Homeland Security

Michael Ellenbogen

Vice President, Product & Business Development

Thank you Mr. Chairman for the invitation and the opportunity to speak to the Ccommittee today.

PerkinElmer Congressional Testimony Dec. 7, 2001

Overview:

1)Company Introduction

1)Product Introduction

1)Insights and Recommendations

Company Introduction

PerkinElmer Detection Systems is owned by PerkinElmer, Inc., a publicly traded company who's stock is listed on the NYSE, has operations in over 125 countries, and in 2000 reported revenues of $1.7 billion with  PerkinElmer is an International company with over 12,000 employees. and $1.X 7 billion in revenue.  The  Detection Systems Business Unit is a leading the worlds largest producer supplier of x-ray based security equipment .  Detection Systems haswith over 16,000 units X-ray machines in the fieldoperation.  Detection SystemsThe Company produces a complete line of conventional imaging, automated detection systems, Cargo and Certified x-ray systems.  We are headquartered in Woburn MA, with an have a XXXXX 85,000 square foot manufacturing facility in Cypress CA, and a satellite office in the U.K.  We  haveDetection Systems has a global sales, service, and distribution network, and  and willis projected sell over $80 million worth of x-ray equipment this year.

Since this Hearing focuses on implementation of 100% EDSchecked baggage inspection, I would like to talk briefly about our 15 10 years of experience in developing and integrating advanced automated x-ray systems into airports to achieve 100% checked baggage inspection.  Detection Systems is the largest a leading developer and supplier of automated x-ray systems for explosives detection in checked baggage, with over 350 systems installed to date.

  These automated systems are based on our patented high efficiency dual energy X-ray architecturetechnology and. These systems are fully integrated into the baggage handling systems of some many of the world's largest international airports. in the world.  HoweverIn addition, two U.S. airports have adopted this method of bag screening method in their newest terminals and have already achieved 100% checked baggage inspection while maintaining efficient airline and airport operations. 

These Integrated Systems are characterized by a multi-level and multi-technology approach.  As mentioned, the machines are actually built into the baggage conveyor system.  Bags are checked in as usual.  The inspection process occurs while the bags are on their wayrouted from check-in to the aircraft.  Bags are passed throughinspected by a Level 1 automated dual energysystem device.  These machines are able to inspect up to 1800 bags per hour, or one bag every 2 seconds.  Images of aAlarm bags are screened reviewed by a Level 2 operator, without stopping the bags or slowing the process.  Level 2 AlarmsSuspect bags are sent to Level 3 for threat resolution, typically by using an off-line  CT machine.  PerkinElmer Detection Systems manufactures devices for all 3 levels of this system..  Our machines are approved by regulators around the world and deployed for 100% checked baggage inspection.  Every day, millions of bags are inspected using this process at some of the busiest airports in the world.

These high speedhigh speed integrated solutions areMulti-level systems are high speed and is very convenient and completely transparent to the passenger.  HoweverUnfortunately, the speed throughput requirements to achieve 100% inspection prohibits use of today's certified CT technology at Level 1 and 2.  I would like to make you aware of the availability of a machine, fundedthat you have in your arsenal a machine, funded  and tested by the FAA, that is capable of Certified detection at five times the throughput of existing CT machines.  PerkinElmer's MVT machine is the only non-CT technology that has been tested for Certification.  In FAA testing, the MVT met the stringent detection requirement, achieved 1500 bags per hour throughput, but demonstrated a false alarm rate that exceeds the Certification limit.  Flexibility regarding the false alarm rate requirement will enable the US to deploy this proven approach for 100% checked baggage inspection.  MVT can be installed at the check-in counter today and then the same machine can be later integrated into the baggage handling conveyor system.  and to prepare an airport for such a system takes months or years of planning and retrofit.

In addition, development of PerkinElmer's Argus CT-based machine is nearing completion.  Argus is designed to meet and exceed all FAA Certification requirements in a smaller, lighter, less expensive system.  We anticipate submitting Argus for FAA Certification in early 2002.  Detection System's and our partner Analogic Inc., one of the largest manufacturers of medical CT systems, can produce 50 ARGUS units/month once manufacturing is fully ramped up.

Based on PerkinElmer Detection Systems' 10 years of experience in integrating checked baggage inspection into airport operations, we offer the following Multi level HBS can play a roll in the U.S. and should be considered for all new terminal projects when the EDS can be designed into the baggage handling system from the beginning.

The U.S. has much more immediate and diverse needs than multi level systems alone can solve.  The U.S. has also adopted the Certification standards for baggage screening. Detection System respects each of our customer's standards and offers a full line of products to meet all standards, including the U.S. certification standard.

Automated Products

PerkinElmer Detection Systems has 3 automated product lines.  Two of the products achieve certified detection.

