The Transportation Security Administration (TSA) last week awarded L-3 Communications [LLL] and OSI Systems [OSIS] Rapiscan division new task orders for their respective whole body imaging systems, further entrenching the companies as the premier suppliers for now of the technology.
TSA awarded L-3 $31.7 million for 202 of the company’s ProVision millimeter wave Advanced Imaging Technology (AIT) systems, marking the first task order for the systems under a potential $164.7 million indefinite delivery, indefinite quantity contract (TR2, Jan. 6). L-3 had already supplied TSA 40 of its ProVision systems as part of an earlier demonstration effort. The new order is the first production order from TSA for L-3’s AIT systems.
Rapiscan’s order is for 100 of its Secure 1000 backscatter X-Ray AIT systems valued at $16.2 million. Last fall TSA ordered 150 of the Secure 1000s for $25.4 million, marking the agency’s first production order of AIT systems (TR2, Oct. 14, 2009). Those systems are currently being installed at some of the nation’s airports.
The ProVision and Secure 1000 machines are the only two AIT systems currently qualified by TSA for purchase and deployment at U.S. airports. Several other companies, including American Science and Engineering [ASEI], Brijot Imaging Systems, and Smiths Detection, also have AIT systems being investigated by TSA and the Department of Homeland Security at the Transportation Security Laboratory.
But getting through TSA’s qualification process is never easy and usually always lengthy, and with two competitors the agency has a competitive environment in which to purchase AIT systems.
TSA usually buys from two vendors, as is the case with its Advanced Technology X-Ray machines, explosives trace detectors, and walk-through metal detectors. However, for its explosives detection systems used to screen checked baggage the agency buys from three companies.
The new task orders were made using funds from the Recovery Act. The purchases will complete TSA’s plans to have acquired and deployed nearly 500 AIT systems by the end of 2010. That leaves the FY ’11 budget, for which TSA is requesting $215 million to purchase 500 more AIT systems, for the agency to decide whether it wants to also purchase the machines from at least a third vendor.
TSA budget documents show a requirement for 1,800 AIT systems at full operating capability.
That will likely depend on the impact another vendor would have on the logistics and maintenance footprint for the systems and what it would do to overall life-cycle costs for the program. TSA may incorporate upgrades into the AIT systems next year such as adding Automatic Target Recognition software algorithms, which in itself could be an opportunity for another vendor to demonstrate to the agency they are worthy of having their technology acquired.
L-3’s ProVision system is already operating at Amsterdam’s Schiphol Airport with ATR technology.
L-3 and Rapiscan also have a presence in international markets with their AIT systems. L-3 disclosed on its first quarter earnings call last week that it secured $17 million in international orders for ProVision in the first quarter. L-3 recently sold AIT systems to Canada and Rapiscan has sold units to Nigeria and expanded deployments to two airports in the United Kingdom.