Rapiscan Systems,a leading global supplier and manufacturer of security inspection systems, has been awarded a six-year authorization by Servicio de Administración Tributaria (SAT), Mexico’s tax and customs authority, to provide inspection services by implementing a wide-ranging program of cargo and vehicle security screening systems and services throughout Mexico.

Rapiscan was selected to carry out the program after a thorough and competitive tender process. Rapiscan is the sole provider for this agreement, with an initial award size of approximately $400 million over the six-year duration, and the total award value could increase depending on finalization of program scope.

Deepak Chopra, president and CEO of OSI Systems, Rapiscan’s parent company stated, “The combination of the magnitude, scope, and duration of the SAT award is unprecedented not only for us but for the entire security industry. SAT’s decision to select Rapiscan Systems reaffirms the value of our strategy to expand our security offering beyond the manufacture and sale of screening and detection equipment by providing comprehensive turnkey screening services to our global customer base. This unique service model will result in significant recurring revenue for OSI Systems for the duration of the program.”

Under the program, Rapiscan Systems will provide complete operations of a comprehensive x-ray screening program, which will incorporate technology, staffing, systems integration, and maintenance support at sites networked throughout Mexico, including ports of entry as well as inland checkpoints and airports. These operational capabilities will significantly enhance the Mexican government authorities’ capability to interdict contraband and undeclared materials.