DoD's Air Force Spends $11.9M on Engineering & Logistics Software from Allium US Holding LLC

Contract Overview

Contract Amount: $11,897,030 ($11.9M)

Contractor: Allium US Holding LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-02

End Date: 2026-09-30

Contract Duration: 728 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NON-GOVERNMENT STANDARDS (NGS) SUBSCRIPTION LICENSES PROVIDING ON-LINE ACCESS TO A COMPREHENSIVE ENGINEERING AND LOGISTICS MANAGEMENT INFORMATION SYSTEM.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80237

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to ALLIUM US HOLDING LLC for work described as: NON-GOVERNMENT STANDARDS (NGS) SUBSCRIPTION LICENSES PROVIDING ON-LINE ACCESS TO A COMPREHENSIVE ENGINEERING AND LOGISTICS MANAGEMENT INFORMATION SYSTEM. Key points: 1. The contract is for non-government standards subscription licenses for an engineering and logistics management system. 2. Allium US Holding LLC is the sole provider of this specific information system. 3. The contract duration is 728 days, ending September 30, 2026. 4. The total award amount is $11,897,029.79. 5. The NAICS code 519290 indicates services related to web portals and information services.

Value Assessment

Rating: fair

The pricing of $11.9M for a 2-year subscription to a specialized engineering and logistics management system appears high without direct comparable contracts. Benchmarking against similar enterprise software licenses is difficult due to the proprietary nature of the system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific system provided by Allium US Holding LLC may limit direct price comparisons, potentially impacting price discovery.

Taxpayer Impact: Taxpayers are funding a critical software system for the Air Force's engineering and logistics operations. The cost-effectiveness hinges on the system's utility and the competitive pricing achieved.

Public Impact

Ensures Air Force personnel have access to essential engineering and logistics management tools. Supports operational efficiency and decision-making within the Department of Defense. Potential for cost savings if the system streamlines processes and reduces manual effort. The subscription model implies ongoing costs for continued access and updates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly integrated.
Reliance on a single vendor for critical operational software.
Subscription costs can escalate over time.
Ensuring data security and integrity within the third-party system.

Positive Signals

Supports critical Air Force operations.
Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Long-term contract provides stable access to the system.

Sector Analysis

The IT sector, specifically information services, is crucial for modern defense operations. Spending benchmarks for enterprise software subscriptions vary widely based on functionality, user base, and vendor. This contract falls within the realm of specialized information systems supporting complex logistical and engineering functions.

Small Business Impact

This contract does not appear to involve small businesses directly as the awardee is Allium US Holding LLC. Opportunities for small businesses might exist as subcontractors or through future procurements if the system is not proprietary.

Oversight & Accountability

The Department of the Air Force is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability. The use of a firm fixed price contract provides a degree of financial oversight.

Related Government Programs

Web Search Portals and All Other Information Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Proprietary system may limit future competition.
Reliance on a single vendor for critical software.
Subscription costs could increase over contract term.
Need for robust data security protocols.
Potential for vendor lock-in.
Effectiveness dependent on user adoption and training.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to ALLIUM US HOLDING LLC. NON-GOVERNMENT STANDARDS (NGS) SUBSCRIPTION LICENSES PROVIDING ON-LINE ACCESS TO A COMPREHENSIVE ENGINEERING AND LOGISTICS MANAGEMENT INFORMATION SYSTEM.

Who is the contractor on this award?

The obligated recipient is ALLIUM US HOLDING LLC.

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 $11.9 million.

What is the period of performance?

Start: 2024-10-02. End: 2026-09-30.

What is the specific functionality of the engineering and logistics management system, and how does it compare to commercially available alternatives?

The system provides on-line access to a comprehensive engineering and logistics management information system using non-government standards. Its specific functionalities are not detailed in the provided data. A comparison to commercially available alternatives would require further investigation into the system's unique features and proprietary aspects to determine if the chosen solution offers superior capabilities or cost-effectiveness for the Air Force's specific needs.

Given the full and open competition, what was the rationale for selecting this particular vendor and system over potential competitors?

While awarded under full and open competition, the data suggests Allium US Holding LLC may be the sole provider of this specific information system. The rationale for selection likely stems from the system's unique capabilities meeting the Air Force's precise requirements, potentially offering features not available from other vendors. The competitive process would have focused on proposals meeting technical specifications and offering the best value, even if only one vendor could meet the exact technical need.

How will the effectiveness and value of this subscription be measured throughout the contract period?

The effectiveness and value will likely be measured by the system's uptime, user adoption rates, and its contribution to improved efficiency in engineering and logistics processes. Performance metrics may be tied to reduced error rates, faster task completion times, or better resource allocation. Regular reviews and user feedback will be crucial for assessing the ongoing value and ensuring the system continues to meet the Air Force's operational objectives.

Industry Classification

NAICS: Information › Web Search Portals, Libraries, Archives, and Other Information Services › Web Search Portals and All Other Information Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15 INVERNESS WAY E, ENGLEWOOD, CO, 80112

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

Financial Breakdown

Contract Ceiling: $11,897,030

Exercised Options: $11,897,030

Current Obligation: $11,897,030

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 03310324D0004

IDV Type: IDC

Timeline