DHS awards $103.8M for explosive detection systems to support airport projects nationwide

Contract Overview

Contract Amount: $103,814,555 ($103.8M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-08-27

End Date: 2027-08-26

Contract Duration: 2,921 days

Daily Burn Rate: $35.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER 70T04019F5CAP1065 (DO3) IS ISSUED FOR THE PURCHASE OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (MSEDS), ANCILLARY EQUIPMENT AND INSTALLATION TO SUPPORT AIRPORT PROJECTS NATIONWIDE.

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $103.8 million to SMITHS DETECTION INC. for work described as: DELIVERY ORDER 70T04019F5CAP1065 (DO3) IS ISSUED FOR THE PURCHASE OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (MSEDS), ANCILLARY EQUIPMENT AND INSTALLATION TO SUPPORT AIRPORT PROJECTS NATIONWIDE. Key points: 1. The contract focuses on acquiring critical security technology for airports. 2. The award is a delivery order against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The procurement method was 'not competed', raising questions about potential cost efficiencies. 4. The duration of the contract extends over several years, indicating a long-term need. 5. The specific product category, Irradiation Apparatus Manufacturing, suggests a specialized technology acquisition.

Value Assessment

Rating: questionable

The total value of $103.8 million for medium speed explosive detection systems (MSEDS) and ancillary equipment is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The pricing for these specialized systems would ideally be compared against similar systems procured competitively by other agencies or against industry benchmarks for similar technological capabilities. The lack of competition inherently limits the ability to assess if the government received the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was issued as a delivery order under a previously awarded IDIQ contract that was not competed. This means that the initial competition for the IDIQ contract itself may have occurred, but this specific delivery order was not subject to a new competitive process. The lack of direct competition for this order limits the government's ability to solicit and evaluate multiple offers, potentially impacting price discovery and the achievement of the most favorable terms.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. The absence of multiple bids means there was no direct pressure on pricing from competing vendors for this specific order.

Public Impact

Airports nationwide will benefit from enhanced security through the deployment of these detection systems. The Transportation Security Administration (TSA) will receive advanced equipment to bolster aviation security. The contract supports the modernization of airport security infrastructure across the United States. The installation component of the contract may create temporary employment opportunities at various airport locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for this specific delivery order limits price benchmarking.
Potential for higher costs due to sole-source award for this order.
Long contract duration could lead to price increases if not managed effectively.

Positive Signals

Acquisition of critical security technology to enhance public safety.
Supports national aviation security objectives.
Long-term commitment indicates a recognized and ongoing need for the technology.

Sector Analysis

The contract falls within the broader defense and security sector, specifically focusing on specialized equipment for transportation security. The market for explosive detection systems is driven by stringent regulatory requirements and the continuous need for technological advancement in counter-terrorism measures. Comparable spending benchmarks would involve analyzing other large-scale procurements of similar security screening technologies by government agencies, considering factors like system capabilities, throughput, and maintenance costs.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not provided in the data. As this was a sole-source delivery order, the opportunities for small businesses to compete directly on this specific award are likely limited unless they are part of the prime contractor's supply chain or subcontracting team. Further analysis would be needed to determine if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's existing contract management and oversight mechanisms. The Transportation Security Administration (TSA) would be responsible for monitoring performance and ensuring compliance with the terms of the delivery order. Transparency regarding the specific justification for the sole-source award and ongoing performance metrics would be key areas for oversight assessment.

Related Government Programs

Airport Security Equipment Procurement
Explosive Detection Systems
Transportation Security Administration Contracts
Homeland Security Technology Acquisition

Risk Flags

Sole-source award raises concerns about potential lack of competition and value for money.
Long contract duration requires careful monitoring to manage costs and ensure continued relevance of technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $103.8 million to SMITHS DETECTION INC.. DELIVERY ORDER 70T04019F5CAP1065 (DO3) IS ISSUED FOR THE PURCHASE OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS (MSEDS), ANCILLARY EQUIPMENT AND INSTALLATION TO SUPPORT AIRPORT PROJECTS NATIONWIDE.

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 $103.8 million.

What is the period of performance?

Start: 2019-08-27. End: 2027-08-26.

What is the specific justification for awarding this delivery order on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the requirement. This could be due to proprietary technology, unique capabilities, or urgent needs where competition is not feasible. For this specific contract, the justification would likely stem from the nature of the MSEDS technology and potentially existing contracts or relationships that made a competitive re-solicitation impractical or detrimental to the government's interests. A detailed review of the contract file and justification documents would be necessary to confirm the precise reasons.

How does the cost of these MSEDS compare to similar systems procured competitively?

Direct comparison of the cost for these MSEDS is challenging without access to competitive pricing data for similar systems. Since this delivery order was not competed, there is no benchmark established through a bidding process for this specific award. To assess value, one would need to research the pricing of comparable explosive detection systems acquired by other government agencies or through commercial channels, taking into account system specifications, detection capabilities, throughput rates, and maintenance requirements. The absence of competitive bids for this order means the government did not benefit from the price reductions typically driven by vendor competition.

What are the key performance indicators (KPIs) for the MSEDS, and how is performance being monitored?

The provided data does not specify the key performance indicators (KPIs) for the Medium Speed Explosive Detection Systems (MSEDS). However, for such security equipment, typical KPIs would likely include detection accuracy rates, false alarm rates, system reliability, operational availability, throughput speed, and ease of maintenance. Monitoring performance would generally involve regular reporting from the contractor, site inspections, user feedback from airport personnel, and potentially independent testing or audits conducted by the Transportation Security Administration (TSA) or a designated oversight body. The contract terms would outline the specific reporting requirements and performance standards.

What is the historical spending pattern for explosive detection systems by the Department of Homeland Security?

Historical spending on explosive detection systems by the Department of Homeland Security (DHS) has been significant, driven by the continuous need to upgrade and maintain airport security infrastructure. While specific figures for MSEDS are not detailed here, DHS, through agencies like the TSA, regularly procures various types of screening equipment. Past procurements often involve large, multi-year contracts to ensure a steady supply of advanced technology. Analyzing historical spending would involve examining previous contracts for similar detection systems, noting the total value, contract types (e.g., IDIQ, firm-fixed-price), and the number of vendors involved to understand trends in investment and procurement strategies.

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

Smiths Detection Inc. is a well-established provider of security screening technology, including explosive detection systems, and has a significant track record of supplying equipment to government agencies, particularly within the aviation security sector. They are known for their advanced detection solutions used in airports, ports, and critical infrastructure worldwide. Their past performance with agencies like the TSA and other homeland security entities would likely include numerous contracts for various types of detection equipment. A thorough review of their contract history, including past performance evaluations and any reported issues, would provide a comprehensive understanding of their reliability and capability in fulfilling such requirements.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $103,814,555

Exercised Options: $103,814,555

Current Obligation: $103,814,555

Actual Outlays: $23,649,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70T04018D9CAP1035

IDV Type: IDC

Timeline