DHS awards $8.9M for next-gen credential authentication, boosting TSA's security tech
Contract Overview
Contract Amount: $8,931,980 ($8.9M)
Contractor: Idemia Identity & Security USA LLC
Awarding Agency: Department of Homeland Security
Start Date: 2024-12-20
End Date: 2027-03-03
Contract Duration: 803 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE NEXT GENERATION CREDENTIAL AUTHENTICATION TECHNOLOGY (CAT2) PRODUCTION SYSTEMS AND MAINTENANCE WITH OPTIONAL CLINS FOR ADDITIONAL PRODUCTION SYSTEMS AND MAINTENANCE.
Place of Performance
Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $8.9 million to IDEMIA IDENTITY & SECURITY USA LLC for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE NEXT GENERATION CREDENTIAL AUTHENTICATION TECHNOLOGY (CAT2) PRODUCTION SYSTEMS AND MAINTENANCE WITH OPTIONAL CLINS FOR ADDITIONAL PRODUCTION SYSTEMS AND MAINTENANCE. Key points: 1. Contract focuses on advanced authentication technology for enhanced security. 2. Procurement aims to upgrade critical identity verification systems. 3. Long-term maintenance included, ensuring system longevity and support. 4. This award represents a strategic investment in national security infrastructure. 5. The technology is vital for securing transportation and border access. 6. Focus on production systems indicates a need for scalable deployment.
Value Assessment
Rating: good
The contract value of $8.9 million for Next Generation Credential Authentication Technology (CAT2) production systems and maintenance appears reasonable given the critical nature of identity verification in homeland security. Benchmarking against similar large-scale technology procurements for authentication systems suggests this price point is within expected ranges. The inclusion of maintenance over a multi-year period also contributes to the overall value proposition, ensuring the technology remains operational and supported.
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 expected to drive fair pricing and encourage innovation from the participating companies. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust bidding environment.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive marketplace that can lead to better pricing and higher quality solutions, ensuring federal funds are used efficiently.
Public Impact
Enhances security screening processes at airports and other transportation hubs. Improves the accuracy and efficiency of identity verification for travelers. Supports the Transportation Security Administration's mission to protect the nation's transportation systems. Potentially impacts the workforce through the need for trained personnel to operate and maintain new systems. Strengthens national security by providing advanced tools to combat identity fraud and enhance border control.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if maintenance and future upgrades are exclusively tied to the initial awardee.
- Scalability challenges if production demands exceed initial projections.
- Integration complexities with existing TSA systems could lead to unforeseen costs or delays.
Positive Signals
- Investment in cutting-edge technology to address evolving security threats.
- Long-term maintenance agreement ensures sustained operational capability.
- Full and open competition promotes market-driven pricing and innovation.
Sector Analysis
This contract falls within the broader Information Technology and Security sector, specifically focusing on identity and access management solutions. The market for credential authentication technology is driven by increasing security threats and the need for robust verification systems across government and commercial sectors. Comparable spending benchmarks in this area often involve significant investments in biometric, cryptographic, and multi-factor authentication solutions, reflecting the high stakes involved in securing sensitive data and physical access.
Small Business Impact
The contract was awarded to IDEMIA IDENTITY & SECURITY USA LLC and does not indicate any specific small business set-aside provisions. Given the nature of advanced technology procurement, it is possible that larger prime contractors may engage small businesses for subcontracting opportunities related to specific components or services, though this is not explicitly stated in the provided data.
Oversight & Accountability
Oversight for this contract will likely be managed by the Transportation Security Administration (TSA) within the Department of Homeland Security (DHS). Standard contract management processes, including performance reviews, milestone tracking, and financial audits, will be employed. The DHS Office of Inspector General (OIG) may also conduct audits or investigations to ensure compliance and prevent fraud, waste, and abuse.
Related Government Programs
- Biometric Identification Systems
- Homeland Security Technology Procurement
- Transportation Security Technology
- Identity Management Solutions
- Federal IT Modernization Programs
Risk Flags
- Technology obsolescence risk
- Integration complexity
- System performance under load
- Cybersecurity vulnerabilities
- Long-term maintenance cost uncertainty
Tags
homeland-security, transportation-security-administration, identity-management, authentication-technology, full-and-open-competition, delivery-order, firm-fixed-price, information-technology, virginia, dhs, next-generation-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $8.9 million to IDEMIA IDENTITY & SECURITY USA LLC. THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE NEXT GENERATION CREDENTIAL AUTHENTICATION TECHNOLOGY (CAT2) PRODUCTION SYSTEMS AND MAINTENANCE WITH OPTIONAL CLINS FOR ADDITIONAL PRODUCTION SYSTEMS AND MAINTENANCE.
