DHS awards $14.1M not-competed contract for forced labor tool access to Altana Technologies Inc

Contract Overview

Contract Amount: $14,135,943 ($14.1M)

Contractor: Altana Technologies Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-05-01

End Date: 2026-04-30

Contract Duration: 1,095 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ALTANA FORCED LABOR TOOL ACCESS FOR CBP

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11249

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.1 million to ALTANA TECHNOLOGIES INC for work described as: ALTANA FORCED LABOR TOOL ACCESS FOR CBP Key points: 1. Contract awarded without competition raises questions about potential cost savings and market innovation. 2. The software's purpose is to identify goods produced with forced labor, aligning with national security and ethical trade objectives. 3. A single-source award limits opportunities for other vendors to offer potentially more cost-effective or advanced solutions. 4. The contract duration of three years suggests a need for ongoing access to this critical trade compliance tool. 5. The fixed-price contract type provides cost certainty for the government, but the lack of competition may have inflated the price. 6. The software publisher industry (NAICS 513210) is dynamic, suggesting other solutions might exist or emerge. 7. The contract's value is significant within the context of specialized trade compliance software.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The $14.1 million price tag for three years of access to a software tool needs further justification against market alternatives. The absence of competition means there was no direct pressure to offer the lowest possible price. A comparison to similar trade compliance software or data access tools would be necessary to assess if this price is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor can provide the required goods or services. However, for software solutions, the market often has multiple providers. The lack of competition means that U.S. Customs and Border Protection did not explore potential alternatives or negotiate based on multiple offers, which could lead to higher costs.

Taxpayer Impact: Taxpayers may be paying a premium for this software due to the absence of competitive pressure to drive down prices. The government missed an opportunity to leverage market competition for better value.

Public Impact

U.S. Customs and Border Protection (CBP) benefits by gaining access to a tool that aids in enforcing trade laws related to forced labor. The service delivered is software access, enabling CBP to identify and potentially block imports of goods produced under forced labor conditions. The geographic impact is national, as CBP's enforcement activities affect all U.S. ports of entry and international trade. Workforce implications include enabling CBP officers and analysts to perform their duties more effectively in trade enforcement and national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than if the contract were competed.
Sole-source awards can stifle innovation by not allowing other vendors to demonstrate their capabilities.
The specific capabilities and limitations of the Altana tool are not publicly detailed, making independent assessment difficult.
Reliance on a single vendor for a critical function like forced labor identification poses a potential risk if the vendor experiences issues.

Positive Signals

The tool addresses a critical national security and ethical trade concern: the identification of goods produced with forced labor.
The contract is for a firm-fixed price, providing cost certainty for the duration of the award.
The software publisher industry is generally innovative, suggesting the tool likely incorporates advanced technologies.
The contract duration of three years indicates a sustained commitment to addressing this important issue.

Sector Analysis

The software publishing industry (NAICS 513210) is a significant sector within the broader technology market, characterized by rapid innovation and diverse solutions. This contract falls within the specialized niche of trade compliance and supply chain risk management software. Comparable spending benchmarks are difficult to establish without knowing the specific functionalities and data sources of Altana's tool, but government spending on specialized software for regulatory enforcement and data analysis can range from hundreds of thousands to tens of millions of dollars annually, depending on the complexity and criticality of the solution.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to Altana Technologies Inc., a single entity, suggests a focus on a specific, potentially proprietary, solution rather than a broad market solicitation where small businesses might typically participate as prime contractors or subcontractors. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal contracting and program management offices. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is limited due to the sole-source nature of the award; details regarding the justification for the sole-source award and the evaluation of alternatives are not publicly available. Accountability rests with CBP to ensure the tool effectively meets its stated purpose and that the expenditure is justified.

