State Department awards $46.6M contract for passport supply management to Choisys Technology Inc

Contract Overview

Contract Amount: $46,608,870 ($46.6M)

Contractor: Choisys Technology Inc.

Awarding Agency: Department of State

Start Date: 2021-09-30

End Date: 2025-09-10

Contract Duration: 1,441 days

Daily Burn Rate: $32.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR TO PROVIDE PASSPORT CRITICAL SUPPLY MANAGEMENT SERVICES TO THE PASSPORT AGENCIES AND CENTERS, PASSPORT PRINT FACILITIES, ACCEPTANCE FACILITIES AND OTHER FEDERAL PASSPORT PARTNERS.

Place of Performance

Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03801

State: New Hampshire Government Spending

Plain-Language Summary

Department of State obligated $46.6 million to CHOISYS TECHNOLOGY INC. for work described as: CONTRACTOR TO PROVIDE PASSPORT CRITICAL SUPPLY MANAGEMENT SERVICES TO THE PASSPORT AGENCIES AND CENTERS, PASSPORT PRINT FACILITIES, ACCEPTANCE FACILITIES AND OTHER FEDERAL PASSPORT PARTNERS. Key points: 1. Contract aims to ensure efficient passport critical supply management across various federal agencies. 2. The contract is a firm-fixed-price definitive contract, indicating predictable costs for the government. 3. Awarded through full and open competition after exclusion of sources, suggesting a competitive process. 4. The duration of the contract is over three years, providing long-term support for passport operations. 5. The contractor, Choisys Technology Inc., will manage supplies for passport agencies, print facilities, and acceptance facilities. 6. This contract supports the Department of State's mission to facilitate international travel and security.

Value Assessment

Rating: good

The contract value of $46.6 million over approximately three years appears reasonable for comprehensive supply chain management services supporting a critical government function like passport issuance. Benchmarking against similar large-scale logistics and administrative support contracts for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the government, contributing to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using 'Full and Open Competition After Exclusion of Sources.' This specific procurement method suggests that while the competition was intended to be open, certain sources may have been excluded based on specific criteria or prior arrangements. The number of bidders is not explicitly stated, but the method implies a degree of competition, though potentially less broad than a standard full and open competition.

Taxpayer Impact: This procurement method aims to balance competition with specific agency needs. While it may not achieve the lowest possible price compared to a completely unrestricted competition, it likely still provides a competitive environment that benefits taxpayers by avoiding sole-source awards.

Public Impact

Benefits U.S. citizens requiring passports for international travel by ensuring timely and efficient processing. Supports federal agencies involved in passport issuance, including the Department of State, by streamlining supply chain operations. Enhances the operational readiness of passport print facilities and acceptance locations nationwide. Contributes to the stability of the passport production and distribution workforce by ensuring necessary supplies are available.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if supply chain management becomes overly integrated with Choisys Technology Inc.'s systems.
Dependence on a single contractor for critical passport supplies could pose a risk if the contractor faces performance issues or financial instability.
The 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition and potentially increase costs.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration allows for stable planning and execution of supply management services.
The contract supports a critical national function, ensuring the continuity of passport services.

Sector Analysis

The administrative and support services sector is a significant component of federal contracting, encompassing a wide range of functions from IT support to logistics and supply chain management. This contract falls within the broader category of professional, scientific, and technical services, specifically focusing on operational support. Federal spending in this area is substantial, driven by the need for efficient government operations across various departments. Comparable contracts often involve managing complex logistical networks and ensuring the availability of essential materials for mission-critical functions.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of mandatory subcontracting goals for small businesses. The award to Choisys Technology Inc., a company that may or may not be classified as a small business itself (further investigation needed), means that opportunities for small business participation are not explicitly mandated within this specific contract's structure. This could limit the direct economic benefit to the small business ecosystem unless the prime contractor voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of State's contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability through adherence to the agreed-upon price and scope. Transparency is facilitated by the contract's public availability through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Department of State Passport Services
Federal Supply Chain Management
Administrative Support Services
Critical Infrastructure Support
Government Logistics Contracts

