State Department spent $23.5M on ink ribbons and overlay film, awarded via sole-source contract

Contract Overview

Contract Amount: $23,495,597 ($23.5M)

Contractor: Idemia National Security Solutions LLC

Awarding Agency: Department of State

Start Date: 2006-11-20

End Date: 2010-09-14

Contract Duration: 1,394 days

Daily Burn Rate: $16.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INK RIBBON AND OVERLAY FILM

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $23.5 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: INK RIBBON AND OVERLAY FILM Key points: 1. The contract awarded to IDEMIA NATIONAL SECURITY SOLUTIONS LLC represents a significant expenditure for specialized printing consumables. 2. The sole-source nature of this award raises questions about potential lack of competition and its impact on pricing. 3. The contract duration of over three years suggests a sustained need for these specific materials. 4. The fixed-price contract type provides cost certainty but may limit flexibility if market conditions change. 5. The absence of small business participation indicates a focus on a prime contractor with specialized capabilities.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to ascertain if the $23.5 million represents a fair market price. The lack of comparable contracts in the public domain makes a direct value-for-money assessment difficult. However, the significant total award amount warrants scrutiny to ensure efficient use of taxpayer funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, IDEMIA NATIONAL SECURITY SOLUTIONS LLC, was solicited. This approach is typically used when a unique product or service is required, or when only one responsible source exists. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or offered alternative solutions.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the lowest possible cost for these essential supplies.

Public Impact

This contract directly supports the Department of State's operational needs, likely related to identity credentialing or secure document production. The services delivered ensure the availability of critical consumables for government functions, maintaining continuity of operations. The geographic impact is primarily national, supporting federal agency requirements, with potential downstream effects on personnel security and identification processes. Workforce implications are likely concentrated within the contractor's specialized manufacturing and supply chain operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in given the specialized nature of the product.

Positive Signals

Contract ensures a consistent supply of critical materials for a government function.
Fixed-price contract provides budget predictability for the agency.
Award to a known entity suggests a potentially established relationship and understanding of requirements.

Sector Analysis

The market for specialized printing consumables, such as ink ribbons and overlay films, is often niche and dominated by a few key manufacturers or integrators. These materials are critical for identity management solutions, secure document production, and other sensitive government applications. The total spending in this specific sub-sector can vary significantly based on agency needs and technological advancements. This contract fits within the broader 'Printing Machinery and Equipment Manufacturing' sector, highlighting the specialized nature of government procurement for essential operational supplies.

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 single, likely specialized, prime contractor suggests that the focus was on meeting specific technical requirements rather than fostering small business participation. This could limit the broader economic impact on the small business ecosystem in this particular procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting and procurement offices. Given the sole-source nature, the justification and award process would be subject to internal review and potentially audits by oversight bodies like the Government Accountability Office (GAO) or the Department of State's Inspector General. Transparency is limited by the sole-source justification, but contract performance and payment would be monitored.

Related Government Programs

Department of State Identity Management Programs
Secure Document Production Contracts
Government Printing 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 $23.5 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. INK RIBBON AND OVERLAY FILM

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 $23.5 million.

What is the period of performance?

Start: 2006-11-20. End: 2010-09-14.

What specific type of ink ribbon and overlay film was procured, and what are their critical applications within the Department of State?

The data provided does not specify the exact technical specifications of the ink ribbon and overlay film. However, given the contractor, IDEMIA NATIONAL SECURITY SOLUTIONS LLC, and the Department of State's mission, these consumables are highly likely related to the production of secure identification documents, such as passports, visas, or other credentials. Overlay films often provide security features like holograms or tamper-evident properties, while specialized ink ribbons are used for printing variable data, images, or security features onto these documents. The critical application is ensuring the authenticity, security, and integrity of official U.S. identity documents issued to citizens and foreign nationals.

What was the justification for awarding this contract on a sole-source basis to IDEMIA NATIONAL SECURITY SOLUTIONS LLC?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are justified under circumstances such as: only one responsible source exists with the capability to meet the requirement; an urgent and compelling need exists that cannot be met by other sources; or the procurement is for a brand-name item for which only one source can provide the required supplies or services. For IDEMIA NATIONAL SECURITY SOLUTIONS LLC, the justification likely stems from proprietary technology, unique manufacturing capabilities, or a pre-existing integration with the Department of State's identity issuance systems that makes them the only viable provider for these specific consumables.

How does the $23.5 million contract value compare to historical spending on similar consumables by the Department of State or other federal agencies?

Direct comparison of the $23.5 million contract value for ink ribbons and overlay film to historical spending is difficult without more specific data on the types of consumables and the agencies involved. However, the total award amount over the contract's duration (approximately 3.7 years) suggests a substantial and ongoing requirement. Federal agencies, particularly those involved in identity management and security, often procure such specialized materials through significant contracts. Without access to detailed historical procurement data for identical or highly similar items, it's challenging to benchmark this specific expenditure. The sole-source nature also complicates direct comparisons, as competitive procurements might yield different price points.

What is the track record of IDEMIA NATIONAL SECURITY SOLUTIONS LLC with federal contracts, particularly with the Department of State?

IDEMIA NATIONAL SECURITY SOLUTIONS LLC has a history of performing federal contracts, particularly in areas related to identity solutions and secure credentialing. Their work with the Department of State is likely significant, given this large sole-source award for essential consumables. Analyzing their broader contract portfolio would reveal their performance across various agencies and contract types. Generally, companies specializing in identity and security solutions are frequent contractors for agencies like the State Department, Department of Homeland Security, and others requiring secure identification products. Their track record would typically be assessed based on past performance evaluations, on-time delivery, quality of goods/services, and adherence to contract terms.

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

The primary risk associated with a sole-source contract of this magnitude is the potential for inflated pricing due to the lack of competitive bidding. Without market pressure, the contractor may not have the same incentive to offer the most cost-effective solution. Another risk is vendor lock-in; if the Department of State becomes heavily reliant on IDEMIA's specific consumables and systems, switching to a different vendor in the future could be technically complex and costly. Furthermore, a sole-source award can sometimes indicate a lack of proactive market research or strategic sourcing by the agency, potentially missing opportunities for better value or innovation from a wider range of suppliers. Finally, there's a risk of reduced transparency in the procurement process itself.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › Printing Machinery and Equipment Manufacturing

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

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: L-1 Identity Solutions, Inc. (UEI: 967975061)

Address: 1215 JEFFERSON DAVIS HWY, ARLINGTON, VA, 08

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $85,629,557

Exercised Options: $23,495,681

Current Obligation: $23,495,597

Parent Contract

Parent Award PIID: SLMAQM04D0039

IDV Type: IDC

Timeline