ScanTech AI Unlocks Potential $100M Market Opportunity Through TIPS Procurement Contract with Creeksource Consulting

Rhea-AI Summary

ScanTech AI (Nasdaq: STAI) has secured a significant procurement opportunity through a partnership with Creeksource Consulting LLC via The Interlocal Purchasing System (TIPS) contract. This strategic agreement enables government entities, educational institutions, municipalities, and nonprofits to purchase ScanTech AI's advanced security screening technologies through the TIPS national purchasing cooperative.

The collaboration unlocks access to an estimated $100 million addressable market, targeting over 3,000 county courthouses, 13,000 municipal courthouses, and thousands of additional municipal facilities across the United States. This procurement pathway aims to streamline the deployment of ScanTech AI's smart screening systems in government-operated facilities nationwide.

Positive

• None.

Negative

• Contract requires partnership with third-party vendor Creeksource
• Actual revenue generation dependent on successful procurement bids

Insights

Government Procurement Analyst

ScanTech AI's TIPS contract creates efficient access to $100M government market, potentially accelerating sales cycles and revenue growth.

ScanTech AI's new TIPS contract through Creeksource Consulting represents a significant procurement breakthrough that could substantially accelerate the company's public sector penetration. This arrangement effectively removes multiple barriers to government sales by allowing agencies to bypass lengthy RFP processes and leverage pre-negotiated terms.

The $100 million market opportunity cited in the announcement is credible given the specified target facilities: 3,000+ county courthouses, 13,000+ municipal courthouses, and thousands of additional critical infrastructure facilities. These locations typically require enhanced security screening technologies, which aligns perfectly with ScanTech's offerings.

What makes this particularly valuable is that TIPS cooperative contracts typically run for 3-5 years, providing ScanTech with a stable procurement channel during that period. Government procurement through cooperatives like TIPS has grown significantly over the past decade as agencies seek procurement efficiencies. Most importantly, this arrangement can dramatically compress sales cycles - traditional government procurement can take 12-18 months, while cooperative purchasing can reduce this to 3-6 months.

The partnership with Creeksource as the prime contractor is a strategic workaround that allows ScanTech to access TIPS without having to independently qualify as a vendor. While this likely means sharing some margin with Creeksource, the expanded market access and accelerated sales timeline likely outweighs this consideration.

New Procurement Pathway Enhances Access to ScanTech AI Solutions for Public Sector Agencies Nationwide Through TIPS Cooperative

Atlanta, GA, July 29, 2025 (GLOBE NEWSWIRE) -- ScanTech AI Systems Inc. (the "Company" or "ScanTech AI") (Nasdaq: STAI),  a leading innovator in advanced security screening technologies, announced today it will offer its technologies through an The Interlocal Purchasing System (TIPS) contract that it entered into with Creeksource Consulting LLC.

This enables eligible government entities, educational institutions, municipalities, and nonprofits to potentially purchase ScanTech AI’s solutions via the TIPS national purchasing cooperative. Through the Teaming Agreement with Creeksource, an approved TIPS vendor, ScanTech AI aims to streamline procurement, minimize administrative burden, and ensure alignment with public sector procurement standards.

“TIPS provides a trusted and efficient pathway for government clients to access advanced screening technologies,” said Dolan Falconer, Chief Executive Officer of ScanTech AI. “Through our partnership with Creeksource Consulting, we aim to expand market access and making it easier for agencies to deploy our solutions quickly and compliantly.”

With more than 3,000 county courthouses, approximately 13,000 municipal courthouses, and thousands of additional municipal facilities classified as critical infrastructure across the United States, the TIPS contract collaboration opens access to an estimated $100 million addressable market for ScanTech AI. This procurement pathway better positions the Company to scale deployments efficiently, potentially accelerating access to its smart screening systems across government-operated facilities nationwide.

About ScanTech AI

ScanTech AI Systems Inc. (Nasdaq: STAI) has developed one of the world’s most advanced non-intrusive ‘fixed-gantry’ CT screening technologies. Utilizing proprietary artificial intelligence and machine learning capabilities, ScanTech AI’s state-of-the-art scanners accurately and quickly detect hazardous materials and contraband. Engineered to automatically locate, discriminate, and identify threat materials and items of interest, ScanTech AI’s solutions are designed for use in airports, seaports, borders, embassies, corporate headquarters, government and commercial buildings, factories, processing plants, and other facilities where security is a priority.

For more information, visit www.scantechais.com and investor.scantechais.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the U.S. Securities Exchange Act of 1934, as amended (“Exchange Act”), including statements regarding ScanTech AI’s management team’s expectations, hopes, beliefs, intentions, plans, prospects or strategies regarding the future, including market opportunities and access, contracts and other possible opportunities as a result of the TIPS contract, revenue growth and financial performance, product expansion and services. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Additionally, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on the current expectations and beliefs made by the management of ScanTech AI, in light of their respective experience and their perception of historical trends, current conditions and expected future developments and their potential effect on ScanTech AI, as well as other factors they believe are appropriate under the circumstances. There can be no assurance that future developments affecting ScanTech AI will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including product and service acceptance, regulatory oversights, research and development success, and that ScanTech AI will have sufficient capital to operate as anticipated. Should one or more of these risks of uncertainties materialize, or should any of the assumptions of ScanTech AI prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the filings of ScanTech AI (and its predecessor, Mars) with the U.S. Securities and Exchange Commission (the “SEC”), and in the current and periodic reports filed or furnished by ScanTech AI (and its predecessor, Mars) from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on the information available to ScanTech AI as of the date hereof, and ScanTech AI assumes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may otherwise be required under applicable securities laws.

Contact:
ScanTech AI Systems Inc.
James White, CFO
jwhite@scantechibs.com 

Investor & Media Relations Contact:
International Elite Capital Inc. 
Annabelle Zhang 
+1(646) 866-7928 
annabelle@iecapitalusa.com 

FAQ

What is the potential market size for ScanTech AI (STAI) through the TIPS contract?

The TIPS contract opens access to an estimated $100 million addressable market across government facilities nationwide.

How many facilities can ScanTech AI (STAI) potentially serve through this contract?

ScanTech AI can potentially serve over 16,000 facilities, including 3,000 county courthouses, 13,000 municipal courthouses, and thousands of additional municipal facilities.

What is the purpose of ScanTech AI's partnership with Creeksource Consulting?

The partnership enables ScanTech AI to offer its security screening technologies through the TIPS cooperative, streamlining procurement for government entities and ensuring compliance with public sector standards.

How does the TIPS contract benefit potential ScanTech AI (STAI) customers?

The contract provides eligible government entities, educational institutions, municipalities, and nonprofits with a trusted and efficient pathway to purchase ScanTech AI's advanced screening technologies with reduced administrative burden.

When did ScanTech AI (STAI) announce the TIPS procurement contract?

ScanTech AI announced the TIPS procurement contract through Creeksource Consulting on July 29, 2025.