State Department awards $21.9M contract for passport printing materials, citing critical raw material needs

Contract Overview

Contract Amount: $21,948,043 ($21.9M)

Contractor: Idemia National Security Solutions LLC

Awarding Agency: Department of State

Start Date: 2021-02-11

End Date: 2021-10-30

Contract Duration: 261 days

Daily Burn Rate: $84.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PPT INK RIBBON AND FILM OVERLAY CRITICAL RAW MATERIAL FOR PASSPORT BOOK PRODUCTION.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $21.9 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: PPT INK RIBBON AND FILM OVERLAY CRITICAL RAW MATERIAL FOR PASSPORT BOOK PRODUCTION. Key points: 1. Contract awarded for essential raw materials vital to passport production. 2. Sole-source award raises questions about competition and potential cost savings. 3. Limited competition may indicate unique material requirements or supply chain constraints. 4. Contract duration of 261 days suggests a focused, short-term need. 5. Awarded to IDEMIA National Security Solutions LLC, a known entity in security printing. 6. Focus on critical raw materials highlights supply chain resilience as a key concern.

Value Assessment

Rating: fair

The contract value of $21.9 million for printing ink ribbon and film overlay is substantial. Without specific benchmarks for these critical raw materials, it's difficult to definitively assess value for money. However, the 'NOT COMPETED' status suggests potential for higher costs than if a competitive bidding process had occurred. Further analysis would require comparing pricing for similar specialized materials used in government document production.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. The justification for this approach is likely tied to the specialized nature of the 'critical raw material' required for passport book production. While this ensures access to necessary components, it bypasses the competitive process, which typically drives down prices and fosters innovation.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government lacks the leverage of multiple bids. This limits price discovery and potentially means less efficient use of public funds.

Public Impact

Benefits the Department of State by ensuring the continuous production of U.S. passports. Services delivered include the supply of essential raw materials for printing. Geographic impact is national, as passports are issued nationwide. Workforce implications include supporting jobs in the security printing and materials manufacturing sectors.

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 sole-source procurement.
Dependence on a single supplier for critical passport production materials poses a supply chain risk.

Positive Signals

Ensures the availability of critical raw materials for a vital government function (passport issuance).
Awarded to a contractor with presumed expertise in national security solutions.
Contract addresses a specific, critical need for the Department of State.

Sector Analysis

The contract falls within the 'Printing Machinery and Equipment Manufacturing' sector, specifically focusing on the supply of specialized raw materials. This is a niche market where few companies possess the capability to produce materials meeting stringent government security and quality standards. The value of this specific award is significant within its sub-sector, highlighting the importance of secure supply chains for identity documents.

Small Business Impact

This contract does not appear to involve small business set-asides. The nature of specialized raw materials for passport production likely requires large-scale manufacturing capabilities, which may not be typical for small businesses. There is no information provided regarding subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Transparency is limited due to the sole-source nature of the award. Accountability would be measured by the timely and quality delivery of the specified raw materials. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Passport Production
Government Document Security
Supply Chain Management for Critical Materials
Department of State Procurement

Risk Flags

Sole-source award
Potential for inflated pricing
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21.9 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. PPT INK RIBBON AND FILM OVERLAY CRITICAL RAW MATERIAL FOR PASSPORT BOOK PRODUCTION.

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 $21.9 million.

What is the period of performance?

Start: 2021-02-11. End: 2021-10-30.

What is the specific justification provided by the Department of State for awarding this contract on a sole-source basis?

The provided data indicates the contract is for 'PPT INK RIBBON AND FILM OVERLAY CRITICAL RAW MATERIAL FOR PASSPORT BOOK PRODUCTION.' While the data doesn't explicitly state the justification, the description 'critical raw material' strongly suggests that the Department of State likely cited reasons such as unique material properties, proprietary manufacturing processes, or a lack of alternative suppliers capable of meeting the stringent security and quality requirements for passport production. Sole-source justifications typically require detailed documentation demonstrating why competition is not feasible or advantageous.

How does the $21.9 million contract value compare to historical spending on similar passport printing materials?

The provided data does not include historical spending information, making a direct comparison impossible. To assess this, one would need to access historical contract databases for the Department of State or related agencies procuring similar passport materials. Analyzing trends in pricing, volume, and contract duration over several years would reveal whether this $21.9 million award represents an increase, decrease, or stable expenditure for these critical raw materials. Without this context, it's difficult to determine if the current price point is competitive over time.

What are the potential risks associated with a sole-source award for critical passport production materials?

The primary risk of a sole-source award is the lack of price competition, which can lead to inflated costs for the government and taxpayers. Another significant risk is supply chain vulnerability; dependence on a single supplier for essential materials creates a single point of failure. If the sole-source contractor experiences production issues, quality control problems, or business disruptions, the government's ability to produce passports could be severely impacted. Furthermore, sole-source awards can stifle innovation as there is less incentive for the contractor to improve processes or materials without competitive pressure.

What is the track record of IDEMIA National Security Solutions LLC in supplying materials for government identification documents?

IDEMIA National Security Solutions LLC is a known entity in the field of identity and security solutions. The company, and its predecessors, have a history of providing technology and services for secure identification documents, including passports, for various governments. Their involvement in supplying critical raw materials suggests they possess the specialized manufacturing capabilities and security clearances required for such sensitive government contracts. A deeper dive into their contract history would reveal the extent and success of their past performance in this specific niche.

What are the performance standards and quality control measures expected for these critical raw materials?

While specific performance standards are not detailed in the provided data, it can be inferred that materials for passport production must meet extremely high standards for durability, security features (e.g., embedded elements, print receptivity), and consistency. The Department of State would have detailed specifications outlined in the contract's Statement of Work (SOW). These would likely include requirements for material composition, dimensional tolerances, resistance to environmental factors, and defect rates. Quality control would involve rigorous testing by both the contractor and the government upon delivery.

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

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: $43,901,348

Exercised Options: $43,901,348

Current Obligation: $21,948,043

Actual Outlays: $6,869,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA15D0046

IDV Type: IDC

Timeline