DoD's $42.5M FIRST ALERT Enterprise License Awarded to Dataminr, Inc. Raises Competition Concerns
Contract Overview
Contract Amount: $42,461,538 ($42.5M)
Contractor: Dataminr, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-04-03
End Date: 2020-04-23
Contract Duration: 386 days
Daily Burn Rate: $110.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FIRST ALERT ENTERPRISE LICENSE
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10016
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $42.5 million to DATAMINR, INC. for work described as: FIRST ALERT ENTERPRISE LICENSE Key points: 1. Significant spending on a single enterprise license for data analytics. 2. Sole-source award limits competitive pricing and innovation. 3. Potential for overpayment due to lack of competition. 4. Focus on IT services, specifically custom programming.
Value Assessment
Rating: questionable
The contract value of $42.5M for a single enterprise license is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar data analytics solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this $42.5M contract means taxpayers may have paid a premium for the FIRST ALERT Enterprise License.
Public Impact
Citizens may be unaware of the extent of data monitoring services procured by the DoD. Questions arise about the necessity and scope of the FIRST ALERT system. Potential for data privacy concerns related to the collected information.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Definitive contract awarded
- Firm fixed price contract
Sector Analysis
This contract falls under IT services, specifically custom computer programming. The benchmark for custom programming services can vary widely, but large enterprise licenses often represent significant investments. The $42.5M value suggests a broad or critical application.
Small Business Impact
The contract was awarded to Dataminr, Inc., and there is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the necessity and cost-effectiveness of the procured service. Accountability for the decision not to compete needs to be established.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
- No small business participation noted
Tags
custom-computer-programming-services, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.5 million to DATAMINR, INC.. FIRST ALERT ENTERPRISE LICENSE
Who is the contractor on this award?
The obligated recipient is DATAMINR, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $42.5 million.
What is the period of performance?
Start: 2019-04-03. End: 2020-04-23.
What specific capabilities does the FIRST ALERT Enterprise License provide to the Department of Defense, and how do these capabilities justify the significant sole-source expenditure?
The FIRST ALERT Enterprise License, provided by Dataminr, Inc., likely offers advanced real-time data analytics and monitoring capabilities. This could include tracking global events, social media trends, or other data streams relevant to national security and situational awareness for the Air Force. The justification for a sole-source award would typically hinge on unique capabilities, proprietary technology, or critical operational needs that cannot be met by other vendors.
What are the potential risks associated with awarding a $42.5M contract on a sole-source basis for custom computer programming services?
The primary risk is paying an inflated price due to the absence of competitive pressure. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, making future transitions difficult and costly. Furthermore, without competition, there's less incentive for the vendor to innovate or provide exceptional service, and the government may not be aware of potentially superior or more cost-effective solutions available elsewhere.
How effective is the FIRST ALERT Enterprise License in meeting the Department of the Air Force's operational requirements, and has its effectiveness been independently validated?
The effectiveness of the FIRST ALERT Enterprise License is not detailed in the provided data. Typically, the effectiveness of such systems is measured by their ability to provide timely, accurate, and actionable intelligence that supports decision-making. Without independent validation or performance metrics, it's challenging to assess its true value and whether the substantial investment has yielded the expected operational benefits for the Air Force.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6 E 32ND ST FL 2, NEW YORK, NY, 10016
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: $81,230,769
Exercised Options: $81,230,769
Current Obligation: $42,461,538
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2019-04-03
Current End Date: 2020-04-23
Potential End Date: 2020-04-23 00:00:00
Last Modified: 2020-03-19
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