State Department awards $21M for passport printers, with Integral Federal Inc. securing the contract

Contract Overview

Contract Amount: $21,065,935 ($21.1M)

Contractor: Integral Federal, Inc.

Awarding Agency: Department of State

Start Date: 2020-07-16

End Date: 2023-12-15

Contract Duration: 1,247 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEXT GENERATION PASSPORT PRINTERS 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 $21.1 million to INTEGRAL FEDERAL, INC. for work described as: NEXT GENERATION PASSPORT PRINTERS AND RELATED EQUIPMENT AND SERVICES Key points: 1. Contract value of $21.1 million over its period of performance. 2. Procurement was conducted under full and open competition. 3. The contract type is Firm Fixed Price, indicating predictable costs. 4. The contract spans over three years, from July 2020 to December 2023. 5. The primary contractor is Integral Federal, Inc. 6. The North American Industry Classification System (NAICS) code is 333244, related to printing machinery manufacturing.

Value Assessment

Rating: good

The total award amount of $21.1 million for next-generation passport printers and related services appears reasonable given the contract duration of approximately three years. Without specific per-unit cost data or benchmarks for comparable advanced printing equipment, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the government has locked in costs, mitigating the risk of cost overruns. The contract's scope includes equipment and services, which can justify a higher overall value compared to equipment-only purchases.

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 bids. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was intended to yield the best value. This approach typically leads to more competitive pricing and a wider selection of qualified vendors.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors, ensuring the government receives optimal value for its investment.

Public Impact

The primary beneficiaries are the Department of State and its personnel responsible for passport issuance. The contract delivers essential equipment and services for producing next-generation passports. This supports the efficient and secure processing of U.S. passports for citizens. The contract has implications for the workforce involved in passport production and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes detailed value benchmarking difficult.
Limited information on the number of bidders in the full and open competition.
The duration of the contract (over three years) requires ongoing monitoring for performance and potential obsolescence of technology.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract covers both equipment and related services, offering a comprehensive solution.

Sector Analysis

The contract falls within the Printing Machinery and Equipment Manufacturing sector. This sector is characterized by the production of specialized machinery used in various printing applications, including government identification documents. The market for such specialized equipment is often niche, with a limited number of manufacturers capable of meeting stringent government requirements for security, durability, and technological advancement. Comparable spending benchmarks would typically involve other government procurements for secure identification printing solutions.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As the contract was awarded under full and open competition, it is possible that small businesses participated in the bidding process. However, without specific data on subcontracting goals or achievements, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a firm-fixed-price contract, oversight would focus on ensuring timely delivery of equipment and services according to specifications. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Passport Services
Federal Identity Document Production
Government Printing Equipment Procurement
Secure Document Manufacturing Technology

Risk Flags

Potential for vendor lock-in with specialized technology.
Limited public information on specific performance metrics and bidder numbers.
Long-term technology obsolescence risk requires proactive planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21.1 million to INTEGRAL FEDERAL, INC.. NEXT GENERATION PASSPORT PRINTERS 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 $21.1 million.

What is the period of performance?

Start: 2020-07-16. End: 2023-12-15.

What is the specific technology or capability difference that 'NEXT GENERATION PASSPORT PRINTERS' offer compared to previous models?

The term 'NEXT GENERATION PASSPORT PRINTERS' implies advancements in printing technology designed to meet evolving security standards and operational efficiencies for passport production. While specific technical details are not provided in the award data, next-generation systems typically incorporate enhanced security features such as microprinting, UV-reactive inks, embedded chips (for e-passports), and higher resolution printing for intricate designs. They may also offer improved speed, reduced maintenance, greater automation, and better integration with digital workflows for data management and personalization. The goal is to produce more secure, durable, and efficiently manufactured passports that comply with international standards set by the International Civil Aviation Organization (ICAO).

How does the $21.1 million contract value compare to historical spending on passport printing equipment by the Department of State?

To compare the $21.1 million contract value to historical spending, one would need access to historical procurement data for passport printing equipment from the Department of State. This would involve identifying previous contracts for similar equipment and services, noting their award amounts, contract durations, and the scope of work. Factors such as inflation, technological advancements, and changes in passport issuance volume would need to be considered for a meaningful comparison. Without this historical data, it is difficult to definitively state whether this award represents an increase, decrease, or stable level of spending. However, the 'next generation' aspect suggests a potential investment in upgraded capabilities which might justify a higher cost than older technologies.

What are the key performance indicators (KPIs) used to evaluate the performance of Integral Federal, Inc. under this contract?

Key Performance Indicators (KPIs) for a contract like this, involving the supply of specialized printing equipment and services, would typically focus on aspects such as delivery timeliness, equipment reliability and uptime, print quality, adherence to security specifications, and responsiveness to service requests. For example, KPIs might include: 1) On-time delivery of all contracted equipment and services. 2) Equipment uptime percentage (e.g., 99% availability). 3) Defect rate for printed passport pages (e.g., less than 0.1% defects). 4) Turnaround time for technical support and issue resolution. 5) Compliance with all security protocols and data protection requirements. The Department of State would monitor these KPIs through regular performance reviews and potentially through automated system reporting.

What is the potential risk associated with relying on a single contractor, Integral Federal, Inc., for 'next generation' passport printing technology?

While the contract was awarded through full and open competition, the long-term reliance on a single contractor, Integral Federal, Inc., for 'next generation' passport printing technology carries potential risks. These include: 1) Vendor Lock-in: The government may become dependent on Integral Federal for future upgrades, maintenance, and consumables, potentially limiting future competitive options. 2) Price Increases: If Integral Federal becomes the sole provider of critical parts or expertise, they might increase prices for ongoing services or future procurements. 3) Innovation Stagnation: Over time, the contractor's incentive to innovate might decrease if they perceive limited competition. 4) Supply Chain Disruptions: Any issues within Integral Federal's supply chain could directly impact the government's ability to produce passports. Mitigating these risks often involves carefully structured contracts with clear performance expectations, options for future competition, and potentially developing in-house expertise or alternative solutions.

What is the anticipated lifespan of the 'next generation' passport printers procured under this contract, and what are the plans for their eventual replacement or upgrade?

The anticipated lifespan of 'next generation' passport printers is not explicitly stated in the award data but typically ranges from 5 to 10 years for sophisticated industrial equipment, depending on usage intensity, maintenance, and technological evolution. The contract itself runs from July 2020 to December 2023, covering the initial deployment and likely a portion of the operational life. Plans for eventual replacement or upgrade would usually be part of the Department of State's long-term capital planning and technology refresh cycles. As the end of the printers' useful life approaches, or if new security features or efficiencies emerge, the Department would likely initiate a new procurement process, potentially including Integral Federal if they remain competitive, to acquire updated systems. This ensures continuous modernization of passport production capabilities.

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: $21,080,198

Exercised Options: $21,080,198

Current Obligation: $21,065,935

Actual Outlays: $6,031,640

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