OSI Systems Inc., an electronic security company based in Hawthorne, has been awarded a federal contract worth up to $450 million to monitor health care patients for the U.S. military.

The company announced Dec. 17 that its Spacelabs Healthcare division had won the contract with the Defense Logistics Agency, a combat support agency for the U.S. Department of Defense.

The indefinite-delivery/indefinite-quantity agreement, valued at up to $450 million, will allow Spacelabs to provide patient monitoring, related accessories and training.

The OSI Systems contract is good for five years, with an optional extension of five more years.

“We are pleased to see the Department of Defense continue our longstanding relationship with this IDIQ funding vehicle that facilitates the potential procurement of our leading patient monitoring solutions and support to defense and civilian agencies,” said Deepak Chopra, its chief executive, in a statement.

The 31-year-old company makes security systems for airport screening, as well as radiation, explosives and narcotics detection. It also offers medical monitoring, anesthesia systems and optoelectronic devices.

OSI Systems employs more than 6,000 people in offices in more than a dozen countries.

The share price for OSIS was flat at just over $72 at the closing of the market, a day after the DOD contract announcement, with a market cap of $1.3 billion.

Health business reporter Dana Bartholomew can be reached at dbartholomew@labusinessjournal.com. Follow him on Twitter @_DanaBart.

For reprint and licensing requests for this article, CLICK HERE.