Exhibit 10.51

 

***Text Omitted and Filed Separately

Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4), and 240.24b-2

Delivery Order DTFA01-02-23003

Contract DTFA01-02-C-00023

DELIVERY ORDER DO#3

Under Contract No. DTFA01-02-C-00023

 

The purpose of this Delivery Order is to complete the order of 300 Explosives
Detection Systems (EDS),  and order an additional 100 parts kits known as long
lead time items, in accordance with Contract number DTFA01-02-C-00023.   Items
authorized under this Delivery Order are prescribed herein.

 

1.     Section B

 

The Contractor shall provide the following supplies and services in accordance
with the terms and conditions of this letter contract.  The following line
item(s) will be ordered in accordance with the contract amounts set forth below.

 

CLIN

 

TITLE

 

QUANTITY

 

UNIT PRICE

 

TOTAL

0001A

 

Pass Through SA EDS Unit (CTX-2500) w/powered incline conveyor and baggage exit
slide/conveyor

 

[…***…]

 

[…***…]

 

[…***…]

0001A

 

Pass Through SA EDS Unit (CTX-2500) w/powered incline conveyor and baggage exit
slide/conveyor

 

[…***…]

 

[…***…]

 

[…***…]

00A1A

 

Parts Kits for SA EDS Unit (CTX-2500) w/powered incline conveyor and baggage
exit slide/conveyor

 

[…***…]

 

[…***…]

 

[…***…]

0006A

 

Pass Through SA EDS Unit (CTX-5500) w/powered incline conveyor and baggage exit
slide/conveyor

 

[…***…]

 

[…***…]

 

[…***…]

00006A

 

Pass Through SA EDS Unit (CTX-5500) w/powered incline conveyor and baggage exit
slide/conveyor

 

[…***…]

 

[…***…]

 

[…***…]

0006A

 

Parts Kit for SA EDS Unit (CTX-5500) w/powered incline conveyor and baggage exit
slide/conveyor

 

[…***…]

 

[…***…]

 

[…***…]

 

 

TOTAL ORDERED

 

 

 

 

 

$148,600,000

 

2.     Funding:  Funding in the amount of $148,600,000 is hereby authorized
under this Delivery Order, under the provisions set forth below:

 

3.2.4-22 Limitation of Government Liability (April 1996)

 

(a)   In performing this contract, the Contractor is not authorized to make
expenditures or incur obligations exceeding $148,600,000 dollars.

 

(b)   The maximum amount for which the Government shall be liable if this
contract is terminated is $148,600,000 dollars.

 

(End of clause)

 

Expenditures above that amount are not authorized, and are at InVision’s own
risk.

 

3.  Section C

 

The Contractor shall deliver the supplies and services associated with the above
CLINs in accordance with the Statement of Work in Contract DTFA01-02-C-00023.

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* Confidential Treatment Requested

 

 

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4.  Section F

 

The CLINS are to be delivered to the following locations (TBD locations will be
supplied upon completion of FAA site surveys.

 

ITEM NO.

 

SUPPLY/SERVICE

 

QTY

 

DATE OF DELIVERY

 

PLACE OF DELIVERY

 

PLACE OF ACCEPTANCE

 

 

 

 

 

 

 

 

 

 

 

0001A

 

Pass Through SA EDS Unit (CTX-2500) w/powered inclined conveyor and baggage exit
slide/conveyor

 

[…***…]

 

By […***…]

 

 

 

FOB ORIGIN

0001A

 

Pass Through SA EDS Unit (CTX-2500) w/powered inclined conveyor and baggage exit
slide/conveyor

 

[…***…]

 

By […***…]

 

 

 

FOB ORIGIN

0001A

 

Pass Through SA EDS Unit (CTX-2500) w/powered inclined conveyor and baggage exit
slide/conveyor

 

[…***…]

 

By […***…]

 

 

 

FOB ORIGIN

0001A

 

Total  Production Units

 

[…***…]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0006A

 

Pass Through SA EDS Unit (CTX-5500) w/powered incline conveyor and baggage exit
slide/conveyor

 

[…***…]

 

By […***…]

 

 

 

FOB ORIGIN

0006A

 

Pass Through SA EDS Unit (CTX-5500) w/powered incline conveyor and baggage exit
slide/conveyor

 

[…***…]

 

By […***…]

 

 

 

FOB ORIGIN

0006A

 

Pass Through SA EDS Unit (CTX-5500) w/powered incline conveyor and baggage exit
slide/conveyor

 

[…***…]

 

By […***…]

 

 

 

FOB ORIGIN

0006A

 

Total Production Units

 

[…***…]

 

 

 

 

 

 

 

b.  Period of Delivery

 

The period of delivery for this order is from the date of award through
September 30, 2002.

