State Department spent $15.4M on passport printer supplies, a sole-source contract with IDEMIA

Contract Overview

Contract Amount: $15,386,913 ($15.4M)

Contractor: Idemia National Security Solutions LLC

Awarding Agency: Department of State

Start Date: 2010-03-25

End Date: 2010-09-30

Contract Duration: 189 days

Daily Burn Rate: $81.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPLIES REQUIRED FOR THE PASSPORT PRINTERS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $15.4 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: SUPPLIES REQUIRED FOR THE PASSPORT PRINTERS. Key points: 1. The contract value represents a significant investment in essential passport printing infrastructure. 2. Sole-source procurement limits price discovery and potentially increases costs for taxpayers. 3. The short duration of the contract (6 months) suggests a need for immediate supply. 4. IDEMIA's role as a sole provider raises questions about long-term vendor lock-in and future competition. 5. The administrative management and general management consulting services NAICS code may not fully capture the nature of the supplies provided. 6. Performance context is limited due to the lack of publicly available details on service delivery and outcomes.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source procurements for similar passport printing supplies. The fixed price nature suggests a defined cost, but the lack of competition prevents an assessment of whether this price represents fair market value. Given the sole-source award, it is difficult to determine if taxpayers received optimal value for the funds expended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition means there were no other bidders to compare against, limiting the government's ability to negotiate the best possible price.

Taxpayer Impact: Sole-source contracts can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's leverage in securing the most economical option.

Public Impact

Citizens requiring passports benefit from the continuity of passport issuance services. The Department of State's operational capacity for producing passports is maintained. The primary geographic impact is within the District of Columbia, where the contract was awarded. The contract supports the workforce involved in passport production and administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Potential for vendor lock-in with a sole-source provider.
Limited transparency into the justification for sole-source award.
NAICS code may not accurately reflect the procurement's nature.
Short contract duration could indicate reactive procurement rather than strategic planning.

Positive Signals

Ensures continuity of essential passport printing services.
Fixed-price contract provides cost certainty for this specific procurement.
IDEMIA is a known entity in identity solutions, suggesting some level of established capability.

Sector Analysis

The identity solutions and secure credentialing market is a specialized sector. Companies like IDEMIA operate within this space, providing critical infrastructure for government functions such as passport issuance. Benchmarking this specific contract is difficult due to its sole-source nature and the specialized supplies involved. However, spending on identity management and secure document production is a consistent requirement for governments globally.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information indicating subcontracting opportunities for small businesses. The award to a large, established entity like IDEMIA suggests that small businesses were likely not involved in this specific procurement.

Oversight & Accountability

Oversight for this contract would fall under the Department of State's internal procurement and financial management controls. As a sole-source award, the justification and necessity would have undergone internal review. Transparency is limited due to the nature of the award and the lack of public detail beyond the basic contract award notice.

Related Government Programs

Passport Services
Department of State Procurement
Identity Management Solutions
Secure Document Production

Risk Flags

Sole-source award lacks competitive justification.
Potential for above-market pricing due to lack of competition.
Limited transparency regarding specific supplies and justification.
Short contract duration may indicate reactive procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $15.4 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. SUPPLIES REQUIRED FOR THE PASSPORT PRINTERS.

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 $15.4 million.

What is the period of performance?

Start: 2010-03-25. End: 2010-09-30.

What specific supplies were procured under this contract, and why were they essential for passport printers?

The contract notice specifies 'SUPPLIES REQUIRED FOR THE PASSPORT PRINTERS.' While the exact nature of these supplies is not detailed, they are critical components necessary for the operation and maintenance of the machinery used to print official passports. This could include specialized inks, toners, ribbons, maintenance kits, or other consumables directly related to the printing process. The essential nature stems from the direct link to the government's ability to produce secure identification documents for its citizens.

What was the justification for awarding this contract on a sole-source basis to IDEMIA National Security Solutions LLC?

The justification for a sole-source award typically rests on specific criteria outlined in federal acquisition regulations, such as the uniqueness of the supply or service, the unavailability of alternatives, or a critical need that cannot be met through competitive bidding within the required timeframe. For this contract, the specific justification is not publicly detailed in the provided data. However, it is plausible that IDEMIA possessed proprietary technology, unique manufacturing capabilities, or existing infrastructure directly tied to the passport printers that made them the only viable source for these specific supplies within the contract's timeframe.

How does the $15.4 million contract value compare to similar procurements for passport printing supplies?

Direct comparison of this $15.4 million contract value to similar procurements is difficult due to the sole-source nature of this award and the specialized 'supplies' involved. Competitive procurements for standard office supplies or even general IT hardware often have different pricing structures and market dynamics. Without access to other sole-source contracts for identical or highly comparable passport printer supplies, or detailed cost breakdowns, it's challenging to benchmark this specific value effectively. The fixed-price nature provides cost certainty for this instance, but the absence of competition prevents an assessment of whether it represents the best possible price achievable in a competitive market.

What is IDEMIA National Security Solutions LLC's track record with the Department of State or other federal agencies for similar procurements?

IDEMIA National Security Solutions LLC (and its predecessors/related entities) has a significant history of providing identity solutions and secure credentialing services to government agencies, including the Department of State. They are known for producing secure identification documents like passports and driver's licenses. Their track record often involves large-scale contracts for identity management systems, biometric solutions, and secure printing technologies. While this specific contract is for supplies, it aligns with their broader expertise in supporting secure document issuance, suggesting they possess the necessary capabilities and experience.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for paying a premium due to the lack of competition. Without competing bids, the government may not achieve the most cost-effective price. Another risk is vendor lock-in, where the agency becomes dependent on a single supplier, potentially limiting future flexibility and negotiation power. Furthermore, sole-source awards can sometimes indicate a lack of strategic planning or market analysis if competitive options were overlooked or not adequately explored. Transparency can also be a concern, as the justification for not competing the award may not always be fully transparent to the public.

How does this contract fit into the Department of State's overall spending on passport issuance and related services?

This $15.4 million contract for passport printer supplies represents a component of the Department of State's broader operational budget for passport issuance. Passport services are a critical function, and the associated costs include personnel, technology, infrastructure, and consumables like the supplies procured here. While this specific contract value is substantial for supplies, it needs to be viewed in the context of the total annual budget allocated to the Bureau of Consular Affairs and its passport operations, which can run into hundreds of millions or even billions of dollars when considering all associated costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Safran Power USA LLC (UEI: 275374015)

Address: 1235 S CLARK ST STE 700, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,386,913

Exercised Options: $15,386,913

Current Obligation: $15,386,913

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA09D0112

IDV Type: IDC

Timeline