DHS Awards $88M for Non-Intrusive Inspection Systems to Rapiscan Systems Inc

Contract Overview

Contract Amount: $88,139,671 ($88.1M)

Contractor: Rapiscan Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-21

End Date: 2026-12-31

Contract Duration: 1,927 days

Daily Burn Rate: $45.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE.

Place of Performance

Location: TORRANCE, LOS ANGELES County, CALIFORNIA, 90503

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $88.1 million to RAPISCAN SYSTEMS INC for work described as: LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE. Key points: 1. Contract awarded to a single vendor, Rapiscan Systems Inc., for specialized inspection equipment. 2. The contract value is substantial at $88.1 million over a 5-year period. 3. Focus on 'Irradiation Apparatus Manufacturing' suggests a niche technology area. 4. The contract aims to enhance border security through advanced inspection capabilities.

Value Assessment

Rating: fair

The contract value of $88.1 million for a 5-year period appears significant. Benchmarking against similar contracts for specialized inspection systems is difficult without more detailed specifications, but the per-unit cost is not explicitly provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where competition might have occurred earlier.

Taxpayer Impact: Taxpayer funds are being used to procure critical security equipment, with the expectation of improved border control efficiency and effectiveness.

Public Impact

Enhances U.S. Customs and Border Protection's ability to detect illicit goods and threats. Supports national security by strengthening border surveillance and inspection capabilities. Procurement of advanced technology may lead to more efficient cargo and passenger screening. Potential for improved interdiction rates of contraband and illegal substances.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes value assessment challenging.
Reliance on a single vendor for a significant duration could pose supply chain risks.
The 'Irradiation Apparatus Manufacturing' sector is highly specialized, potentially limiting future competition.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
Long-term contract provides stability for technology deployment and maintenance.
Addresses a critical national security need for advanced inspection systems.

Sector Analysis

The procurement falls within the 'Irradiation Apparatus Manufacturing' sector, which is highly specialized and often involves advanced technology. Spending in this niche area is typically driven by specific government requirements for security and inspection.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific delivery order. Further analysis would be needed to determine the extent of small business participation in the overall contract vehicle, if applicable.

Oversight & Accountability

The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms would apply to ensure compliance and performance.

Related Government Programs

Irradiation Apparatus Manufacturing
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

High contract value.
Long contract duration.
Specialized technology sector.
Potential for vendor lock-in.
Limited public detail on specific system capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $88.1 million to RAPISCAN SYSTEMS INC. LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE.

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 $88.1 million.

What is the period of performance?

Start: 2021-09-21. End: 2026-12-31.

What is the specific technology or type of inspection system being procured, and how does it represent an advancement over existing capabilities?

The contract specifies 'LOW ENERGY NON-INTRUSIVE INSPECTION SYSTEMS, WITH TRAINING, AND MAINTENANCE.' While the exact technology isn't detailed, the term 'non-intrusive' suggests systems like X-ray, gamma-ray, or other scanning technologies used for cargo and baggage screening. The 'low energy' aspect might imply a focus on safety or specific material detection capabilities. Its advancement likely lies in improved resolution, speed, or the ability to detect a wider range of threats compared to older systems.

How does the $88.1 million contract value compare to the typical lifecycle costs of similar inspection systems, considering maintenance and training?

Without specific details on the number of units procured and the exact capabilities, a direct comparison is difficult. However, $88.1 million over five years for advanced, specialized inspection systems, including training and maintenance, suggests a significant investment. The lifecycle cost would depend on the system's durability, the frequency of required maintenance, and the complexity of the training. Benchmarking against similar government procurements for advanced security screening equipment would be necessary for a precise assessment.

What are the potential risks associated with relying on Rapiscan Systems Inc. for these critical inspection systems over a five-year period?

Potential risks include vendor lock-in, where the government becomes dependent on a single supplier for maintenance, upgrades, and spare parts, potentially leading to higher costs or service disruptions. There's also the risk of technological obsolescence if Rapiscan's systems are surpassed by competitors' innovations during the contract period. Furthermore, any financial instability or strategic shifts within Rapiscan could impact the delivery and support of these essential security systems.

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: $108,953,782

Exercised Options: $88,139,671

Current Obligation: $88,139,671

Actual Outlays: $74,898,639

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B03C21D00000037

IDV Type: IDC

Timeline