DOT awards $6.65M for identity verification, with IDEMIA securing the contract

Contract Overview

Contract Amount: $6,654,250 ($6.7M)

Contractor: Idemia Identity & Security USA LLC

Awarding Agency: Department of Transportation

Start Date: 2024-05-29

End Date: 2026-05-28

Contract Duration: 729 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IDENTITY VERIFICATION SUPPORT SERVICES (IVSS)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $6.7 million to IDEMIA IDENTITY & SECURITY USA LLC for work described as: IDENTITY VERIFICATION SUPPORT SERVICES (IVSS) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The duration of 729 days (approximately 2 years) provides a stable period for service delivery. 5. The contract value is relatively modest, suggesting a focused scope of work. 6. The North American Industry Classification System (NAICS) code 811212 points to a service-oriented contract for repair and maintenance.

Value Assessment

Rating: good

The contract value of $6.65 million over approximately two years appears reasonable for identity verification support services. Without specific benchmarks for this exact service, a direct comparison is difficult. However, the firm-fixed-price nature suggests the government has negotiated a set price, which can be advantageous if the contractor manages costs effectively. The award to a single contractor implies a competitive process that likely drove pricing to a fair market level.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that it resulted in a single delivery order suggests that while competition was allowed, IDEMIA IDENTITY & SECURITY USA LLC was the selected awardee. The level of competition is not explicitly stated in terms of the number of bidders, but the 'full and open' designation implies a robust process was available.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. It ensures that the government explores the widest possible range of solutions and contractors, maximizing the potential for value.

Public Impact

The Department of Transportation (DOT) and its Federal Motor Carrier Safety Administration (FMCSA) are the primary beneficiaries, receiving essential identity verification support. Services delivered will likely enhance the security and integrity of DOT's systems and personnel. The contract's geographic impact is primarily within Virginia, where the contractor is located, but the services support federal operations nationwide. Workforce implications are likely concentrated within IDEMIA IDENTITY & SECURITY USA LLC, with potential for specialized roles in identity management and security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this service is critical and difficult to switch away from.
Reliance on a single contractor for identity verification could pose a risk if service levels degrade or security is compromised.

Positive Signals

Awarded under full and open competition, indicating a fair and transparent process.
Firm-fixed-price contract shifts cost overruns to the contractor.
The contract duration provides stability for service delivery.

Sector Analysis

The identity verification services market is a critical component of cybersecurity and secure operations across all sectors. This contract falls within the broader IT services and security sector, specifically focusing on identity and access management. The market is characterized by a mix of large established players and specialized niche providers. Spending in this area has been steadily increasing due to heightened security threats and regulatory requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary award is to a large business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. The impact on the small business ecosystem would be indirect, primarily through the competitive landscape for larger IDIQ vehicles from which this order was placed.

Oversight & Accountability

Oversight for this contract would typically reside with the Federal Motor Carrier Safety Administration (FMCSA) contracting officer and program officials. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Identity, Credential, and Access Management (FICAM)
General Services Administration (GSA) Schedule Contracts
Department of Homeland Security (DHS) Identity Programs

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical service

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.7 million to IDEMIA IDENTITY & SECURITY USA LLC. IDENTITY VERIFICATION SUPPORT SERVICES (IVSS)

Who is the contractor on this award?

The obligated recipient is IDEMIA IDENTITY & SECURITY USA LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Motor Carrier Safety Administration).

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2024-05-29. End: 2026-05-28.

What is the historical spending by the Department of Transportation on identity verification services?

Historical spending data for identity verification services by the Department of Transportation (DOT) is not readily available in a consolidated public format. Such services are often procured through various contract vehicles, including IDIQ contracts, GSA Schedules, and direct procurements, making a single aggregate figure difficult to ascertain without deep dives into specific contract databases. However, given the increasing emphasis on cybersecurity and identity management across federal agencies, it is reasonable to assume that spending in this area has been consistent or growing. The current award of $6.65 million for a two-year period suggests a moderate but significant investment by the FMCSA within this domain.

How does the pricing of this contract compare to similar identity verification services procured by other federal agencies?

Direct price comparison for this specific contract is challenging without access to detailed pricing structures and service level agreements (SLAs) of comparable contracts. However, the contract is firm-fixed-price, which aims to provide cost certainty. The value of $6.65 million over approximately 729 days, awarded under full and open competition, suggests a competitive market rate. Benchmarking would require analyzing the scope of services, technology used, and security levels required by the FMCSA against similar procurements by agencies like DHS or GSA. Generally, competitive bidding for standardized services tends to align prices with market norms.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided summary data. However, for identity verification support services, typical KPIs would likely include metrics related to accuracy rates (e.g., false positive/negative rates), turnaround times for verification requests, system uptime and availability, data security compliance (e.g., adherence to NIST standards), and responsiveness to support inquiries. The firm-fixed-price nature implies that the contractor is obligated to meet defined performance standards to receive full payment, and failure to do so could result in penalties or contract termination.

What is IDEMIA IDENTITY & SECURITY USA LLC's track record with federal government contracts, particularly in identity verification?

IDEMIA IDENTITY & SECURITY USA LLC, and its predecessors, have a significant track record with federal government contracts, including extensive work in identity solutions. They are a major player in areas such as biometric identification, secure credentialing, and identity management systems. Their experience spans various federal agencies, often involving large-scale, high-security projects. While specific details of past performance on contracts directly analogous to this FMCSA award would require further research into contract databases like FPDS, IDEMIA's established presence in the identity and security sector suggests a strong capability to fulfill this requirement.

What is the potential risk associated with relying on a single contractor for identity verification support services?

Relying on a single contractor for critical identity verification support services presents several potential risks. These include vendor lock-in, where switching providers becomes difficult and costly. There's also the risk of service degradation or failure if the contractor experiences financial difficulties, operational issues, or security breaches. Furthermore, a sole-source situation (even if the initial award was competitive) can reduce leverage for future negotiations and potentially lead to complacency from the contractor. Robust oversight, clear performance metrics, and contingency planning are crucial to mitigate these risks.

How does this contract align with the broader Federal Identity, Credential, and Access Management (FICAM) strategy?

This contract aligns with the broader Federal Identity, Credential, and Access Management (FICAM) strategy by providing essential support services for verifying identities within the Department of Transportation. FICAM aims to establish a unified approach to managing identities, credentials, and access across the federal government, enhancing security and efficiency. By ensuring the integrity of identity verification processes, this contract contributes to the foundational elements of FICAM, helping to secure access to systems and information and ensuring that only authorized individuals are granted appropriate privileges.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Computer and Office Machine Repair and Maintenance

Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11951 FREEDOM DR, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $18,943,250

Exercised Options: $6,654,250

Current Obligation: $6,654,250

Actual Outlays: $3,763,488

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0523U

IDV Type: FSS

Timeline