DHS's $14.2M Contract for Baggage Screening Consumables Awarded to Strategic Printing Solutions, Inc
Contract Overview
Contract Amount: $14,228,348 ($14.2M)
Contractor: Strategic Printing Solutions, Inc
Awarding Agency: Department of Homeland Security
Start Date: 2004-12-21
End Date: 2006-07-25
Contract Duration: 581 days
Daily Burn Rate: $24.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: BAGGAGE SCREENING CONSUMABLES
Place of Performance
Location: AVONDALE ESTATES, DEKALB County, GEORGIA, 30002
State: Georgia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $14.2 million to STRATEGIC PRINTING SOLUTIONS, INC for work described as: BAGGAGE SCREENING CONSUMABLES Key points: 1. The contract value is $14.2 million for baggage screening consumables. 2. The awardee is Strategic Printing Solutions, Inc. 3. The contract was not competed under Simplified Acquisition Procedures (SAP), indicating potential limitations in competition. 4. The sector is Transportation, specifically related to security screening.
Value Assessment
Rating: questionable
The contract was awarded without competition under SAP. Without a competitive process, it's difficult to assess if the pricing is optimal or reflects fair market value. The base award amount was $24,489, with a potential value of $14,228,348.48, suggesting significant growth potential that wasn't initially benchmarked.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED UNDER SAP'. This suggests that the procurement likely did not undergo a full and open competition or even a standard SAP process, potentially limiting price discovery and competition. The specific reason for this limitation is not detailed.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible price for these essential consumables.
Public Impact
Passengers may be indirectly impacted by the cost-effectiveness of these consumables. The security screening process relies on the availability of these specialized materials. Government spending on essential operational supplies is a significant area of taxpayer interest.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to limited market engagement
- Long contract duration (581 days)
Positive Signals
- Ensures supply of critical screening consumables
- Awarded to a single entity, potentially simplifying logistics
Sector Analysis
This contract falls within the Transportation sector, specifically supporting the operational needs of the Transportation Security Administration (TSA). Spending in this area is critical for national security and passenger safety, but efficiency and cost-effectiveness are key considerations for public funds.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. The awardee, Strategic Printing Solutions, Inc., is not identified as a small business in this record.
Oversight & Accountability
The 'NOT COMPETED UNDER SAP' designation warrants further oversight to understand the justification for the limited competition and ensure accountability in the procurement process. The contract's significant potential value also suggests a need for monitoring.
Related Government Programs
- Plastics Packaging Film and Sheet (including Laminated) Manufacturing
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in procurement justification
- Significant contract value without competitive validation
Tags
plastics-packaging-film-and-sheet-includ, department-of-homeland-security, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $14.2 million to STRATEGIC PRINTING SOLUTIONS, INC. BAGGAGE SCREENING CONSUMABLES
Who is the contractor on this award?
The obligated recipient is STRATEGIC PRINTING SOLUTIONS, 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 $14.2 million.
What is the period of performance?
Start: 2004-12-21. End: 2006-07-25.
What was the specific justification for not competing this contract under SAP, and were alternative competitive strategies considered?
The contract was 'NOT COMPETED UNDER SAP'. This designation implies that standard competitive procedures for simplified acquisitions were bypassed. Without further details, the specific justification remains unclear. Agencies typically cite reasons such as urgency, lack of available sources, or specific technical requirements. It is crucial to understand if these conditions truly applied or if a more competitive approach could have yielded better value for taxpayers.
How does the pricing of these baggage screening consumables compare to industry benchmarks, given the lack of competitive bidding?
Assessing the pricing is challenging due to the non-competitive nature of the award. Without bids from multiple suppliers, it's difficult to establish a fair market price. A thorough review would involve comparing the unit costs to similar products purchased competitively by other government agencies or in the commercial sector. The significant difference between the base award and the potential value raises a red flag for potential overpricing.
What is the long-term strategy for procuring these consumables, and will future procurements involve competitive bidding to ensure value?
The current award suggests a non-competitive approach for this specific period. Future procurement strategies should prioritize competitive bidding processes to ensure cost-effectiveness and value for taxpayer money. Agencies should explore market research to identify potential sources and develop solicitations that encourage competition, unless specific, well-documented exceptions apply. This will help mitigate risks associated with sole-source or limited-source awards.
Industry Classification
NAICS: Manufacturing › Plastics Product Manufacturing › Plastics Packaging Film and Sheet (including Laminated) Manufacturing
Product/Service Code: NONMETALLIC FABRICATED MATERIALS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5600 ROSWELL RD, ATLANTA, GA, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $20,000,000
Exercised Options: $19,993,844
Current Obligation: $14,228,348
Parent Contract
Parent Award PIID: HSTS0304DAOP157
IDV Type: IDC
Timeline
Start Date: 2004-12-21
Current End Date: 2006-07-25
Potential End Date: 2006-07-25 00:00:00
Last Modified: 2010-09-20
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