State Department Awards $204M Contract for Passport Card Stock and Services to IDEMIA

Contract Overview

Contract Amount: $204,164,500 ($204.2M)

Contractor: Idemia National Security Solutions LLC

Awarding Agency: Department of State

Start Date: 2017-06-01

End Date: 2027-12-31

Contract Duration: 3,865 days

Daily Burn Rate: $52.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PASSPORT CARD STOCK AND RELATED EQUIPMENT AND SERVICESIGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $204.2 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC for work described as: PASSPORT CARD STOCK AND RELATED EQUIPMENT AND SERVICESIGF::OT::IGF Key points: 1. Significant contract value of over $204 million highlights the importance of secure identification documents. 2. Sole-source award to IDEMIA National Security Solutions LLC raises questions about competition and potential cost savings. 3. The contract spans nearly 10 years, indicating a long-term need for these specialized materials and services. 4. The 'All Other Miscellaneous Manufacturing' NAICS code suggests a niche but critical manufacturing process.

Value Assessment

Rating: questionable

The contract value of $204M over 10 years is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives for passport card stock and related services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers compared to a competitively bid contract.

Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to suboptimal pricing, potentially costing taxpayers more than necessary for essential government services.

Public Impact

Impacts millions of U.S. citizens who rely on passport cards for international travel and identification. Ensures the integrity and security of U.S. travel documents. Supports a critical function of the Department of State in issuing secure identification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Long contract duration
Lack of transparency in pricing due to no-bid

Positive Signals

Ensures continuity of essential passport services
Potential for specialized expertise from incumbent contractor

Sector Analysis

The Department of State's procurement of passport card stock and related services falls under the manufacturing sector, specifically miscellaneous manufacturing. The $204M contract value is significant for this niche, suggesting a high demand for secure identification materials.

Small Business Impact

The contract was awarded to IDEMIA National Security Solutions LLC, a large business. There is no indication of small business participation in this sole-source award, suggesting missed opportunities for small business engagement.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services and materials at a fair and reasonable price, and that the justification for sole-sourcing remains valid.

Related Government Programs

All Other Miscellaneous Manufacturing
Department of State Contracting
Department of State Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited oversight on price justification
Risk of technological obsolescence over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $204.2 million to IDEMIA NATIONAL SECURITY SOLUTIONS LLC. PASSPORT CARD STOCK AND RELATED EQUIPMENT AND SERVICESIGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is IDEMIA NATIONAL SECURITY SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $204.2 million.

What is the period of performance?

Start: 2017-06-01. End: 2027-12-31.

What is the justification for the sole-source award, and has it been reviewed for continued validity?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. For this contract, the specific justification needs to be reviewed to ensure it remains valid and that no competitive alternatives have emerged since the initial award. This is crucial for taxpayer value.

How is the government ensuring fair and reasonable pricing without a competitive bidding process?

Without competition, the government must rely on robust price analysis techniques, including cost breakdowns, market research, and comparison to similar contracts or industry benchmarks. Regular audits and performance reviews are essential to monitor costs and ensure the contractor is not exploiting the sole-source status.

What are the risks associated with a long-term sole-source contract for critical identification materials?

Long-term sole-source contracts carry risks of vendor lock-in, potential price escalation over time, and reduced incentive for innovation. There's also a risk that the contractor's capabilities might not keep pace with evolving security technologies, potentially compromising the integrity of passport documents.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 675 N WASHINGTON ST STE 350, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $204,640,367

Exercised Options: $204,372,020

Current Obligation: $204,164,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline