State Dept. awards $33.6M for computer hardware, software to IDEMIA, facing limited competition

Contract Overview

Contract Amount: $33,591,278 ($33.6M)

Contractor: Idemia Identity & Security USA LLC

Awarding Agency: Department of State

Start Date: 2010-09-24

End Date: 2016-03-23

Contract Duration: 2,007 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::19 0113 000::TAS

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55437

State: Minnesota Government Spending

Plain-Language Summary

Department of State obligated $33.6 million to IDEMIA IDENTITY & SECURITY USA LLC for work described as: TAS::19 0113 000::TAS Key points: 1. Significant award value of $33.6M over 6 years. 2. IDEMIA Identity & Security USA LLC is the sole awardee. 3. Potential risk associated with limited competition impacting price. 4. Spending falls under IT hardware and software procurement.

Value Assessment

Rating: fair

The award value of $33.6M over six years suggests a substantial investment. Benchmarking against similar contracts for computer hardware and software is difficult without more specific product details, but the limited competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the data indicates only one awardee, suggesting that either only one vendor could meet the requirements or that the competition was not as robust as intended.

Taxpayer Impact: The impact on taxpayers is moderate, as full and open competition was intended to ensure fair pricing. However, the lack of multiple bids could mean taxpayers did not benefit from the lowest possible price.

Public Impact

Procurement of essential computer hardware and software for government operations. Potential for technology obsolescence given the 6-year contract duration. Impact on government's ability to leverage the latest technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This spending falls within the Information Technology sector, specifically for computer hardware and software. Government IT spending benchmarks vary widely based on agency needs and technology type, but this award represents a significant investment in IT infrastructure.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The award to a single, likely large, vendor suggests limited opportunity for small businesses in this particular procurement.

Oversight & Accountability

The contract was awarded under full and open competition, implying adherence to standard procurement regulations. Oversight would focus on ensuring the delivered goods meet specifications and that pricing remains competitive throughout the contract term.

Related Government Programs

Risk Flags

Tags

computer-and-software-stores, department-of-state, mn, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $33.6 million to IDEMIA IDENTITY & SECURITY USA LLC. TAS::19 0113 000::TAS

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 State (Department of State).

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2010-09-24. End: 2016-03-23.

What specific factors led to only one awardee under 'full and open competition' for this computer hardware and software contract?

Investigating the specific requirements of the solicitation is crucial. Factors could include highly specialized technical specifications, unique compatibility needs with existing government systems, or a limited number of vendors capable of meeting the stringent performance criteria. It's also possible that the solicitation structure or evaluation process inadvertently favored a single bidder, warranting a review of the procurement strategy.

How does the $33.6M contract value compare to industry benchmarks for similar IT hardware and software over a six-year period?

Without detailed specifications of the hardware and software procured, a precise benchmark is challenging. However, $33.6M over six years averages approximately $5.6M annually. This figure needs to be compared against government and commercial pricing for comparable systems, considering volume discounts, support services, and the specific technological capabilities required by the Department of State.

What measures are in place to ensure the technology procured remains effective and secure throughout the 2010-2016 contract period?

The firm fixed price contract type provides cost certainty. However, effectiveness and security over time depend on contract clauses related to technology refresh, software updates, and cybersecurity standards. The Department of State should have provisions for managing obsolescence and ensuring ongoing security compliance, potentially through contract modifications or separate support agreements.

Industry Classification

NAICS: Retail TradeElectronics and Appliance StoresComputer and Software Stores

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

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

Parent Company: Safran Power USA LLC (UEI: 275374015)

Address: 296 CONCORD RD STE 300, BILLERICA, MA, 01821

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

Financial Breakdown

Contract Ceiling: $33,591,278

Exercised Options: $33,591,278

Current Obligation: $33,591,278

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0242R

IDV Type: FSS

Timeline

Start Date: 2010-09-24

Current End Date: 2016-03-23

Potential End Date: 2016-03-23 00:00:00

Last Modified: 2021-12-03

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