State Dept. Spends $36.1M on Passport Security Coating, No Competition
Contract Overview
Contract Amount: $36,168,860 ($36.2M)
Contractor: Idemia National Security Solutions LLC
Awarding Agency: Department of State
Start Date: 2015-05-05
End Date: 2016-08-30
Contract Duration: 483 days
Daily Burn Rate: $74.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF PASSPORT SECURE COATING, FOILS/RIBBONS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037
Plain-Language Summary
Department of State obligated $36.2 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: IGF::OT::IGF PASSPORT SECURE COATING, FOILS/RIBBONS Key points: 1. High contract value ($36.1M) for specialized passport security features. 2. Sole-source award to IDEMIA National Security Solutions LLC indicates limited market options. 3. Risk of overpayment due to lack of competitive bidding. 4. Sector is Printing Machinery and Equipment Manufacturing, with potential for IT/security overlap.
Value Assessment
Rating: questionable
The contract value of $36.1M for passport security coating is significant. Without competitive pricing data, it's difficult to assess if this price is reasonable compared to similar specialized security printing materials.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no competition was sought. This significantly limits price discovery and increases the risk of paying a premium for the goods and services.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as funds may not have been used as efficiently as possible.
Public Impact
Impacts the security and integrity of U.S. passports. Affects travelers relying on secure and authentic travel documents. Potential for increased costs to be passed on to passport applicants.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Essential security feature for passports
Sector Analysis
The contract falls under Printing Machinery and Equipment Manufacturing, specifically related to security features for identification documents. Spending benchmarks in this niche area are hard to establish without more data on similar sole-source procurements.
Small Business Impact
The data indicates no small business participation in this sole-source contract. This is common for highly specialized, security-focused procurements where specific capabilities are required.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further review by oversight bodies could determine if alternative competitive strategies were feasible or if the pricing is justified.
Related Government Programs
- Printing Machinery and Equipment Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Potential for inflated costs due to absence of market pressure.
- Dependency on a single vendor for critical national security component.
- Limited opportunity for small business participation.
Tags
printing-machinery-and-equipment-manufac, department-of-state, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $36.2 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. IGF::OT::IGF PASSPORT SECURE COATING, FOILS/RIBBONS
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 $36.2 million.
What is the period of performance?
Start: 2015-05-05. End: 2016-08-30.
What is the justification for the sole-source award, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. For this contract, the specific security coating technology likely held by IDEMIA National Security Solutions LLC may have been the primary driver. However, a thorough review should confirm that no other vendors could have met the requirements, even with a modified approach or through a different technological solution.
How was the price determined without competition, and is it benchmarked against similar security features?
Without competition, price determination relies heavily on negotiation and historical pricing, if available. The government likely assessed the vendor's proposed costs against internal estimates or previous contract data. Benchmarking against similar security features on other government identification documents or international passports would be crucial to validate the $36.1M expenditure. The absence of competitive bids makes this assessment challenging and raises concerns about potential overpricing.
What is the long-term risk associated with relying on a single supplier for critical passport security features?
The long-term risk of relying on a single supplier for critical passport security features includes potential price escalation in future contracts, vulnerability to supply chain disruptions if the sole provider faces issues, and a lack of innovation driven by competitive pressure. It also limits the government's ability to leverage new technologies or more cost-effective solutions that might emerge from a competitive market.
Industry Classification
NAICS: Manufacturing › Industrial Machinery Manufacturing › Printing Machinery and Equipment Manufacturing
Product/Service Code: SPECIAL INDUSTRY MACHINERY
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: Safran Power USA LLC (UEI: 275374015)
Address: 1255 23RD ST NW STE 100, WASHINGTON, DC, 20037
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,168,860
Exercised Options: $36,168,860
Current Obligation: $36,168,860
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SAQMMA15D0046
IDV Type: IDC
Timeline
Start Date: 2015-05-05
Current End Date: 2016-08-30
Potential End Date: 2016-08-30 00:00:00
Last Modified: 2016-04-28
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