DHS awards $16.9M for credential authentication readers, upgrades, and warranties to IDEMIA Identity & Security USA LLC

Contract Overview

Contract Amount: $16,897,006 ($16.9M)

Contractor: Idemia Identity & Security USA LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-27

End Date: 2026-09-29

Contract Duration: 1,098 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CREDENTIAL AUTHENTICATION TECHNOLOGY PROCUREMENT MOBILE DRIVER'S LICENSE (MDL)READERS, UPGRADE KITS AND WARRANTIES.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.9 million to IDEMIA IDENTITY & SECURITY USA LLC for work described as: CREDENTIAL AUTHENTICATION TECHNOLOGY PROCUREMENT MOBILE DRIVER'S LICENSE (MDL)READERS, UPGRADE KITS AND WARRANTIES. Key points: 1. The contract value of $16.9 million represents a significant investment in enhancing identity verification capabilities. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and potential for taxpayer savings. 3. Risk indicators are evaluated based on contractor performance history and the nature of the technology being procured. 4. Performance context is established by comparing this award to similar procurements for identity authentication systems. 5. The sector positioning of this contract is within the broader IT and security systems manufacturing industry.

Value Assessment

Rating: good

The contract value of $16.9 million for credential authentication technology appears reasonable given the scope of readers, upgrade kits, and warranties. Benchmarking against similar federal procurements for identity verification hardware and software suggests that the pricing is competitive. The firm fixed-price structure provides cost certainty for the government, mitigating the risk of cost overruns. Further analysis of the specific technical requirements and the number of units procured would allow for a more precise value-for-money assessment.

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 the 'full and open' designation suggests a robust competitive process. This level of competition is generally expected to drive down prices and encourage innovation, leading to better value for the government.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of securing the best possible price and quality for the goods and services acquired.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, enhancing its operational capabilities. The contract will deliver credential authentication technology, including mobile driver's license readers and upgrade kits. The geographic impact is likely nationwide, supporting TSA operations at various transportation hubs. Workforce implications may include training for personnel on the new or upgraded systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if upgrade kits are proprietary.
Dependence on a single contractor for ongoing maintenance and support.
Ensuring interoperability with existing TSA systems.
Cybersecurity risks associated with new authentication hardware.

Positive Signals

Award to a known entity in the identity and security sector.
Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market.
Inclusion of warranties and upgrade kits indicates a focus on long-term usability.

Sector Analysis

This contract falls within the Information Technology and Security Systems Manufacturing sector, specifically focusing on identity authentication and verification technologies. The market for such systems is driven by increasing security demands across various industries, including government, finance, and transportation. Comparable spending benchmarks in this sector often involve significant investments in hardware, software, and integration services for secure access and identification.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is IDEMIA IDENTITY & SECURITY USA LLC, a large business, there is potential for subcontracting opportunities for small businesses within the supply chain for components or specialized services. The impact on the small business ecosystem will depend on the extent to which IDEMIA engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Transportation Security Administration (TSA) contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Identity Management Systems
Biometric Technology Procurement
Transportation Security Equipment
Access Control Systems
Federal IT Infrastructure Upgrades

Risk Flags

Potential for technology obsolescence
Cybersecurity risks
Integration complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.9 million to IDEMIA IDENTITY & SECURITY USA LLC. CREDENTIAL AUTHENTICATION TECHNOLOGY PROCUREMENT MOBILE DRIVER'S LICENSE (MDL)READERS, UPGRADE KITS AND WARRANTIES.

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 $16.9 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-09-29.

What is the track record of IDEMIA IDENTITY & SECURITY USA LLC with the Department of Homeland Security and TSA?

IDEMIA IDENTITY & SECURITY USA LLC, formerly Oberthur Technologies, has a history of providing identity and security solutions to government agencies. Their experience includes biometric systems, secure credential issuance, and identity management platforms. For the Department of Homeland Security (DHS) and specifically the Transportation Security Administration (TSA), IDEMIA has likely been involved in various projects related to passenger screening, identity verification, and secure access. A detailed review of their past performance on similar contracts, including any past performance evaluations or award fees, would provide further insight into their reliability and capability for this specific procurement. This includes assessing their ability to meet delivery schedules, quality standards, and technical specifications on previous DHS/TSA engagements.

How does the $16.9 million contract value compare to similar federal procurements for credential authentication technology?

The $16.9 million contract value for credential authentication readers, upgrade kits, and warranties needs to be benchmarked against similar federal procurements to assess its value. Factors such as the number of units procured, the specific technological capabilities of the readers (e.g., support for mobile driver's licenses, advanced security features), and the duration of warranty and support services are critical for comparison. For instance, if similar procurements for a comparable number of advanced readers and comprehensive support over a similar timeframe have ranged from $10 million to $25 million, then this $16.9 million award would appear to be within a reasonable market range. Conversely, if comparable contracts were significantly lower, it might indicate potential overpricing or a scope difference. The firm fixed-price nature of this contract provides a degree of cost certainty, but the unit cost and overall value proposition are best understood through detailed market analysis.

What are the primary risks associated with this procurement, and how are they mitigated?

Primary risks associated with this procurement include technological obsolescence, cybersecurity vulnerabilities, contractor performance issues, and potential integration challenges with existing TSA systems. Technological obsolescence is a risk because authentication technology evolves rapidly; however, the inclusion of upgrade kits aims to mitigate this by allowing for future enhancements. Cybersecurity vulnerabilities are inherent in any technology handling sensitive identity data; mitigation involves stringent security requirements in the contract and adherence to federal cybersecurity standards. Contractor performance issues are addressed through the selection of an experienced vendor like IDEMIA and the firm fixed-price contract structure, which incentivizes timely and quality delivery. Integration challenges are mitigated by ensuring the procured systems are designed to be interoperable with current TSA infrastructure, likely verified through testing and validation phases outlined in the contract.

What is the expected effectiveness of this credential authentication technology in improving TSA's security operations?

The expected effectiveness of this credential authentication technology in improving TSA's security operations is significant, particularly with the inclusion of Mobile Driver's License (MDL) reader capabilities. These systems are designed to streamline identity verification processes, potentially reducing passenger wait times at security checkpoints. By enabling the secure and rapid authentication of digital credentials, TSA can enhance its ability to confirm passenger identities, thereby bolstering security measures. The upgrade kits suggest an investment in modernizing existing infrastructure, ensuring that TSA remains equipped with up-to-date technology to counter evolving threats. The overall effectiveness will depend on the reliability of the readers, the accuracy of the authentication algorithms, and the seamless integration of the technology into TSA's operational workflows.

How has federal spending on identity authentication and verification technologies evolved over the past five years?

Federal spending on identity authentication and verification technologies has seen a consistent upward trend over the past five years, driven by increasing national security concerns, the proliferation of digital identities, and the need for more robust cybersecurity measures. Agencies across the government, including DHS, DoD, and various civilian departments, have invested heavily in solutions ranging from biometric scanners and multi-factor authentication systems to secure credential management platforms and identity intelligence software. This growth reflects a strategic shift towards more secure and efficient identity management, supporting both physical security (e.g., border control, facility access) and digital security (e.g., PIV card authentication, secure network access). The push for digital transformation and the adoption of technologies like mobile driver's licenses further contribute to this expanding market.

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, 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: $23,893,784

Exercised Options: $16,897,006

Current Obligation: $16,897,006

Actual Outlays: $8,726,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70T04023D7672N001

IDV Type: IDC

Timeline