State Department spent $14.5M on passport printer consumables, with a single delivery order to IDEMIA National Security Solutions

Contract Overview

Contract Amount: $14,522,190 ($14.5M)

Contractor: Idemia National Security Solutions LLC

Awarding Agency: Department of State

Start Date: 2009-05-06

End Date: 2009-06-08

Contract Duration: 33 days

Daily Burn Rate: $440.1K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS FOR CONSUMABLES FOR THE PASSPORT PRINTERS AT ALL LOCATIONS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $14.5 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: THIS IS FOR CONSUMABLES FOR THE PASSPORT PRINTERS AT ALL LOCATIONS. Key points: 1. The contract focused on essential consumables for passport printers, indicating a critical operational need. 2. A single delivery order suggests a potentially narrow scope or a specific, time-bound requirement. 3. The sole awardee, IDEMIA National Security Solutions, highlights a concentrated supplier base for this specific need. 4. The contract duration was short, spanning just over one month, implying a need for immediate fulfillment. 5. The fixed-price contract type aims to provide cost certainty for the government. 6. The absence of small business set-asides or subcontracting plans warrants further review for broader economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the specific nature of passport printer consumables and the limited data provided. The total award amount of $14.5 million for a single delivery order over approximately one month suggests a significant per-unit cost or a large volume of consumables. Without comparable contracts for similar specialized equipment or detailed breakdowns of the consumables purchased, it's difficult to definitively assess if this represents excellent value for money. The fixed-price nature of the contract provides some cost control, but the overall efficiency depends heavily on the necessity and pricing of the specific items procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order to IDEMIA National Security Solutions. The data does not provide details on the justification for a sole-source award, such as a lack of competition or a specific emergency requirement. Without a competitive bidding process, it is difficult to ascertain if the government received the most favorable pricing and terms. The absence of multiple bidders means there was no direct price discovery through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers if competitive pricing is not achieved. This limits the government's ability to leverage market competition to secure better deals.

Public Impact

The primary beneficiaries are the Department of State and its passport issuing facilities, ensuring the continued operation of passport printing. The services delivered involve the provision of essential consumables required for the functioning of specialized passport printing machinery. The geographic impact is nationwide, as the consumables are intended for passport printers at 'all locations' managed by the Department of State. Workforce implications are indirect, supporting the personnel who operate and maintain the passport printing equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding for a significant expenditure raises concerns about potential overpayment.
Limited transparency regarding the justification for a sole-source award.
The short contract duration might indicate a reactive procurement rather than strategic planning.
Absence of small business participation could limit economic opportunities for smaller firms in this supply chain.

Positive Signals

The contract ensures the operational continuity of a critical government function: passport issuance.
The fixed-price contract type offers predictability in government spending for these consumables.
The awardee, IDEMIA National Security Solutions, is likely a specialized provider, potentially offering expertise in this niche market.

Sector Analysis

This contract falls within the broader 'Printing Machinery and Equipment Manufacturing' sector, specifically focusing on the consumables required for specialized passport printers. The market for such specialized consumables is likely limited, often dominated by original equipment manufacturers or their authorized distributors due to proprietary technology and quality control requirements. While the overall printing industry is vast, the niche for passport printing equipment and supplies is significantly smaller and more concentrated. Benchmarking spending is difficult without specific data on the types and quantities of consumables purchased, but the $14.5 million figure for a single, short-term delivery order suggests a high unit cost or substantial volume for these critical items.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans. This suggests that the procurement did not actively seek to engage small businesses, either as prime contractors or subcontractors. For a contract of this magnitude, particularly one involving specialized consumables, the lack of small business involvement could mean missed opportunities for smaller enterprises to participate in the federal supply chain and contribute to the ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting and financial management offices. As a delivery order under a larger contract vehicle (implied by 'delivery order'), the initial award and oversight would have been governed by the terms of that parent contract. Transparency regarding the sole-source justification and the specific items procured is limited in the provided data. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse were identified.