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 Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $8.9 million.
What is the period of performance?
Start: 2024-12-20. End: 2027-03-03.
What is the specific 'Next Generation Credential Authentication Technology (CAT2)' being procured, and how does it differ from previous systems?
The provided data indicates the procurement is for 'Next Generation Credential Authentication Technology (CAT2) Production Systems and Maintenance.' While specific technical details of CAT2 are not elaborated, the 'next generation' designation implies advancements over existing systems. This likely includes enhanced security features, improved speed and accuracy in authentication, and potentially broader compatibility with various credential types (e.g., physical cards, mobile IDs, biometrics). Previous systems may have relied on less sophisticated methods or lacked the integrated production and maintenance capabilities specified in this award. The goal is to provide a more robust and future-proof solution for verifying identities, crucial for TSA's security mission.
How does the $8.9 million contract value compare to similar federal procurements for authentication technology?
The $8.9 million contract value for Next Generation Credential Authentication Technology (CAT2) production systems and maintenance, awarded over a period ending March 2027, appears to be a moderate investment for a critical security technology. Without specific details on the scope and scale of 'production systems,' direct comparison is challenging. However, federal procurements for advanced identity and access management solutions, especially those involving hardware, software, and long-term support for agencies like DHS or DoD, can range from millions to tens or even hundreds of millions of dollars. Given the TSA's operational needs and the strategic importance of credential authentication, this value seems aligned with acquiring advanced, scalable systems and ensuring their ongoing support. It suggests a focus on acquiring a specific set of capabilities rather than a massive enterprise-wide rollout at this stage.
What are the primary risks associated with the implementation and long-term use of this new authentication technology?
Several risks are associated with this procurement. Firstly, technical risks include potential integration challenges with existing TSA systems, unforeseen bugs or performance issues with the CAT2 technology, and the possibility of the technology becoming obsolete faster than anticipated. Secondly, operational risks involve the potential for system downtime or failures, impacting security screening operations, and the need for extensive training for personnel. Thirdly, security risks are paramount; any vulnerabilities in the authentication system could be exploited, compromising sensitive data or access. Finally, there are financial risks, such as cost overruns during implementation or maintenance, and the possibility that the procured system may not fully meet evolving threat landscapes, necessitating further investment.
What is the expected impact of this contract on the Transportation Security Administration's operational efficiency and security posture?
This contract is expected to significantly enhance the TSA's operational efficiency and security posture. By procuring 'Next Generation Credential Authentication Technology (CAT2),' the TSA aims to improve the speed and accuracy of identity verification processes, potentially reducing passenger wait times at security checkpoints. More accurate authentication can also lead to fewer false positives and negatives, strengthening the overall security screening effectiveness. The inclusion of production systems suggests a capability for wider deployment, allowing the TSA to standardize and upgrade its authentication infrastructure across various locations. The maintenance component ensures the technology remains functional and up-to-date, contributing to a sustained improvement in security capabilities against evolving threats.
How has federal spending on credential authentication and identity management technologies evolved in recent years?
Federal spending on credential authentication and identity management technologies has seen a consistent upward trend over recent years, driven by increasing cybersecurity threats, the need for secure access to sensitive information, and modernization efforts across government agencies. Agencies like DHS, DoD, and GSA are investing heavily in solutions ranging from multi-factor authentication and biometrics to secure identity platforms. This growth reflects a strategic shift towards more robust and reliable identity verification methods to combat fraud, enhance national security, and comply with federal mandates like the Federal Identity, Credential, and Access Management (FICAM) strategy. The focus is increasingly on integrated solutions that provide seamless yet secure user experiences across various platforms and services.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $15,305,245
Exercised Options: $8,931,980
Current Obligation: $8,931,980
Actual Outlays: $3,600,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70T04023D7672N001
IDV Type: IDC
Timeline
Start Date: 2024-12-20
Current End Date: 2027-03-03
Potential End Date: 2031-09-29 00:00:00
Last Modified: 2026-02-02
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