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News

Government partially cancels ZBV inspection order

American Science And Engineering : 25 February, 2009  (Application Story)
Military X-ray inspection trailer order from US Government placed in January reduced in value as part of Partial Termination for Convenience clause
American Science and Engineering (AS&E) has received a Partial Termination for Convenience from the US government involving its procurement of ZBV Military Trailers (ZBV Mil Trailer) from AS&E. On January 15, 2009, AS&E announced it had received a $67.1 million contract from the US government for a significant quantity of ZBV Mil Trailers — a rugged trailer version of the Company's patented, top-selling Z Backscatter Van (ZBV). As a result of the Partial Termination for Convenience, AS&E will realize $39.3 million of the original value of the contract. The US government is expected to solicit for the remaining requirements to fulfill its immediate counterterrorism field requirements.

Termination for Convenience is a standard clause in government contracts which gives the government the right to terminate the contract in whole or part, when the government determines that it is in its best interest, and without fault of the contractor.

'We are confident in our unique Z Backscatter product offering and look forward to participating and ultimately prevailing in the US government's expedited competition for the remaining requirements," said Anthony Fabiano, AS&E's President and CEO. "We believe the rugged ZBV Mil Trailer is the best solution to the U.S. government to fulfill its critical mission to secure checkpoints and borders from vehicle-borne explosives and other high-risk contraband."
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