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The U.S. Transportation Security Administration will remove airport body scanners that privacy advocates likened to strip searches after OSI Systems Inc. (OSIS) couldn’t write software to make passenger images less revealing.

TSA will end a $5 million contract with OSI’s Rapiscan unit for the software after Administrator John Pistole concluded the company couldn’t meet a congressional deadline to produce generic passenger images, agency officials said in interviews.

The agency removed 76 of the machines from busier U.S. airports last year. It will now get rid of the remaining 174 Rapiscan machines, with the company absorbing the cost, said Karen Shelton Waters, the agency’s assistant administrator for acquisitions. The TSA will use 60 machines manufactured by L-3 Communications Holdings Inc. (LLL), the agency’s other supplier of body scanners, and will move some scanners to busier airports to reduce waiting times.

“It became clear to TSA they would be unable to meet our timeline,” Waters said. “As a result of that, we terminated the contract for the convenience of the government.”

OSI Systems rose $3.03, or 4.5 percent, to $70.68 at 11:32 a.m. in Nasdaq trading.

The decision to cancel the Rapiscan software contract and remove its scanners wasn’t related to an agency probe of whether the company faked testing data on the software fix, Waters said.

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Originally posted by chrisisall:
Poor horny airport workers...

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Originally posted by chrisisall:
Poor horny airport workers...

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