Homeland Security's $16.19M contract for advanced imaging technology units awarded to Rapiscan Systems Inc

Contract Overview

Contract Amount: $16,190,000 ($16.2M)

Contractor: Rapiscan Government Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2010-04-23

End Date: 2011-03-31

Contract Duration: 342 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: (AIT) VENDOR B RAPISCAN SYSTEMS INCORPORATED HSTS04-09-D-ST2077 AMENDMENT PR TO REMOVE REMAINING COMMITMENT BALANCE ON THE TSA BOOKS. THIS ACTION DOES NOT AFFECT THE AWARD.) ARRA STIMULUS FUNDING THE PURPOSE OF THIS PR IS TO PROCURE 100 AIT UNITS UNDER THE ARRA FUNDS ALLOCATED

Place of Performance

Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.2 million to RAPISCAN GOVERNMENT SERVICES INC for work described as: (AIT) VENDOR B RAPISCAN SYSTEMS INCORPORATED HSTS04-09-D-ST2077 AMENDMENT PR TO REMOVE REMAINING COMMITMENT BALANCE ON THE TSA BOOKS. THIS ACTION DOES NOT AFFECT THE AWARD.) ARRA STIMULUS FUNDING THE PURPOSE OF THIS PR IS TO PROCURE 100 AIT UNITS UNDER THE ARRA FUNDS ALLOCATE… Key points: 1. Value for money assessed through comparison to similar procurements and market rates. 2. Competition dynamics indicate a full and open process, potentially leading to better pricing. 3. Risk indicators include contract duration and fixed-price nature, which can shift risk to the contractor. 4. Performance context is tied to the procurement of advanced imaging units for security screening. 5. Sector positioning within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry. 6. Contract awarded under ARRA stimulus funding, highlighting a specific economic stimulus objective.

Value Assessment

Rating: fair

The contract value of $16.19 million for 100 Advanced Imaging Technology (AIT) units appears to be within a reasonable range, though specific per-unit cost benchmarks are not readily available in the provided data. The fixed-price nature of the contract suggests a defined cost ceiling. However, without direct comparisons to similar AIT procurements by other agencies or detailed cost breakdowns, a definitive value-for-money assessment is challenging. The use of ARRA stimulus funds also implies a focus on economic impact alongside operational need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not detailed, but a full and open process generally fosters a competitive environment. This approach is intended to ensure the government receives the best value by allowing a wide range of qualified suppliers to participate, thereby driving down prices and encouraging innovation.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing competitive pricing and avoids potential overpayment associated with sole-source or limited competitions.

Public Impact

Benefits the Department of Homeland Security, specifically the Transportation Security Administration (TSA), by providing essential security screening equipment. Delivers 100 Advanced Imaging Technology (AIT) units, enhancing airport security and passenger screening capabilities. Geographic impact is primarily at airports and transportation hubs where TSA operates. Workforce implications include the deployment and operation of these new AIT units by TSA personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen technology becomes proprietary or difficult to integrate with other systems.
Reliance on a single vendor for maintenance and support of 100 units could lead to increased long-term costs.
The fixed-price contract might not account for unforeseen technological advancements or integration challenges, potentially leading to change orders.

Positive Signals

Awarded under ARRA stimulus funding, indicating a contribution to economic recovery and job creation.
Full and open competition suggests a robust procurement process that likely yielded competitive pricing.
The procurement of advanced technology directly supports the TSA's mission to ensure security.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. This industry is characterized by high technological development and stringent quality requirements, often driven by government and defense needs. The market size for such specialized equipment is significant, with key players focusing on innovation and reliability. Comparable spending benchmarks would involve analyzing other large-scale procurements of security screening technology by federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Rapiscan Government Services Inc., may engage small businesses as subcontractors, though this information is not detailed here. The overall impact on the small business ecosystem would depend on the subcontracting opportunities generated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement and program management offices, as well as the Transportation Security Administration. Inspector General oversight is also a standard mechanism for federal contracts to ensure accountability and prevent fraud, waste, and abuse. Transparency is generally maintained through contract award databases and public reporting requirements.

Related Government Programs

Department of Homeland Security procurements
Transportation Security Administration equipment purchases
Advanced Imaging Technology (AIT) systems
ARRA Stimulus funded projects
Federal security and screening equipment contracts

Risk Flags

Contract awarded under stimulus funding, requiring evaluation of economic impact alongside operational effectiveness.
Fixed-price contract shifts cost risk to contractor; requires careful monitoring of quality and delivery.
Limited detail on specific technological capabilities of AIT units impacts direct value-for-money comparison.
Lack of specific bidder numbers in 'full and open' competition makes precise competition level assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.2 million to RAPISCAN GOVERNMENT SERVICES INC. (AIT) VENDOR B RAPISCAN SYSTEMS INCORPORATED HSTS04-09-D-ST2077 AMENDMENT PR TO REMOVE REMAINING COMMITMENT BALANCE ON THE TSA BOOKS. THIS ACTION DOES NOT AFFECT THE AWARD.) ARRA STIMULUS FUNDING THE PURPOSE OF THIS PR IS TO PROCURE 100 AIT UNITS UNDER THE ARRA FUNDS ALLOCATED

Who is the contractor on this award?

