DHS awards $15.1M for secure ID card consumables, with HID Global Corp. as the contractor

Contract Overview

Contract Amount: $15,120,000 ($15.1M)

Contractor: HID Global Corp

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-01

End Date: 2024-03-31

Contract Duration: 365 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURE IDENTIFICATION PLATFORM CARD CONSUMABLES, DELIVERY ORDER FOR ORDERING PERIOD 3

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78753

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.1 million to HID GLOBAL CORP for work described as: SECURE IDENTIFICATION PLATFORM CARD CONSUMABLES, DELIVERY ORDER FOR ORDERING PERIOD 3 Key points: 1. The contract value represents a significant investment in secure identification infrastructure. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and quality. 3. Potential risks include supply chain disruptions and the need for ongoing technological adaptation. 4. Performance will be assessed based on the timely delivery and quality of card consumables. 5. This contract falls within the broader sector of identity management and secure credentialing solutions. 6. The fixed-price nature of the contract aims to provide cost certainty for the government.

Value Assessment

Rating: good

The contract value of $15.1 million for secure identification card consumables appears reasonable given the critical nature of identity verification for government agencies. Benchmarking against similar contracts for specialized consumables would provide a more precise value assessment. The firm fixed-price structure suggests an effort to control costs, but the ultimate value depends on the quality and reliability of the delivered products over the contract period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield favorable pricing and a wider selection of qualified suppliers. The number of bidders and the specific evaluation criteria would further illuminate the strength of the competition and its impact on the final award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages innovation among potential suppliers, leading to better value for public funds.

Public Impact

U.S. Citizenship and Immigration Services (USCIS) benefits from a reliable supply of secure identification card consumables. The contract supports the issuance of secure identification documents to individuals interacting with federal agencies. The geographic impact is national, as USCIS operates across the United States. Workforce implications include the need for skilled labor in the manufacturing and distribution of these specialized consumables.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized equipment or processes are required.
Reliance on a single supplier for critical consumables could pose a risk.
Ensuring consistent quality control across all batches of consumables is paramount.

Positive Signals

The use of full and open competition suggests a healthy market for these goods.
The firm fixed-price contract provides budget predictability.
The contract duration allows for stable supply chain management.

Sector Analysis

The market for secure identification card consumables is a specialized segment within the broader security and identity management industry. This sector is characterized by stringent security requirements, technological advancements in anti-counterfeiting features, and a demand driven by government and corporate needs for secure credentialing. Spending in this area is often tied to national security initiatives and the need for robust identity verification systems. Comparable spending benchmarks would likely be found within contracts for secure document production and identity verification technologies.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses could have participated if they met the qualifications. Further analysis would be needed to determine if any subcontracting opportunities were mandated or voluntarily pursued by the prime contractor, HID Global Corp., and the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures would include performance metrics outlined in the contract, delivery schedules, and quality assurance protocols. Transparency is generally maintained through contract award databases and public reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Identity, Credential, and Access Management (FICAM)
Homeland Security Presidential Directive 12 (HSPD-12)
Secure Credentialing Solutions
Biometric Identification Systems

Risk Flags

Supply Chain Vulnerability
Quality Control Assurance
Potential for Counterfeiting
Dependence on Specialized Materials

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.1 million to HID GLOBAL CORP. SECURE IDENTIFICATION PLATFORM CARD CONSUMABLES, DELIVERY ORDER FOR ORDERING PERIOD 3

Who is the contractor on this award?

The obligated recipient is HID GLOBAL CORP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2023-04-01. End: 2024-03-31.

What is the track record of HID Global Corp. in supplying secure identification consumables to government agencies?

HID Global Corp. is a well-established player in the identity solutions market, with a significant history of providing secure identification products and services to both government and commercial clients worldwide. Their offerings often include secure card bodies, embedded chips, and related personalization technologies. For government contracts, HID Global has a track record of supplying secure credentials for various applications, including national ID programs, access control systems, and driver's licenses. Their experience suggests a capability to meet the stringent security and quality requirements associated with federal identification needs. However, a detailed review of past performance on similar federal contracts, including any past performance evaluations or disputes, would be necessary for a comprehensive assessment of their track record specifically for this type of consumable delivery.

How does the unit cost of these card consumables compare to market rates for similar products?

The provided data does not include specific unit costs for the card consumables, making a direct comparison to market rates challenging. The total contract value of $15.1 million is for the entire delivery order period, which spans one year. To assess value for money, one would need to know the quantity of consumables purchased and their individual prices. Benchmarking would involve comparing these unit prices against those offered by other manufacturers of similar secure identification card materials and components, considering factors like security features (e.g., holograms, special inks, embedded chips), material quality, and customization. Without this granular data, it's difficult to definitively state whether the pricing is competitive or represents a premium.

What are the primary risks associated with the supply chain for these secure identification card consumables?

The primary risks associated with the supply chain for secure identification card consumables include potential disruptions in the availability of raw materials (e.g., specialized plastics, microchips, security inks), manufacturing delays, and logistical challenges in distribution. Given the specialized nature of these materials, reliance on a limited number of suppliers for key components could create vulnerabilities. Geopolitical events, trade disputes, or natural disasters could also impact the global supply chain. Furthermore, ensuring the integrity and security of the supply chain to prevent counterfeiting or tampering is a critical risk that requires robust oversight and verification processes throughout the production and delivery stages.

How effective is the firm fixed-price contract type in managing costs for this type of procurement?

A firm fixed-price (FFP) contract type is generally considered effective for managing costs in procurements where the scope of work is well-defined and the risks of cost overruns are relatively low. For secure identification card consumables, where the product specifications are likely standardized and the manufacturing process is mature, an FFP contract provides cost certainty for the government. This means the contractor assumes the risk of cost overruns, and the government pays a predetermined price. This structure incentivizes the contractor to control costs efficiently. However, if unforeseen issues arise that significantly impact the contractor's costs (e.g., sudden raw material price spikes not covered by contract clauses), the government might not benefit from the lowest possible price if the initial bid was conservative due to perceived risk.

What is the historical spending pattern for secure identification card consumables by the Department of Homeland Security?

Analyzing historical spending patterns for secure identification card consumables by the Department of Homeland Security (DHS) would provide valuable context for the current $15.1 million award. This would involve examining past contract awards for similar products, including their values, durations, and the contractors involved. Understanding trends in spending, such as increases or decreases over time, and identifying any shifts in contracting strategies (e.g., from sole-source to competitive awards) can reveal insights into the agency's evolving needs and procurement approaches. For instance, a consistent or increasing spending trend might indicate growing demand for secure identification, while significant fluctuations could point to changes in program requirements or the adoption of new technologies. Without access to historical DHS procurement data, a precise analysis of spending patterns is not possible.

Industry Classification

NAICS: Manufacturing › Resin, Synthetic Rubber, and Artificial and Synthetic Fibers and Filaments Manufacturing › Plastics Material and Resin Manufacturing

Product/Service Code: NONMETALLIC FABRICATED MATERIALS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lawrence Roll UP Doors, Inc.

Address: 611 CENTER RIDGE DR, AUSTIN, TX, 78753

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,120,000

Exercised Options: $15,120,000

Current Obligation: $15,120,000

Actual Outlays: $15,120,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70SBUR21D00000002

IDV Type: IDC

Timeline