Based on work it has done with the U.S. Central Command (CENTCOM) in the Middle East and Southwest Asia, Rapiscan Systems is working with the military command to potentially bring the company’s turnkey screening solutions model to certain international customers looking to improve their border security operations and at less cost to the U.S. government, according to a company official.
Rapiscan, a division of OSI Systems [OSIS], has already sold its Eagle cargo screening solutions to CENTCOM for deployment in other countries such as Turkmenistan and Uzbekistan, Stephen McHugh, vice president for Federal Programs at Rapiscan, said during the recent annual Association of the United States Army (AUSA) conference in Washington. On top of that, CENTCOM pays for sustaining this equipment, which also include baggage scanners in some cases, as well as training the operators, he said.
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CENTCOM can purchase the inspection equipment upfront while the countries where it is deployed pay the company to operate it on a fee-per-scan basis, McHugh said. This way CENTCOM doesn’t pay for the sustainment, he added.
Later this month, officials in Uzbekistan will host a ribbon cutting ceremony signaling the start of operations with one of Rapiscan’s Eagle rail scanner. CENTCOM has purchased two of the rail scanners for use in Uzbekistan for rail shipments exiting Afghanistan. The X-ray inspection systems will monitor shipments of U.S. military equipment departing Afghanistan for any potential contraband.
After CENTCOM acquired Eagle cargo inspection systems, as well as baggage scanners, for use Turkmenistan, that country purchased seven additional cargo scanners from Rapiscan, McHugh said. These systems were a combination of portal and gantry systems, he said.
CENTCOM understands the need for border security in Southwest Asia, as to the various countries as they try to mitigate the flow of improvised explosive devices, drugs and other contraband across borders, McHugh said.
Rapiscan, through its S2 Global business unit, has turnkey screening services contracts in place with the port authority of Puerto Rico, Mexico, and most recently Albania. In these cases, Rapiscan installs its screening equipment and then provides the screening services on a fee-per-scan basis.
McHugh said that CENTCOM also sees the value of the screening equipment being integrated into a centralized command and control node for each of the countries in its area of operations where it has worked to deploy non-intrusive inspection systems in use by foreign governments. This integration reduces manpower requirements, uses up less real estate, and cuts costs, he said.
OSI’s leadership is big on the turnkey services model in part because it’s a way to generate a steady, predictable long-term revenue stream. Company executives say that wherever governments and organizations have deployed cargo screening equipment, those are potential customers for turnkey screening services.
Rapiscan about a year ago completed work under an Army contract called Entry Control Point (ECP) Phase 3. While a number of companies were selected to compete for task orders under the potential $250 million contract, Rapiscan won the vast majority of the work. That program helped it gain valuable experience in integrating disparate screening systems, as well as video solutions, in central command and control operations.
But with that work finished, Rapiscan is looking to make up for those revenues and then some. In the company’s latest fiscal quarter, the turnkey work with Mexico did make up for the lack of ECP revenues. The company is also beginning to get traction with radiation detection systems and handheld explosives trace detection products it obtained through acquisitions the past few years, McHugh said.
McHugh also said that CENTCOM believes it has a “couple more customers” that are interested in additional rail scanners for use in Southwest Asia. He also said that U.S. Customs and Border is interested in the company’s high-throughput rail scanners on the southwest border with Mexico.
Rapiscan is also eyeing new integrated force protection work with the Air Force, specifically the Force Protection Site Security Systems program, and a Navy force protection program as well, for additional military business, McHugh said.