Department of Homeland Security

$495 Million Savings By In-sourcing HSPD-12 PIV Card Issuance

Utilize strategic in-sourcing to issue Personal Identity Verification (PIV) cards to the Department of Homeland Security (DHS) using the General Services Administration (GSA) USAccess Program to realize over $495 million in cost avoidance over 7 years, provide superior customer service, and attain an unmatched level of efficiency in the issuance of PIV cards.

 

GSA re-engineered the issuance process of PIV cards, which currently is a high-cost business practice in many departments. Agencies can realize the benefits of economies of scale and scope by in-sourcing PIV issuance to GSA. This cross-government collaboration generates a savings of $495 million over seven years for one department.

 

Strategic in-sourcing at all levels of the Federal governments creates increased process efficiencies and leverages spending to the maximum extent possible. By using established mechanisms to increase savings and value, agencies are able to operate within a set budget because the processes are driven by sound business decisions.

 

According to the 2010 Quadrennial Homeland Security Review Report, in order to maintain and sustain our existing equipment and capabilities, we must “promote smart investments in operational capabilities”. The report also states that “in a resource-constrained environment, it is critical that the maintenance and sustainment of capabilities is done in the most cost-effective manner possible” (p. 71). Utilizing the GSA USAccess Program is an innovative and smart change that would result in large savings. It would direct money towards mission-critical projects and personnel. When technologies change, it would not affect the level of customer service of PIV issuance because DHS would avoid the high cost of “chasing technology”.

 

A joint white paper study was also submitted to DHS for reconsideration. The study includes references and graphs to clearly show the sizeable costs that can be avoided. This study is available to the SAVE Program upon request.

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Idea No. 9826