DoD Awards $11.6M for Next-Gen Global Database and Image Systems to AECHELON TECHNOLOGY INC
Contract Overview
Contract Amount: $11,620,379 ($11.6M)
Contractor: Aechelon Technology Inc
Awarding Agency: Department of Defense
Start Date: 2024-05-03
End Date: 2025-12-30
Contract Duration: 606 days
Daily Burn Rate: $19.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS ORDER IS THE PROCUREMENT OF THE NEXT GENERATION GLOBAL DATABASE (NGGDB), UPDATED IMAGE GENERATION SYSTEMS, SCENARIO GENERATION SYSTEMS (SGS), AND UPDATED NEXUS STORAGE SYSTEMS.
Place of Performance
Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94103
Plain-Language Summary
Department of Defense obligated $11.6 million to AECHELON TECHNOLOGY INC for work described as: THE PURPOSE OF THIS ORDER IS THE PROCUREMENT OF THE NEXT GENERATION GLOBAL DATABASE (NGGDB), UPDATED IMAGE GENERATION SYSTEMS, SCENARIO GENERATION SYSTEMS (SGS), AND UPDATED NEXUS STORAGE SYSTEMS. Key points: 1. Significant investment in critical data and generation systems for the Navy. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on advanced technology suggests potential for enhanced operational capabilities. 4. Long-term contract duration (606 days) indicates a substantial project scope.
Value Assessment
Rating: fair
The award of $11.6M for database and generation systems appears to be within a reasonable range for advanced IT infrastructure. However, without specific benchmarks for 'next-generation' systems, a precise comparison is difficult. The lack of competition makes it harder to assess if this price represents optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no open competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process. The justification for a sole-source award needs careful scrutiny.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price, as competitive bidding was bypassed.
Public Impact
Enhances critical data management and image generation capabilities for the Department of the Navy. Supports advanced scenario generation, potentially improving military planning and simulation. Procurement of updated storage systems ensures data integrity and accessibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of clear justification for sole-source procurement.
- Potential for cost overruns due to absence of competitive pressure.
Positive Signals
- Acquisition of advanced, next-generation technology.
- Addresses critical needs for database and generation systems.
- Long-term contract supports sustained operational capability.
Sector Analysis
This procurement falls within the Information Technology sector, specifically focusing on advanced database management, image generation, and storage solutions. Spending in this area is crucial for modernizing defense capabilities, with benchmarks varying widely based on system complexity and scale.
Small Business Impact
The contract was awarded to AECHELON TECHNOLOGY INC, a large business. There is no indication that small businesses were involved in this specific sole-source award, limiting opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the necessity of the approach and the fairness of the price. Accountability will depend on the transparency of the justification for bypassing competition.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to lack of competition.
- Limited transparency regarding the justification for sole-source.
- No small business participation evident in this award.
Tags
electronic-computer-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.6 million to AECHELON TECHNOLOGY INC. THE PURPOSE OF THIS ORDER IS THE PROCUREMENT OF THE NEXT GENERATION GLOBAL DATABASE (NGGDB), UPDATED IMAGE GENERATION SYSTEMS, SCENARIO GENERATION SYSTEMS (SGS), AND UPDATED NEXUS STORAGE SYSTEMS.
Who is the contractor on this award?
The obligated recipient is AECHELON TECHNOLOGY INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $11.6 million.
What is the period of performance?
Start: 2024-05-03. End: 2025-12-30.
What is the specific justification for awarding this contract sole-source, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without further details, it's difficult to assess the validity of bypassing competition. Agencies should provide clear documentation demonstrating why a competitive process was not feasible or advantageous, ensuring taxpayer funds are used responsibly.
How does the $11.6M cost compare to similar 'next-generation' database and image generation systems procured competitively?
Benchmarking this sole-source award against competitive procurements is challenging without detailed specifications. However, a general comparison suggests that sole-source contracts often carry a premium. A thorough review would involve comparing the system's features, performance metrics, and lifecycle costs against publicly available data from similar, competitively awarded contracts to identify potential cost inefficiencies.
What are the key performance indicators (KPIs) for the Next Generation Global Database and associated systems, and how will their effectiveness be measured?
Effectiveness will likely be measured by system uptime, data processing speed, accuracy of image generation, and successful integration with existing DoD infrastructure. Clear KPIs should be established in the contract, with regular reporting and independent verification to ensure the systems meet the intended operational requirements and deliver the expected value to the Department of the Navy.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
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: 888 BRANNAN ST STE 210, SAN FRANCISCO, CA, 94103
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,890,887
Exercised Options: $11,620,379
Current Obligation: $11,620,379
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042119G0007
IDV Type: BOA
Timeline
Start Date: 2024-05-03
Current End Date: 2025-12-30
Potential End Date: 2027-04-01 00:00:00
Last Modified: 2025-12-04
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