DHS awarded $22.6M for HE GANTRY SYSTEMS, with 5 bidders competing

Contract Overview

Contract Amount: $22,582,000 ($22.6M)

Contractor: Varian Medical Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-16

End Date: 2014-09-30

Contract Duration: 1,475 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HE GANTRY SYSTEMS.

Place of Performance

Location: LINCOLNSHIRE, LAKE County, ILLINOIS, 60069

State: Illinois Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.6 million to VARIAN MEDICAL SYSTEMS, INC. for work described as: HE GANTRY SYSTEMS. Key points: 1. The contract value appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for these systems. 3. The fixed-price contract type mitigates cost overrun risks. 4. This procurement supports border security operations. 5. The contractor has a track record in medical equipment manufacturing. 6. The contract duration is substantial, indicating a long-term need.

Value Assessment

Rating: good

The contract value of $22.6 million over approximately 4 years for irradiation apparatus manufacturing is within a reasonable range for specialized equipment. Benchmarking against similar large-scale irradiation systems is difficult without more specific technical details, but the number of bidders suggests competitive pricing was likely achieved. The firm fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bidders participating. This level of competition is a strong positive signal, indicating that multiple capable vendors were interested and able to bid. It suggests that the government received a range of proposals and pricing, likely leading to a more favorable outcome for taxpayers than a sole-source or limited competition award.

Taxpayer Impact: The robust competition for this contract suggests that taxpayer funds were used efficiently, as multiple companies vied to provide the best value. This process helps ensure that the government is not overpaying for essential equipment.

Public Impact

Benefits U.S. Customs and Border Protection (CBP) in their mission to secure national borders. Delivers specialized irradiation apparatus (gantry systems) for potential use in inspection or security screening. The primary geographic impact is likely at U.S. ports of entry or border regions where CBP operates. The contract supports jobs in the irradiation apparatus manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1475 days) could introduce risks related to technological obsolescence or changing operational needs.
Reliance on a single contractor for a critical system over several years warrants monitoring.
Specific performance metrics and acceptance criteria are not detailed, making it hard to assess successful delivery.

Positive Signals

Firm fixed-price contract type limits the government's exposure to cost increases.
Full and open competition indicates a healthy market and potential for competitive pricing.
The award was made to a single contractor, simplifying management and accountability.
The contract is for a specific, defined product (HE GANTRY SYSTEMS).

Sector Analysis

The procurement falls within the broader defense and security manufacturing sector, specifically related to specialized equipment for inspection and screening. The market for large-scale irradiation apparatus is niche, often serving government and specialized industrial applications. Comparable spending benchmarks are difficult to establish without detailed specifications, but the $22.6 million award suggests a significant investment in advanced technology for border security.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and likely high value of HE GANTRY SYSTEMS, it is probable that the primary contractors are larger firms. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is unclear, though typically such large contracts may involve smaller suppliers for components or specialized services.

Oversight & Accountability

Oversight would typically be managed by the U.S. Customs and Border Protection contracting officer and program managers. The firm fixed-price contract type provides some inherent oversight by limiting financial risk. Transparency is dependent on the agency's reporting practices and public availability of contract details beyond this summary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Border Security Technology
Inspection and Screening Equipment
Homeland Security Apparatus
Radiation Detection and Measurement Systems
Customs and Border Protection Procurement

Risk Flags

Long contract duration may lead to technological obsolescence.
Specific performance metrics not detailed.
Limited information on contractor's government performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.6 million to VARIAN MEDICAL SYSTEMS, INC.. HE GANTRY SYSTEMS.

Who is the contractor on this award?

The obligated recipient is VARIAN MEDICAL SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $22.6 million.

What is the period of performance?

Start: 2010-09-16. End: 2014-09-30.

What is the specific function and technical capability of the 'HE GANTRY SYSTEMS' procured by CBP?

The provided data identifies the product as 'HE GANTRY SYSTEMS' and the North American Industry Classification System (NAICS) code as 334517, 'Irradiation Apparatus Manufacturing'. This suggests the systems are designed for emitting or controlling radiation, likely for inspection purposes at ports of entry. While 'HE' could potentially stand for 'High Energy', the exact technical specifications, operational parameters, and intended use (e.g., cargo scanning, personnel screening) are not detailed in the summary. Further investigation into the contract's Statement of Work (SOW) or technical exhibits would be necessary to fully understand the system's capabilities and how it contributes to CBP's mission.

How does the $22.6 million contract value compare to similar procurements for irradiation apparatus or border security screening technology?

Direct comparison of the $22.6 million contract value is challenging without knowing the precise specifications and capabilities of the 'HE GANTRY SYSTEMS'. However, the award amount over a period of approximately 4 years (1475 days) suggests a significant investment. Procurements for large-scale security screening equipment, such as advanced X-ray or radiation detection systems for ports of entry, can range from millions to tens of millions of dollars depending on the technology's sophistication, throughput capacity, and integration requirements. The fact that five bidders competed indicates a potentially competitive market, which usually helps in achieving reasonable pricing relative to the technology offered.

What is the track record of Varian Medical Systems, Inc. in fulfilling government contracts, particularly for homeland security or defense applications?

Varian Medical Systems, Inc. is a known entity in the medical device and radiation therapy sector. While their primary focus is often healthcare, their expertise in radiation technology could translate to government applications like security screening. Information on their specific track record with government contracts, especially within homeland security or defense, is not detailed in the provided summary. A deeper analysis would require reviewing contract performance databases (e.g., FPDS) for past awards, performance ratings, and any history of disputes or issues with government clients. Their experience in manufacturing irradiation apparatus (NAICS 334517) is a positive indicator for this specific contract.

What are the potential risks associated with a 1475-day contract duration for specialized irradiation apparatus?

A contract duration of 1475 days (approximately 4 years) for specialized equipment like irradiation apparatus presents several potential risks. Technological obsolescence is a primary concern; advancements in scanning or detection technology could render the procured systems outdated before the contract concludes or shortly thereafter. Evolving threats or changes in operational requirements by U.S. Customs and Border Protection might necessitate modifications or upgrades not covered by the original contract, leading to potential change orders or future procurements. Furthermore, maintaining and supporting complex equipment over an extended period can be challenging, requiring robust service agreements and potentially leading to increased sustainment costs if not managed effectively. The firm fixed-price nature mitigates cost overrun risk for the initial purchase but doesn't inherently address long-term operational risks.

How does the 'full and open competition' with 5 bidders impact the value proposition for taxpayers on this $22.6 million contract?

The 'full and open competition' with five bidders is a significant positive factor for taxpayers regarding this $22.6 million contract. It indicates that the government actively sought proposals from all responsible sources capable of meeting the requirements, fostering a competitive environment. With multiple bidders, the government has a greater ability to negotiate favorable pricing and terms, as contractors are incentivized to offer their best value to win the award. The presence of five bidders suggests a healthy market for this type of specialized equipment, reducing the risk of vendor lock-in and ensuring that the selected solution is likely cost-effective relative to the capabilities offered. This competitive process is a cornerstone of efficient government procurement.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Varian Medical Systems, Inc (UEI: 009120817)

Address: 425 BARCLAY BLVD, LINCOLNSHIRE, IL, 60069

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business

Financial Breakdown

Contract Ceiling: $22,582,000

Exercised Options: $22,582,000

Current Obligation: $22,582,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSBP1005D00985

IDV Type: IDC

Timeline