DHS Awards $55.8M for High Energy Rail Systems to Rapiscan Systems Inc
Contract Overview
Contract Amount: $55,793,501 ($55.8M)
Contractor: Rapiscan Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2020-07-01
End Date: 2027-12-31
Contract Duration: 2,739 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HIGH ENERGY RAIL SYSTEMS
Place of Performance
Location: TORRANCE, LOS ANGELES County, CALIFORNIA, 90503
Plain-Language Summary
Department of Homeland Security obligated $55.8 million to RAPISCAN SYSTEMS INC for work described as: HIGH ENERGY RAIL SYSTEMS Key points: 1. Contract awarded for irradiation apparatus manufacturing. 2. Significant contract value of $55.8 million. 3. Competition method was 'Full and Open Competition'. 4. Contract duration extends to December 2027.
Value Assessment
Rating: fair
The contract value of $55.8 million for irradiation apparatus manufacturing appears substantial. Benchmarking against similar contracts for specialized equipment is difficult without more specific details on the system's capabilities and scale.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific details of the bidding and award process are not provided, making it hard to assess if the best possible price was achieved.
Taxpayer Impact: Taxpayer funds are being used for critical infrastructure for U.S. Customs and Border Protection. The effectiveness of the spending will depend on the performance and longevity of the awarded systems.
Public Impact
Enhances border security capabilities for U.S. Customs and Border Protection. Supports the operational readiness of a key federal agency. Potential for technological advancement in high-energy rail systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for cost overruns on complex systems.
- Dependence on a single vendor for specialized equipment.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability.
- Addresses a critical national security need.
Sector Analysis
This contract falls within the broader 'Manufacturing' sector, specifically related to specialized industrial equipment. Benchmarking is challenging due to the niche nature of 'High Energy Rail Systems' and 'Irradiation Apparatus Manufacturing'.
Small Business Impact
The data indicates that the primary contractor is Rapiscan Systems Inc., and there is no explicit mention of small business participation. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract is managed by the Department of Homeland Security, U.S. Customs and Border Protection. Oversight would typically involve regular performance reviews, milestone tracking, and financial audits to ensure accountability and proper use of funds.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for vendor lock-in due to specialized nature of equipment.
- Lack of transparency on specific performance metrics.
- Uncertainty regarding long-term operational costs.
- Complexity of the technology may lead to unforeseen issues.
Tags
irradiation-apparatus-manufacturing, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $55.8 million to RAPISCAN SYSTEMS INC. HIGH ENERGY RAIL SYSTEMS
Who is the contractor on this award?
The obligated recipient is RAPISCAN SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $55.8 million.
What is the period of performance?
Start: 2020-07-01. End: 2027-12-31.
What specific technological advancements or capabilities do these high energy rail systems offer that justify the $55.8 million investment?
The provided data does not detail the specific technological advancements or unique capabilities of these high energy rail systems. A comprehensive understanding of their function, such as advanced scanning or material handling, is necessary to fully assess the value proposition and justify the significant investment.
How will the performance of these systems be measured to ensure effectiveness and taxpayer value over the contract's duration?
Performance metrics are not detailed in the provided data. Effective oversight would require clearly defined key performance indicators (KPIs) related to system reliability, throughput, accuracy, and maintenance requirements. Regular reporting and independent verification of these metrics are crucial for ensuring accountability and taxpayer value.
What is the potential long-term operational and maintenance cost associated with these specialized systems beyond the initial award?
The data focuses on the initial award value and does not provide insights into long-term operational and maintenance costs. Specialized systems often incur significant ongoing expenses for calibration, parts, and expert servicing. A thorough assessment would require projections for these costs over the system's lifecycle.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: OSI Systems, Inc.
Address: 2805 COLUMBIA ST, TORRANCE, CA, 90503
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,921,491
Exercised Options: $55,793,501
Current Obligation: $55,793,501
Actual Outlays: $23,697,687
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70B03C20D00000013
IDV Type: IDC
Timeline
Start Date: 2020-07-01
Current End Date: 2027-12-31
Potential End Date: 2031-12-31 16:48:08
Last Modified: 2025-08-21
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