VIS

A non-certified high speed dual energy x-ray device.  Over 400 have been installed worldwide since 1991.  These units are typically found in Europe and Asia operating in harsh environments. The machines operate reliably at a very high detection rate, a low false alarm and 1500 bags/hour.  The VIS products exceed European Civil Aviation Commission detection standards.

MVT

MVT has been tested against the FAA Certification standard.  MVT meets the certification detection criteria and far exceeds the throughput criteria at 1500 bags/hr. but does not meet the False Alarm criteria.  MVT can be adjusted to meet the False Alarm criteria and maintain throughput while detecting 5/6 certification explosives categories. MVT is based on the reliable VIS platform and adds 2 additional dual energy x-ray views for improved detection.  Units are currently deployed in Europe.  Detection Systems can produce 50 units/month once production is fully ramped up.

ARGUS

Detection System's ARGUS is a CT based machine that will undergo Certification testing during the week of January 21^st 2002.  This machine is designed to meet and exceed the FAA's ARGUS specification.  Detection System's and our partner Analogic Inc., one of the largest manufactures of medical CT systems, can produce 50 ARGUS units/month once manufacturing is fully ramped up.

Insights and Rinsightecommendations:

1)      Recognize that manufacturing capacity is not the gating problem - The 3 qualified suppliers have more than enough capacity to overwhelm the FAA's and the airports' ability to install and integrate these machines. We need to get past the issue of supplier capacity in order to address the equally challenging issues of site preparation, installation, operator hiring, training, and customer service. Supplier pipelines are filling with international orders all trying to beat the pending FAA orders.  The FAA should start ramping up the manufacturers now by buying machines with certified detection.

1)      Detection Systems is prepared to support 100% HBS at Certified Detection levels

2)      The FAA must develop a cohesive security plan for screening passengers and baggage.. A cohesive aviation security plan will drive focus the technology vendorssuppliers, the airports, the airlines, and the government toward concurrent solving solutions for the many challenges that we are going to face concurrently rather than addressing each of them sequentiallyserially.  If we can not get past the issue of vendor manufacturing capacity we will never get the equally challenging issues of site preparation, installation, operator hiring, operator training, and customer service.  With a plan, airports and airlines can begin to prepare sites, vendors suppliers can start producing machines, and the government can start hiring and training operators. In an effort to jump-start this process Detection Systems has already submitted a draft security plan to the FAA for review and comment.  We will be following up on that plan on Dec. 18^th and 19^th in meetings at FAA headquarters and the Technical  Center.Technical Center.

3)      A combination of technologies is required to achieve 100% checked baggage inspection. Simply installing hundreds of standalone CT scanners in an airport is not a practical solution nor does it constitute a cohesive security plan. Alternatives based on proven, high speedhigh speed technology must be part of the deployment strategy.  Based on our experience, a combination of freestanding lobby systems and high speed integrated installations is imperative if the goal of 100% inspection is to be achieved without crippling airport operations

Manufacturing capacity is not gating the problem - The 3 vendors have more than enough capacity to overwhelm the FAA's and the airports ability to install and operate these machines.

1)Simply installing hundreds of standalone CT scanners in an airport is not a practical solution nor does it constitute a cohesive security plan

Recommendations:

1)Start ramping up the manufacturers now by buying machines with certified detection - Vendor pipelines are filling with international orders all trying to beat the pending FAA orders.

1)The FAA's short term focus should be on the security plan.  The FAA should use the 3 qualified vendors, airports, and airlines as a resource to form the plan.  In an effort to jump start this process Detection Systems has already submitted a draft security plan to the FAA for review and comment.  We will be following up on that plan on Dec. 18^th and 19^th in meetings at FAA headquarters and the Tech Center

1)Consolidate Training: Initially use the machines in red/light green light mode and open all alarm bags until operators are hired and trained.  Establish Federal training centers possibility at the vendor's facility.

In cConclusion, solutions are available that will allow the FAA to meet the requirement for 100% checked baggage inspection.  A combination of existing Certified CT scanners as well as high speed solutions that provide the same level of detection will all have to be utilized if this goal is to be met without adding significant delays and inconvenience for the US flying public. 

PerkinElmer Detection Systems is prepared to support 100% checked baggage screening at Certified detection levels.   R

Regardless of whether the outcome of the plan, calls for 100% certified screening or allows for some percentage of non-certified screening PerkinElmer Detection Systems has products, and services, and capacity to meet the need.  Detection Systems stands ready to move in any direction the FAA deems appropriate.  In these challenging times we are actively seeking ways opportunities to make our experience and expertise available to this Nation's planners and policymakers. 

Thank you for the opportunity to presentspeak to the Committee to you today.We stand ready to meet the upcoming challenges.