DHS awards $14.6M for 236 Rapiscan security systems for airports

Contract Overview

Contract Amount: $14,604,483 ($14.6M)

Contractor: Rapiscan Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2008-08-18

End Date: 2011-06-28

Contract Duration: 1,044 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RAPISCAN - PURCHASE 236 AT SYSTEMS FOR MULTIPLE AIRPORTS IDENTIFIED IN DEPLOYMENT PLAN

Place of Performance

Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.6 million to RAPISCAN SYSTEMS INC for work described as: RAPISCAN - PURCHASE 236 AT SYSTEMS FOR MULTIPLE AIRPORTS IDENTIFIED IN DEPLOYMENT PLAN Key points: 1. The Department of Homeland Security (DHS) procured 236 Rapiscan security systems for airport deployment. 2. The contract was awarded to Rapiscan Systems Inc., a key player in security screening technology. 3. The primary risk involves the reliance on a single vendor for a critical security function. 4. The sector is aerospace and defense, specifically focusing on security and detection equipment.

Value Assessment

Rating: fair

The total award of $14.6 million for 236 systems averages to approximately $61,800 per unit. This pricing needs to be benchmarked against similar security screening systems purchased by government agencies or in the commercial market to assess value.

Cost Per Unit: $61,800

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the competition and how price discovery was achieved are not provided, making it difficult to fully assess the pricing effectiveness.

Taxpayer Impact: Taxpayer funds were used for the acquisition of essential security equipment, aiming to enhance airport safety and efficiency.

Public Impact

Enhances airport security screening capabilities across multiple locations. Supports the Transportation Security Administration's (TSA) mission to protect transportation systems. Procurement of advanced detection systems contributes to national security efforts. Potential for improved passenger throughput and reduced security delays.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor lock-in potential if Rapiscan is the sole provider of maintenance and upgrades.
Obsolescence risk for technology over the system's lifecycle.
Dependence on a single supplier for critical security infrastructure.

Positive Signals

Procurement under full and open competition.
Awarded to a known entity in the security screening market.
Supports a critical government function (transportation security).

Sector Analysis

This procurement falls within the aerospace and defense sector, specifically focusing on security and detection equipment manufacturing. Benchmarks for similar large-scale security system procurements are essential for evaluating cost-effectiveness.

Small Business Impact

The data does not indicate any specific set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

Oversight is provided by the Department of Homeland Security, specifically the Transportation Security Administration. The contract's duration and fixed-price nature suggest a degree of accountability for delivery and cost.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Potential for vendor lock-in
Technology obsolescence
Dependence on a single supplier
Limited transparency on competitive details
Unclear long-term maintenance costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.6 million to RAPISCAN SYSTEMS INC. RAPISCAN - PURCHASE 236 AT SYSTEMS FOR MULTIPLE AIRPORTS IDENTIFIED IN DEPLOYMENT PLAN

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2008-08-18. End: 2011-06-28.

What was the competitive landscape during the bidding process for these Rapiscan systems?

While the contract states 'full and open competition,' the specific number of bidders and the technical capabilities of competing systems are not detailed. Understanding the alternatives evaluated and the rationale for selecting Rapiscan is crucial for confirming the best value was obtained. This information would clarify if the competition truly drove down costs and ensured the most suitable technology was chosen.

What is the long-term cost implication of relying on Rapiscan for these systems?

The initial purchase price is $14.6 million, but the long-term costs associated with maintenance, software updates, spare parts, and potential future upgrades need thorough evaluation. If Rapiscan holds a monopoly on these services, taxpayers could face premium pricing over the systems' lifespan, potentially exceeding the initial acquisition cost and impacting overall value for money.

How effectively do these Rapiscan systems integrate with existing airport security infrastructure?

The effectiveness of these systems hinges on their seamless integration with current airport security protocols and technology. Information regarding compatibility testing, interoperability with other security layers (e.g., baggage handling, passenger tracking), and any required modifications to existing infrastructure is vital. Successful integration ensures the systems deliver their intended security benefits without creating new bottlenecks or vulnerabilities.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: OSI Systems Inc (UEI: 178295812)

Address: 3232 W EL SEGUNDO BLVD, HAWTHORNE, CA, 43

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,604,483

Exercised Options: $14,604,483

Current Obligation: $14,604,483

Parent Contract

Parent Award PIID: HSTS0407DDEP346

IDV Type: IDC

Timeline