State Department awards $7.1M for printers and services to Integral Federal, Inc

Contract Overview

Contract Amount: $7,148,929 ($7.1M)

Contractor: Integral Federal, Inc.

Awarding Agency: Department of State

Start Date: 2020-03-24

End Date: 2026-03-17

Contract Duration: 2,184 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEXTGEN PASSPORT PRINTER AND RELATED EQUIPMENT AND SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of State obligated $7.1 million to INTEGRAL FEDERAL, INC. for work described as: NEXTGEN PASSPORT PRINTER AND RELATED EQUIPMENT AND SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract vehicle. 3. Pricing is based on a firm-fixed-price structure, providing cost certainty. 4. The contract duration is over 6 years, indicating a long-term need. 5. The primary contractor, Integral Federal, Inc., is based in Maryland. 6. The contract falls under the 'Printing Machinery and Equipment Manufacturing' NAICS code.

Value Assessment

Rating: fair

The total award amount of $7.15 million over approximately six years suggests a moderate investment for specialized printing equipment and services. Without specific details on the quantity and type of printers or the scope of services, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. Benchmarking against similar large-scale government procurements for printing solutions would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The government likely received multiple proposals, allowing for comparison and selection of the best value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and terms for the government. Full and open competition increases the likelihood that the awarded price reflects market rates and that the government is not overpaying due to limited options.

Public Impact

The Department of State benefits from the acquisition of necessary printing equipment and related services. This contract supports the operational needs of the State Department, likely for document production and management. The geographic impact is primarily within Maryland, where the contractor is located, potentially creating local employment opportunities. The contract supports the printing and equipment manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the performance metrics and service level agreements makes it difficult to assess the quality of services.
The long contract duration (over 6 years) could lead to potential obsolescence of technology if not managed proactively.
Without knowing the exact equipment specifications, it's hard to gauge if the chosen technology is the most cost-effective or efficient.

Positive Signals

The firm-fixed-price contract type shifts cost overrun risk to the contractor.
Awarded through full and open competition, suggesting a robust selection process.
The contract is a delivery order, which implies it's part of a pre-established, potentially competitive, contract vehicle.

Sector Analysis

The printing machinery and equipment manufacturing sector encompasses companies that produce a wide range of printing devices, from commercial presses to specialized printers. Government agencies are significant consumers of such equipment and related services, often requiring high-volume, reliable, and secure printing solutions. This contract, valued at over $7 million, represents a substantial procurement within this sector. Comparable spending benchmarks would involve looking at other large federal contracts for similar printing hardware and maintenance, which can range from hundreds of thousands to tens of millions of dollars depending on the scale and complexity.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Consequently, the primary contractor, Integral Federal, Inc., is likely a large business. There is no information available regarding subcontracting plans or the impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. As a delivery order under a larger contract, oversight might also be influenced by the terms of the base contract. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified goods and services at an agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Government Printing Office Services
Office Equipment Procurement
Information Technology Services
Department of State Procurement

Risk Flags

Potential for technological obsolescence due to long contract duration.
Lack of detailed performance metrics in summary data.
Limited insight into contractor's past performance on similar contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $7.1 million to INTEGRAL FEDERAL, INC.. NEXTGEN PASSPORT PRINTER AND RELATED EQUIPMENT AND SERVICES

Who is the contractor on this award?

The obligated recipient is INTEGRAL FEDERAL, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $7.1 million.

What is the period of performance?

Start: 2020-03-24. End: 2026-03-17.

What specific types of printers and related services are included in this $7.1M contract?

The provided data does not specify the exact types of printers or the detailed scope of 'related services' covered under this $7.1 million contract. The NAICS code 'Printing Machinery and Equipment Manufacturing' suggests the procurement involves hardware, but the 'services' component could encompass installation, maintenance, repair, training, consumables, or software support. To understand the full value and operational impact, a breakdown of the equipment models, quantities, and the specific service level agreements would be necessary. This level of detail is often found in the contract's statement of work or performance work statement, which are typically not included in summary data.

How does the $7.1M award compare to historical spending by the Department of State on printing equipment and services?

Without access to historical spending data specifically for printing equipment and services by the Department of State, a direct comparison is not possible. The $7.1 million award over approximately six years represents an average annual expenditure of roughly $1.19 million. To assess if this is high, low, or typical, one would need to analyze past contracts for similar procurements. Factors influencing historical spending include changes in technology, agency needs, budget allocations, and the number of active contracts. A comprehensive review of the State Department's procurement history for this category would be required to establish a meaningful benchmark.

What is the track record of Integral Federal, Inc. in fulfilling government contracts, particularly for printing equipment?

The provided data does not offer details on Integral Federal, Inc.'s specific track record with government contracts, beyond this award. To assess their performance history, one would need to examine past contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Information on their experience with similar printing equipment and services procurements would be crucial. A deeper dive into federal procurement databases and performance review systems would be necessary to evaluate their reliability and past success in meeting government requirements.

What are the potential risks associated with a six-year contract for printing equipment?

A significant risk associated with a six-year contract for printing equipment is technological obsolescence. Printing technology evolves rapidly, and equipment purchased at the beginning of the contract term may be outdated by the end. This could lead to decreased efficiency, higher maintenance costs, or a lack of compatibility with newer systems. Another risk is the potential for the contractor's financial stability to change over such a long period, impacting their ability to provide ongoing support. Furthermore, if the scope of services is not clearly defined and managed, there's a risk of scope creep or inadequate service delivery. The firm-fixed-price nature mitigates some financial risk for the government, but operational and technological risks remain.

How does the firm-fixed-price contract type influence the government's risk exposure for this procurement?

The firm-fixed-price (FFP) contract type significantly reduces the government's financial risk exposure for this procurement. Under an FFP contract, the contractor, Integral Federal, Inc., agrees to a set price for the specified goods and services, regardless of their actual costs incurred. This means that if the contractor's expenses increase beyond their initial estimates, they absorb the additional costs, not the government. This structure incentivizes the contractor to manage their costs efficiently. However, the government still bears the risk of the contractor not delivering the required quality or performance, or potentially facing contractor default. The government's primary risk shifts from cost overruns to ensuring contract compliance and performance.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 GAITHER RD STE 410, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,392,762

Exercised Options: $7,187,055

Current Obligation: $7,148,929

Actual Outlays: $3,303,553

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA17D0163

IDV Type: IDC

Timeline