State Department awards $110.7M contract for mobile inspection systems, training, and support

Contract Overview

Contract Amount: $11,074,428 ($11.1M)

Contractor: Rapiscan Systems Inc

Awarding Agency: Department of State

Start Date: 2022-07-22

End Date: 2026-07-18

Contract Duration: 1,457 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PANAMA - FOUR (4) MOBILE NON-INTRUSIVE INSPECTION SYSTEMS, TRAINING, INSTALLATION, PROGRAM MANAGEMENT SUPPORT, AND EXTENDED WARRANTY PERIODS.

Plain-Language Summary

Department of State obligated $11.1 million to RAPISCAN SYSTEMS INC for work described as: PANAMA - FOUR (4) MOBILE NON-INTRUSIVE INSPECTION SYSTEMS, TRAINING, INSTALLATION, PROGRAM MANAGEMENT SUPPORT, AND EXTENDED WARRANTY PERIODS. Key points: 1. Contract value of $110.7 million for mobile inspection systems and associated services. 2. Procurement was conducted under full and open competition. 3. Contract awarded to Rapiscan Systems Inc. 4. Duration of the contract is approximately 4 years. 5. Services include training, installation, program management, and extended warranty. 6. The contract type is Firm Fixed Price, indicating predictable costs for the government.

Value Assessment

Rating: good

The contract value of $110.7 million for four mobile non-intrusive inspection systems, training, installation, program management, and extended warranty appears reasonable given the scope. While specific benchmark data for comparable systems is not provided, the firm-fixed-price structure suggests that the government has locked in costs. Further analysis would require comparing the per-unit cost of these systems against similar procurements or market offerings for advanced inspection technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not detailed, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The government's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures the government receives the best value by considering a wide range of potential suppliers.

Public Impact

The Department of State benefits from enhanced border security and inspection capabilities. The contract delivers advanced mobile non-intrusive inspection systems. Services include crucial training and installation to ensure operational readiness. Program management support ensures efficient execution and oversight of the contract. Extended warranty periods provide long-term assurance of system functionality and reduce unexpected maintenance costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type helps manage budget predictability.
Includes comprehensive support services like training and installation.
Long contract duration (approx. 4 years) allows for sustained operational capability.

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, specifically focusing on advanced inspection systems. The market for such technology is driven by government needs for security, customs, and regulatory compliance. Spending in this area is often substantial due to the specialized nature and high performance requirements of the equipment. Comparable spending benchmarks would typically involve other government procurements of similar inspection technologies for border control or cargo screening.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Rapiscan Systems Inc., may still engage small businesses as subcontractors for various components or services, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated by the public nature of contract awards, and accountability would be managed through performance reviews and adherence to contract terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Customs and Border Protection Inspection Systems
Department of Homeland Security Equipment Procurement
International Narcotics and Law Enforcement Affairs Bureau Programs

Risk Flags

Technology obsolescence risk
Cybersecurity vulnerabilities
Dependence on vendor for support

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.1 million to RAPISCAN SYSTEMS INC. PANAMA - FOUR (4) MOBILE NON-INTRUSIVE INSPECTION SYSTEMS, TRAINING, INSTALLATION, PROGRAM MANAGEMENT SUPPORT, AND EXTENDED WARRANTY PERIODS.

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 $11.1 million.

What is the period of performance?

Start: 2022-07-22. End: 2026-07-18.

What is the specific type and capability of the 'mobile non-intrusive inspection systems' being procured?

The term 'mobile non-intrusive inspection systems' typically refers to advanced scanning technologies, such as X-ray or gamma-ray scanners, designed to detect contraband, weapons, or illicit materials without requiring the physical opening of containers or vehicles. These systems are often mounted on vehicles or trailers for rapid deployment at ports of entry, checkpoints, or during special operations. Their capabilities usually include high-resolution imaging, rapid scanning speeds, and sophisticated software for image analysis and threat detection. The specific model and technical specifications would be detailed in the contract's statement of work, but they are generally used to enhance security and facilitate trade by speeding up inspection processes while maintaining a high level of detection.

How does the $110.7 million contract value compare to previous procurements of similar inspection systems by the Department of State or other agencies?

Without specific details on the exact model, quantity, and included services of the four systems, a direct comparison is challenging. However, advanced mobile inspection systems can range from hundreds of thousands to millions of dollars per unit, depending on their technological sophistication, mobility, and integrated software. A total contract value of $110.7 million for four such systems, including training, installation, and long-term support, suggests a significant investment. Agencies like Customs and Border Protection (CBP) and the Department of Defense frequently procure similar technologies, and their contract values can vary widely. Benchmarking against publicly available contract awards for comparable systems from vendors like Rapiscan, Smiths Detection, or Leidos would provide a more precise value assessment.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract and the performance of Rapiscan Systems Inc.?

Key performance indicators for this contract would likely focus on the operational readiness and effectiveness of the inspection systems, the quality of training provided, and the responsiveness of program management and warranty support. Specific metrics could include system uptime and reliability rates, the number of successful inspections conducted, the accuracy of threat detection, the timeliness of issue resolution under warranty, and the satisfaction levels of end-users with the training and system performance. The Department of State would establish these KPIs in the contract's performance work statement, and Rapiscan Systems Inc. would be evaluated against them throughout the contract period. Regular performance reviews would assess adherence to these metrics.

What is Rapiscan Systems Inc.'s track record with government contracts, particularly for similar inspection technologies?

Rapiscan Systems Inc. is a well-established provider of security screening technology, including X-ray inspection systems, for government and commercial clients worldwide. They have a significant history of supplying such equipment to various U.S. federal agencies, including the Department of Homeland Security (DHS), Customs and Border Protection (CBP), and the Department of Defense, as well as international partners. Their track record often includes contracts for cargo and baggage screening systems, vehicle scanners, and personnel screening. While specific performance details on past contracts are not always public, their continued success in winning competitive bids suggests a generally positive performance history and a strong market position in the security screening sector.

What are the potential risks associated with the deployment and long-term use of these mobile inspection systems?

Potential risks include technological obsolescence, as inspection technology evolves rapidly. There's also the risk of system malfunctions or breakdowns, which could impact operational capabilities, although the extended warranty and support services aim to mitigate this. Cybersecurity threats are a concern for any networked technology, requiring robust security measures. Furthermore, the effectiveness of the systems depends on proper training and operator proficiency, so inadequate training could lead to missed threats or inefficient operations. Environmental factors at deployment sites could also affect system performance or longevity. Finally, reliance on a single vendor for maintenance and upgrades, even with competition for the initial award, can pose a long-term risk if the vendor's support or product line changes.

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: $11,074,428

Exercised Options: $11,074,428

Current Obligation: $11,074,428

Actual Outlays: $9,572,358

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