State Department awards $30.8M contract for passport book supplies to IDEMIA National Security Solutions

Contract Overview

Contract Amount: $30,770,444 ($30.8M)

Contractor: Idemia National Security Solutions LLC

Awarding Agency: Department of State

Start Date: 2018-02-08

End Date: 2019-03-31

Contract Duration: 416 days

Daily Burn Rate: $74.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPLIES TO SUPPORT PASSPORT BOOKS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $30.8 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: SUPPLIES TO SUPPORT PASSPORT BOOKS. Key points: 1. Contract value appears reasonable given the scope of supplying essential materials for passport production. 2. The award was not competed, raising questions about potential price discovery and value for taxpayer funds. 3. Limited competition increases the risk of suboptimal pricing and reduced incentive for cost efficiency. 4. The contract duration of over a year suggests a sustained need for these critical supplies. 5. This contract falls within the broader category of government printing and security services. 6. The absence of small business set-asides or subcontracting plans warrants further investigation into broader economic impact.

Value Assessment

Rating: fair

The contract value of $30.8 million for passport book supplies is difficult to benchmark without specific details on the quantity and type of supplies. However, given the critical nature of passport production and the sole-source award, the price may not reflect the most competitive market rate. Compared to similar government printing contracts, the unit cost for specific components would be a key indicator of value. The lack of competition suggests a potential for higher-than-market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means there was no opportunity for multiple bidders to offer proposals, which can limit price negotiation and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, it's harder to ensure the government secured the best possible price for these essential passport supplies.

Public Impact

Citizens requiring official U.S. passports benefit from the consistent supply of necessary materials for production. The Department of State receives the essential supplies needed to print and issue passports. The geographic impact is national, as passport services are utilized across the United States and by citizens abroad. The contract supports jobs within the printing machinery and equipment manufacturing sector, specifically at IDEMIA National Security Solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the justification for a sole-source award.
No indication of small business participation or subcontracting opportunities.
Contract duration of over a year without re-competition may not reflect current market pricing.
Absence of performance metrics or quality assurance details in the provided data.

Positive Signals

Ensures a continuous supply of critical materials for passport production.
Award to an established vendor may indicate reliability in meeting production needs.
Contract supports a specific manufacturing sector, potentially preserving specialized capabilities.

Sector Analysis

This contract falls within the government's printing and manufacturing sector, specifically related to security documents. The market for specialized printing equipment and supplies is often concentrated, with a few key players capable of meeting stringent government requirements. Benchmarking this spending would involve comparing it to other contracts for similar security printing materials or equipment, considering factors like volume, customization, and security protocols.

Small Business Impact

The contract data indicates that this award was not subject to small business set-aside requirements, nor does it mention any subcontracting plans for small businesses. This suggests that the primary contractor, IDEMIA National Security Solutions LLC, will likely fulfill the contract requirements directly. Consequently, there is a missed opportunity to leverage the small business ecosystem for a portion of this federal spending, potentially limiting economic benefits for smaller enterprises.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers responsible for passport production. Accountability measures would be defined within the contract's terms and conditions, including delivery schedules and quality standards. Transparency is limited due to the sole-source nature of the award and the lack of publicly available detailed justifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Passport Services
Government Printing Contracts
Security Document Manufacturing
Department of State Procurement

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of transparency regarding the justification for sole-source procurement.
Absence of small business participation noted.
Contract duration without re-competition may not reflect current market value.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $30.8 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. SUPPLIES TO SUPPORT PASSPORT BOOKS.

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 State (Department of State).

What is the total obligated amount?

The obligated amount is $30.8 million.

What is the period of performance?

Start: 2018-02-08. End: 2019-03-31.

What specific supplies are being procured under this contract, and what is the quantity?

The provided data indicates the contract is for 'SUPPLIES TO SUPPORT PASSPORT BOOKS.' However, it does not specify the exact nature or quantity of these supplies. This could range from specialized paper and inks to security features, printing plates, or machinery components. Without this detail, a precise assessment of value for money is challenging. Further information from the contract's statement of work would be necessary to understand the scope of 'supplies' and their associated costs.

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED,' implying a sole-source or limited competition award. Government regulations typically require competitive bidding unless specific exceptions apply, such as the availability of only one responsible source, urgent and compelling needs, or specific national security requirements. The justification for this sole-source award would need to be documented by the Department of State, detailing why competition was not feasible or practical for these passport book supplies. Without this documented justification, it is difficult to ascertain if the sole-source decision was appropriate and in the best interest of the government.

How does the contract value compare to historical spending on similar passport supplies?

Historical spending data for similar passport supplies is not provided in the current data extract. To conduct a meaningful comparison, one would need to access previous contracts for passport book supplies, ideally with the same or similar vendors, and adjust for inflation and changes in scope or volume. Comparing the $30.8 million award to prior expenditures would help determine if the current price represents an increase or decrease, and whether it aligns with market trends. The lack of competition in this award makes such historical comparisons even more critical for assessing value.

What are the specific performance standards and quality control measures for these passport book supplies?

The provided data does not detail the specific performance standards or quality control measures associated with this contract. Typically, government contracts include clauses outlining acceptable quality levels, delivery timelines, and inspection procedures. For critical items like passport supplies, stringent quality controls are expected to ensure the integrity and security of U.S. passports. The absence of this information in the summary data limits the ability to assess the contractor's accountability and the reliability of the supplies.

What is the track record of IDEMIA National Security Solutions LLC in fulfilling government contracts, particularly for sensitive materials?

IDEMIA National Security Solutions LLC is a known entity in the government contracting space, often involved in identity solutions and secure document production. Their track record would typically be assessed through past performance evaluations in federal databases like the Contractor Performance Assessment Reporting System (CPARS). While the company's general experience might be positive, the specific performance on this sole-source contract for passport supplies would be the most relevant indicator. Without access to their detailed performance history on similar contracts, it's difficult to definitively assess their reliability for this specific requirement.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › Printing Machinery and Equipment Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Idemia Identity & Security USA LLC (UEI: 130850480)

Address: 1255 23RD ST NW STE 800, WASHINGTON, DC, 20037

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

Financial Breakdown

Contract Ceiling: $30,770,444

Exercised Options: $30,770,444

Current Obligation: $30,770,444

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA15D0046

IDV Type: IDC

Timeline