Risk Flags

Competition Method: 'Full and Open Competition After Exclusion of Sources' may limit competitive pressure.
Contractor Performance Risk: Dependence on a single contractor for critical supplies.
Supply Chain Vulnerability: Potential for disruptions impacting passport issuance.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $46.6 million to CHOISYS TECHNOLOGY INC.. CONTRACTOR TO PROVIDE PASSPORT CRITICAL SUPPLY MANAGEMENT SERVICES TO THE PASSPORT AGENCIES AND CENTERS, PASSPORT PRINT FACILITIES, ACCEPTANCE FACILITIES AND OTHER FEDERAL PASSPORT PARTNERS.

Who is the contractor on this award?

The obligated recipient is CHOISYS TECHNOLOGY INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $46.6 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-09-10.

What is the track record of Choisys Technology Inc. in managing large-scale federal supply chain contracts?

Choisys Technology Inc. has a history of performing various federal contracts, including those related to administrative support, logistics, and IT services. A detailed review of their past performance on similar-sized and scope contracts, particularly those involving critical supply management for agencies like the Department of State or other high-volume operational entities, would be necessary to fully assess their capabilities. Examining past performance evaluations, any contract disputes, or awards for exceptional performance would provide further insight into their reliability and effectiveness in fulfilling complex government requirements.

How does the pricing of this contract compare to similar federal supply management contracts?

A direct comparison of the total contract value ($46.6 million) to similar federal supply management contracts requires access to a benchmark database of comparable procurements. Factors such as the scope of services (e.g., inventory management, procurement, distribution, warehousing), the specific types of supplies managed (e.g., sensitive documents, general office supplies, specialized equipment), the geographic reach, and the contract duration all influence pricing. The firm-fixed-price nature of this contract suggests a focus on cost predictability. Benchmarking would involve identifying contracts with similar service levels and complexities, adjusting for inflation and market variations, to determine if the per-unit cost or overall value is competitive.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential disruptions to the passport supply chain if the contractor underperforms, fails to meet delivery schedules, or experiences financial instability. There's also a risk of cost escalation if the firm-fixed-price contract doesn't adequately account for unforeseen market changes, though this is less likely than with cost-plus contracts. Mitigation strategies likely involve robust performance monitoring by the Department of State, clear performance standards and remedies outlined in the contract, and contingency planning for supply chain continuity. The 'exclusion of sources' aspect also presents a risk if it limits competition and leads to suboptimal pricing or innovation.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers?

This procurement method aims to balance the benefits of competition with specific agency needs that might not be met by a completely unrestricted process. While it is more competitive than a sole-source award, it may not achieve the same level of price discovery or innovation as a truly 'full and open' competition without exclusions. The effectiveness for taxpayers depends heavily on the justification for excluding certain sources and the rigor applied in evaluating the remaining bidders. If the exclusions were narrowly defined and justified, and the competition among the remaining sources was robust, it could still yield good value. However, if the exclusions were broad or poorly justified, it could lead to higher costs or reduced choice.

What is the historical spending pattern for passport critical supply management services by the Department of State?

Analyzing historical spending on passport critical supply management requires examining past contracts awarded by the Department of State for similar services. This would involve looking at the total expenditure over previous contract periods, the number and types of contractors utilized, and the evolution of contract values. Understanding these patterns can reveal trends in cost, contractor performance, and the government's reliance on external support for these functions. Significant year-over-year increases or decreases in spending, or a pattern of awarding contracts to the same few vendors, could indicate specific market dynamics or strategic shifts within the Department.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM20R0010

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20098 ASHBROOK PL STE 160, ASHBURN, VA, 20147

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $74,187,414

Exercised Options: $74,187,414

Current Obligation: $46,608,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline