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OSI Systems to Provide Advanced Screening Technology to US CBP

  • Orders worth $200 Million

OSI Systems, Inc. (the “Company” or “OSI Systems”) (NASDAQ: OSIS) today announced that its Security division was recently awarded an indefinite delivery, indefinite quantity (“IDIQ”) contract by the U.S. Customs and Border Protection (“CBP”) for low-energy portal (“LEP”) x-ray systems. The multiple vendor IDIQ contract has a potential value of up to $390 million and contains a five-year ordering period for systems and associated services. This is in addition to the previously announced $480 million, multi-energy portal (“MEP”) IDIQ contract.

Under the LEP and MEP IDIQ contract awards, the Company received two delivery orders totaling approximately $200 million. The Company could potentially receive up to an additional $65 million under these orders if the CBP exercises its options.

“We are excited to receive the largest orders awarded to date under these IDIQs. We look forward to supporting CBP’s non-intrusive inspection program with our industry-leading Rapiscan, AS&E and S2 Global border security offerings that provide our customers a range of solutions to address continually evolving threats,” said Deepak Chopra, OSI Systems’ Chairman and CEO.

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LEPs and MEPs are non-intrusive inspection systems used for screening vehicles at border crossings to find illicit materials. The LEPs are used for passenger vehicle screening, and the Company’s Security division will be supplying the CarView® In-Lane and Z Portal® systems for this order. The MEPs are used for screening commercial trucks and the Company’s Security division will be supplying the Eagle® P60 ZBx inspection system. These systems use a combination of transmission and Z Backscatter® imaging to produce multiple views of the vehicle for efficient detection of contraband and threats. Also included with these orders is the Company’s new Under-Vehicle Backscatter option, which generates images of the underside of cars and trucks. These systems are expected to be deployed with the Company’s CertScan® integration platform for image analysis, data integration and inspection adjudication.

The CertScan® integration platform, currently in use for inspection around the globe and at U.S. CBP border crossings, connects a broad range of inspection technologies and transport related data into an efficient unified workflow. By integrating the new inspection technologies with legacy lane equipment and shipment information, CertScan® facilitates commercial trade crossing the border in a faster and more secure manner.

“We are proud to deliver our most advanced non-intrusive inspection technology, along with an integration platform that is designed to meet the challenges faced at our borders today. We look forward to working closely with CBP as we continue to develop and deploy technology to meet future challenges, and help achieve the mandated 100% scanning requirement at border crossings,” said Ajay Mehra, EVP of OSI Systems and President of Cargo Scanning & Solutions.

Source: OSI Systems, Inc.
Date: Oct 7, 2021


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