DHS awards $56.3M contract for identity management services, with significant funding for the AFSP program

Contract Overview

Contract Amount: $56,303,937 ($56.3M)

Contractor: Idemia Identity & Security USA LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-07-09

End Date: 2026-07-08

Contract Duration: 2,556 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: P00003 CHANGED POP TO 7/9/19 TO 7/8/22 WITH ULT. COMPLETION 7/8/29. FUNDING TO RECOMPETE THE CURRENT UNIVERSAL ENROLLMENT SYSTEM (UES) CONTRACT HSTS-12-C-TTC702. CONTRACT: TBD POP: 12 MONTHS FROM AWARD HME PORTION: $162,867.00 TWIC PORTION: $240,000.00 PRECHECK PORTION: $210,000.00 AFSP PORTION: $1,260,250.00 COR: PABLO LANDRAU CO: GLORIA URIA PM: DONALD LOMBARDO

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Homeland Security obligated $56.3 million to IDEMIA IDENTITY & SECURITY USA LLC for work described as: P00003 CHANGED POP TO 7/9/19 TO 7/8/22 WITH ULT. COMPLETION 7/8/29. FUNDING TO RECOMPETE THE CURRENT UNIVERSAL ENROLLMENT SYSTEM (UES) CONTRACT HSTS-12-C-TTC702. CONTRACT: TBD POP: 12 MONTHS FROM AWARD HME PORTION: $162,867.00 TWIC PORTION: $240,000.00 PRECHECK PORTION: $210,000… Key points: 1. Contract focuses on critical identity verification services for multiple programs. 2. Significant portion allocated to the Aviation Fingerprint and Criminal History (AFSP) program. 3. Contract duration extends over several years, indicating long-term service needs. 4. The award is a delivery order under a larger contract vehicle. 5. IDEMIA Identity & Security USA LLC is the primary contractor. 6. The contract is for administrative management and general management consulting services.

Value Assessment

Rating: good

The total award amount of $56.3 million for a period of approximately 7 years appears reasonable given the scope of services, which include managing identity verification for multiple critical programs like TWIC, PreCheck, and AFSP. Benchmarking against similar large-scale identity management contracts is challenging without more granular data on specific service components. However, the breakdown of funding across different program portions suggests a strategic allocation of resources to meet distinct operational requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should drive fair pricing. This approach is generally preferred for ensuring the government receives the best value from a wide range of potential providers.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it fosters a competitive environment, which typically leads to more cost-effective solutions and prevents potential price gouging.

Public Impact

Benefits travelers through expedited security screening (PreCheck) and secure access programs. Enhances national security by verifying identities for sensitive positions (AFSP). Supports the Transportation Security Administration (TSA) in its mission to secure transportation systems. Impacts individuals undergoing background checks for various federal programs. Ensures the integrity of identity management systems for critical infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively re-awarded.
Reliance on a single vendor for critical identity verification services could pose a risk.
Scope creep could lead to cost overruns if not managed effectively.
Data security and privacy concerns are inherent in managing sensitive personal information.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration indicates a stable, long-term need for these essential services.
Clear allocation of funds across different program components demonstrates structured planning.
The contractor, IDEMIA, is a known entity in the identity and security space.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically focusing on identity verification and management solutions. This is a critical area for government operations, particularly for agencies like the TSA that manage large volumes of traveler data and security clearances. The market for identity solutions is competitive, with significant investment in biometric and credentialing technologies. This contract represents a substantial portion of spending within this niche, supporting TSA's operational needs.

Small Business Impact

The contract data indicates that small business participation (sb) is false, and there is no explicit mention of small business set-asides (ss). This suggests that the primary contract was not specifically targeted towards small businesses. However, the prime contractor, IDEMIA, may engage small businesses for subcontracting opportunities to fulfill specific aspects of the contract, though this is not detailed in the provided data. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). The contract is a delivery order, implying it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) or similar contract vehicle that likely has its own oversight mechanisms. The Contracting Officer's Representative (COR) and Program Manager are listed, indicating direct points of contact for management and oversight. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing performance monitoring are not provided.

Related Government Programs

Transportation Security Administration (TSA) Screening Programs
Homeland Security Presidential Directive 12 (HSPD-12) Implementation
Federal Biometric Identity Management
Global Entry Program
Registered Traveler Programs

Risk Flags

Potential for technological obsolescence over contract duration.
Reliance on a single vendor for critical identity services.
Data security and privacy risks associated with sensitive personal information.
Scope creep and cost overruns if not managed diligently.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $56.3 million to IDEMIA IDENTITY & SECURITY USA LLC. P00003 CHANGED POP TO 7/9/19 TO 7/8/22 WITH ULT. COMPLETION 7/8/29. FUNDING TO RECOMPETE THE CURRENT UNIVERSAL ENROLLMENT SYSTEM (UES) CONTRACT HSTS-12-C-TTC702. CONTRACT: TBD POP: 12 MONTHS FROM AWARD HME PORTION: $162,867.00 TWIC PORTION: $240,000.00 PRECHECK PORTION: $210,000.00 AFSP PORTION: $1,260,250.00 COR: PABLO LANDRAU CO: GLORIA URIA PM: DONALD LOMBARDO

Who is the contractor on this award?

The obligated recipient is IDEMIA IDENTITY & SECURITY USA LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $56.3 million.

What is the period of performance?

Start: 2019-07-09. End: 2026-07-08.

What is the historical spending trend for identity management services by the TSA?

Historical spending on identity management services by the TSA has been substantial and generally increasing, driven by evolving security threats and the need for more robust traveler screening and credentialing. While specific figures for this exact contract's predecessors are not detailed here, the TSA consistently allocates significant resources to programs like PreCheck, TWIC, and various background check systems. These services are crucial for maintaining national security and facilitating legitimate travel. The trend reflects a growing reliance on technology and data analytics for identity verification, including biometrics. Fluctuations in spending can be attributed to contract re-competitions, changes in program scope, and shifts in federal budget priorities. The current award of $56.3 million indicates a continued commitment to these critical functions.

How does the per-program funding breakdown compare to the overall contract value?

The contract data provides a breakdown of funding for specific program components: HME ($162,867.00), TWIC ($240,000.00), PreCheck ($210,000.00), and AFSP ($1,260,250.00). These figures represent the allocated amounts for each portion within the contract's period of performance. The sum of these listed portions is $1,873,117.00. However, the total contract value is stated as $56,303,936.66. This significant discrepancy suggests that the listed amounts are either initial allocations, estimates for specific tasks, or represent only a fraction of the total contract value, potentially excluding base year costs, options, or other unitemized services. The majority of the contract value is likely associated with the overarching management, system integration, and operational support not explicitly detailed in these per-program figures, or the listed figures are for a specific task order within a larger contract.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators (KPIs) for this contract are not explicitly detailed in the provided data. However, based on the nature of the services (identity management, verification, background checks), typical KPIs would likely include metrics related to accuracy of identification, timeliness of processing applications and background checks, system uptime and availability, data security and breach prevention, and customer satisfaction for traveler programs. For instance, for the PreCheck program, KPIs might focus on the speed of enrollment processing and the accuracy of risk assessments. For AFSP, KPIs would emphasize the thoroughness and timeliness of criminal history checks. The TSA would establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for the contractor to meet, with potential financial incentives or penalties tied to performance against these KPIs.

What is the track record of IDEMIA Identity & Security USA LLC with the TSA or similar agencies?

IDEMIA Identity & Security USA LLC, formerly MorphoTrust USA, has a significant track record in providing identity solutions to government agencies, including the TSA. They are a major player in areas such as biometric enrollment, background checks, and credential issuance. IDEMIA is known for its involvement in programs like the TSA's PreCheck enrollment and other federal identity initiatives. Their experience includes managing large-scale identity databases and providing secure identity verification services. While specific performance details on past TSA contracts are not provided here, their continued selection for significant contracts suggests a generally satisfactory performance history and established capability in meeting the demanding requirements of federal identity management and security.

What are the potential risks associated with the long duration of this contract?

The long duration of this contract (estimated 7 years) presents several potential risks. Firstly, technological advancements in identity management could render the current systems or processes obsolete before the contract term ends, requiring costly upgrades or modifications. Secondly, changes in federal regulations, security policies, or national priorities could necessitate significant contract adjustments. Thirdly, there's a risk of complacency or reduced innovation from the contractor over an extended period, potentially impacting service quality or efficiency. Finally, a prolonged contract term can limit the government's flexibility to adopt newer, potentially more cost-effective solutions that may emerge during the contract's life. Robust contract management, regular performance reviews, and built-in flexibility clauses are crucial to mitigate these risks.

How does this contract contribute to the broader goals of the Department of Homeland Security?

This contract directly supports the Department of Homeland Security's (DHS) overarching mission to secure the nation. By providing critical identity verification services for programs like TSA PreCheck, TWIC, and the Aviation Fingerprint and Criminal History (AFSP) program, it enhances border security, transportation security, and national security. Accurate and efficient identity management is fundamental to preventing individuals with malicious intent from accessing sensitive areas or critical infrastructure. The AFSP component, in particular, is vital for vetting individuals who pose potential security risks. Ultimately, this contract enables DHS agencies to make informed security decisions, streamline legitimate travel and commerce, and protect against threats.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

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: 11951 FREEDOM DR, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,947,937

Exercised Options: $56,303,937

Current Obligation: $56,303,937

Actual Outlays: $13,932,642

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70T02019D9NOIA010

IDV Type: IDC

Timeline