Re: INS problems in California . . . .
We've seen similar reports around the country. The INS was supposed to have its automated fingerprint system in place by June 1, but obviously it didn't get done on time. The appropriation, though, has been in place since last fall.
Here's what I think has happened: IDX had the prior year's contract (worth about 100 TP-600s), and was in line to get the 400+ machine followup deal, but word of this got out. When that happened, DBII for sure and probably Printrak also complained that they were being shut out, leading the INS to ask for bids on a new contract (and ticking the agency off over the new red tape that would delay things while they were under the gun from Congress). That new bidding process, of course, led nowhere fast and put the INS waaay behind schedule in installing the TP-600s it needs for its naturalization program FBI identity checks. Further, any decision reached could be challenged by a losing bidder, dragging things out even longer.
It became clear to everyone by about May that the "new" bid idea was a disaster, and the agency suspended the process indefinitely . . . I think, never to return. The government then took the quick fix it was trying for all along, to extend the IDX contract from the previous fall. That means that IDX is probably shipping the INS major quantities of TP-600s right now and has been for a month or two, on favorable terms. It also means, by my reckoning, that payments for any of the machines will not be required until sometime this ongoing quarter, and the next (2Q99). IDX has not announced this because last time it leaked out it gave the INS problems. I think we will officially find out about it after the fact as an explanation for a major boost in TP-600 sales during 1Q99, unless Fowler admits to it on the conference call this afternoon.
Remember, we are discussing about $20 million in tenprinter business. |