Related Government Programs

Forced Labor Enforcement Actions
Trade Compliance Software
Supply Chain Risk Management Tools
Import/Export Control Systems
Customs Modernization Initiatives

Risk Flags

Sole-source award lacks transparency and competitive justification.
Potential for inflated pricing due to lack of competition.
Dependence on a single vendor for critical trade enforcement function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.1 million to ALTANA TECHNOLOGIES INC. ALTANA FORCED LABOR TOOL ACCESS FOR CBP

Who is the contractor on this award?

The obligated recipient is ALTANA TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2023-05-01. End: 2026-04-30.

What is the specific functionality of the Altana Forced Labor Tool Access and how does it compare to other available solutions in the market?

The provided data does not detail the specific functionalities of the Altana Forced Labor Tool Access. However, its purpose is to assist U.S. Customs and Border Protection (CBP) in identifying goods produced with forced labor. This likely involves analyzing supply chain data, identifying high-risk regions or entities, and flagging potential violations of trade laws like the Tariff Act of 1930. Without access to proprietary information or market research, a direct comparison to other solutions is not possible. Generally, such tools might leverage AI, big data analytics, and extensive databases of company information, sanctions lists, and trade flow data. The market for supply chain risk and compliance software is competitive, with various players offering solutions for due diligence, risk assessment, and regulatory compliance. The lack of competition in this award suggests either unique capabilities or a specific strategic partnership.

Why was this contract awarded on a sole-source basis instead of being competed?

The justification for a sole-source award is typically based on specific criteria outlined in federal acquisition regulations, such as the existence of only one responsible source capable of providing the required service or the urgency of the need where competition is not feasible. For this contract, the specific reason for the sole-source award is not detailed in the provided data. However, common justifications for sole-source software procurements can include unique proprietary technology, essential integration with existing government systems, or a critical, time-sensitive need where developing a competitive solicitation would cause unacceptable delays. Without the official justification document (e.g., a Justification and Approval - J&A), it remains speculative. This lack of competition raises concerns about whether the government explored all viable options and secured the best possible value for taxpayer dollars.

What is the historical spending pattern for this type of software or service by CBP or DHS?

The provided data only includes information for this specific contract award. Historical spending patterns for similar software or services by CBP or DHS are not available within this dataset. To assess historical spending, one would need to conduct a broader search of federal procurement databases (like FPDS or USASpending.gov) for contracts related to 'forced labor identification,' 'supply chain risk management software,' 'trade compliance tools,' or similar keywords, potentially filtering by agency (DHS/CBP) and fiscal year. Analyzing past awards would help determine if this $14.1 million contract represents an increase, decrease, or is consistent with previous investments in similar capabilities, and whether those past contracts were competed or sole-sourced.

What are the key performance indicators (KPIs) or metrics used to measure the success of this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to measure the success of this contract. Typically, for a software tool aimed at identifying forced labor, success metrics might include the number of potential forced labor violations identified, the accuracy rate of the tool's predictions, the reduction in imports of goods linked to forced labor, or the efficiency gains for CBP officers in conducting investigations. The contract's performance would likely be monitored by the contracting officer's representative (COR) at CBP, who would assess whether the software meets the technical requirements and operational needs outlined in the contract statement of work. Without explicit KPIs, evaluating the contract's effectiveness and value for money is challenging.

What is the track record of Altana Technologies Inc. as a government contractor, particularly with DHS or CBP?

The provided data indicates that Altana Technologies Inc. is the contractor for this award. However, it does not offer details on their broader track record as a government contractor, including past performance ratings, previous contract values, or any history of awards with DHS or CBP. To assess their track record, one would need to consult federal procurement databases to identify other contracts awarded to Altana Technologies Inc., review performance evaluations if available, and check for any past issues or disputes. A strong track record with relevant agencies and successful delivery on similar projects would generally increase confidence in the contractor's ability to perform.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B06C23Q00000094

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 134 N 4TH ST, BROOKLYN, NY, 11249

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,140,943

Exercised Options: $14,135,943

Current Obligation: $14,135,943

Actual Outlays: $9,354,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline