DHS awarded $10.8M for high-speed integrated EDS, with limited competition and a long performance period

Contract Overview

Contract Amount: $10,800,000 ($10.8M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-08-31

End Date: 2010-03-11

Contract Duration: 1,653 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 9 HIGH SPEED INTEGRATED EDS AT ATL

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.8 million to SMITHS DETECTION, INC for work described as: 9 HIGH SPEED INTEGRATED EDS AT ATL Key points: 1. Contract awarded for integrated EDS systems, suggesting a focus on security infrastructure. 2. The contract's duration of over 4 years indicates a significant, long-term need. 3. Awarded to a single vendor, raising questions about competitive pricing and market alternatives. 4. The fixed-price contract type aims to control costs, but the lack of competition may have inflated the price. 5. Performance is concentrated in California, potentially indicating a regional security focus or deployment strategy. 6. The absence of small business set-asides suggests the prime contractor is likely a large entity.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of detailed cost breakdowns and the 'not competed' status. The total award of $10.8 million over approximately 4.5 years suggests an average annual spend of around $2.4 million. Without comparable contract data or a clear understanding of the specific 'high speed integrated EDS' technology, it's difficult to definitively assess if this represents good value for money. The absence of competition is a significant factor that could lead to suboptimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically reserved for situations where only one vendor can provide the required goods or services, often due to proprietary technology or unique capabilities. The lack of competition means that potential cost savings from a bidding process were not realized, and the government did not benefit from a range of vendor proposals.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government lacks the leverage of a competitive bidding environment to secure the best possible price.

Public Impact

The Transportation Security Administration (TSA) benefits from enhanced security screening capabilities. High-speed integrated Explosives Detection Systems (EDS) are delivered, improving airport security efficiency. The geographic impact is primarily in California, where the systems are deployed. The contract supports the workforce involved in the manufacturing, installation, and maintenance of these security systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to higher prices than a competed contract.
Long contract duration without clear performance metrics could mask inefficiencies.
Sole-source award limits opportunities for new market entrants and innovation.
Concentration in one geographic area might not reflect broader national needs.
Absence of small business participation limits economic opportunities for smaller firms.

Positive Signals

Awarded to a known entity in the security detection market (Smiths Detection).
Fixed-price contract type provides cost certainty for the government.
The technology addresses a critical national security need for aviation security.
Long-term award suggests a stable and reliable solution for TSA.

Sector Analysis

The contract falls within the broader defense and security sector, specifically focusing on transportation security equipment. The market for Explosives Detection Systems (EDS) is specialized, often dominated by a few key players due to the high technological barriers and stringent certification requirements. Spending in this area is driven by regulatory mandates and the continuous need to upgrade security infrastructure to counter evolving threats. Comparable spending benchmarks would typically involve other large-scale security equipment procurements by agencies like DHS or the Department of Defense.

Small Business Impact

The contract was not competed and did not include a small business set-aside. This indicates that the primary award went to a large business, likely Smiths Detection, Inc. There is no explicit information on subcontracting plans for small businesses. The lack of set-asides means that opportunities for small businesses to participate in this specific procurement were limited, potentially excluding them from a significant federal contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and its Transportation Security Administration (TSA). Given the sole-source nature, oversight would focus on ensuring the contractor meets the specified technical requirements and delivery schedules. Transparency might be limited due to the lack of competitive bidding. The DHS Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Airport Security Equipment Procurement
Transportation Security Administration Contracts
Explosives Detection Systems
Homeland Security Technology Acquisitions

Risk Flags

Sole-source award
Lack of competition
Long contract duration
No small business set-aside

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.8 million to SMITHS DETECTION, INC. 9 HIGH SPEED INTEGRATED EDS AT ATL

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 $10.8 million.

What is the period of performance?

Start: 2005-08-31. End: 2010-03-11.

What specific type of 'high speed integrated EDS' was procured, and what are its key capabilities?

