Homeland Security awards $9.9M contract for radar training systems to HENSOLDT SENSORS GMBH

Contract Overview

Contract Amount: $9,907,175 ($9.9M)

Contractor: Hensoldt Sensors Gmbh

Awarding Agency: Department of Homeland Security

Start Date: 2023-06-05

End Date: 2027-11-10

Contract Duration: 1,619 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NSC TRS-3D TRAINING RADAR FOR TRACEN PETALUMA

Place of Performance

Location: PETALUMA, SONOMA County, CALIFORNIA, 94952

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.9 million to HENSOLDT SENSORS GMBH for work described as: NSC TRS-3D TRAINING RADAR FOR TRACEN PETALUMA Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration is over 4 years, suggesting a long-term need. 3. The North American Industry Classification System (NAICS) code 334511 indicates a focus on specialized sensor manufacturing. 4. The contract is for training radar systems, implying a support and development role rather than direct operational deployment. 5. The fixed-price contract type aims to control costs, but the lack of competition may inflate the unit price. 6. The geographic location of the training facility is in California.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific nature of training radar systems. Without competitive bids, it's difficult to ascertain if the $9.9 million price represents a fair market value. Comparisons to similar training systems would be necessary to provide a more concrete assessment, but such data is not readily available in this context. The fixed-price structure offers some cost certainty, but the absence of competition raises concerns about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates a direct award. The lack of competition means that the U.S. Coast Guard did not benefit from the price discovery mechanisms that open competition provides, potentially leading to a higher price than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may have paid a premium for this radar training system due to the absence of competitive bidding. The government did not leverage market forces to secure the best possible price.

Public Impact

The U.S. Coast Guard will benefit from enhanced training capabilities for its personnel operating radar systems. This contract supports the development and provision of specialized training radar systems. The primary geographic impact is within California, where the training facility is located. The contract may have implications for specialized technical workforce development in radar systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
Lack of transparency in the procurement process due to sole-source nature.
Potential for vendor lock-in given the specialized nature of the equipment and training.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Contract addresses a specific training need for critical Coast Guard operations.
Long-term contract duration suggests a sustained commitment to capability development.

Sector Analysis

The defense and security sector, particularly within the maritime domain, relies heavily on advanced sensor technology like radar. The market for specialized radar systems, including training simulators, is often characterized by a limited number of highly capable manufacturers. This contract fits within the broader category of defense electronics and training solutions, where innovation and specialized expertise are key differentiators. Spending in this area is driven by the need for continuous modernization and effective personnel training to maintain operational readiness.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The award to HENSOLDT SENSORS GMBH, a large international company, suggests that the focus was on specialized capabilities rather than small business participation. This could mean limited opportunities for small businesses to engage in this specific procurement, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract will likely fall under the Department of Homeland Security's existing procurement and contract management frameworks. The U.S. Coast Guard is responsible for administering the contract and ensuring compliance with its terms. Transparency may be limited due to the sole-source nature of the award. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Homeland Security Procurement
U.S. Coast Guard Training Programs
Defense Radar Systems
Maritime Security Technology

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.9 million to HENSOLDT SENSORS GMBH. NSC TRS-3D TRAINING RADAR FOR TRACEN PETALUMA

Who is the contractor on this award?

The obligated recipient is HENSOLDT SENSORS GMBH.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2023-06-05. End: 2027-11-10.

What is the track record of HENSOLDT SENSORS GMBH with the U.S. government, particularly the Department of Homeland Security?

HENSOLDT SENSORS GMBH is a global defense and security electronics company. While specific contract history with the Department of Homeland Security (DHS) and the U.S. Coast Guard (USCG) is not detailed in the provided data, HENSOLDT has a significant presence in the defense sector worldwide, supplying various sensor and electronic systems. Their track record typically involves providing advanced radar, optronics, and electronic warfare solutions to military and government agencies. A deeper dive into federal procurement databases like FPDS or SAM.gov would be necessary to ascertain the full extent and nature of their past performance and contract values with DHS and USCG specifically, including any performance metrics or past issues.

How does the $9.9 million value compare to similar radar training system contracts?

Direct comparison of the $9.9 million contract value for these specific NSC TRS-3D training radar systems is difficult without access to a broader dataset of similar procurements. Training systems can vary significantly in complexity, features, and scale, impacting their cost. Contracts for operational radar systems are generally much higher. However, given the sole-source nature of this award, it is challenging to benchmark its value against competitive market rates. A comprehensive analysis would require identifying comparable training system contracts awarded through competitive processes to establish a baseline for price reasonableness.

What are the primary risks associated with a sole-source award for specialized training equipment?

The primary risks associated with a sole-source award for specialized training equipment include a lack of price competition, which can lead to inflated costs for the government and taxpayers. There is also a reduced incentive for the sole-source provider to innovate or offer cost-saving efficiencies once the contract is secured. Furthermore, it can create vendor lock-in, making it difficult and potentially costly to switch providers in the future if needs change or performance issues arise. Ensuring adequate contract oversight and performance standards becomes even more critical in sole-source situations to mitigate these risks.

What is the expected effectiveness of these training radar systems for the U.S. Coast Guard?

The effectiveness of the NSC TRS-3D training radar systems is expected to be high, given that they are designed to simulate the operational environment and capabilities of the actual TRS-3D radar. This allows Coast Guard personnel to train in realistic scenarios without the risks and costs associated with using live operational systems. Effective training enhances operator proficiency, improves response times, and ensures readiness for maritime surveillance, search and rescue, and law enforcement missions. The long-term contract duration suggests a commitment to maintaining and potentially upgrading these training capabilities over time, contributing to sustained operational effectiveness.

What are the historical spending patterns for radar systems and training within the U.S. Coast Guard?

Historical spending patterns for radar systems and training within the U.S. Coast Guard typically show consistent investment in surveillance and navigation technology. The Coast Guard relies heavily on radar for its diverse missions, including maritime domain awareness, drug interdiction, search and rescue, and port security. Spending often involves procurement of new systems, upgrades to existing platforms, and ongoing maintenance and training. The exact historical figures for radar training systems specifically would require detailed analysis of past USCG budgets and contract awards, but it is a critical area of expenditure to ensure operational readiness and technological superiority in a dynamic maritime environment.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70Z02322R93210001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: WOERTHSTR. 85, ULM

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $9,907,175

Exercised Options: $9,907,175

Current Obligation: $9,907,175

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline