State Department's $20.6M Passport System Contract Awarded to Apptis Inc. for Computer Systems Design

Contract Overview

Contract Amount: $20,620,314 ($20.6M)

Contractor: Apptis (MD), Inc.

Awarding Agency: Department of State

Start Date: 2008-01-09

End Date: 2014-05-02

Contract Duration: 2,305 days

Daily Burn Rate: $8.9K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PASSPORT SUPPORT AND ENHANCEMENT OF PPT SYSTEMS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of State obligated $20.6 million to APPTIS (MD), INC. for work described as: PASSPORT SUPPORT AND ENHANCEMENT OF PPT SYSTEMS Key points: 1. The contract focused on computer systems design services, a critical area for government operations. 2. Awarded to Apptis Inc., the contract's value suggests a significant investment in IT infrastructure. 3. The duration of the contract (over 2300 days) indicates a long-term need for these services. 4. The firm-fixed-price structure aims to control costs by setting a predetermined price. 5. The contract was awarded by the Department of State, highlighting its importance to the agency's mission. 6. The absence of small business set-aside flags suggests it was not specifically targeted for smaller firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. However, a $20.6 million award over approximately six years for IT support services is within a typical range for large-scale government IT projects. The firm-fixed-price contract type suggests an attempt to manage cost overruns, but the ultimate value for money depends heavily on the successful delivery of the specified passport support and enhancement services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. Without details on whether it was full and open competition, a limited solicitation, or a sole-source award, it's impossible to assess the dynamics of price discovery. The number of bidders and the solicitation method are crucial for understanding how competitive the pricing might have been.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices, ensuring that taxpayer funds are used more efficiently. Limited or sole-source awards may result in higher costs for the government.

Public Impact

Citizens requiring passport services benefit from the enhanced and supported passport systems. The Department of State's operational efficiency in processing passport applications is improved. The contract supports the core function of international travel facilitation for U.S. citizens. IT professionals and support staff involved in the contract contribute to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding competition level prevents assessment of optimal taxpayer value.
Firm-fixed-price contracts can sometimes lead to scope creep if not managed tightly, potentially increasing overall cost.
Long contract durations can pose risks if technology evolves rapidly, potentially leading to outdated systems.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The contract duration suggests a stable, long-term commitment to critical passport system functionality.
Awarding to a single entity can streamline management and ensure focused expertise on the passport systems.

Sector Analysis

The contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services, from custom software development to IT infrastructure management. The Department of State's reliance on such services for its passport systems highlights the critical role of IT in modern government operations and the substantial market for these specialized services within the federal government.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope and requirements of the passport support and enhancement project were likely beyond the typical capacity or specialization of small businesses, or that the procurement strategy favored larger, established IT service providers. Consequently, the direct impact on the small business ecosystem for this specific award is minimal, though larger prime contractors may engage small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. The firm-fixed-price nature of the award implies that the contractor is responsible for delivering the specified services within the agreed-upon budget. Transparency regarding performance metrics and any potential issues would depend on the Department's internal reporting and contract management practices. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Modernization Efforts
Federal Passport Services IT Infrastructure
Computer Systems Design Services Contracts
Large-Scale Government IT Support Contracts

Risk Flags

Potential for technological obsolescence given the contract's duration.
Dependence on a single contractor for critical passport system functions.
Lack of explicit competition details raises questions about optimal value for taxpayer funds.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $20.6 million to APPTIS (MD), INC.. PASSPORT SUPPORT AND ENHANCEMENT OF PPT SYSTEMS

Who is the contractor on this award?

The obligated recipient is APPTIS (MD), INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2008-01-09. End: 2014-05-02.

What was the specific nature of the 'passport support and enhancement' services provided under this contract?

The contract, NAICS code 541512 (Computer Systems Design Services), indicates that Apptis Inc. was responsible for providing design services related to the Department of State's passport systems. This likely encompassed a range of activities such as system analysis, software development, integration of new technologies, maintenance of existing systems, and potentially cybersecurity enhancements to ensure the reliability, security, and efficiency of the passport issuance and management infrastructure. The 'enhancement' aspect suggests upgrades or improvements to existing functionalities, while 'support' implies ongoing maintenance and operational assistance.

How does the $20.6 million contract value compare to other similar IT support contracts awarded by the Department of State or other agencies?

A $20.6 million contract over approximately six years for IT support and systems design is a substantial award, but not uncommon for large federal agencies like the Department of State. Comparable contracts for enterprise IT support, system modernization, or cybersecurity services can range from tens to hundreds of millions of dollars, depending on the scope, duration, and complexity. For instance, other agencies managing large citizen-facing services (like SSA for Social Security or DHS for immigration) often award similar-sized contracts for their core IT systems. The value here appears commensurate with the critical nature of passport services.

What were the key performance indicators (KPIs) or metrics used to evaluate the success of Apptis Inc. under this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or metrics used to evaluate Apptis Inc.'s performance. However, for a contract of this nature, typical KPIs would likely include system uptime and availability, response times for technical support, successful implementation of system enhancements and upgrades, adherence to security protocols, and user satisfaction ratings from Department of State personnel utilizing the passport systems. The firm-fixed-price structure implies that meeting the defined scope and deliverables was paramount, with penalties or incentives potentially tied to specific performance outcomes.

Were there any identified risks or challenges associated with this contract, and how were they mitigated?

Without specific contract documentation, potential risks are inferred. A significant risk for long-term IT contracts is technological obsolescence; passport systems must remain current with evolving security threats and user expectations. Another risk is contractor performance – ensuring Apptis Inc. delivered high-quality services consistently. Mitigations would typically involve robust contract oversight, clear performance standards, regular progress reviews, and potentially phased delivery schedules. The firm-fixed-price nature itself acts as a cost-control measure, mitigating financial risk if scope is well-defined.

What is the historical spending trend for passport system support and enhancement at the Department of State?

The provided data only captures this single contract award from 2008 to 2014. To understand historical spending trends, one would need to analyze prior and subsequent contracts for passport system support and enhancement awarded by the Department of State. This would involve examining spending levels, contract types, and awarded vendors over multiple fiscal years. Such an analysis would reveal whether spending has been consistent, increasing, or decreasing, and whether there has been a shift in procurement strategies or technology focus over time.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Contractor Details

Parent Company: Apptis (MD) Inc. (UEI: 825878734)

Address: 6430 ROCKLEDGE DR STE 600, BETHESDA, MD, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,620,314

Exercised Options: $20,620,314

Current Obligation: $20,620,314

Parent Contract

Parent Award PIID: SAQMPD06D1014

IDV Type: IDC

Timeline