The obligated recipient is RAPISCAN GOVERNMENT SERVICES 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 $16.2 million.

What is the period of performance?

Start: 2010-04-23. End: 2011-03-31.

What is the historical spending pattern for Advanced Imaging Technology (AIT) units by the TSA?

Analyzing historical spending on AIT units by the TSA is crucial for understanding procurement trends and identifying potential cost efficiencies. While this specific contract is for $16.19 million for 100 units, a broader review would involve examining previous awards for similar equipment, including the number of units procured, the vendors involved, and the contract values over several fiscal years. This historical data can reveal whether the current procurement represents an increase or decrease in spending, and whether prices per unit have remained stable, increased, or decreased. It also helps in identifying any shifts in technology or vendor dominance within the TSA's AIT acquisition strategy. Without access to a comprehensive historical database of TSA AIT procurements, it is difficult to provide specific figures, but such an analysis would typically involve looking at contracts awarded between 2005 and the present, noting any significant bulk purchases or technology upgrades.

How does the per-unit cost of these AIT units compare to market rates or similar government contracts?

The per-unit cost for the 100 AIT units under this contract amounts to approximately $161,900 ($16.19 million / 100 units). Benchmarking this against market rates requires access to current pricing information for similar AIT systems from various manufacturers. Factors influencing market rates include the specific technological capabilities (e.g., threat detection algorithms, imaging resolution, throughput), manufacturer, and any volume discounts. Comparing this to similar government contracts is more feasible using public procurement databases. For instance, if other agencies have recently procured comparable AIT systems, their per-unit costs can serve as a benchmark. A preliminary search suggests that prices for advanced AIT systems can range significantly, from under $100,000 to over $200,000 per unit, depending on features and vendor. Therefore, the $161,900 per-unit cost appears to be within the expected range for advanced security screening technology, but a definitive assessment would necessitate a detailed feature-by-feature comparison with specific competitor offerings and recent government awards.

What is Rapiscan Systems Inc.'s track record with federal contracts, particularly with the TSA?

Rapiscan Systems Inc., through its government services arm, has a notable track record with federal contracts, including significant engagements with the Department of Homeland Security and its various agencies like the TSA. The company is a known provider of security screening technology, including advanced imaging systems. Examining their contract history reveals numerous awards for similar equipment, often related to aviation security and cargo screening. Their performance on past contracts, including adherence to delivery schedules, product quality, and responsiveness to technical requirements, would be a key factor in the TSA's decision-making process for this award. While specific performance metrics for past contracts are not detailed in the provided data, Rapiscan's continued success in securing large federal contracts suggests a generally positive or at least acceptable performance history. A deeper dive into contract performance reports and past performance evaluations would provide a more comprehensive understanding of their track record.

What are the potential risks associated with the fixed-price contract type for this AIT procurement?

The use of a Firm Fixed Price (FFP) contract type for this $16.19 million procurement of 100 AIT units places the primary cost risk on the contractor, Rapiscan Systems Inc. This means the contractor is obligated to deliver the specified goods and services for the agreed-upon price, regardless of their actual costs incurred. For the government, this offers budget certainty and protection against cost overruns. However, potential risks for the government can arise if the contractor, in an effort to maintain profitability under the fixed price, cuts corners on quality, uses substandard materials, or fails to provide adequate post-delivery support. Additionally, if unforeseen technical challenges or scope changes arise that were not adequately anticipated during the bidding process, the contractor may be less inclined to accommodate them without significant negotiation or potential disputes, which could delay delivery or impact overall program success. The government must ensure clear and comprehensive specifications were established upfront to mitigate these risks.

How does the ARRA stimulus funding influence the evaluation of this contract's effectiveness?

The fact that this contract is funded by ARRA (American Recovery and Reinvestment Act) stimulus funds introduces an additional layer to its evaluation. Beyond assessing the operational effectiveness of the AIT units for the TSA, the contract's success must also be measured against its intended economic stimulus objectives. This includes evaluating its contribution to job creation (both directly by the contractor and indirectly through its supply chain), its role in stimulating economic activity within the manufacturing sector, and its timeliness in deployment to meet stimulus goals. While the primary purpose is security, the ARRA funding implies a dual mandate: enhancing security capabilities while simultaneously providing an economic boost. Therefore, evaluating effectiveness requires considering both the security outcomes and the economic impact metrics associated with the stimulus package. This might involve tracking employment numbers, supplier payments, and the overall speed of project execution as indicators of stimulus effectiveness.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 CRYSTAL DR, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,190,000

Exercised Options: $16,190,000

Current Obligation: $16,190,000

Parent Contract

Parent Award PIID: HSTS0409DCT2077

IDV Type: IDC

Timeline