DHS awards $17M contract for airport security screening equipment to Smiths Detection

Contract Overview

Contract Amount: $17,007,011 ($17.0M)

Contractor: Smiths Detection, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-05-20

End Date: 2011-06-28

Contract Duration: 1,134 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SMITHS - ADDITIONAL AT UNITS TO PROVIDE FOR MULTIPLE AIRPORTS ON DEPLOYMENT PLAN.

Plain-Language Summary

Department of Homeland Security obligated $17.0 million to SMITHS DETECTION, INC. for work described as: SMITHS - ADDITIONAL AT UNITS TO PROVIDE FOR MULTIPLE AIRPORTS ON DEPLOYMENT PLAN. Key points: 1. Contract awarded for advanced screening technology to enhance airport security. 2. Smiths Detection, Inc. secured the award, indicating a strong position in the security equipment market. 3. The contract duration of over 3 years suggests a significant operational need. 4. Fixed-price contract type helps manage cost certainty for the government. 5. Awarded under full and open competition, suggesting a competitive bidding process. 6. The specific equipment is for search and detection systems at multiple airports.

Value Assessment

Rating: good

The contract value of $17 million for airport security screening equipment appears reasonable given the scope and duration. Benchmarking against similar contracts for advanced detection systems is challenging without more specific technical details. However, the firm fixed-price nature of the award suggests that the government has negotiated a set price, which can be advantageous. The number of bids received (6) indicates a degree of competition that should have helped in achieving a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were allowed to bid. Six bids were received, suggesting a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as vendors vie for the award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario. It ensures that public funds are used efficiently by leveraging market forces.

Public Impact

The Transportation Security Administration (TSA) benefits from enhanced security screening capabilities. Passengers and airport staff will experience improved safety through advanced detection technology. The deployment across multiple airports suggests a nationwide impact on aviation security. The contract supports jobs within the security equipment manufacturing and deployment sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific technology becomes standard across many airports.
Dependence on a single contractor for critical security infrastructure.
Need for ongoing maintenance and support contracts which could increase long-term costs.

Positive Signals

Award to a known entity in the security detection market suggests reliability.
Full and open competition indicates a robust procurement process.
Firm fixed-price contract provides cost predictability.

Sector Analysis

The market for airport security screening equipment is a specialized segment within the broader industrial and defense manufacturing sectors. It is characterized by stringent regulatory requirements, technological innovation, and significant government procurement. Companies in this space often compete on performance, reliability, and compliance with security mandates. This contract fits within the government's ongoing efforts to modernize and enhance security infrastructure at airports.

Small Business Impact

The contract was awarded to Smiths Detection, Inc., a large business. There is no explicit indication of small business set-asides within the provided data. However, large prime contractors are often required to subcontract a portion of their work to small businesses. Further analysis would be needed to determine the extent of small business participation and subcontracting opportunities generated by this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and its Transportation Security Administration (TSA). Standard contract management processes, performance reviews, and financial audits would be in place. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Potential for technological obsolescence
Long-term maintenance and support costs
Dependence on a single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.0 million to SMITHS DETECTION, INC.. SMITHS - ADDITIONAL AT UNITS TO PROVIDE FOR MULTIPLE AIRPORTS ON DEPLOYMENT PLAN.

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 $17.0 million.

What is the period of performance?

Start: 2008-05-20. End: 2011-06-28.

What is the specific type of search and detection equipment being procured under this contract?

The contract description mentions 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' and specifically notes 'ADDITIONAL AT UNITS TO PROVIDE FOR MULTIPLE AIRPORTS ON DEPLOYMENT PLAN.' While the exact model or type of equipment is not detailed in the provided data, it pertains to search and detection systems intended for deployment at airports. Given the context of TSA and airport security, this likely refers to advanced screening technologies such as explosive detection systems (EDS), baggage scanners, or person screening portals, designed to identify threats and contraband.

How does the $17 million contract value compare to historical spending on similar security equipment by the TSA?

Comparing the $17 million contract value requires historical data on TSA procurements for similar security screening equipment. Without access to a comprehensive database of past TSA contracts for comparable systems (e.g., specific models of EDS or advanced baggage scanners), a direct benchmark is difficult. However, the duration of the contract (over 3 years) and the mention of deployment across multiple airports suggest a significant investment. Typically, advanced security screening systems can range from hundreds of thousands to millions of dollars per unit, depending on their sophistication. This $17 million award, spread over multiple units and potentially multiple airports, appears to be a substantial but not necessarily outlier figure for a large-scale security upgrade or deployment.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. However, for airport security screening equipment, typical KPIs would likely include detection rates (minimizing false positives and false negatives), throughput speed (number of passengers or bags screened per hour), equipment reliability and uptime, maintenance response times, and compliance with TSA security standards. SLAs would define the expected performance levels and remedies for non-performance, ensuring the equipment functions effectively and contributes to overall airport security operations.

What is the track record of Smiths Detection, Inc. in fulfilling government contracts, particularly for the TSA?

Smiths Detection, Inc. is a well-established company specializing in security screening technology and has a significant history of supplying equipment to government agencies, including the TSA. They are known for providing a range of detection systems for aviation, ports, borders, and critical infrastructure. Their track record generally includes successful deployments of explosive detection systems, baggage scanners, and other security equipment. While specific performance details for every contract are not publicly available, their continued awards from agencies like the TSA suggest a generally positive performance history and a strong understanding of the agency's requirements and operational environment.

Are there any identified risks associated with the deployment or long-term use of this specific security equipment?

Potential risks associated with the deployment and long-term use of security equipment include technological obsolescence, where newer, more effective technologies emerge, rendering the current equipment outdated. There's also the risk of equipment malfunction or failure, which could disrupt airport operations and compromise security. Maintenance and support costs can escalate over time, potentially exceeding initial projections. Furthermore, dependence on a single vendor for critical security technology can create vulnerabilities if the vendor experiences financial difficulties or supply chain disruptions. Ensuring interoperability with existing systems and adequate training for personnel are also crucial risk mitigation factors.

How does this contract align with broader trends in aviation security and technology adoption?

This contract aligns with the broader trend of continuous modernization and enhancement of aviation security measures globally. Airports and security agencies are constantly seeking advanced technologies to counter evolving threats. The procurement of new search and detection units suggests an investment in next-generation screening capabilities, potentially incorporating improved threat detection algorithms, faster processing speeds, and enhanced user interfaces. This reflects a commitment to staying ahead of potential security risks and improving the efficiency of passenger and baggage screening processes, which is a key focus for aviation security stakeholders worldwide.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Smiths Group PLC (UEI: 210273256)

Address: 30 TECHNOLOGY DR, WARREN, NJ, 07

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,007,011

Exercised Options: $17,007,011

Current Obligation: $17,007,011

Parent Contract

Parent Award PIID: HSTS0407DDEP347

IDV Type: IDC

Timeline