DoD's $28M non-intrusive inspection system contract to Rapiscan Systems Inc. awarded in 2010, ending 2030

Contract Overview

Contract Amount: $27,952,189 ($28.0M)

Contractor: Rapiscan Systems Inc

Awarding Agency: Department of Defense

Start Date: 2010-01-27

End Date: 2030-12-25

Contract Duration: 7,637 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: [PIIN: W91GY0-10-C-0005] NON-INTRUSIVE INSPECTION SYS

Place of Performance

Location: TORRANCE, LOS ANGELES County, CALIFORNIA, 90503

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to RAPISCAN SYSTEMS INC for work described as: [PIIN: W91GY0-10-C-0005] NON-INTRUSIVE INSPECTION SYS Key points: 1. Contract value of $27.95M over its lifespan suggests a significant investment in inspection technology. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The long duration (2010-2030) may present risks related to technological obsolescence and changing requirements. 4. Fixed-price contract type aims to control costs for the government. 5. The contract is managed by the Department of the Army, a major component of the DoD. 6. The NAICS code 334511 points to the manufacturing of search, detection, and navigation instruments.

Value Assessment

Rating: fair

The total contract value of approximately $28 million over 20 years averages to about $1.4 million per year. Without specific details on the systems procured, it's difficult to benchmark against similar contracts. However, the long duration for a technology-dependent system raises questions about whether the pricing remains competitive throughout its lifecycle. The firm fixed-price nature provides cost certainty but could lead to overpayment if technology advances rapidly or needs change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. This typically implies a robust bidding process with multiple potential offerors. The number of bidders is not specified, but the open competition is generally a positive sign for price discovery and achieving a fair market price.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The Department of Defense benefits from enhanced security and inspection capabilities through these non-intrusive systems. Services delivered include the provision and potential maintenance of advanced inspection equipment. The contract's geographic impact is likely focused on military installations and operational areas where the DoD requires inspection capabilities. Workforce implications may include training for military personnel on operating and maintaining the systems, as well as potential jobs in manufacturing and support for the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (20 years) increases risk of technological obsolescence.
Lack of specific details on system performance and maintenance costs.
Potential for contractor lock-in if specialized support is required.
Firm fixed-price contracts can sometimes lead to less flexibility for evolving needs.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Long-term award may indicate a stable, reliable solution for a critical need.
Contract managed by the Department of the Army, a major DoD entity.

Sector Analysis

This contract falls within the broader defense sector, specifically related to the manufacturing and supply of specialized security and inspection equipment. The market for such systems is driven by government procurement needs for border security, cargo screening, and facility protection. Comparable spending benchmarks would involve looking at other large-scale procurements of similar detection and inspection technologies by defense and homeland security agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver specified goods or services at an agreed price. Transparency is generally facilitated through contract award databases, though detailed performance metrics and specific oversight activities may not be publicly available.

Related Government Programs

Department of Defense Procurement
Non-Intrusive Inspection Systems
Security and Detection Equipment
Army Contracting Command
Defense Logistics Agency

Risk Flags

Long contract duration may lead to technological obsolescence.
Potential for cost overruns if maintenance needs increase significantly over time.
Dependence on a single contractor for a critical security function.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to RAPISCAN SYSTEMS INC. [PIIN: W91GY0-10-C-0005] NON-INTRUSIVE INSPECTION SYS

Who is the contractor on this award?

The obligated recipient is RAPISCAN SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $28.0 million.

What is the period of performance?

Start: 2010-01-27. End: 2030-12-25.

What specific types of non-intrusive inspection systems are being procured under this contract, and what are their intended applications within the Department of Defense?

The contract PIIN W91GY0-10-C-0005, awarded to Rapiscan Systems Inc., pertains to 'NON-INTRUSIVE INSPECTION SYS'. While the specific technical details and exact models are not provided in the summary data, non-intrusive inspection systems typically include technologies like X-ray scanners, gamma-ray scanners, and other detection equipment used for screening cargo, vehicles, and personnel without requiring them to be opened or dismantled. For the Department of Defense, these systems are crucial for security at military bases, ports, and forward operating locations to detect threats such as explosives, weapons, and contraband, thereby enhancing force protection and operational security.

How does the $27.95 million total contract value compare to other similar procurements for non-intrusive inspection systems by the DoD or other federal agencies?

