DOJ's $70M biometric algorithm maintenance contract awarded to IDEMIA National Security Solutions LLC

Contract Overview

Contract Amount: $70,000,000 ($70.0M)

Contractor: Idemia National Security Solutions LLC

Awarding Agency: Department of Justice

Start Date: 2018-06-05

End Date: 2023-06-06

Contract Duration: 1,827 days

Daily Burn Rate: $38.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IDEMIA BIOMETRIC ALGORITHM MAINTENANCE FOR NGI

Place of Performance

Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26306

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $70.0 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: IDEMIA BIOMETRIC ALGORITHM MAINTENANCE FOR NGI Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. Long-term contract duration of 5 years suggests a critical, ongoing need for biometric algorithm maintenance. 3. The contract's value of $70 million indicates significant investment in biometric technology by the FBI. 4. Performance is based on a Firm Fixed Price (FFP) contract, which shifts cost risk to the contractor. 5. The specific NAICS code (511210 - Software Publishers) suggests the contract involves software licensing and maintenance. 6. Awarded to a single vendor, highlighting potential single-source dependency and the need for robust performance monitoring.

Value Assessment

Rating: fair

The contract value of $70 million over five years averages $14 million annually for biometric algorithm maintenance. Without comparable sole-source contracts for similar services, a precise value-for-money assessment is challenging. However, the absence of competition suggests potential for higher pricing than if multiple vendors had bid. The FBI should ensure that the pricing reflects fair market value for software maintenance and algorithm updates, potentially through independent cost analysis or benchmarking against internal R&D costs for similar capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the FBI did not conduct a competitive procurement. This typically occurs when only one vendor possesses the necessary capabilities, technology, or security clearances. The lack of competition limits the government's ability to leverage market forces to drive down prices and potentially explore innovative solutions from a wider range of providers. It also raises questions about whether a competitive process was fully explored or justified.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from competitive pricing. It also reduces transparency in the procurement process.

Public Impact

The FBI benefits from continuous access to updated and maintained biometric algorithms, crucial for law enforcement and national security operations. Services delivered include the maintenance and potential updates of critical biometric identification algorithms, supporting investigations and identity verification. The geographic impact is national, as the FBI operates nationwide, and biometric data is often shared across jurisdictions. Workforce implications include reliance on specialized technical personnel within the FBI and the contractor to manage and integrate these algorithms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Long-term contract duration may create vendor lock-in.
Lack of transparency in the sole-source justification process.
Dependence on a single vendor for critical biometric technology.
Potential for scope creep if not managed tightly.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Long-term contract ensures continuity of critical services.
Focus on maintenance suggests a stable, well-understood requirement.
Award to a known entity (IDEMIA) may imply prior satisfactory performance.

Sector Analysis

The biometric technology sector is a rapidly evolving field critical for national security, law enforcement, and identity management. This contract falls within the software publishing and IT services sub-sector, focusing on specialized algorithms. The global market for biometrics is substantial and growing, driven by increasing security needs and technological advancements. Comparable spending benchmarks are difficult to establish precisely due to the proprietary nature of algorithms and the sole-source award, but significant government investment in biometric capabilities is common across defense and intelligence agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded to IDEMIA National Security Solutions LLC, a large business. There is no explicit information regarding subcontracting plans for small businesses within this award. The focus on specialized biometric algorithm maintenance suggests that the primary contractor likely possesses unique capabilities, potentially limiting opportunities for small businesses unless they are specialized subcontractors to IDEMIA.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Bureau of Investigation (FBI) contracting officers and program managers. The Department of Justice's Office of the Inspector General (OIG) may conduct audits or investigations into the contract's performance, cost-effectiveness, and compliance, particularly given its significant value. Transparency is limited due to the sole-source nature, but contract performance metrics and payment milestones would be subject to internal FBI oversight.

