DHS Awards $98.7M for Explosive Detection Systems, Sole-Source Contract Raises Concerns

Contract Overview

Contract Amount: $98,674,388 ($98.7M)

Contractor: Smiths Detection Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-07-10

End Date: 2027-08-31

Contract Duration: 1,147 days

Daily Burn Rate: $86.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PURCHASE AND INSTALLATION OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $98.7 million to SMITHS DETECTION INC. for work described as: PURCHASE AND INSTALLATION OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS Key points: 1. Significant investment in critical security infrastructure. 2. Sole-source award limits competitive pricing and innovation. 3. Potential for higher costs due to lack of competition. 4. Focus on transportation security aligns with agency mission.

Value Assessment

Rating: questionable

The contract value of $98.7 million for medium speed explosive detection systems is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems available on the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these essential security systems.

Public Impact

Enhanced security at transportation hubs to detect explosives. Potential for improved passenger safety and reduced threat risks. Investment in advanced technology for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Critical security equipment
Addresses national security needs

Sector Analysis

The acquisition falls under the 'Irradiation Apparatus Manufacturing' sector, often associated with specialized equipment for security and industrial applications. Benchmarks for similar large-scale security system procurements are difficult to establish without competitive data.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this sole-source procurement, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the price paid is justifiable and that the system meets all specified requirements effectively.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in price justification.
Missed opportunity for small business engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $98.7 million to SMITHS DETECTION INC.. PURCHASE AND INSTALLATION OF MEDIUM SPEED EXPLOSIVE DETECTION SYSTEMS

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 $98.7 million.

What is the period of performance?

Start: 2024-07-10. End: 2027-08-31.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities or urgent needs that only one vendor can meet. However, without detailed documentation, it's unclear if alternatives were explored or if this was the only viable option. Agencies should provide robust justification for non-competitive awards to ensure taxpayer funds are used efficiently.

How does the cost of these systems compare to similar systems procured competitively by other agencies or countries?

Comparing the cost is challenging due to the sole-source nature of this contract. A thorough analysis would require benchmarking against publicly available data for comparable explosive detection systems, considering factors like throughput, detection capabilities, and maintenance. Without competitive bids, validating the $98.7 million price against market rates is speculative.

What performance metrics and oversight mechanisms are in place to ensure the effectiveness of these detection systems?

Effective oversight requires clearly defined performance metrics, including detection rates, false alarm rates, system uptime, and maintenance schedules. Regular performance reviews and independent testing are crucial to ensure the systems function as intended and provide the expected security benefits. Accountability should be tied to meeting these predefined performance standards.

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

Solicitation ID: 70T04024Q7672N011

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: $98,674,388

Exercised Options: $98,674,388

Current Obligation: $98,674,388

Actual Outlays: $22,154,752

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