Benchmarking the $27.95 million contract value requires comparing it to similar large-scale procurements of advanced non-intrusive inspection systems. For instance, the Transportation Security Administration (TSA) frequently procures advanced checkpoint and baggage screening technologies, with individual procurements often running into tens or hundreds of millions of dollars over several years. Similarly, U.S. Customs and Border Protection (CBP) invests heavily in large-scale scanning systems for ports of entry. The DoD's $28 million over a 20-year period averages to about $1.4 million annually. This figure seems moderate for a long-term, potentially system-wide deployment, especially considering the rapid evolution of detection technology. Without knowing the exact quantity and sophistication of systems, a precise comparison is challenging, but it suggests a significant, sustained investment rather than a rapid, high-volume acquisition.

What are the potential risks associated with a 20-year contract duration for technology-dependent systems like non-intrusive inspection equipment?

A 20-year contract duration for technology-dependent systems like non-intrusive inspection equipment presents several significant risks. Firstly, technological obsolescence is a major concern; advancements in scanning, detection, and artificial intelligence could render the procured systems outdated long before the contract expires. This may lead to the DoD operating with less effective or inefficient technology compared to newer market offerings. Secondly, maintenance and sustainment costs could escalate unexpectedly over such a long period, especially if specialized parts become scarce or if the original manufacturer's support diminishes. Thirdly, the government's needs and threat landscapes evolve; a rigid, long-term contract may lack the flexibility to adapt to new requirements or operational strategies, potentially leading to suboptimal performance or the need for costly modifications or workarounds. Finally, market dynamics can change, potentially offering more cost-effective or capable solutions from competitors later in the contract term.

Given the 'full and open competition' award, what does the number of bidders (if known) and the final price suggest about the level of competition and value for money achieved?

The contract was awarded under 'full and open competition,' which theoretically maximizes the potential for competitive pricing and value for money. However, the provided data does not specify the number of bidders that participated in the solicitation process. If there were multiple bidders, and the award was made based on the best value (considering technical factors and price), it suggests a reasonable level of competition was achieved. If only one or two bids were received, the 'full and open' designation might be technically met, but the competitive pressure could have been limited. The firm fixed-price (FFP) contract type aims to lock in costs, providing cost certainty. The ultimate value for money depends on whether the FFP price accurately reflects the market rate for the systems and services delivered over the contract's long duration, and whether the technology remains relevant and effective throughout its lifecycle.

What is the track record of Rapiscan Systems Inc. in delivering similar large-scale government contracts, particularly for defense or security applications?

Rapiscan Systems Inc., a subsidiary of OSI Systems, has a significant history of providing security screening solutions, including non-intrusive inspection systems, to various government agencies worldwide. They are known for their X-ray cargo and baggage inspection systems used in airports, seaports, and border crossings. Their track record includes contracts with agencies like U.S. Customs and Border Protection (CBP) and international defense organizations. While specific performance details for the DoD contract W91GY0-10-C-0005 are not detailed here, Rapiscan's established presence in the security screening market suggests they possess the technical capabilities and experience to fulfill such requirements. However, as with any long-term contract, ongoing performance monitoring and evaluation are crucial to ensure continued satisfaction and adherence to contract terms.

How has historical spending on non-intrusive inspection systems by the Department of Defense evolved, and does this contract represent a significant shift or continuation?

Historical spending by the Department of Defense on non-intrusive inspection systems has likely been substantial and ongoing, driven by the continuous need for security and threat detection across global operations. Agencies within the DoD, such as the Army, Navy, Air Force, and Marine Corps, as well as combatant commands, procure these systems regularly. The award of a 20-year contract valued at nearly $28 million in 2010 suggests a strategic decision to secure a long-term supply and support arrangement for a specific set of technologies or a particular operational need. Without access to historical spending data broken down by system type and agency over time, it's difficult to definitively state if this contract represents a significant shift. However, its long duration implies a commitment to a particular solution, potentially indicating a stable requirement rather than a rapidly changing procurement landscape for this specific capability at the time of award.

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

Parent Company: OSI Systems Inc (UEI: 178295812)

Address: 2805 COLUMBIA ST, TORRANCE, CA, 90

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: $27,952,189

Exercised Options: $27,952,189

Current Obligation: $27,952,189

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline