DHS awards $23.3M for advanced imaging technology, bypassing competition

Contract Overview

Contract Amount: $23,324,666 ($23.3M)

Contractor: Rohde & Schwarz USA, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-29

End Date: 2028-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $21.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS CONTRACT IS TO PROCURE ADVANCED IMAGING TECHNOLOGY (AIT) UNITS AND THE ASSOCIATED SHIPPING, INSTALLATION, AND MAINTENANCE OF THE UNITS.

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.3 million to ROHDE & SCHWARZ USA, INC. for work described as: THIS CONTRACT IS TO PROCURE ADVANCED IMAGING TECHNOLOGY (AIT) UNITS AND THE ASSOCIATED SHIPPING, INSTALLATION, AND MAINTENANCE OF THE UNITS. Key points: 1. Procurement focuses on advanced imaging technology (AIT) units, including shipping, installation, and maintenance. 2. The contract was awarded on a non-competitive basis, raising questions about potential cost savings. 3. A firm-fixed-price structure is in place, which can help manage cost certainty. 4. The contract duration is three years, with an end date of September 28, 2028. 5. The primary agency involved is the Department of Homeland Security, specifically the Transportation Security Administration. 6. The North American Industry Classification System (NAICS) code is 334511, related to instrument manufacturing.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its non-competitive nature. Without competing offers, it's difficult to ascertain if the $23.3 million price reflects the best possible value for the advanced imaging technology and associated services. The firm-fixed-price contract type offers some cost predictability, but the absence of a competitive process means there's no direct comparison to market rates or similar procurements to assess pricing efficiency. Further analysis would be needed to determine if alternative solutions or vendors could have provided comparable technology at a lower cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach limits the opportunity for price discovery and potentially higher quality solutions that might emerge from a competitive bidding process. The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing available in the market for advanced imaging technology.

Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for this technology and its associated services, as there was no pressure from competing bids to drive down costs.

Public Impact

The Transportation Security Administration (TSA) will benefit from the procurement of advanced imaging technology units. These units are intended to enhance security screening processes at transportation hubs. The contract includes shipping, installation, and maintenance, ensuring operational readiness of the technology. The geographic impact is likely focused on airports and other transportation facilities managed by the TSA. The implementation of new imaging technology could lead to improved detection capabilities, potentially impacting workforce training and deployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency in pricing and vendor selection.
Dependence on a single vendor for advanced imaging technology could pose supply chain risks.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Procurement aims to enhance critical security screening capabilities.
Includes comprehensive support services (shipping, installation, maintenance) for the technology.

Sector Analysis

The market for advanced imaging technology is a specialized segment within the broader instrument manufacturing industry (NAICS 334511). This sector is characterized by high research and development costs, stringent performance requirements, and significant government procurement activity, particularly in defense and security. Companies in this space often compete on technological innovation and reliability. The total market size for security screening equipment is substantial, driven by global security concerns and regulatory mandates. This contract fits within the government's ongoing efforts to modernize security infrastructure.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a large business, it does not directly contribute to the small business ecosystem or provide opportunities for small business participation through subcontracting. The focus appears to be on acquiring specialized technology rather than fostering small business engagement.

Oversight & Accountability

Oversight for this contract will fall under the Department of Homeland Security's existing contract management and oversight mechanisms. The Transportation Security Administration is responsible for monitoring performance and ensuring compliance with the firm-fixed-price terms. Transparency regarding the justification for the sole-source award and the specific performance metrics will be key to assessing accountability. Inspector General reviews may be initiated if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Transportation Security Administration (TSA) Equipment Procurements
Department of Homeland Security (DHS) Advanced Technology Investments
Federal Aviation Administration (FAA) Security Technology
Customs and Border Protection (CBP) Screening Technology

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing may impact value for money.
Limited transparency in vendor selection process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.3 million to ROHDE & SCHWARZ USA, INC.. THIS CONTRACT IS TO PROCURE ADVANCED IMAGING TECHNOLOGY (AIT) UNITS AND THE ASSOCIATED SHIPPING, INSTALLATION, AND MAINTENANCE OF THE UNITS.

Who is the contractor on this award?

The obligated recipient is ROHDE & SCHWARZ USA, 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 $23.3 million.

What is the period of performance?

Start: 2025-09-29. End: 2028-09-28.

What is the specific type of advanced imaging technology being procured, and what are its key capabilities?

The contract specifies the procurement of 'Advanced Imaging Technology (AIT) Units'. While the exact model or specific technological advancements are not detailed in the provided data, AIT typically refers to systems used for security screening that go beyond traditional metal detectors. This can include millimeter wave scanners, backscatter X-ray machines, or other technologies capable of detecting non-metallic threats, explosives, and contraband concealed on individuals or within baggage. The primary goal is to enhance threat detection accuracy and efficiency in security checkpoints.

What is the justification for awarding this contract 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 agency's needs. This could be due to proprietary technology, unique capabilities, urgent and compelling circumstances, or a lack of market availability from other vendors. Without further documentation from the agency, the specific rationale for bypassing a competitive process remains unclear, which is a point of concern for value assessment.

How does the $23.3 million contract value compare to similar procurements for advanced imaging technology?

Direct comparison of the $23.3 million contract value is difficult without knowing the exact specifications of the AIT units and the scope of services (shipping, installation, maintenance) included. However, given that this was a sole-source award, it is challenging to benchmark against competitive market prices. Historically, advanced security screening technologies can range from tens of thousands to hundreds of thousands of dollars per unit, depending on sophistication and features. The total value suggests a significant quantity of units or a high-end technology solution, but the lack of competition prevents a definitive value-for-money assessment against market alternatives.

What are the potential risks associated with a sole-source procurement of critical security technology?

Sole-source procurements of critical security technology carry several risks. Firstly, the absence of competition can lead to inflated prices, meaning taxpayers may not receive the best value. Secondly, it limits the government's options if the chosen vendor fails to perform or encounters issues, as there are no readily available alternative suppliers for the same proprietary technology. This can create vendor lock-in and potential supply chain vulnerabilities. Furthermore, a lack of competitive transparency can raise concerns about fairness and the integrity of the procurement process.

What is the expected impact of this advanced imaging technology on TSA's screening operations and passenger experience?

The introduction of new Advanced Imaging Technology (AIT) units is expected to significantly enhance the Transportation Security Administration's (TSA) screening capabilities. These systems are designed to detect a wider range of threats, including non-metallic weapons and explosives, more effectively than traditional screening methods. This can lead to improved security outcomes and potentially faster throughput at security checkpoints, although initial implementation and training phases might cause temporary disruptions. The goal is to provide a more robust and potentially less intrusive screening experience for passengers while maintaining high security standards.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rohde & Schwarz Gmbh & CO. Kommanditgesellschaft

Address: 6821 BENJAMIN FRANKLIN DR, COLUMBIA, MD, 21046

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

Financial Breakdown

Contract Ceiling: $23,324,666

Exercised Options: $23,324,666

Current Obligation: $23,324,666

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline