State Dept. Awards $24M for Printing Machinery to IDEMIA National Security Solutions
Contract Overview
Contract Amount: $24,084,682 ($24.1M)
Contractor: Idemia National Security Solutions LLC
Awarding Agency: Department of State
Start Date: 2016-07-22
End Date: 2017-09-30
Contract Duration: 435 days
Daily Burn Rate: $55.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF PPT RIBBON/FILM AND SECURE COATING
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250
Plain-Language Summary
Department of State obligated $24.1 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: IGF::OT::IGF PPT RIBBON/FILM AND SECURE COATING Key points: 1. Significant award to a single vendor for specialized printing equipment. 2. Lack of competition raises questions about price discovery and value. 3. Potential risk associated with sole-source procurement for critical equipment. 4. Sector context suggests a niche market for secure printing solutions.
Value Assessment
Rating: questionable
The contract value of $24,084,682 for printing machinery and equipment manufacturing is substantial. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar contracts or industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competition was sought. This method limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The absence of competition for a $24 million contract could lead to taxpayers paying a premium for the required printing machinery and secure coating.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The specific nature of 'secure coating' suggests a sensitive application, potentially related to national security or sensitive document production. The long duration of the contract (over a year) for equipment delivery and installation warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value without benchmark
Positive Signals
- Specific equipment for secure printing needs met
Sector Analysis
The procurement falls under Printing Machinery and Equipment Manufacturing. Awards in this sector can vary widely in price depending on specialization and security features. The $24 million value suggests a significant, potentially custom, solution.
Small Business Impact
There is no indication that small businesses were involved in this sole-source procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the government is receiving fair value and that the equipment meets all specified requirements. Accountability for the pricing and performance rests heavily on the contracting agency.
Related Government Programs
- Printing Machinery and Equipment Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to no competition.
- Risk of vendor lock-in for critical equipment.
- Limited opportunity for small business participation.
- Effectiveness and value for money are difficult to ascertain.
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 $24.1 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. IGF::OT::IGF PPT RIBBON/FILM AND SECURE COATING
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 $24.1 million.
What is the period of performance?
Start: 2016-07-22. End: 2017-09-30.
What specific capabilities does the 'secure coating' provide, and were these capabilities essential and unique enough to justify a sole-source award?
The 'secure coating' likely refers to specialized finishes or materials applied to printed documents to enhance security, prevent counterfeiting, or ensure tamper-evidence. If these capabilities are highly specialized and only offered by IDEMIA National Security Solutions LLC, it could justify a sole-source award. However, a thorough market analysis should have been conducted to confirm the uniqueness and necessity of these features.
What was the justification for not competing this requirement, and what steps were taken to ensure a fair and reasonable price was negotiated?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. For this contract, the agency would need to document why IDEMIA was the only viable option. Price reasonableness would then be assessed through techniques like cost analysis, comparison of previous contract prices, or market research, even without direct competition.
How does the $24 million contract value compare to the typical spending on similar printing equipment and services by other government agencies or large private sector organizations?
Benchmarking this $24 million contract against similar procurements is challenging without more specific details on the equipment's capabilities and the nature of the 'secure coating.' However, for standard printing machinery, this value is exceptionally high. It suggests either a very large quantity, highly specialized technology, or significant integration services were included, all of which would need to be validated against industry standards and other agency expenditures.
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: $24,084,682
Exercised Options: $24,084,682
Current Obligation: $24,084,682
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SAQMMA15D0046
IDV Type: IDC
Timeline
Start Date: 2016-07-22
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2017-03-09
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