State Department awards $5.1M for passport printers, with delivery orders expected to extend contract value

Contract Overview

Contract Amount: $5,130,392 ($5.1M)

Contractor: Integral Federal, Inc.

Awarding Agency: Department of State

Start Date: 2025-09-28

End Date: 2027-01-28

Contract Duration: 487 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEXT GENERATION PASSPORT PRINTERS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $5.1 million to INTEGRAL FEDERAL, INC. for work described as: NEXT GENERATION PASSPORT PRINTERS Key points: 1. Contract value appears reasonable given the specialized nature of passport printing equipment. 2. Full and open competition suggests a healthy market for this type of specialized printing machinery. 3. The contract duration of 487 days indicates a steady need for these critical printing assets. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The award falls within the Printing Machinery and Equipment Manufacturing sector, a niche but essential industry.

Value Assessment

Rating: good

The contract value of $5.13 million for Next Generation Passport Printers is within a reasonable range for specialized government equipment. Benchmarking against similar procurements for high-security printing machinery is challenging due to the niche nature of the product. However, the firm fixed-price structure provides cost certainty. The delivery order mechanism allows for flexibility in scaling the quantity of printers needed, which can be efficient if demand fluctuates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages innovation. The agency's choice of full and open competition suggests confidence in the market's ability to supply the required Next Generation Passport Printers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and ensures the government receives the best value for its investment in critical infrastructure like passport printing.

Public Impact

Citizens requiring new passports will benefit from efficient and secure passport production. The Department of State will maintain its capacity to issue secure travel documents. The contract supports the printing machinery manufacturing sector, potentially impacting domestic production capabilities. Workforce implications include the need for trained personnel to operate and maintain the new printing equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if only one manufacturer's printers are compatible with existing infrastructure.
Dependence on a single supplier for critical components or maintenance could pose a risk.
Ensuring long-term support and availability of spare parts for specialized equipment.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a robust market and potential for competitive pricing.
Delivery order structure allows for phased acquisition and potential cost savings if needs are adjusted.

Sector Analysis

The contract falls within the 'Printing Machinery and Equipment Manufacturing' sector, a specialized area focused on producing advanced printing solutions. This sector is characterized by high technological barriers to entry and often involves custom-designed equipment for specific applications, such as secure document printing. Government spending in this area is crucial for maintaining national security and operational capabilities, like passport issuance. Comparable spending benchmarks are difficult to establish due to the unique nature of passport printers, but the total award value of $5.13 million reflects a significant investment in specialized technology.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Integral Federal, Inc. chooses to engage them. Without further information on subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price contract type provides a degree of cost control. Transparency is facilitated by the public nature of contract awards. Oversight would typically involve contract officers, program managers within the Department of State, and potentially the Government Accountability Office (GAO) if disputes arise. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse emerge.

Related Government Programs

Department of State Passport Services
Federal Printing and Publishing Services
Government Equipment Procurement
Secure Document Manufacturing

Risk Flags

Potential for vendor lock-in
Long-term support and maintenance concerns for specialized equipment
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.1 million to INTEGRAL FEDERAL, INC.. NEXT GENERATION PASSPORT PRINTERS

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 $5.1 million.

What is the period of performance?

Start: 2025-09-28. End: 2027-01-28.

What is the track record of Integral Federal, Inc. in supplying similar specialized printing equipment to government agencies?

Information regarding Integral Federal, Inc.'s specific track record in supplying 'Next Generation Passport Printers' or similar highly specialized printing equipment to government agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on prior federal contracts. Agencies typically maintain performance records, and a deeper dive into these would reveal their experience with this type of technology and their reliability as a contractor. Without this specific historical data, it's difficult to definitively assess their suitability beyond the current award.

How does the per-unit cost of these Next Generation Passport Printers compare to market rates or similar government procurements?

The provided data does not include the per-unit cost or the quantity of 'Next Generation Passport Printers' being procured, making a direct comparison to market rates or similar government procurements impossible. The total award value of $5.13 million is for the entire contract, which may include multiple printers, installation, training, and maintenance over its duration. To benchmark the value effectively, one would need to know the number of units acquired and the specific features and capabilities of these printers. Without this granular information, assessing the cost-effectiveness on a per-unit basis is speculative.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential technological obsolescence of the 'Next Generation Passport Printers' over their lifecycle, dependence on Integral Federal, Inc. for maintenance and support, and the possibility of unforeseen cost increases if the firm fixed-price contract has poorly defined scope or escalation clauses. Mitigation strategies likely include the contract's fixed-price nature, which caps government liability, and the full and open competition, which suggests a competitive market that could provide alternatives if issues arise. The delivery order structure also allows for phased acquisition, potentially reducing upfront risk and allowing for adjustments based on performance. Robust contract management and oversight by the Department of State are crucial for identifying and addressing risks proactively.

How effective is the 'full and open competition' strategy in ensuring the Department of State receives the best value for passport printing technology?

The 'full and open competition' strategy is generally considered highly effective in ensuring the Department of State receives the best value for passport printing technology. This approach maximizes the number of potential bidders, fostering a competitive environment that drives down prices and encourages vendors to offer their most innovative and cost-effective solutions. By allowing any qualified vendor to participate, the agency broadens its options and reduces the risk of paying inflated prices associated with limited or sole-source procurements. The success of this strategy hinges on clear performance requirements and thorough evaluation of proposals to ensure the chosen vendor not only offers a competitive price but also meets the stringent quality and security standards required for passport production.

What is the historical spending pattern for passport printing equipment by the Department of State, and how does this award compare?

The provided data does not include historical spending patterns for passport printing equipment by the Department of State. To assess how this $5.13 million award compares, one would need to analyze past contracts for similar equipment, noting the quantities purchased, technologies acquired, and total expenditures over previous fiscal years. Understanding historical spending would reveal trends in technology upgrades, vendor relationships, and overall investment in passport production capabilities. This current award represents a significant, but potentially necessary, investment in 'Next Generation' technology, the scale of which should be evaluated against the agency's long-term strategic needs and previous capital outlays for such critical infrastructure.

Industry Classification

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

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SAQMMA14R0203

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: $5,130,392

Exercised Options: $5,130,392

Current Obligation: $5,130,392

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