State Dept. awards $25M for printing equipment to IDEMIA, a sole-source contract with questionable value
Contract Overview
Contract Amount: $24,967,358 ($25.0M)
Contractor: Idemia National Security Solutions LLC
Awarding Agency: Department of State
Start Date: 2007-10-29
End Date: 2010-09-10
Contract Duration: 1,047 days
Daily Burn Rate: $23.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONSUMABLES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $25.0 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: CONSUMABLES Key points: 1. Significant award value of $24.97M for consumables and printing equipment. 2. Sole-source award to IDEMIA National Security Solutions LLC raises competition concerns. 3. Contract duration of 1047 days suggests a long-term need. 4. The 'VA' status indicates a potential for veteran-owned small business participation, though not explicitly stated in this award.
Value Assessment
Rating: questionable
The contract value of $24.97M for printing machinery and equipment manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a $24.97M contract may result in taxpayers paying a premium for the goods and services received.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock the government into potentially suboptimal pricing. Dependence on a single vendor for critical printing equipment could pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration
Positive Signals
- Awarded to a known entity (IDEMIA)
- Firm Fixed Price contract type
Sector Analysis
The award falls under the 'Printing Machinery and Equipment Manufacturing' sector. Spending in this area can vary significantly based on agency needs for office equipment, specialized printing, and related services.
Small Business Impact
The data indicates the award was not made to a small business (sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were pursued.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the necessity of a sole-source justification and verifying the fairness of the price negotiated.
Related Government Programs
- Printing Machinery and Equipment Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for overpayment due to lack of price discovery.
- Long contract duration may not reflect current market conditions.
- No indication of small business participation.
- Limited transparency on justification for sole-source.
Tags
printing-machinery-and-equipment-manufac, department-of-state, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $25.0 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. CONSUMABLES
Who is the contractor on this award?
The obligated recipient is IDEMIA NATIONAL SECURITY SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $25.0 million.
What is the period of performance?
Start: 2007-10-29. End: 2010-09-10.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without the specific justification document, it's impossible to confirm the exact reason, but it's a critical area for oversight.
How does the per-unit cost of these consumables and equipment compare to market rates, given the sole-source nature?
Assessing the per-unit cost against market rates is challenging without competitive bids. Sole-source contracts often lack the price pressure that competition provides, potentially leading to inflated prices. A thorough market research analysis or a review of historical pricing for similar items would be necessary to benchmark the cost-effectiveness.
What is the long-term strategic impact of relying on a single vendor for printing machinery and equipment?
Long-term reliance on a single vendor can create strategic risks, including potential price increases over time, limited access to innovation from other suppliers, and vulnerability to supply chain disruptions if the vendor faces issues. It also reduces the government's flexibility to adapt to changing technological needs or seek more cost-effective solutions.
Industry Classification
NAICS: Manufacturing › Industrial Machinery Manufacturing › Printing Machinery and Equipment Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-1 Identity Solutions, Inc. (UEI: 967975061)
Address: 1215 JEFFERSON DAVIS HWY, ARLINGTON, VA, 08
Business Categories: Category Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $24,967,358
Exercised Options: $24,967,358
Current Obligation: $24,967,358
Parent Contract
Parent Award PIID: SLMAQM04D0039
IDV Type: IDC
Timeline
Start Date: 2007-10-29
Current End Date: 2010-09-10
Potential End Date: 2010-09-10 00:00:00
Last Modified: 2010-11-10
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