMENTS OF THE STATEMENT OF WORK (SOW).

Place of Performance

Location: EDGEWOOD, HARFORD County, MARYLAND, 21040

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $96.0 million to SMITHS DETECTION INC. for work described as: THIS FIRM FIXED PRICE CONTRACT IS FOR THE CONTRACTOR TO PROVIDE THE TRANSPORTATION SECURITY ADMINISTRATION (TSA) WITH ADVANCED TECHNOLOGY / COMPUTED TOMOGRAPHY (AT/CT) SYSTEMS, SIMULATORS, WARRANTIES, CONFIGURATION MANAGEMENT SERVICES, PROGRAM MANAGEMENT, SHIPPING AND INSTALLATIO… Key points: 1. Contract focuses on advanced security technology for TSA, including CT systems and simulators. 2. Smiths Detection Inc. is the sole awardee under a full and open competition. 3. The contract spans nearly 9 years, indicating a long-term need for these systems. 4. This award falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector.

Value Assessment

Rating: good

The contract value of $96 million over almost 9 years suggests a significant investment in advanced security technology. Benchmarking against similar large-scale procurements for specialized security equipment is necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive favorable pricing and ensure the government receives the best value.

Taxpayer Impact: The competitive nature of this award should lead to efficient use of taxpayer funds by securing advanced security technology at a reasonable cost.

Public Impact

Enhanced airport security screening capabilities for passengers and baggage. Modernization of TSA's screening technology to counter evolving threats. Potential for improved passenger throughput and reduced wait times. Investment in domestic manufacturing and technological advancement in security systems. Ensuring compliance with national aviation security standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to scope creep or evolving technology obsolescence.
Reliance on a single contractor for critical security systems.
Potential for cost overruns if not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Focus on advanced technology to improve security effectiveness.
Long-term commitment ensures sustained operational capability.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, which is critical for national security and transportation infrastructure. Spending in this sector is often characterized by high R&D costs and stringent performance requirements.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Future contracts or subcontracts may offer opportunities for small businesses in related support services or component manufacturing.

Oversight & Accountability

The Department of Homeland Security, through the Transportation Security Administration, is responsible for overseeing this contract. Robust oversight will be crucial to ensure timely delivery, system performance, and adherence to the contract's terms and conditions.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Long-term contract duration (nearly 9 years).
Sole awardee for critical security technology.
Potential for technological obsolescence over the contract period.
High contract value requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $96.0 million to SMITHS DETECTION INC.. THIS FIRM FIXED PRICE CONTRACT IS FOR THE CONTRACTOR TO PROVIDE THE TRANSPORTATION SECURITY ADMINISTRATION (TSA) WITH ADVANCED TECHNOLOGY / COMPUTED TOMOGRAPHY (AT/CT) SYSTEMS, SIMULATORS, WARRANTIES, CONFIGURATION MANAGEMENT SERVICES, PROGRAM MANAGEMENT, SHIPPING AND INSTALLATION, AS WELL AS ANY OTHER LABOR, TRAVEL, AND MATERIALS REQUIRED TO MEET THE REQUIREMENTS OF THE STATEMENT OF WORK (SOW).

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 $96.0 million.

What is the period of performance?

Start: 2019-03-28. End: 2027-12-08.

What is the projected impact of these new AT/CT systems on TSA's overall threat detection capabilities and passenger screening efficiency?

The introduction of advanced AT/CT systems is expected to significantly enhance TSA's threat detection capabilities by providing higher resolution imaging and more sophisticated analysis of baggage contents. This technological upgrade aims to improve the accuracy and speed of passenger and baggage screening, potentially leading to increased throughput and a more secure environment. The simulators will also ensure operators are well-trained on the new technology, maximizing its effectiveness.

Given the long contract duration, what mechanisms are in place to manage technological obsolescence and ensure the systems remain effective against emerging threats?

The contract's long duration necessitates proactive management of technological obsolescence. Mechanisms likely include performance-based requirements, periodic reviews of system capabilities, and potential for contract modifications or future procurements to incorporate upgrades. The 'configuration management services' clause suggests a framework for managing changes and updates to the systems throughout the contract period, aiming to keep them aligned with evolving security needs.

How does the pricing of these AT/CT systems compare to industry benchmarks for similar advanced security equipment, and what was the basis for the 'good' value rating?

The 'good' value rating suggests that the pricing, while substantial at $96 million, is considered reasonable relative to the advanced nature of the technology and the scope of services provided. A comprehensive assessment would involve comparing per-unit costs of the AT/CT systems and simulators against publicly available data or industry reports for comparable government or commercial procurements. The full and open competition likely contributed to achieving this favorable pricing assessment.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70T04018R9DAP2080

Offers Received: 4

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: $96,223,203

Exercised Options: $96,016,756

Current Obligation: $96,016,756

Actual Outlays: $11,300,438

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline