Department of Defense awards $282M enterprise license subscription for data analytics services to Dataminr, Inc

Contract Overview

Contract Amount: $282,483,348 ($282.5M)

Contractor: Dataminr, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-06-26

End Date: 2026-06-25

Contract Duration: 1,825 days

Daily Burn Rate: $154.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PKH-MCCRAY-MATTIS-PUBLICLY AVAILABLE INFORMATION DEPARTMENT OF DEFENSE ENTERPRISE LICENSE SUBSCRIPTION (PADELS)

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10016

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $282.5 million to DATAMINR, INC. for work described as: PKH-MCCRAY-MATTIS-PUBLICLY AVAILABLE INFORMATION DEPARTMENT OF DEFENSE ENTERPRISE LICENSE SUBSCRIPTION (PADELS) Key points: 1. The contract value represents a significant investment in advanced data analytics capabilities for the Department of Defense. 2. Competition was conducted under a 'full and open competition after exclusion of sources' model, suggesting a specific justification for limiting initial bidders. 3. The contract duration of five years indicates a long-term strategic need for the services provided. 4. The primary service category, Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services, highlights the foundational nature of this procurement. 5. The fixed-price contract type aims to provide cost certainty for the government. 6. The award to Dataminr, Inc. positions them as a key provider of critical data intelligence for defense operations.

Value Assessment

Rating: good

The contract value of $282.5 million over five years for an enterprise-wide data analytics license appears reasonable given the scope and strategic importance of such services to the Department of Defense. Benchmarking against similar large-scale enterprise software licenses and data intelligence platforms suggests that this pricing is within expected ranges for advanced capabilities. The firm fixed-price structure provides predictability, though the ultimate value will depend on the utilization and effectiveness of the platform.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be open, certain sources may have been excluded based on specific criteria or prior justifications. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrower field than a purely open competition. This approach can sometimes lead to less aggressive pricing if the pool of qualified bidders is significantly reduced.

Taxpayer Impact: While the competition was not fully open to all potential vendors, the 'after exclusion of sources' method aims to ensure a competitive process among qualified entities. Taxpayers benefit from the selection of a capable provider, but the potential for broader competition might have yielded further cost savings.

Public Impact

The Department of Defense, specifically the Air Force, will benefit from enhanced data analysis and intelligence capabilities. The services delivered are expected to improve situational awareness, decision-making, and operational effectiveness. The geographic impact is likely global, supporting worldwide defense operations. Workforce implications may include training for personnel to utilize the new data analytics platform effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the enterprise-wide nature of the license.
Dependence on a single vendor for critical data intelligence could pose a risk if the vendor's service is disrupted.
Ensuring effective integration with existing defense systems requires careful planning and execution.

Positive Signals

The award to a specialized data analytics firm suggests access to cutting-edge technology.
The long-term contract duration indicates a strategic commitment and potential for sustained capability development.
The firm fixed-price contract provides budget certainty for the government.

Sector Analysis

This contract falls within the broader IT and data analytics sector, specifically focusing on computing infrastructure and data processing. The market for enterprise-level data intelligence platforms is competitive, with significant investment from both government and commercial entities. The Department of Defense is a major consumer of such technologies, seeking to leverage vast amounts of data for strategic advantage. Comparable spending benchmarks for similar enterprise-wide software licenses and data analytics services can range from tens to hundreds of millions of dollars annually, depending on the scope and user base.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, and the prime contractor, Dataminr, Inc., is not typically classified as a small business. The contract value and nature of the services suggest it is unlikely to be primarily focused on subcontracting opportunities for small businesses, though some components might be outsourced. The impact on the small business ecosystem is likely minimal unless Dataminr actively engages small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures will be embedded within the contract terms, including performance metrics and delivery schedules. Transparency is facilitated by the public nature of contract awards, though specific operational details of the data analytics platform may remain sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Enterprise Software Agreements
Intelligence Community Information Technology Enterprise
General Services Administration Schedule IT Contracts
Cloud Computing Services Contracts

Risk Flags

Limited competition may impact price discovery.
Potential for vendor lock-in with enterprise-wide solutions.
Integration complexity with existing DoD systems.
Reliance on external data sources for critical intelligence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $282.5 million to DATAMINR, INC.. PKH-MCCRAY-MATTIS-PUBLICLY AVAILABLE INFORMATION DEPARTMENT OF DEFENSE ENTERPRISE LICENSE SUBSCRIPTION (PADELS)

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 $282.5 million.

What is the period of performance?

Start: 2021-06-26. End: 2026-06-25.

What is Dataminr, Inc.'s track record with large federal government contracts, particularly in data analytics and intelligence?

Dataminr, Inc. has a growing presence in the federal government sector, providing real-time event detection and data analytics. While this specific contract with the Department of Defense is substantial, the company has secured other agreements with various government agencies, including intelligence community components and law enforcement. Their core competency lies in processing large volumes of publicly available data to identify critical events and emerging threats. Their track record is generally characterized by innovation in data fusion and predictive analytics, though detailed performance metrics on past federal contracts are not always publicly disclosed. The scale of this DoD contract suggests a high level of confidence in their capabilities and past performance.

How does the $282.5 million contract value compare to similar enterprise-wide data analytics licenses for government agencies?

The $282.5 million value over five years for an enterprise-wide data analytics license is significant but falls within the expected range for large federal procurements of this nature. Major government agencies often invest heavily in platforms that can process and analyze vast datasets for intelligence, operational planning, and decision support. Comparable contracts for enterprise software, data processing, and advanced analytics solutions can easily reach similar or even higher figures, especially when considering the user base, data volume, and complexity of the required functionalities. For instance, large cloud computing contracts or enterprise resource planning (ERP) system implementations can span hundreds of millions of dollars. The key differentiator here is the focus on real-time event detection and predictive insights derived from diverse data streams.

What are the primary risks associated with a sole-source or limited-competition award for critical data analytics infrastructure?

While this contract was awarded under 'full and open competition after exclusion of sources,' which implies some level of competition, limited competition can introduce risks. A primary risk is reduced price competition, potentially leading to higher costs for the government compared to a truly open market. There's also a risk of vendor lock-in, where the government becomes heavily reliant on a single provider's technology and services, making future transitions difficult and expensive. Furthermore, limited competition might stifle innovation if alternative solutions or more cost-effective approaches from other vendors are not considered. Ensuring robust contract management and performance monitoring becomes crucial to mitigate these risks and maximize value.

What is the expected effectiveness of the PADELS contract in enhancing the Department of Defense's intelligence and decision-making capabilities?

The PADELS contract is expected to significantly enhance the Department of Defense's intelligence and decision-making capabilities by providing Dataminr's advanced real-time data analytics platform. This platform is designed to ingest and analyze massive amounts of data from various sources, including social media, news feeds, and other digital signals, to detect critical events, emerging threats, and shifts in the operational environment as they happen. By providing timely and actionable intelligence, the system aims to improve situational awareness for commanders and analysts, enabling faster and more informed strategic and tactical decisions. The effectiveness will hinge on the platform's ability to integrate seamlessly with existing DoD systems, the quality of the insights generated, and the proficiency of DoD personnel in utilizing the tool.

How has the Department of Defense's spending on data analytics and intelligence platforms evolved over the past five years?

The Department of Defense's spending on data analytics and intelligence platforms has seen a substantial and consistent increase over the past five years. Driven by the recognition of data as a critical strategic asset and the need to maintain a technological edge, the DoD has prioritized investments in capabilities that can process, analyze, and exploit vast amounts of information. This includes spending on big data infrastructure, artificial intelligence and machine learning tools, cloud computing services for data storage and processing, and specialized intelligence analysis software. Budgetary allocations for these areas have grown significantly, reflecting a shift towards data-centric operations and a greater emphasis on leveraging advanced technologies for intelligence gathering, threat assessment, and operational planning across all branches of the military.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: FA701420R0005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 135 MADISON AVE, NEW YORK, NY, 10016

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

Financial Breakdown

Contract Ceiling: $282,483,348

Exercised Options: $282,483,348

Current Obligation: $282,483,348

Actual Outlays: $130,153,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline