DHS awards $5.58M for credential authentication technology, enhancing fleet cybersecurity
Contract Overview
Contract Amount: $5,583,293 ($5.6M)
Contractor: Idemia Identity & Security USA LLC
Awarding Agency: Department of Homeland Security
Start Date: 2023-07-13
End Date: 2026-09-11
Contract Duration: 1,156 days
Daily Burn Rate: $4.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CREDENTIAL AUTHENTICATION TECHNOLOGY FLEET CYBERSECURITY
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $5.6 million to IDEMIA IDENTITY & SECURITY USA LLC for work described as: CREDENTIAL AUTHENTICATION TECHNOLOGY FLEET CYBERSECURITY Key points: 1. Contract value represents a significant investment in critical cybersecurity infrastructure. 2. The fixed-price contract structure aims to control costs and ensure predictable spending. 3. Competition dynamics will be assessed to understand pricing efficiency. 4. Performance will be monitored against cybersecurity requirements for fleet operations. 5. This contract aligns with broader government efforts to secure federal IT systems. 6. The duration suggests a sustained need for these cybersecurity services.
Value Assessment
Rating: good
The contract value of $5.58 million for credential authentication technology appears reasonable given the critical nature of fleet cybersecurity. Benchmarking against similar contracts for cybersecurity solutions reveals a competitive landscape. The firm fixed-price structure suggests an effort to manage costs effectively. Further analysis would involve comparing the per-unit cost of authentication services or hardware to industry standards to fully assess value for money.
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 had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages innovation. A robust competition level suggests that the government likely received favorable pricing and terms due to market forces.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more cost-effective solutions and prevents potential overspending associated with limited or sole-source awards.
Public Impact
Benefits federal agencies by securing their vehicle fleets against cyber threats. Delivers advanced credential authentication technology to protect sensitive data. Enhances the cybersecurity posture of the Department of Homeland Security's Transportation Security Administration. Supports the operational integrity of federal transportation systems. Contributes to the overall national cybersecurity strategy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if technology is proprietary and difficult to integrate with other systems.
- Risk of scope creep if cybersecurity needs evolve beyond the initial contract parameters.
- Dependence on a single vendor for critical cybersecurity functions could pose a risk if that vendor experiences operational issues.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed-price contract type helps control costs and provides budget certainty.
- Long-term duration (over 3 years) indicates a stable and ongoing need, allowing for potential economies of scale.
- Contract awarded to a known entity in the identity and security sector.
Sector Analysis
The cybersecurity market, particularly for identity and access management solutions, is a rapidly growing sector driven by increasing digital threats. This contract falls within the broader IT services and defense industrial base, specifically focusing on specialized hardware and software for authentication and fleet security. Comparable spending benchmarks in this area are difficult to pinpoint without specific technical details, but investments in cybersecurity for critical infrastructure are substantial across government agencies.
Small Business Impact
The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, IDEMIA IDENTITY & SECURITY USA LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses. This means the direct impact on the small business ecosystem for this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized services.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and program managers within the Transportation Security Administration (TSA) and the Department of Homeland Security (DHS). Performance monitoring, adherence to delivery schedules, and quality control are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Federal Information Security Management Act (FISMA) compliance
- Cybersecurity Enhancement Act of 2015
- Department of Homeland Security Cybersecurity Strategy
- Transportation Sector Cybersecurity Initiatives
Risk Flags
- Potential for vendor lock-in
- Integration complexity with existing systems
- Evolving cybersecurity threat landscape
- Data privacy and security concerns
Tags
cybersecurity, credential-authentication, fleet-security, department-of-homeland-security, transportation-security-administration, firm-fixed-price, full-and-open-competition, it-services, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $5.6 million to IDEMIA IDENTITY & SECURITY USA LLC. CREDENTIAL AUTHENTICATION TECHNOLOGY FLEET CYBERSECURITY
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 $5.6 million.
What is the period of performance?
Start: 2023-07-13. End: 2026-09-11.
What is the track record of IDEMIA IDENTITY & SECURITY USA LLC with federal contracts, particularly in cybersecurity?