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* Confidential Treatment Requested

 

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5. Section G

 

a)  The following administration data applies to this order:

 

Contracting Officer

 

      Federal Aviation Administration

      Kimberley T. Branch, ASU-360

      590 Herndon Parkway, Suite 120

      Herndon, VA  20170-5232

      Telephone (703) 796-7118

      Fax (703) 707-5675

 

Contracting Officer’s Technical Representative (COTR)

 

      Federal Aviation Administration

      Ed Ocker, AAR-600

      590 Herndon Parkway, Suite 120

      Herndon, VA  20170-5232

      Telephone (703) 796-7104

      Fax (703) 707-5675

 

Quality Reliability Officer (QRO)

 

      Federal Aviation Administration

      Quality Reliability Officer (QRO)

      Lindsey Humphrey, ASU-200

      7151 Gateway Boulevard

      Newark, CA  94560

      Telephone (510) 739-2516

      Fax (510) 739-6400

 

 

b.             This Delivery Order is funded in the amount of  $148,600,000. 
This amount is considered the contract ceiling.  Unless modified by the
Contracting Officer in writing, the Contractor may not exceed this ceiling
except at its own risk (see clause in Contracting Officer’s letter dated
February 19, 2002 — Limitation of Government Liability (Apr 1996)

 

c.             The Contractor shall submit to the FAA Contracting Officer the
serial numbers/ID numbers for each system delivered under this Delivery Order,
at least one week prior to, but no later than, delivery of the system.

 

 

6.  Section H — Special Terms and Conditions

 

The following terms apply to this Delivery Order, number DTFA01-02-23003 only.

 

(1)   In the event the Contractor fails to meet the delivery schedule as
provided herein, such failure will be considered in accordance with the
Termination for Default clause (AMS 3.10.6-4(1996)).

 

(2)   The Contractor shall execute and perform all terms and conditions of the
License Agreement contained in the Letter Contract under which this Delivery
Order is executed.  Failure to adhere to the licensing agreement may result in
the Government terminating the contract for default pursuant to the Termination
for Default clause (AMS 3.10.6-4(1996)).

 

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(3)           Payment Terms:

 

For CLIN 0001A, 0006A Production Units.

 

For units 101 through 400:

 

70% of the CLIN price at satisfactory completion of Factory Acceptance Test
(minus any previously paid long-lead items).  Satisfactory completion includes a
signed form FAA-256, Inspection Report of Material and/or Services.

 

30% of the CLIN price at satisfactory completion of Site Acceptance Test, or 20%
upon satisfactory completion of the Site Acceptance Test if the contractor is
responsible for training, but not later than 90 days after successful completion
of the Factory Acceptance Test.  Satisfactory completion includes a signed form
FAA-256, Inspection Report of Material and/or Services.

 

10% of the CLIN price when the unit is fully operational, i.e., at the
completion of Initial Operator Training, if the contractor is responsible for
training.

 

For units 401 through 500:

 

Up to 40% of the CLIN price at time of order, but not to exceed the actual costs
of long lead items.

 

For CLIN 00A1A, 00A6A Production Units.

 

InVision will submit a request for payment / invoice for actual costs incurred
consistent with the quantities identified in Delivery Order #3.

 

7.  Defense Priority and Allocation Requirement

The TSA is seeking approval for use of, as a minimum, a DO rated order certified
for national defense use.  It is anticipated that the approval will be
forthcoming very quickly.  Once approved, the Contractor shall follow all the
requirements of the Defense Priorities and Allocations System regulation (15
Code of Federal Regulations Part 700).

 

 

END OF DELIVERY ORDER

 

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