6. APS_JOFOC_2025_7_22_Redacted.pdf

This is a Justification and Findings (J&A) document for a sole-source contract award for Application Processing Solution (APS) Services to Citibank, N.A., located in Reston, Virginia.

The Department of State's Bureau of Consular Affairs (CA), Passport Services Directorate (PPT) is seeking to award a firm-fixed-price contract for passport application processing services. The estimated contract value is $390,240,000, comprising $150,000,000 for the base year, $156,000,000 for Option Year One, and a maximum of $84,240,000 if FAR Clause 52.217-8 is exercised. Services include mail receipt, application scanning, data entry, assembly, batching, fee collection, deposit, application dispatch, file transmission, and document destruction, with all processing completed within 24 hours of arrival at the contractor's facility. The contractor must process approximately 30,000–66,000 passport applications daily, with higher volumes during peak demand periods (mid-January through May). The acquisition is being conducted under 41 USC 3304 and FAR 6.3, citing unusual and compelling urgency as the basis for sole-source procurement.

The justification cites the imminent transition of responsibilities from the U.S. Department of Treasury (USDT), which previously managed this service, to DOS. USDT informed DOS that lockbox support will end December 31, 2025, with a one-month transition overlap. Citibank is identified as the incumbent vendor and the only source capable of immediately continuing operations without service lapses due to facility requirements, IT infrastructure, fiduciary management capabilities, and demonstrated volume capacity. Market research conducted via a Sources Sought Notice in November 2024 identified only two potentially viable sources—J.P. Morgan and Bank of New York Mellon—though both demonstrated limited understanding of requirements. The follow-on contract will be competed through full and open procedures by the fourth quarter of fiscal year 2026, with the sole-source award providing a 12-month base period plus one 12-month option to allow time for transition planning and competitive procurement.