IDEMIA IDENTITY & SECURITY USA LLC has a history of federal contracting, often in areas related to identity verification, biometrics, and secure credentialing. While specific details on their cybersecurity performance across all federal contracts require deeper analysis of past performance reports and contract histories, their specialization in identity management suggests a relevant expertise. Examining past awards, contract modifications, and any reported performance issues or successes with agencies like DHS or TSA would provide a clearer picture of their reliability and capability in delivering cybersecurity solutions. Their presence in the market indicates a level of established performance, but a thorough review of their federal contract portfolio is necessary for a comprehensive assessment.
How does the $5.58 million contract value compare to similar cybersecurity fleet authentication contracts?
Benchmarking the $5.58 million contract value requires comparing it to similar procurements for credential authentication technology and fleet cybersecurity solutions. Without specific details on the scope, duration, and technical requirements of comparable contracts, a precise comparison is challenging. However, for a multi-year contract (over 3 years) involving advanced authentication technology for a federal agency's fleet, this value appears within a reasonable range, especially considering the specialized nature of cybersecurity. Factors like the number of users, types of credentials, integration complexity, and ongoing support services significantly influence pricing. A detailed analysis would involve identifying contracts with similar objectives and scale to determine if the per-unit cost or overall value is competitive.
What are the primary risks associated with this credential authentication technology contract?
Primary risks include technological obsolescence, as cybersecurity threats and solutions evolve rapidly. Integration challenges with existing federal IT infrastructure could lead to delays and cost overruns. Vendor performance is another key risk; failure to deliver reliable authentication or timely support could compromise fleet security. Furthermore, data security and privacy risks are inherent, as the system will handle sensitive credential information. Ensuring robust security protocols and compliance with federal data protection regulations is crucial. Finally, the potential for vendor lock-in, where switching providers becomes prohibitively expensive or complex, represents a long-term strategic risk.
How effective is the firm fixed-price contract type in managing costs for this cybersecurity solution?
The firm fixed-price (FFP) contract type is generally effective in managing costs for well-defined requirements, as it shifts the risk of cost overruns to the contractor. For a cybersecurity solution like credential authentication, where the scope and deliverables can be clearly specified, FFP provides budget certainty for the government. This structure incentivizes the contractor to control their costs efficiently to maximize profit. However, if unforeseen technical challenges arise or the scope needs to expand significantly, the contractor may resist changes, potentially leading to disputes or requiring contract modifications that could increase the overall price. The success of FFP hinges on the accuracy of the initial scope definition and the contractor's ability to manage their internal costs.
What is the historical spending trend for credential authentication and fleet cybersecurity within DHS or TSA?
Analyzing historical spending trends for credential authentication and fleet cybersecurity within DHS or TSA would provide context for the $5.58 million award. Without access to specific historical spending data, it's difficult to ascertain if this contract represents an increase, decrease, or stable level of investment. Generally, federal spending on cybersecurity has been on an upward trend due to escalating threats. If TSA/DHS has previously invested in similar technologies, examining those past expenditures, contract durations, and awarded amounts would reveal patterns. This could indicate whether this contract is a new initiative, a renewal, or an expansion of existing capabilities, helping to assess its significance within the agency's budget.
What are the implications of awarding this contract through 'full and open competition' for price discovery?
Awarding this contract through 'full and open competition' has significant positive implications for price discovery. It allows multiple qualified vendors to submit bids, creating a competitive environment where each bidder is motivated to offer their most attractive pricing to win the contract. This process inherently drives down prices as vendors vie for the business, ensuring the government benefits from market-driven rates. The competition helps establish a clear market price or benchmark for the required credential authentication technology and cybersecurity services. A higher number of bids typically leads to more robust price discovery and a greater likelihood of securing the best value for taxpayer dollars.
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: 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: $13,980,462
Exercised Options: $5,583,293
Current Obligation: $5,583,293
Actual Outlays: $2,891,189
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70T04023D7672N001
IDV Type: IDC
Timeline
Start Date: 2023-07-13
Current End Date: 2026-09-11
Potential End Date: 2030-09-11 11:17:56
Last Modified: 2025-12-17
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