Related Government Programs

FBI Biometric Technology Programs
Department of Justice IT Modernization Efforts
National Biometric Identity Management Systems
Immigration and Customs Enforcement Biometric Services

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Potential for vendor lock-in due to specialized technology.
Long contract duration requires careful performance monitoring.
Dependence on a single vendor for critical national security infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $70.0 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. IDEMIA BIOMETRIC ALGORITHM MAINTENANCE FOR NGI

Who is the contractor on this award?

The obligated recipient is IDEMIA NATIONAL SECURITY SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $70.0 million.

What is the period of performance?

Start: 2018-06-05. End: 2023-06-06.

What is the specific nature of the biometric algorithms being maintained, and how critical are they to FBI operations?

The contract specifies 'BIOMETRIC ALGORITHM MAINTENANCE FOR NGI,' referring to the FBI's Next Generation Identification (NGI) system. NGI is a vast database containing biometric data (fingerprints, facial images, iris scans, DNA) used for identifying individuals in criminal investigations, national security threats, and immigration cases. The algorithms are the core software components that process, compare, and manage this biometric data. Their maintenance is critical for ensuring the accuracy, speed, and reliability of the NGI system, directly impacting the FBI's ability to identify suspects, solve crimes, and protect national security. Updates are necessary to improve matching accuracy, incorporate new biometric modalities, and adapt to evolving technological standards and cyber threats.

Why was this contract awarded on a sole-source basis, and what alternatives were considered?

The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. Justification for sole-sourcing typically involves demonstrating that only one responsible source can provide the required supplies or services. For specialized software like biometric algorithms for a large-scale system like NGI, the justification might stem from proprietary technology, unique expertise held by IDEMIA, or the significant integration challenges and costs associated with switching vendors. Without the specific justification documentation (e.g., a Justification and Approval document), it's impossible to detail the alternatives considered. However, standard sole-source justifications often include factors like urgency, lack of competitive availability, or the need for standardization with existing systems.

How does the $70 million contract value compare to historical spending on biometric algorithm maintenance by the FBI or similar agencies?

The $70 million contract value over five years ($14 million annually) represents a significant investment. Historical spending data for biometric algorithm maintenance is not readily available in the public domain, especially for specific systems like NGI. However, large federal agencies involved in law enforcement and national security, such as the FBI, Department of Homeland Security (DHS), and Department of Defense (DoD), routinely invest hundreds of millions, if not billions, in biometric technologies and associated services. This includes development, procurement, integration, and ongoing maintenance of large-scale biometric systems. The $14 million annual figure for maintenance alone suggests that the NGI system is a substantial, high-priority platform, and the cost is likely in line with the complexity and criticality of maintaining such a national-level biometric database.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are typically detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not publicly provided here. However, for a contract focused on biometric algorithm maintenance, common KPIs and SLAs would likely include: algorithm matching accuracy rates (e.g., minimizing false positives/negatives), system uptime and availability, response times for algorithm updates or patches, turnaround time for resolving reported algorithm defects, and successful integration of new algorithm versions into the NGI system. The FBI would monitor these metrics to ensure the contractor is meeting performance expectations and delivering the required level of service for critical identification functions.

What is the track record of IDEMIA National Security Solutions LLC in providing similar biometric services to the U.S. government?

IDEMIA National Security Solutions LLC (and its predecessors/related entities) has a significant track record in providing biometric solutions and services to various U.S. government agencies, including law enforcement and national security sectors. They are known for their work on large-scale identity management systems and have been involved in providing hardware, software, and services for fingerprint, facial, and other biometric modalities. Their involvement with the FBI's NGI program, either directly or through prior contracts, suggests a history of performance relevant to this specific requirement. Government contract databases often show a history of awards and performance ratings for contractors, which the FBI would have reviewed prior to or during the sole-source justification process.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Idemia Identity & Security USA LLC

Address: 675 N WASHINGTON ST STE 350, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $70,000,000

Exercised Options: $70,000,000

Current Obligation: $70,000,000

Actual Outlays: $41,095,769

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline