DHS awards $173.5M for CAT production units, warranties, and batteries to IDEMIA
Contract Overview
Contract Amount: $17,353,887 ($17.4M)
Contractor: Idemia Identity & Security USA LLC
Awarding Agency: Department of Homeland Security
Start Date: 2020-04-08
End Date: 2026-09-20
Contract Duration: 2,356 days
Daily Burn Rate: $7.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PURCHASE CAT PRODUCTION UNITS (CLIN 0003), ASSOCIATED WARRANTIES (CLIN 0007), AND BATTERIES (CLIN 0010).
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $17.4 million to IDEMIA IDENTITY & SECURITY USA LLC for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PURCHASE CAT PRODUCTION UNITS (CLIN 0003), ASSOCIATED WARRANTIES (CLIN 0007), AND BATTERIES (CLIN 0010). Key points: 1. Contract awarded to IDEMIA IDENTITY & SECURITY USA LLC for critical security equipment. 2. The contract spans over 6 years, indicating a long-term need for these units. 3. Competition method is 'Full and Open', suggesting a potentially competitive pricing environment. 4. The sector is 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing'.
Value Assessment
Rating: fair
The contract is a Firm Fixed Price delivery order. Without specific unit pricing or comparison data, it's difficult to definitively assess value. However, the duration and total value suggest a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The specific impact on price discovery is not detailed, but the method implies multiple bidders were considered.
Taxpayer Impact: Taxpayer funds are being used for essential security equipment. The fixed-price nature aims to control costs, but ongoing monitoring is needed to ensure value for money.
Public Impact
Enhances border security and transportation safety through advanced detection technology. Supports national security by providing critical identification and security systems. Long-term contract ensures sustained availability of essential equipment for DHS operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed unit cost breakdown makes value assessment challenging.
- Potential for price creep over the 6-year contract duration.
- Reliance on a single vendor for production units and associated parts.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type helps manage cost certainty.
- Long-term contract provides supply chain stability for critical equipment.
Sector Analysis
This contract falls within the specialized manufacturing sector for search and detection instruments. Spending in this area is driven by national security needs and technological advancements in surveillance and identification.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not provide information on small business subcontracting. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract is a delivery order under a larger award, suggesting it has undergone some level of review. However, the specific oversight mechanisms for this particular order and its long duration warrant attention.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Long contract duration (6 years)
- Lack of detailed cost breakdown
- Potential for technological obsolescence
- Vendor performance over extended period
- Reliance on specific production units
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $17.4 million to IDEMIA IDENTITY & SECURITY USA LLC. THE PURPOSE OF THIS DELIVERY ORDER IS TO PURCHASE CAT PRODUCTION UNITS (CLIN 0003), ASSOCIATED WARRANTIES (CLIN 0007), AND BATTERIES (CLIN 0010).
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 $17.4 million.
What is the period of performance?
Start: 2020-04-08. End: 2026-09-20.
What is the average per-unit cost for the CAT production units, and how does it compare to industry benchmarks?
The provided data does not include a per-unit cost breakdown for the CAT production units. To assess value, a comparison with similar systems from other manufacturers or historical pricing data would be necessary. Without this, it's difficult to determine if the $173.5 million award represents a competitive price.
What are the specific risks associated with a 6-year contract for production units and batteries?
A 6-year contract carries risks such as technological obsolescence, potential increases in material costs, and vendor performance degradation over time. Ensuring robust contract management, performance metrics, and contingency plans for supply chain disruptions or quality issues is crucial to mitigate these risks.
How effectively does this contract support the TSA's mission of ensuring transportation security?
This contract directly supports the TSA's mission by procuring essential CAT production units, warranties, and batteries. These systems are likely critical for screening and identification processes, thereby enhancing security. The long-term nature suggests a sustained operational need, implying effectiveness in maintaining security capabilities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION
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 FL 18, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,585,202
Exercised Options: $17,353,887
Current Obligation: $17,353,887
Actual Outlays: $3,628,994
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0414DCT2002
IDV Type: IDC
Timeline
Start Date: 2020-04-08
Current End Date: 2026-09-20
Potential End Date: 2027-09-20 03:53:07
Last Modified: 2025-09-12
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