State Department awards $20.4M for passport printer consumables, a sole-source contract

Contract Overview

Contract Amount: $20,392,457 ($20.4M)

Contractor: Idemia National Security Solutions LLC

Awarding Agency: Department of State

Start Date: 2012-11-07

End Date: 2013-09-16

Contract Duration: 313 days

Daily Burn Rate: $65.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS ORDER IS TO PURCHASE CONSUMABLES REQUIRED FOR THE PASSPORT PRINTERS AT VARIOUS PASSPORT AGENCIES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $20.4 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: THIS ORDER IS TO PURCHASE CONSUMABLES REQUIRED FOR THE PASSPORT PRINTERS AT VARIOUS PASSPORT AGENCIES. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract covers consumables for passport printers, a critical operational need. 3. The duration of the contract was approximately 10 months. 4. The award was made to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. 5. The contract type is Firm Fixed Price, providing cost certainty. 6. This spending falls under Administrative Management and General Management Consulting Services.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging due to its sole-source nature and focus on specialized consumables. Without competitive bids, it's difficult to ascertain if the $20.4 million represents optimal value for money. However, the firm fixed-price structure offers predictability in spending. Further analysis would require comparing the unit costs of consumables to industry benchmarks or previous contract pricing if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses the typical competitive bidding process, which can lead to higher prices and reduced innovation. The lack of competition means there were no other vendors vying for this business, and the government did not solicit multiple proposals to ensure the best possible terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a bidding process, there's less incentive for the contractor to offer the lowest possible price.

Public Impact

Benefits the Department of State by ensuring the continued operation of passport printing facilities. Delivers essential consumables required for the production of U.S. passports. Geographic impact is national, supporting passport agencies across the country. Workforce implications include ensuring that passport processing personnel have the necessary supplies to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may reduce the incentive for the contractor to offer cost-saving innovations.
Dependence on a single supplier for critical consumables could pose a supply chain risk.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract addresses a clear operational need for passport printing consumables.
Award to an established entity (IDEMIA) may suggest reliability in supply.

Sector Analysis

This contract falls within the administrative and management services sector, specifically related to operational support for government functions. The market for specialized printer consumables can be niche, often dominated by a few key suppliers who have established relationships or proprietary technology. The $20.4 million expenditure represents a significant investment in maintaining the infrastructure for passport issuance, a critical government service.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award was made to a large business entity, IDEMIA NATIONAL SECURITY SOLUTIONS LLC. This means that opportunities for small businesses to participate in fulfilling this contract are likely limited unless they are direct suppliers or partners to the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting and financial management offices. As a sole-source award, it may receive heightened scrutiny to ensure the justification for non-competition is valid and that the pricing is reasonable. Transparency is dependent on the Department's reporting practices and public availability of contract details. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Passport Services
Department of State Operations
Government Administrative Support Services
Printer and Imaging Supplies

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $20.4 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. THIS ORDER IS TO PURCHASE CONSUMABLES REQUIRED FOR THE PASSPORT PRINTERS AT VARIOUS PASSPORT AGENCIES.

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 $20.4 million.

What is the period of performance?

Start: 2012-11-07. End: 2013-09-16.

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

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the data. Typically, sole-source awards are justified under circumstances such as only one responsible source being available, or an urgent and compelling need that precludes full and open competition. For specialized consumables tied to specific hardware, a sole-source justification might be based on proprietary technology or unique compatibility requirements. Without further documentation from the Department of State, the precise reason remains unknown, but it implies that competitive bidding was deemed impractical or impossible.

How does the $20.4 million expenditure compare to historical spending on passport printer consumables?

The provided data shows a single award of $20,392,456.95 for the period of November 7, 2012, to September 16, 2013, which is approximately a 10-month period. To compare this to historical spending, one would need access to historical contract databases for the Department of State's passport printing consumables. This would involve searching for previous contracts awarded to IDEMIA or other vendors for similar items over preceding years. Analyzing trends in annual spending, average contract values, and the number of contracts awarded would provide context. Without this historical data, it's impossible to determine if this $20.4 million represents an increase, decrease, or stable level of spending for this category.

What specific types of consumables are included in this $20.4 million contract?

The contract description states it is 'TO PURCHASE CONSUMABLES REQUIRED FOR THE PASSPORT PRINTERS AT VARIOUS PASSPORT AGENCIES.' While the exact list of consumables is not detailed in the provided summary data, typical consumables for specialized printers like those used for passports often include ink cartridges, toner, ribbons, specialized paper or substrate, cleaning kits, and potentially maintenance parts specific to the printer models. The broad category suggests a comprehensive supply agreement to ensure uninterrupted operation of the passport printing infrastructure. A detailed list would likely be found in the contract's statement of work or line item details.

What is the track record of IDEMIA NATIONAL SECURITY SOLUTIONS LLC in providing similar services or products?

IDEMIA NATIONAL SECURITY SOLUTIONS LLC is a significant player in identity and security solutions, often involved in government contracts related to identification, biometrics, and secure document issuance. Their track record likely includes providing hardware, software, and related services for identity management systems. For passport printing, they may be a manufacturer of the printers themselves or a key supplier of the specialized materials required for secure passport production. Their experience in national security and government sectors suggests a capacity to handle large, critical contracts. However, specific performance metrics or past issues related to this particular type of consumable supply would require a deeper dive into contract performance reports and government databases.

Are there any identified risks associated with this sole-source contract for passport printer consumables?

Yes, several risks are associated with this sole-source contract. The primary risk is financial: without competition, the government may be paying a higher price than necessary for the consumables, representing a potential loss of taxpayer value. There's also a risk of vendor lock-in, where the Department of State becomes heavily reliant on IDEMIA for both the printers and their consumables, making it difficult to switch suppliers or negotiate better terms in the future. Furthermore, a sole-source arrangement can reduce the incentive for the contractor to innovate or improve efficiency, as they face less market pressure. Supply chain disruptions are also a risk, as the entire supply of these critical consumables rests with a single entity.

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, 08

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

Financial Breakdown

Contract Ceiling: $20,392,457

Exercised Options: $20,392,457

Current Obligation: $20,392,457

Parent Contract

Parent Award PIID: SAQMMA09D0112

IDV Type: IDC

Timeline