The data indicates the procurement of '9 HIGH SPEED INTEGRATED EDS AT ATL'. While 'ATL' likely refers to Hartsfield-Jackson Atlanta International Airport, the specific model or technical specifications of the EDS are not detailed in the provided data. High-speed integrated EDS typically refers to advanced systems capable of rapidly detecting explosives in checked baggage or on passengers, often incorporating multiple detection technologies (e.g., trace detection, computed tomography) into a single, streamlined unit. These systems are crucial for enhancing airport security efficiency and effectiveness by reducing screening times while maintaining high threat detection rates. Further details on the specific capabilities would require access to the contract's statement of work or technical exhibits.

Why was this contract awarded on a sole-source basis, and what alternatives were considered?

The provided data explicitly states the contract type as 'NOT COMPETED', which in this context implies a sole-source or limited competition award. The justification for a sole-source award typically stems from situations where only one responsible source is available or capable of meeting the government's needs. This could be due to unique proprietary technology, specialized expertise, or urgent requirements where competition is not feasible. Without access to the contract's justification and approval (J&A) document, the specific reasons for the sole-source award and any alternatives considered remain unknown. However, sole-source awards are generally exceptions to the standard competitive procurement process.

How does the $10.8 million award compare to similar procurements for EDS technology?

Comparing the $10.8 million award for '9 HIGH SPEED INTEGRATED EDS' to similar procurements is difficult without more specific information on the technology's capabilities and the contract's duration. The award spans from August 2005 to March 2010, a period of approximately 4.5 years, making the average annual value around $2.4 million. The market for EDS is specialized, with prices varying significantly based on the system's sophistication, throughput, and certification status. Given the sole-source nature of this award, it is plausible that the price may be higher than what could have been achieved through a competitive process. Benchmarking would require access to data on other sole-source or competed contracts for comparable EDS systems procured around the same timeframe.

What are the potential risks associated with a sole-source award of this magnitude and duration?

A sole-source award of this magnitude ($10.8 million) and duration (over 4 years) carries several potential risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures of a bidding process. Secondly, it limits the government's ability to explore innovative solutions or alternative technologies that might be offered by other vendors. Thirdly, there's a risk of vendor lock-in, making it difficult or costly to switch providers in the future. Finally, without the scrutiny of a competitive process, there's a potential for reduced oversight on performance and cost management, although the government still has contractual obligations to monitor. The long duration also means that the technology could become outdated before the contract expires.

What is the track record of Smiths Detection, Inc. in providing similar security equipment to the government?

Smiths Detection, Inc. is a well-established company specializing in security and inspection systems, including explosives detection. They are a significant player in the global market for airport security technology and have a history of supplying EDS and other screening equipment to government agencies worldwide, including the TSA. Their track record generally includes providing certified and operational systems that meet stringent security requirements. However, the specifics of their performance on this particular sole-source contract, including adherence to schedule, budget, and technical specifications, would require a deeper dive into contract performance reports and historical data beyond the basic award information.

How does the geographic concentration in California impact the overall effectiveness of this contract?

The concentration of the '9 HIGH SPEED INTEGRATED EDS' at 'ATL' (likely Atlanta, though the data lists 'SN: CALIFORNIA') suggests a specific deployment location. If the contract is indeed for systems deployed in California, it implies a targeted investment in security infrastructure for that region's airports. While this could enhance security at those specific locations, it raises questions about whether this addresses broader national security needs or if other regions are adequately equipped. The effectiveness is tied to the specific security requirements of the chosen locations. If these locations are high-traffic hubs or have specific threat profiles, the concentration could be strategically justified. However, without knowing the exact deployment locations and the rationale behind them, it's hard to assess the overall strategic effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Safran Power USA LLC (UEI: 275374015)

Address: 7151 GATEWAY BLVD, NEWARK, CA, 17

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $641,470,000

Exercised Options: $263,912,933

Current Obligation: $10,800,000

Parent Contract

Parent Award PIID: DTSA2003C01900

IDV Type: IDC

Timeline