U.S. Customs and Border Protection Awards Leidos High-Energy Rail Inspection Contract

Rhea-AI Summary

Leidos (NYSE:LDOS) has secured a contract from U.S. Customs and Border Protection to implement a non-intrusive inspection system for high-energy rail infrastructure. This contract, valued at approximately $379 million, spans an ordering period of five years starting July 1, 2020. Leidos will utilize its VACIS IR6500 system, enhancing threat detection capabilities significantly. The technology aims to improve efficiency in screening $180 billion worth of rail freight annually, thereby aiding in the prevention of contraband smuggling into the U.S.

Positive

• Award of $379 million contract enhances revenue potential.
• Integration of advanced VACIS IR6500 system improves detection capabilities and operational efficiency.
• Support of U.S. Customs and Border Protection's mission to secure commerce and prevent smuggling.

Negative

• None.

RESTON, Va., July 7, 2020 /PRNewswire/ -- Leidos (NYSE:LDOS), a FORTUNE^® 500 science and technology leader, was awarded a prime contract by the U.S. Customs and Border Protection's (CBP) Office of Field Operations and Cargo Conveyance Security to provide a non-intrusive inspection (NII) system for high-energy rail infrastructure. The multiple award indefinite delivery/indefinite quantity contract has an ordering period up five years beginning July 1, 2020, with an approximate total value of $379 million. The NII components will be integrated in Vista, Calif. and deployed to CBP high-energy rail inspection sites nationwide.

"The men and women of the U.S. Customs and Border Protection are on the front lines of safeguarding the flow of commerce and we are honored to support their important mission," said Jim Moos, Leidos Civil Group president. "This effort requires screening technology that is fast, frictionless and fully integrated. We are proud to provide this non-intrusive inspection technology and support CBP as they screen nearly $180 billion of rail freight each year."

Part of CBP's mission is to facilitate legitimate international trade by inspecting cars, trucks, railcars, and sea containers as well as personal luggage, packages, parcels, and flat mail using NII systems. This screening helps CBP effectively and efficiently detect and prevent inadmissible persons, contraband, unreported currency, guns, ammunition, and other illegal merchandise from being smuggled into the country.

Under the contract, Leidos will integrate, deploy, and train CBP staff to use its VACIS IR6500 high-energy rail inspection system. The system includes container optical character recognition (OCR), a railcar identification system (RFID), conveyance cameras, a control subsystem display extensible to biometrics, and is capable of integrating radiation detection equipment (RDE). Going forward, the VACIS IR6500 system will upgrade the Leidos gamma-ray technology in use by CBP for 20 years. Improved material discrimination and image resolution will double the penetration of the old gamma ray systems, enabling CBP officers to identify more threats.

In addition to this contract, Leidos holds separate non-intrusive inspection contracts with CBP as the end-user. This work includes both mobile and fixed VACIS systems for rapid detection of concealed threats and contraband in passenger vehicles, commercial cargo and other containers. VACIS is one of several Leidos security detection and automation solutions for aviation, ports, borders, and critical infrastructure. Learn more about the company's 24,000 security detection and automation products, which are deployed in 120 countries at leidos.com/security-detection.

About Leidos

Leidos is a Fortune 500^® information technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, homeland security, civil, and health markets. The company's 37,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately $11.09 billion for the fiscal year ended January 3, 2020. For more information, visit www.Leidos.com.

Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the company's Annual Report on Form 10-K for the period ended January 3, 2020, and other such filings that Leidos makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

Contact:	Melissa Dueñas
	(571) 526-6011
	Duenasml@leidos.com
	Thomas Doheny
	(571) 474-4735
	dohenyt@leidos.com

 

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SOURCE Leidos

FAQ

What is the value of the contract awarded to Leidos by CBP?

The contract awarded to Leidos by U.S. Customs and Border Protection is valued at approximately $379 million.

What system will Leidos provide under the new CBP contract?

Leidos will provide its VACIS IR6500 high-energy rail inspection system under the contract.

When does the contract for the non-intrusive inspection system start?

The contract for the non-intrusive inspection system began on July 1, 2020, and has an ordering period of five years.

What is the purpose of the VACIS IR6500 system that Leidos is deploying?

The VACIS IR6500 system aims to improve threat detection and screening efficiency for rail freight, safeguarding against contraband.

How much rail freight does CBP screen annually?

U.S. Customs and Border Protection screens nearly $180 billion of rail freight each year.