Federal Maritime Commission Renews Alphaliner Subscription for 16 Users at $11,546.72

Contract Overview

Contract Amount: $11,547 ($11.5K)

Contractor: Axsmarine

Awarding Agency: Federal Maritime Commission

Start Date: 2022-08-01

End Date: 2023-07-31

Contract Duration: 364 days

Daily Burn Rate: $32/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RENEWAL OF BTA SUBSCRIPTION TO ALPHALINER, CLUB LEVEL FOR A TOTAL OF 16 USERS (1ST USER @8,000 EUROS, THE REST AT 200 EUROS EACH)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20573

State: District of Columbia Government Spending

Plain-Language Summary

Federal Maritime Commission obligated $11,546.72 to AXSMARINE for work described as: RENEWAL OF BTA SUBSCRIPTION TO ALPHALINER, CLUB LEVEL FOR A TOTAL OF 16 USERS (1ST USER @8,000 EUROS, THE REST AT 200 EUROS EACH) Key points: 1. Subscription service for maritime data and analytics. 2. Sole source renewal, raising concerns about price discovery. 3. Potential for cost savings if competition were introduced. 4. IT-related subscription service within the administrative sector.

Value Assessment

Rating: questionable

The total cost of $11,546.72 for 16 users appears high, especially with the first user costing 8,000 Euros. Benchmarking against similar data subscription services is difficult without more granular cost breakdowns and market data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source or limited competition procurement. This lack of competition likely prevented the agency from achieving better pricing through market forces.

Taxpayer Impact: Taxpayers may be overpaying for this subscription due to the absence of competitive bidding.

Public Impact

Ensures access to critical maritime industry data for regulatory functions. Supports informed decision-making within the Federal Maritime Commission. Potential for taxpayer funds to be used inefficiently without competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potentially high per-unit cost for the primary user
Limited transparency in pricing structure

Positive Signals

Essential service for agency operations
Fixed price contract limits cost uncertainty

Sector Analysis

This subscription falls under IT services, specifically data and subscription programming. Benchmarks for similar specialized data services can vary widely, but the high initial user cost warrants scrutiny.

Small Business Impact

No information available regarding small business participation in this procurement.

Oversight & Accountability

The procurement method (sole-source) suggests a need for stronger oversight to ensure fair pricing and explore competitive alternatives for future renewals.

Related Government Programs

Cable and Other Subscription Programming
Federal Maritime Commission Contracting
Federal Maritime Commission Programs

Risk Flags

Sole-source procurement
High initial user cost
Lack of documented price competition
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Federal Maritime Commission awarded $11,546.72 to AXSMARINE. RENEWAL OF BTA SUBSCRIPTION TO ALPHALINER, CLUB LEVEL FOR A TOTAL OF 16 USERS (1ST USER @8,000 EUROS, THE REST AT 200 EUROS EACH)

Who is the contractor on this award?

The obligated recipient is AXSMARINE.

Which agency awarded this contract?

Awarding agency: Federal Maritime Commission (Federal Maritime Commission).

What is the total obligated amount?

The obligated amount is $11,546.72.

What is the period of performance?

Start: 2022-08-01. End: 2023-07-31.

What is the specific value proposition of Alphaliner that justifies the high cost for the primary user and the lack of competition?

The value proposition likely lies in the unique, real-time, and comprehensive data Alphaliner provides on global shipping movements, vessel tracking, and market intelligence. This specialized data is crucial for regulatory bodies like the FMC to monitor industry trends, enforce regulations, and ensure fair competition within the maritime sector. The high cost for the primary user may reflect the extensive features and dedicated support associated with an enterprise-level subscription.

What are the risks associated with renewing a sole-source subscription for critical data services?

The primary risk is paying above-market rates due to the absence of competitive pressure, leading to inefficient use of taxpayer funds. Another risk is vendor lock-in, where the agency becomes overly reliant on a single provider, making it difficult and costly to switch even if better alternatives emerge. Furthermore, without competition, there's less incentive for the vendor to innovate or offer improved service levels.

How can the Federal Maritime Commission ensure the effectiveness and cost-efficiency of this subscription in the future?

The FMC should conduct a thorough market analysis before the next renewal to identify potential competitors or alternative data sources. If Alphaliner remains the only viable option, they should negotiate more aggressively on pricing, perhaps by exploring longer-term commitments or tiered pricing based on actual usage. Documenting the specific operational benefits and cost savings derived from the subscription will also help justify its continued expense.

Industry Classification

NAICS: Information › Cable and Other Subscription Programming › Cable and Other Subscription Programming

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: TOUR CB 21, COURBEVOIE

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,547

Exercised Options: $11,547

Current Obligation: $11,547

Actual Outlays: $11,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline