State Department awards $28.4M for passport printer consumables to IDEMIA National Security Solutions

Contract Overview

Contract Amount: $28,407,280 ($28.4M)

Contractor: Idemia National Security Solutions LLC

Awarding Agency: Department of State

Start Date: 2013-11-07

End Date: 2015-05-29

Contract Duration: 568 days

Daily Burn Rate: $50.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $28.4 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: THIS ORDER IS FOR CONSUMABLES FOR THE PASSPORT PRINTERS AT THE VARIOUS PASSPORT AGENCIES. Key points: 1. Contract awarded for essential passport printer consumables, indicating ongoing operational needs. 2. Sole-source award raises questions about potential lack of competition and price optimization. 3. Contract duration of over 1.5 years suggests a stable, long-term requirement. 4. Focus on administrative management and general management consulting services aligns with operational support. 5. Awarded to a single vendor, IDEMIA National Security Solutions LLC, for the entire period. 6. The contract's value is significant, underscoring the importance of reliable passport issuance.

Value Assessment

Rating: fair

The contract value of $28.4 million over approximately 1.5 years for passport printer consumables appears substantial. Without specific details on the quantity and type of consumables, a direct price comparison is difficult. However, given the sole-source nature of the award, there is a risk that the pricing may not reflect competitive market rates. Benchmarking against similar government contracts for printer supplies or against commercial pricing for high-volume orders would be necessary to fully assess value for money.

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, or in cases of urgent need. The lack of competition means that the Department of State did not benefit from the price discovery and innovation that typically arises from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, potentially leading to higher costs than if the contract had been open to multiple bidders.

Public Impact

Citizens applying for or renewing passports benefit from the continued operation of passport printing facilities. The services delivered ensure the efficient production of official passport documents. The geographic impact is national, supporting passport agencies across various locations. Workforce implications include the continued need for personnel to operate and maintain passport printing equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Lack of transparency in the justification for sole-source procurement.
Potential for overpayment due to lack of competitive bidding.

Positive Signals

Ensures continuity of essential passport printing operations.
Award to a known entity may reduce initial onboarding risks.
Fixed-price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the broader administrative and support services sector, specifically related to operational consumables for government identification document production. The market for such specialized consumables can be concentrated, with a few key suppliers dominating. The value of this contract, while significant for consumables, is a small fraction of overall government IT or administrative spending. Comparable spending benchmarks would likely focus on other agencies' procurements of similar operational supplies for identification systems.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature of the award, there is no indication of subcontracting opportunities for small businesses through a competitive process. The impact on the small business ecosystem is likely minimal, as the primary awardee is a large entity, and the procurement method did not prioritize small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. Accountability measures would be tied to the delivery of specified consumables and adherence to the firm-fixed-price terms. Transparency is limited due to the sole-source nature of the award, with less public information available compared to competed contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Passport Services
Department of State Operations
Government Identification Systems
Administrative Management Services

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $28.4 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. THIS ORDER IS FOR CONSUMABLES FOR THE PASSPORT PRINTERS AT THE 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 $28.4 million.

What is the period of performance?

Start: 2013-11-07. End: 2015-05-29.

What specific types and quantities of consumables are included in this $28.4 million contract, and how were these determined?

The provided data indicates the order is for 'consumables for the passport printers.' However, the specific types (e.g., ink, toner, paper, ribbons, maintenance kits) and exact quantities are not detailed in the summary. The determination of these quantities would typically be based on historical usage data, projected passport application volumes, and printer maintenance schedules managed by the Department of State's passport agency. Without access to the detailed contract line items or the justification for the sole-source award, it is impossible to ascertain the precise breakdown or the methodology used to calculate the required volumes and associated costs.

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

The provided data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. The specific justification for this sole-source determination is not included in the summary. Typically, sole-source awards require a formal justification from the agency, citing reasons such as unique capabilities of the vendor, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. For a contract of this value ($28.4 million), a detailed justification would normally be publicly available through sources like SAM.gov's contract award notices or agency procurement justifications, explaining why competition was precluded.

How does the unit cost of these consumables compare to market rates or similar government contracts?

A direct comparison of unit costs is not possible with the provided data, as the specific consumables and their quantities are not itemized. Furthermore, the contract was awarded sole-source, which inherently limits the ability to benchmark against competitive market rates. To assess value for money, one would need to identify the specific part numbers for the consumables, their quantities, and then compare these prices against commercial catalog prices, prices from other government contracts (if available and comparable), or prices obtained through competitive solicitations for similar items. The absence of competition suggests a potential risk of inflated pricing.

What is the track record of IDEMIA National Security Solutions LLC in providing similar consumables or services to the government?

IDEMIA National Security Solutions LLC has a history of providing identity solutions and related services to government agencies. While this specific contract focuses on passport printer consumables, the company is known for its work in areas like identity management, secure credentialing, and biometric systems. Their experience in the secure document production ecosystem suggests they possess the necessary expertise and infrastructure to supply these specialized consumables. However, the extent of their performance specifically on passport printer consumables under previous contracts would require a deeper dive into their contract history and performance evaluations.

What are the potential risks associated with a sole-source award for essential operational consumables?

The primary risks associated with a sole-source award for essential operational consumables include higher costs due to the lack of competitive pricing, potential for vendor lock-in, and reduced incentive for the vendor to innovate or improve service quality. Taxpayers may bear a higher financial burden. Additionally, if the sole-source vendor experiences production issues or supply chain disruptions, it could directly impact the government's ability to procure these critical items, potentially leading to operational delays in passport issuance. The absence of competition also limits the government's leverage in negotiating terms and conditions.

How does this spending compare to historical federal spending on passport printing or related consumables?

The provided data covers a single contract award of $28.4 million from November 2013 to May 2015. To compare this to historical spending, one would need to aggregate all contracts awarded by the Department of State (and potentially other agencies involved in passport issuance) for passport printer consumables over multiple fiscal years. Analyzing trends in annual spending, average contract values, and the number of vendors involved would provide context. Without this broader historical data, it's difficult to determine if this $28.4 million award represents an increase, decrease, or stable level of spending compared to previous periods.

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: $28,407,280

Exercised Options: $28,407,280

Current Obligation: $28,407,280

Parent Contract

Parent Award PIID: SAQMMA09D0112

IDV Type: IDC

Timeline