DHS awards $6.6M for credential authentication maintenance, with a 2086-day performance period
Contract Overview
Contract Amount: $6,620,342 ($6.6M)
Contractor: Idemia Identity & Security USA LLC
Awarding Agency: Department of Homeland Security
Start Date: 2021-04-05
End Date: 2026-12-21
Contract Duration: 2,086 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS ORDER IS TO PROVIDE EXCEPTED MAINTENANCE AND WARRANTY SUPPORT FOR CREDENTIAL AUTHENTICATION TECHNOLOGY (CAT) UNITS.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $6.6 million to IDEMIA IDENTITY & SECURITY USA LLC for work described as: THE PURPOSE OF THIS ORDER IS TO PROVIDE EXCEPTED MAINTENANCE AND WARRANTY SUPPORT FOR CREDENTIAL AUTHENTICATION TECHNOLOGY (CAT) UNITS. Key points: 1. Value for money appears fair given the extended performance period and specialized nature of the support. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a firm fixed-price contract type mitigating cost overrun risks. 4. Performance context is for essential maintenance and warranty of critical authentication technology. 5. Sector positioning is within the security and identity management technology domain.
Value Assessment
Rating: fair
The contract value of $6.6 million over approximately 5.7 years (2086 days) translates to roughly $1.16 million annually. This appears reasonable for specialized maintenance and warranty support for credential authentication technology. Benchmarking against similar contracts for IT hardware maintenance and support suggests this pricing is within expected ranges, especially considering the critical nature of identity verification systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The specific number of bidders is not provided, but the designation suggests a robust competitive environment.
Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the government is not overpaying for essential services.
Public Impact
Travelers and personnel requiring secure access to facilities and systems benefit from reliable credential authentication. The Transportation Security Administration (TSA) receives essential support to maintain the operational integrity of its identity verification systems. The contract supports the security infrastructure at various federal locations where these CAT units are deployed. The maintenance and warranty services ensure the continued functionality of technology critical to national security and border control.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specialized knowledge is required for future maintenance beyond the warranty period.
- Dependence on a single vendor for critical security technology maintenance could pose a risk if the vendor's financial stability or operational capacity declines.
Positive Signals
- Firm fixed-price contract structure limits the government's exposure to cost increases.
- Long-term performance period (over 5 years) provides stability and predictability for essential support services.
- Awarded under full and open competition, suggesting a competitive pricing environment.
Sector Analysis
This contract falls within the broader IT and security sector, specifically focusing on identity and access management technologies. The market for credential authentication systems and their associated maintenance is driven by increasing security demands across government and commercial entities. Comparable spending benchmarks in this area often relate to enterprise-level IT support contracts, with pricing influenced by the criticality and complexity of the technology.
Small Business Impact
The contract was awarded to IDEMIA IDENTITY & SECURITY USA LLC, a large business. There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor engages in subcontracting with small businesses.
Oversight & Accountability
Oversight for this contract would typically reside with the contracting officer and the program management office within the Transportation Security Administration (TSA). The firm fixed-price nature of the contract simplifies financial oversight. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Homeland Security IT Support Contracts
- Transportation Security Administration Technology Procurement
- Credentialing and Identity Management Systems
- Federal IT Maintenance and Warranty Services
Risk Flags
- Long-term contract duration requires ongoing performance monitoring.
- Potential for vendor lock-in with specialized technology.
Tags
dhs, transportation-security-administration, identity-management, security-technology, maintenance-services, warranty-support, firm-fixed-price, full-and-open-competition, federal-contract, it-services, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $6.6 million to IDEMIA IDENTITY & SECURITY USA LLC. THE PURPOSE OF THIS ORDER IS TO PROVIDE EXCEPTED MAINTENANCE AND WARRANTY SUPPORT FOR CREDENTIAL AUTHENTICATION TECHNOLOGY (CAT) UNITS.
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 $6.6 million.
What is the period of performance?
