DHS PIV Card Contract Awarded to XTEC, Inc. for $13.1M to Enhance Identity Management and Security

Contract Overview

Contract Amount: $13,072,588 ($13.1M)

Contractor: Xtec, Incorporated

Awarding Agency: Department of Homeland Security

Start Date: 2008-02-29

End Date: 2013-02-14

Contract Duration: 1,812 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Sector: IT

Official Description: WILL ENABLE DHS TO MEET ITS HSPD-12 REQUIREMENTS AND OMB APPROVED TIMELINES BY PROVIDING PERSONAL IDENTITY VERIFICATION (PIV) CARDS TO ITS EMPLOYEES AND CONTRACTORS IN THE DHS HEADQUARTERS. IT WILL ALSO ESTABLISH AN ENTERPRISE SOLUTION FOR AN IDENTITY MANAGEMENT SYSTEM THAT WILL SUPPORT THE DEPARTMENT'S ABILITY TO SECURE ITS SYSTEMS, NETWORKS AND DATA.

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33126, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.1 million to XTEC, INCORPORATED for work described as: WILL ENABLE DHS TO MEET ITS HSPD-12 REQUIREMENTS AND OMB APPROVED TIMELINES BY PROVIDING PERSONAL IDENTITY VERIFICATION (PIV) CARDS TO ITS EMPLOYEES AND CONTRACTORS IN THE DHS HEADQUARTERS. IT WILL ALSO ESTABLISH AN ENTERPRISE SOLUTION FOR AN IDENTITY MANAGEMENT SYSTEM THAT WILL… Key points: 1. The contract aims to fulfill HSPD-12 requirements and OMB timelines for PIV cards. 2. It establishes an enterprise identity management system to secure DHS systems, networks, and data. 3. The contract was awarded through full and open competition after exclusion of sources. 4. The duration of the contract is 1812 days, spanning from February 2008 to February 2013. 5. The primary service category is Computer Systems Design Services. 6. This initiative supports the Department's overall cybersecurity and personnel identification infrastructure.

Value Assessment

Rating: good

The contract value of $13.1 million over approximately five years for identity management and PIV card issuance appears reasonable given the scope. Benchmarking against similar large-scale identity solutions for federal agencies suggests this is within expected cost ranges. The focus on an enterprise solution indicates a strategic investment rather than just transactional card issuance, potentially offering long-term value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the competition was open, specific sources may have been excluded based on predefined criteria, potentially to ensure specialized capabilities. The exact number of bidders is not provided, but the 'full and open' designation implies a competitive process was intended to yield fair pricing.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and solutions, leading to a more cost-effective outcome.

Public Impact

DHS employees and contractors will receive PIV cards, enhancing their identity verification. The establishment of an enterprise identity management system will improve the security of DHS systems, networks, and data. This contract supports the operational efficiency and security posture of the Department of Homeland Security. The initiative contributes to national security by standardizing identity credentials across a major federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the enterprise solution is highly proprietary.
Ensuring timely PIV card issuance to all personnel can be a logistical challenge.
Cybersecurity risks associated with managing a large-scale identity management system.

Positive Signals

Addresses critical federal identity management mandates (HSPD-12).
Establishes a robust enterprise solution for long-term security benefits.
Utilizes a competitive procurement process to drive value.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and identity management solutions. The market for identity and access management (IAM) is substantial within the federal government, driven by security mandates and the need to manage a large, distributed workforce. Comparable spending benchmarks for enterprise-wide identity solutions often run into tens or hundreds of millions of dollars, depending on the scale and complexity.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests the primary focus was on securing a comprehensive enterprise solution, likely requiring capabilities best met by larger, specialized firms. There is no explicit information on subcontracting plans for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's procurement and program management offices. The Office of Procurement Operations is listed as the servicing agency. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

HSPD-12 Implementation Contracts
Federal Identity, Credential, and Access Management (ICAM) Solutions
Enterprise IT Services for Federal Agencies
Personal Identity Verification (PIV) Card Issuance Systems

Risk Flags

Potential for scope creep given the 'enterprise solution' aspect.
Dependence on vendor for critical identity infrastructure.
Ensuring interoperability with evolving federal standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.1 million to XTEC, INCORPORATED. WILL ENABLE DHS TO MEET ITS HSPD-12 REQUIREMENTS AND OMB APPROVED TIMELINES BY PROVIDING PERSONAL IDENTITY VERIFICATION (PIV) CARDS TO ITS EMPLOYEES AND CONTRACTORS IN THE DHS HEADQUARTERS. IT WILL ALSO ESTABLISH AN ENTERPRISE SOLUTION FOR AN IDENTITY MANAGEMENT SYSTEM THAT WILL SUPPORT THE DEPARTMENT'S ABILITY TO SECURE ITS SYSTEMS, NETWORKS AND DATA.

Who is the contractor on this award?

The obligated recipient is XTEC, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2008-02-29. End: 2013-02-14.

What was the specific rationale for excluding certain sources in this 'full and open competition after exclusion of sources' award?

The designation 'full and open competition after exclusion of sources' typically implies that a broad solicitation was issued, but specific vendors were excluded based on pre-defined criteria. For a contract of this nature, focusing on enterprise identity management and PIV card issuance, exclusions might be based on a lack of demonstrated experience with large-scale federal identity solutions, insufficient security clearances, inability to meet specific technical requirements for interoperability with existing federal systems, or failure to meet stringent financial stability requirements necessary for a multi-year, high-value contract. The specific criteria for exclusion would have been detailed in the solicitation documents, aiming to ensure that only capable and qualified vendors participated in the final evaluation, thereby optimizing the selection of a vendor best suited for the critical mission requirements of DHS.

How does the $13.1 million cost compare to similar federal identity management system procurements?

The $13.1 million contract value for DHS's PIV card and identity management system, spanning approximately five years, appears to be within a reasonable range for large federal IT procurements of this nature. Federal agencies often invest significant sums in establishing robust identity management infrastructure due to complex security requirements and the need to serve tens or hundreds of thousands of personnel. For instance, other agencies have awarded contracts for similar capabilities, including PIV issuance, background check integration, and enterprise-wide directory services, that have ranged from tens to hundreds of millions of dollars over their lifecycle. The specific cost-effectiveness also depends on the scope of the 'enterprise solution' beyond just card issuance, such as the integration with various IT systems and the level of customization required. Without detailed scope comparisons, a precise benchmark is difficult, but the allocated amount suggests a strategic investment rather than a simple service contract.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for a contract of this nature would likely include metrics related to the timely issuance of PIV cards to eligible DHS personnel, the accuracy and completeness of identity data managed within the system, system uptime and availability, the successful integration of the identity management system with other DHS IT infrastructure, and the system's ability to meet defined security and compliance requirements (e.g., NIST standards, HSPD-12 mandates). User satisfaction surveys among DHS employees and contractors regarding the PIV card process and the overall identity management experience could also be key indicators. Furthermore, metrics related to the reduction of identity-related security incidents or the efficiency gains in onboarding/offboarding processes would be crucial for assessing the contract's value.

What is the track record of XTEC, Incorporated in delivering similar large-scale federal IT projects?

Information regarding XTEC, Incorporated's specific track record for large-scale federal IT projects, particularly in identity management and PIV card systems, is not detailed in the provided data snippet. To assess their capability, one would typically review their past performance on similar government contracts, looking at factors such as successful project completion, adherence to schedule and budget, client satisfaction ratings, and any history of contract disputes or performance issues. Federal procurement databases and past performance reviews are essential resources for evaluating a contractor's reliability and expertise in delivering complex solutions like the one required by DHS. Without this specific historical data, it's challenging to definitively assess their suitability beyond the fact they were selected through a competitive process.

How does this contract contribute to DHS's overall cybersecurity strategy?

This contract is a foundational element of DHS's cybersecurity strategy by directly addressing identity and access management, which is a critical security control. The PIV cards serve as a secure, tamper-resistant credential for physical and logical access to facilities and IT systems, ensuring that only authorized personnel can access sensitive information and resources. The establishment of an enterprise identity management system centralizes the control and monitoring of user identities, enabling DHS to enforce consistent security policies, manage access privileges effectively, and detect/respond to potential security threats more efficiently. By standardizing identity verification and access controls across the department, this contract helps mitigate risks associated with insider threats, unauthorized access, and identity-related breaches, thereby strengthening the overall security posture of DHS.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

Address: 5775 BLUE LAGOON DR STE 280, MIAMI, FL, 33126

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,072,588

Exercised Options: $13,072,588

Current Obligation: $13,072,588

Parent Contract

Parent Award PIID: HSHQDC08A00004

IDV Type: BPA

Timeline