DHS Spends $13.7M on 14 Explosive Detection Systems from Smiths Detection, Inc

Contract Overview

Contract Amount: $13,700,812 ($13.7M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-06-19

End Date: 2012-06-25

Contract Duration: 2,198 days

Daily Burn Rate: $6.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 14 HIGH SPEED EXPLOSIVE DETECTION SYSTEMS

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.7 million to SMITHS DETECTION, INC for work described as: 14 HIGH SPEED EXPLOSIVE DETECTION SYSTEMS Key points: 1. High cost per unit suggests specialized technology. 2. Sole-source procurement raises concerns about price discovery. 3. Long contract duration (2198 days) may indicate complex integration or support. 4. Focus on security technology aligns with DHS mission.

Value Assessment

Rating: questionable

The total award of $13,700,812 for 14 systems is high. Without specific system details or comparable contract data, it's difficult to definitively assess value. However, the lack of competition suggests potential for overpayment.

Cost Per Unit: $978,630

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition likely resulted in a higher price than if multiple vendors had vied for the contract, impacting taxpayer funds.

Public Impact

Enhanced security at transportation hubs. Potential for advanced threat detection capabilities. Investment in critical national security infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
High per-unit cost
Long contract duration

Positive Signals

Critical security technology
Supports DHS mission

Sector Analysis

Spending in the security and defense sector often involves high-value, specialized equipment. Benchmarks are difficult without specific system details, but significant investments are common for advanced detection capabilities.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded to a single, likely large, vendor.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further review of the justification for not competing the contract would be beneficial for oversight.

Related Government Programs

Architectural Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency on justification
Unknown long-term costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.7 million to SMITHS DETECTION, INC. 14 HIGH SPEED EXPLOSIVE DETECTION SYSTEMS

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 $13.7 million.

What is the period of performance?

Start: 2006-06-19. End: 2012-06-25.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without access to the specific contract documentation, the exact reason remains unknown, but it's crucial for understanding the procurement decision and potential impact on pricing.

Are there any performance metrics or effectiveness data available for these explosive detection systems?

Performance metrics and effectiveness data are critical for evaluating the true value of this investment. Without this information, it's impossible to determine if the systems are meeting operational needs or if the significant expenditure is justified by their real-world impact on security.

What is the expected lifespan and maintenance cost of these systems beyond the initial contract period?

Understanding the long-term costs associated with these systems is vital for a complete financial assessment. High initial purchase prices can be exacerbated by expensive maintenance, upgrades, or proprietary consumables over the system's lifespan, impacting the total cost of ownership for the government.

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: $13,700,812

Exercised Options: $13,700,812

Current Obligation: $13,700,812

Parent Contract

Parent Award PIID: DTSA2003C01900

IDV Type: IDC

Timeline