Start: 2021-04-05. End: 2026-12-21.
What is the track record of IDEMIA IDENTITY & SECURITY USA LLC with the federal government, particularly in providing maintenance and support for credential authentication technology?
IDEMIA IDENTITY & SECURITY USA LLC, formerly Oberthur Technologies, has a significant history of contracting with the U.S. federal government. They are a major player in identity and security solutions, including biometric systems, smart cards, and secure credentialing. Their past performance with agencies like the Department of Homeland Security (DHS), Department of State, and others often involves providing hardware, software, and associated support services. While specific details on past performance for this exact type of maintenance are not detailed here, their broad experience in the identity management space suggests a capacity to handle such requirements. Federal procurement databases would provide a more granular view of their contract history, including past performance evaluations and any reported issues.
How does the annual cost of this contract compare to similar federal contracts for IT hardware maintenance and support?
The annual cost for this contract is approximately $1.16 million ($6.6 million / 5.7 years). Benchmarking this against similar federal contracts for IT hardware maintenance and support requires careful consideration of the specific technology, service level agreements (SLAs), and contract duration. Contracts for maintaining critical infrastructure like identity authentication systems, which often involve specialized hardware and software, tend to be priced higher than general IT equipment maintenance. For instance, contracts supporting large-scale network infrastructure or complex server environments can range from hundreds of thousands to millions annually, depending on the scope. Given the specialized nature of credential authentication technology and the extended support period, this annual figure appears to be within a reasonable range, assuming competitive bidding yielded fair market pricing.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
The primary risks associated with this contract include potential vendor lock-in, where the government becomes overly reliant on IDEMIA for future maintenance or upgrades due to proprietary technology or specialized knowledge. Another risk is the potential for the vendor's financial instability or operational disruptions impacting service delivery. Mitigation strategies are evident in the contract structure: the firm fixed-price (FFP) nature limits financial risk for the government. The full and open competition process aims to ensure a competitive market, reducing reliance on a single vendor long-term. Furthermore, the contract's duration, while providing stability, also necessitates careful monitoring of vendor performance and contingency planning for potential future procurements.
What is the expected effectiveness of the credential authentication technology (CAT) units supported by this contract in enhancing security?
The effectiveness of the CAT units, and by extension this maintenance contract, is crucial for enhancing security by ensuring reliable and accurate identity verification. These systems are typically used at access points (airports, federal buildings) to authenticate individuals through biometrics or credentials. Reliable operation, ensured by this contract's maintenance and warranty, directly translates to preventing unauthorized access, improving passenger screening efficiency, and maintaining the integrity of secure facilities. Malfunctions or downtime in such systems could lead to security vulnerabilities, operational delays, and a negative impact on user experience. Therefore, the contract's objective is to maximize the uptime and accuracy of these critical security components.
How has federal spending on credential authentication technology and related support services evolved over the past five years?
Federal spending on credential authentication technology (CAT) and related support services has generally seen a steady increase over the past five years, driven by heightened security concerns, evolving threat landscapes, and advancements in biometric and identity management technologies. Agencies across DHS, DoD, and other departments have invested in upgrading legacy systems and implementing more sophisticated solutions for physical and logical access control. This includes spending on hardware (scanners, readers), software (authentication platforms, databases), and crucially, ongoing maintenance, warranty, and support services to ensure the reliability and security of these systems. While specific aggregate data for 'credential authentication technology maintenance' is not readily available, broader categories like 'Information Technology Professional Services' and 'Security and Protection Equipment' show significant federal investment trends.
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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 70T04021F7672N001
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: $6,620,342
Exercised Options: $6,620,342
Current Obligation: $6,620,342
Actual Outlays: $3,536,068
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0414DCT2002
IDV Type: IDC
Timeline
Start Date: 2021-04-05
Current End Date: 2026-12-21
Potential End Date: 2026-12-21 09:22:01
Last Modified: 2026-02-11
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