The General Services Administration has chosen Electronic Data Systems to supply new ID cards to the federal government and government contractors, The Washington Post reports.
The $66 million award is a 17-month contract, which also has three one-year options, based on pricing, technical capabilities and program management services, among other reasons, the GSA said.
The agency said it expects the new system to be operational by late summer. It would be rolled out in the Washington area.
BearingPoint, which had a similar project that was not extended, said it pulled out of the new competition because of "unacceptable" risk levels.
The contract called for a multimillion-dollar investment for supplying up to 420,000 cards, but the GSA had guaranteed payment for only 10,000 cards, Lunceford said. The agency also included a clause allowing it to terminate the contract for any reason at any time and did not require agencies to adhere to the contract, he said.