State Department awards $6.5M for drive-through inspection systems to Rapiscan Systems Inc

Contract Overview

Contract Amount: $6,874,393 ($6.9M)

Contractor: Rapiscan Systems Inc

Awarding Agency: Department of State

Start Date: 2024-07-08

End Date: 2026-07-31

Contract Duration: 753 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW DELIVERY ORDER IN THE AMOUNT OF $6,499,413.00 FOR DRIVE-THROUGH INSPECTION SYSTEMS WITH A DELIVERY DATE OF 07/07/25 AND OPTION YEAR(S) THROUGH 7/07/28. THIS REQUIREMENT IS IN SUPPORT OF THE INL SECTION AT THE U.S. EMBASSY LIMA, PERU.

Plain-Language Summary

Department of State obligated $6.9 million to RAPISCAN SYSTEMS INC for work described as: NEW DELIVERY ORDER IN THE AMOUNT OF $6,499,413.00 FOR DRIVE-THROUGH INSPECTION SYSTEMS WITH A DELIVERY DATE OF 07/07/25 AND OPTION YEAR(S) THROUGH 7/07/28. THIS REQUIREMENT IS IN SUPPORT OF THE INL SECTION AT THE U.S. EMBASSY LIMA, PERU. Key points: 1. The contract is for advanced inspection systems, indicating a need for enhanced security or customs processes. 2. The award to a single vendor suggests a focused procurement strategy for specialized equipment. 3. The duration of the contract, including options, extends over several years, implying a long-term requirement. 4. The use of a firm-fixed-price contract type aims to control costs and provide predictability. 5. The delivery location in Lima, Peru, highlights the international application of U.S. security technologies.

Value Assessment

Rating: good

The contract value of approximately $6.5 million for drive-through inspection systems appears reasonable given the specialized nature of the equipment and its intended use in an embassy setting. Benchmarking against similar international deployments of advanced screening technology would provide further context, but the price seems aligned with high-security infrastructure investments. The firm-fixed-price structure helps manage cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive process should theoretically lead to a fair market price. The agency's decision to use full and open competition indicates confidence in the market's ability to supply the required technology.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and price for essential security equipment.

Public Impact

The U.S. Embassy in Lima, Peru, will benefit from enhanced security capabilities through these inspection systems. The systems are intended for drive-through inspections, likely improving efficiency and effectiveness at the embassy. This procurement supports the Department of State's broader mission to ensure secure diplomatic operations abroad. The contract may indirectly support jobs in the manufacturing and technology sectors related to security equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
Details on system performance metrics and integration challenges are not publicly available.

Positive Signals

Awarded under full and open competition, indicating market availability and vendor interest.
Firm-fixed-price contract type provides cost certainty.
Long-term option periods suggest a strategic investment in security infrastructure.

Sector Analysis

The procurement falls within the analytical laboratory instrument manufacturing sector, specifically focusing on security and inspection technology. This niche market often involves high-value, specialized equipment. Spending in this area is driven by global security needs, regulatory compliance, and the desire for advanced threat detection. Comparable spending might be seen in airport security, border control, and critical infrastructure protection contracts.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is likely minimal unless Rapiscan Systems Inc. utilizes small businesses in its supply chain, which is not specified.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Transparency is facilitated by public contract databases, though detailed performance reports are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of State Security Equipment Procurements
Embassy Security Infrastructure
Customs and Border Protection Technology
International Security Assistance Programs

Risk Flags

Potential for logistical challenges in overseas deployment.
Dependence on a single vendor for specialized technology.
Need for ongoing maintenance and technical support in Peru.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.9 million to RAPISCAN SYSTEMS INC. NEW DELIVERY ORDER IN THE AMOUNT OF $6,499,413.00 FOR DRIVE-THROUGH INSPECTION SYSTEMS WITH A DELIVERY DATE OF 07/07/25 AND OPTION YEAR(S) THROUGH 7/07/28. THIS REQUIREMENT IS IN SUPPORT OF THE INL SECTION AT THE U.S. EMBASSY LIMA, PERU.

Who is the contractor on this award?

The obligated recipient is RAPISCAN SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2024-07-08. End: 2026-07-31.

What is the track record of Rapiscan Systems Inc. with the Department of State or similar agencies for providing inspection systems?

Rapiscan Systems Inc. is a known provider of security screening solutions, including X-ray scanners and other inspection equipment, often used in government and commercial sectors. While specific contract history with the Department of State for this exact type of system isn't detailed here, the company has a significant presence in the security technology market. Their track record typically involves supplying equipment to airports, ports, and government facilities worldwide. A deeper dive into federal procurement databases would reveal the extent and nature of their past performance, including any relevant past performance evaluations or disputes, to fully assess their suitability for this specific requirement.

How does the awarded amount compare to similar drive-through inspection system procurements by other federal agencies?

Direct comparisons for 'drive-through inspection systems' are challenging without more specific technical details and the exact scope of work. However, the $6.5 million award for a system with multi-year options suggests a significant investment. Procurements for advanced security screening equipment, such as those used at airports or border crossings, can range from hundreds of thousands to tens of millions of dollars, depending on the technology's sophistication, quantity, and integration requirements. The value here seems commensurate with specialized, high-security technology deployed internationally, but a precise benchmark would require identifying contracts for functionally equivalent systems.

What are the primary risks associated with this contract, and how are they being mitigated?

Potential risks include technical performance issues with the inspection systems, delays in delivery or installation, and challenges in maintenance and support in an overseas location. The firm-fixed-price contract type helps mitigate cost overrun risks. The multi-year option periods suggest a phased approach to deployment and potential for performance-based adjustments. Mitigation strategies likely involve rigorous testing and acceptance protocols, clear service level agreements for maintenance, and contingency planning for logistical challenges in Peru. The Department of State's contracting team would also monitor performance closely.

How effective are drive-through inspection systems in enhancing embassy security compared to other methods?

Drive-through inspection systems are designed to expedite the screening of vehicles entering a secure facility, improving both throughput and security. They typically employ advanced imaging and detection technologies to identify threats within vehicles. Their effectiveness lies in their ability to provide a continuous screening capability, reducing bottlenecks and allowing security personnel to focus on higher-risk vehicles or anomalies. Compared to manual inspections or static checkpoints, these systems offer a more efficient and potentially more thorough method for initial screening, thereby enhancing overall embassy security posture by quickly processing legitimate traffic while flagging potential threats.

What has been the historical spending trend for similar security and inspection technologies by the Department of State?

The Department of State consistently invests in security infrastructure and technology to protect its personnel and facilities worldwide. Historical spending on security and inspection technologies, including access control, surveillance, and screening equipment, has been substantial and generally increasing, driven by evolving global threats. While specific figures for 'drive-through inspection systems' are not readily available as a distinct category, broader spending on embassy security upgrades and specialized equipment reflects a commitment to maintaining a high level of protection. This contract aligns with that ongoing investment strategy.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM18R0253

Offers Received: 1

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: $7,499,355

Exercised Options: $7,182,473

Current Obligation: $6,874,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0044

IDV Type: IDC

Timeline