HHS awards $905K for PIV card stock, with 236 bids received under full and open competition

Contract Overview

Contract Amount: $90,498 ($90.5K)

Contractor: Xtec, Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-11

End Date: 2025-09-29

Contract Duration: 383 days

Daily Burn Rate: $236/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS PURCHASE IS TO PROCURE AND HAVE DELIVERED 7,473 V8.2 PIV CARD STOCK

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33126

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $90,498.03 to XTEC, INCORPORATED for work described as: THE PURPOSE OF THIS PURCHASE IS TO PROCURE AND HAVE DELIVERED 7,473 V8.2 PIV CARD STOCK Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition dynamics suggest potential for favorable pricing. 3. Risk indicators are low due to a firm fixed-price contract type. 4. Performance context is straightforward, focusing on the delivery of specific materials. 5. Sector positioning is within the administrative support services for healthcare. 6. The contract involves the procurement of physical card stock, a standard administrative need.

Value Assessment

Rating: good

The contract value of $904,980.30 for 7,473 units of PIV card stock is benchmarked against similar procurements for administrative supplies. While specific per-unit cost comparisons are difficult without granular market data for this specialized card stock, the competitive nature of the award suggests a fair market price was achieved. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The receipt of 236 bids signifies a highly competitive environment. This level of competition is generally expected to drive down prices and encourage innovative solutions, ensuring the government obtains the best value.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a lower overall cost for the PIV card stock compared to a less competitive or sole-source award.

Public Impact

Beneficiaries include federal employees and contractors requiring PIV cards for identification and access. Services delivered include the provision of specialized PIV card stock material. Geographic impact is national, as PIV cards are used across all federal agencies. Workforce implications are minimal, primarily affecting the supply chain for identification materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the manufacturer faces production issues.
Ensuring the card stock meets all security and durability specifications is critical.

Positive Signals

Firm fixed-price contract limits cost overrun risks.
High number of bidders suggests a robust and accessible market.
Delivery order structure allows for phased procurement if needed.

Sector Analysis

The procurement of identification card stock falls within the broader administrative and IT support services sector. This market includes suppliers of secure identification materials, printing equipment, and related services. Spending in this area is consistent across government agencies for identity management and physical security.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the high number of bidders (236) suggests that small businesses had the opportunity to participate. Further analysis would be needed to determine the extent of small business involvement as prime contractors or subcontractors in fulfilling this order.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature of the award simplifies oversight by focusing on delivery and adherence to specifications. The Centers for Medicare and Medicaid Services (CMS) is responsible for managing this contract, with potential oversight from the HHS Office of Inspector General for any significant issues.

Related Government Programs

Federal Identity, Credential, and Access Management (FICAM)
Personal Identity Verification (PIV) Program
Government-wide Procurement Card Programs
Administrative Supplies Procurement

Risk Flags

Potential for supply chain disruption
Ensuring material meets all security specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $90,498.03 to XTEC, INCORPORATED. THE PURPOSE OF THIS PURCHASE IS TO PROCURE AND HAVE DELIVERED 7,473 V8.2 PIV CARD STOCK

Who is the contractor on this award?

The obligated recipient is XTEC, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $90,498.03.

What is the period of performance?

Start: 2024-09-11. End: 2025-09-29.

What is the specific type and security standard of the V8.2 PIV card stock being procured?

The data provided specifies 'V8.2 PIV CARD STOCK' but does not detail the exact material composition, security features (e.g., holographic overlays, embedded chips), or adherence to specific government standards beyond the general PIV requirement. Federal PIV cards typically adhere to standards set by NIST (National Institute of Standards and Technology), including FIPS 201. The 'V8.2' designation likely refers to a specific revision or version of the card material or its specifications, which would be detailed in the contract's statement of work. Understanding these specifics is crucial for ensuring the cards meet the necessary security and durability requirements for federal identification.

How does the per-unit cost of this card stock compare to previous procurements or industry benchmarks?

The total award amount is $904,980.30 for 7,473 units, yielding a per-unit cost of approximately $121.90. Without access to the detailed contract line item data or specific market research reports for PIV card stock, a precise benchmark is challenging. However, given the high number of bids (236) under full and open competition, this price is likely competitive. Previous procurements for similar materials by HHS or other agencies could serve as a benchmark, but variations in quantity, specifications, and market conditions over time would need to be considered for a valid comparison. The firm fixed-price nature suggests the government has locked in this cost.

What is the track record of XTEC, INCORPORATED in supplying government agencies with similar materials?

Information on XTEC, INCORPORATED's specific track record for supplying PIV card stock is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history with federal agencies, and any reported issues or successes. Given that they were awarded this contract under full and open competition with 236 bidders, it implies they met the minimum qualifications and presented a competitive offer. Further due diligence would involve examining their financial stability, technical capabilities, and experience with secure identification materials.

What are the potential risks associated with the delivery timeline and the supplier's capacity?

The contract has a duration of 383 days, with an end date of September 29, 2025. Potential risks include delays in manufacturing or shipping by XTEC, INCORPORATED, which could impact the availability of PIV cards for federal employees. The supplier's capacity to produce 7,473 units within the specified timeframe, while seemingly manageable for a specialized supplier, needs to be considered. Given the high competition, it's likely that multiple suppliers could meet these needs, mitigating some risk. However, unforeseen events like material shortages or logistical challenges could still pose a threat. The firm fixed-price contract incentivizes timely delivery.

How does this spending align with broader federal initiatives for identity management and cybersecurity?

This contract directly supports federal identity management initiatives, specifically the Personal Identity Verification (PIV) program, which is a cornerstone of federal cybersecurity efforts. PIV cards are essential for authenticating individuals accessing federal systems and facilities, thereby enhancing security. Spending on the physical components like card stock is a necessary, albeit small, part of the overall FICAM (Federal Identity, Credential, and Access Management) strategy. Ensuring a reliable supply of secure PIV card materials is critical for maintaining the integrity of these federal security protocols and protecting sensitive government information and infrastructure.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5775 BLUE LAGOON DR, MIAMI, FL, 33126

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

Financial Breakdown

Contract Ceiling: $90,498

Exercised Options: $90,498

Current Obligation: $90,498

Actual Outlays: $90,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA23D003D

IDV Type: FSS

Timeline