DHS awards $4.56M for CT Scanners to Rapiscan Systems Inc. under competitive SAP
Contract Overview
Contract Amount: $4,558,572 ($4.6M)
Contractor: Rapiscan Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2020-09-30
End Date: 2026-06-30
Contract Duration: 2,099 days
Daily Burn Rate: $2.2K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CT SCANNERS
Place of Performance
Location: TORRANCE, LOS ANGELES County, CALIFORNIA, 90503
Plain-Language Summary
Department of Homeland Security obligated $4.6 million to RAPISCAN SYSTEMS INC for work described as: CT SCANNERS Key points: 1. Spending on CT Scanners totals $4.56M over the contract period. 2. Rapiscan Systems Inc. is the sole awardee. 3. The contract was competed under Simplified Acquisition Procedures (SAP). 4. The sector is primarily related to Irradiation Apparatus Manufacturing.
Value Assessment
Rating: fair
The award of $4.56M for CT scanners appears to be within a reasonable range for specialized equipment. However, without specific details on the scanner model and its capabilities, a precise comparison to similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of quotes. This method may not achieve the same level of price discovery as full and open competition, potentially impacting the final price.
Taxpayer Impact: The use of SAP for this award suggests an effort to streamline procurement for moderate-value items, aiming for efficiency. However, the limited competition could lead to higher costs for taxpayers compared to a broader bidding process.
Public Impact
Enhances border security capabilities through advanced scanning technology. Supports U.S. Customs and Border Protection operations. Potential for improved detection of illicit materials. Ensures operational readiness for critical inspection points.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP.
- Potential for higher costs with limited bids.
Positive Signals
- Procurement under SAP can be efficient.
- Supports critical national security functions.
Sector Analysis
The procurement falls under Irradiation Apparatus Manufacturing, a niche within the broader manufacturing sector. Spending benchmarks for specialized CT scanners are highly variable based on technology and application, making direct comparisons challenging without more detailed specifications.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The focus appears to be on specialized equipment procurement.
Oversight & Accountability
The contract is managed by the Department of Homeland Security, specifically U.S. Customs and Border Protection. Oversight would involve ensuring the CT scanners meet specified requirements and are delivered on time and within budget.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Limited competition
- Potential for price escalation
- Lack of detailed technical specifications
- No small business participation noted
Tags
irradiation-apparatus-manufacturing, department-of-homeland-security, ca, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $4.6 million to RAPISCAN SYSTEMS INC. CT SCANNERS
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 $4.6 million.
What is the period of performance?
Start: 2020-09-30. End: 2026-06-30.
What specific capabilities do these CT scanners offer that justify the $4.56M award?
The provided data lacks specific technical details about the CT scanners' capabilities. Understanding the resolution, imaging speed, material discrimination features, and integration with existing systems would be crucial to assess if the $4.56M award represents good value for the technology acquired. Without this, it's difficult to determine if the price aligns with the operational benefits.
What is the risk of vendor lock-in or future cost increases given the limited competition?
The use of Simplified Acquisition Procedures (SAP) inherently limits the pool of potential bidders, increasing the risk of vendor lock-in. If Rapiscan Systems Inc. becomes the sole provider of these specific scanners, future maintenance, upgrades, or additional purchases could be subject to higher prices due to a lack of competitive pressure. This necessitates careful contract management and future procurement planning.
How effectively will these CT scanners improve U.S. Customs and Border Protection's operational efficiency and threat detection?
The effectiveness of the CT scanners hinges on their technical specifications and how well they integrate into existing workflows. If the scanners offer significant improvements in speed, accuracy, and the ability to detect a wider range of threats compared to previous technologies, they could substantially enhance operational efficiency and national security. Post-award performance monitoring is essential to confirm these benefits.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: SPECIAL INDUSTRY MACHINERY
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 19856
Offers Received: 2
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: $4,896,887
Exercised Options: $4,558,572
Current Obligation: $4,558,572
Actual Outlays: $611,384
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2020-09-30
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-29
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