Related Government Programs

Passport Services
Department of State Procurement
Government Printing Supplies
Consumables for Specialized Equipment

Risk Flags

Sole-source award without clear justification
Lack of competitive bidding
Limited transparency on specific items procured
Potential for price escalation due to single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.5 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. THIS IS FOR CONSUMABLES FOR THE PASSPORT PRINTERS AT ALL LOCATIONS.

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 $14.5 million.

What is the period of performance?

Start: 2009-05-06. End: 2009-06-08.

What specific types and quantities of consumables were procured under this contract?

The provided data describes the contract's purpose as 'FOR CONSUMABLES FOR THE PASSPORT PRINTERS AT ALL LOCATIONS' but does not specify the exact types or quantities of consumables. This information is crucial for a detailed cost-benefit analysis and for understanding the scope of the $14.5 million expenditure. Without this breakdown, it's impossible to determine if the volume and nature of the items procured align with operational needs or if there was potential for over-procurement or unnecessary purchases. Further investigation into the contract's line-item details would be required to answer this question comprehensively.

What was the justification for awarding this contract on a sole-source basis?

The data indicates a sole-source award to IDEMIA NATIONAL SECURITY SOLUTIONS LLC, but it does not provide the specific justification. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, often due to proprietary technology, unique capabilities, or urgent and compelling circumstances. For passport printer consumables, this could be due to specific technical requirements of the printers that only IDEMIA can meet, or perhaps the consumables are proprietary to the printers they manufactured. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it is difficult to assess the validity of the sole-source determination and whether competition was genuinely precluded.

How does the $14.5 million expenditure compare to historical spending on similar consumables?

Comparing the $14.5 million expenditure to historical spending requires access to past contract data for passport printer consumables from the Department of State or other agencies using similar equipment. The provided data only covers this single delivery order, which occurred between May 6, 2009, and June 8, 2009. To establish a benchmark, one would need to analyze spending patterns over multiple years, identify trends in consumable usage and pricing, and account for inflation and changes in printing technology or volume. Without this historical context, it is challenging to determine if this specific award represents an increase, decrease, or stable level of spending for these essential items.

What is the track record of IDEMIA National Security Solutions in providing government contracts, particularly for consumables?

IDEMIA National Security Solutions LLC has a history of providing identity and security solutions, including credentials and related services, to government agencies. Their involvement in providing consumables for passport printers aligns with their broader expertise in identity management and secure document production. While the provided data focuses on a single contract, a comprehensive assessment of their track record would involve reviewing their performance on other federal contracts, including delivery timeliness, product quality, customer satisfaction, and compliance with contract terms. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be necessary to evaluate their overall performance history.

What are the potential risks associated with relying on a single supplier for critical passport printer consumables?

Relying on a single supplier, as indicated by the sole-source award, presents several potential risks. Firstly, there is a risk of price escalation, as the supplier faces less competitive pressure to offer lower prices. Secondly, supply chain disruptions, whether due to the supplier's internal issues, geopolitical events, or natural disasters, could halt the delivery of critical consumables, potentially impacting passport issuance operations. Thirdly, there's a risk of vendor lock-in, where the government becomes dependent on the supplier's technology and pricing structure, making it difficult and costly to switch providers in the future. Finally, without competition, there's a reduced incentive for the supplier to innovate or improve service quality beyond the minimum contractual requirements.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › Printing Machinery and Equipment Manufacturing

Product/Service Code: MISCELLANEOUS

Contractor Details

Parent Company: Idemia Identity & Security USA LLC (UEI: 130850480)

Address: 1215 JEFFERSON DAVIS HWY, ARLINGTON, VA, 22202

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,522,190

Exercised Options: $14,522,190

Current Obligation: $14,522,190

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SLMAQM04D0039

IDV Type: IDC

Timeline