OSI Systems Wins CBP Contract To Supply X-ray Systems

(RTTNews) - OSI Systems, Inc. (OSIS), a developer of security and inspection systems, on Thursday announced that its security arm recently received an indefinite delivery, indefinite quantity or IDIQ contract from the U.S. Customs and Border Protection or CBP, for low-energy portal 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, the California-headquartered company said in a statement.

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, OSI Systems added.

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 OSI Systems is expected to supply the CarView In-Lane and Z Portal systems for the order.

At NasdaqGS, OSI Systems closed at $96.06 per share, on Wednesday, against its previous close of $95.74 per share.