Homeland Security's $31.5M contract for security systems maintenance awarded to Smiths Detection, Inc

Contract Overview

Contract Amount: $31,466,706 ($31.5M)

Contractor: Smiths Detection, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-08-09

End Date: 2007-03-10

Contract Duration: 213 days

Daily Burn Rate: $147.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GE INVISION- MAINTENANCE TO 10/19/06

Place of Performance

Location: NEWARK, ALAMEDA County, CALIFORNIA, 94560

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.5 million to SMITHS DETECTION, INC for work described as: GE INVISION- MAINTENANCE TO 10/19/06 Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating a defined cost for services. 2. The duration of the contract was 213 days, suggesting a short-term or interim need. 3. The contract was not competed, raising questions about potential cost efficiencies and market fairness. 4. The awarding agency is the Department of Homeland Security, specifically the Transportation Security Administration. 5. The North American Industry Classification System (NAICS) code 561621 points to security systems services. 6. The contract was awarded in California, indicating a specific geographic focus for the services.

Value Assessment

Rating: questionable

The contract's value of $31.5 million for a 213-day period appears high, especially considering it was not competed. Without competitive bids, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition suggests that the government may not have secured the best possible value for these security systems maintenance services. Further analysis would be needed to determine if the price was justified by the specific services rendered and the contractor's capabilities.

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 can provide the required goods or services, or in emergency situations. The lack of competition limits the government's ability to explore alternative solutions or negotiate more favorable pricing. It also raises concerns about whether the government received the most cost-effective option available in the market.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher overall spending.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving essential maintenance for its security systems. This contract ensures the continued operation and reliability of critical security infrastructure. Services were delivered in California, impacting security operations within that state. The contract supports the workforce employed by Smiths Detection, Inc. in providing these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated costs for taxpayers.
Short contract duration (213 days) might indicate an interim solution or a gap-filling measure, raising questions about long-term strategy.
Sole-source award bypasses standard procurement processes, potentially limiting transparency and accountability.

Positive Signals

Awarded to a known entity (Smiths Detection, Inc.) which may have existing expertise.
Firm-fixed-price contract provides cost certainty for the government.
Contract supports essential security functions for the Department of Homeland Security.

Sector Analysis

The security systems services sector is crucial for national security and public safety, encompassing a wide range of technologies from surveillance to access control. This contract falls under the broader category of security and protection services. Spending in this sector can fluctuate based on threat assessments and technological advancements. Comparable spending benchmarks are difficult to establish without more detailed service descriptions and competitive data, but significant government contracts are common for maintaining and upgrading security infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, and it does not reflect an effort to leverage small business capabilities.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security's internal review processes and potentially the Government Accountability Office (GAO) if specific issues arise. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. The firm-fixed-price structure offers some cost control, but the lack of competition hinders comprehensive value oversight.

Related Government Programs

Department of Homeland Security - Security Equipment Maintenance
Transportation Security Administration - Security Technology Procurement
Federal Security Services Contracts
Government IT and Security Maintenance

Risk Flags

Sole-source award
Lack of competition
Potentially high cost per day

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.5 million to SMITHS DETECTION, INC. GE INVISION- MAINTENANCE TO 10/19/06

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 $31.5 million.

What is the period of performance?

Start: 2006-08-09. End: 2007-03-10.

What is the track record of Smiths Detection, Inc. with the federal government, particularly in similar security systems maintenance contracts?

Smiths Detection, Inc. has a history of contracting with the U.S. federal government, often providing advanced security technology and services. Their work typically involves screening systems, chemical and biological detection, and related maintenance. Analyzing their past performance on similar contracts, especially those with the Department of Homeland Security (DHS) and its agencies like the Transportation Security Administration (TSA), would reveal their reliability, technical proficiency, and adherence to contract terms. A review of past performance evaluations and any documented disputes or awards would provide crucial context for assessing their suitability and the value of this specific contract. Without access to detailed performance data, it's assumed they possess the necessary qualifications given the award.

How does the value of this contract compare to similar security systems maintenance contracts awarded by the government?

Comparing the value of this $31.5 million contract, awarded for a 213-day period, to similar government contracts is challenging without more specific details on the scope of services and the types of security systems maintained. However, the per-day cost is approximately $147,731 ($31,466,706 / 213 days). If this contract was for routine maintenance of standard security equipment, this daily rate could be considered high, especially given the lack of competition. Contracts for specialized or advanced security systems, or those involving emergency repairs or unique technological support, might justify higher costs. Benchmarking against other TSA or DHS contracts for similar services, particularly those that were competitively procured, would be essential for a thorough value assessment.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a $31.5 million contract on a sole-source basis are significant. Firstly, there is a heightened risk of overpayment, as the absence of competition removes the downward pressure on pricing that typically occurs in a competitive bidding process. This can lead to taxpayers bearing a higher cost than necessary. Secondly, there's a risk of reduced innovation and service quality, as the contractor may face less incentive to improve their offerings or efficiency when they are the only option. Thirdly, it raises concerns about fairness and transparency in the procurement process, potentially discouraging other capable vendors from participating in future government contracts. Finally, there's a risk that the government may not be aware of or have access to the best available technology or solutions if alternatives were not explored.

What is the expected effectiveness of the security systems maintenance provided under this contract for the TSA?

The expected effectiveness of the security systems maintenance under this contract is crucial for the Transportation Security Administration's (TSA) mission of ensuring safety and security in air travel. Effective maintenance ensures that critical security equipment, such as baggage scanners, passenger screening devices, and access control systems, operate reliably and without interruption. This minimizes security vulnerabilities, reduces the likelihood of system failures during peak operational periods, and contributes to the overall efficiency of security checkpoints. Given that the contract was awarded to Smiths Detection, Inc., a company specializing in security technology, the expectation is that they possess the technical expertise to maintain these systems to a high standard, thereby supporting the TSA's operational effectiveness and national security objectives.

How does this contract fit into the broader historical spending patterns for security systems maintenance by the Department of Homeland Security?

This $31.5 million contract represents a specific instance of spending within the Department of Homeland Security's (DHS) broader budget for security systems and infrastructure. DHS, and particularly the TSA, consistently allocates significant funds towards acquiring, maintaining, and upgrading security technologies. Historical spending patterns in this area are often driven by evolving threat landscapes, technological advancements, and regulatory requirements. A single contract of this size, especially if it's a sole-source award for a defined period, might be an anomaly or part of a larger, ongoing strategy. Analyzing DHS's total spending on security systems maintenance over several fiscal years, and identifying trends in competitive versus sole-source awards, would provide context for whether this contract aligns with or deviates from established spending patterns.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

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: $31,466,706

Exercised Options: $31,466,706

Current Obligation: $31,466,706

Parent Contract

Parent Award PIID: HSTS0405DDEP008

IDV Type: IDC

Timeline