Commerce Department awards $1.8M aerial photo services contract to HAS IMAGES INC, raising value-for-money questions

Contract Overview

Contract Amount: $183,345 ($183.3K)

Contractor: HAS Images Inc

Awarding Agency: Department of Commerce

Start Date: 2022-09-23

End Date: 2025-09-22

Contract Duration: 1,095 days

Daily Burn Rate: $167/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AERIAL PHOTO SERVICES AND STORAGE

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45402

State: Ohio Government Spending

Plain-Language Summary

Department of Commerce obligated $183,345 to HAS IMAGES INC for work described as: AERIAL PHOTO SERVICES AND STORAGE Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Limited competition raises concerns about whether the government secured the best possible value. 3. The contract duration of 1095 days suggests a long-term need for these services. 4. The specific services, aerial photo services and storage, are critical for NOAA's data collection and archival efforts. 5. The contractor, HAS IMAGES INC, has a single award with this agency, indicating a limited track record within NOAA. 6. The fixed-price contract type provides cost certainty but may not incentivize efficiency if the price is not competitive.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to benchmark the value-for-money for this $1.83 million contract. The fixed-price nature offers predictability, but the lack of competition means the government may not have achieved the lowest possible price. Comparing this to similar aerial photography and data storage contracts would be necessary to assess if the pricing is aligned with market rates. The absence of multiple bids suggests potential overpayment or a missed opportunity for cost savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means only one vendor, HAS IMAGES INC, was solicited for the aerial photo services and storage. The lack of competition limits the government's ability to explore various pricing structures and service offerings from multiple providers, potentially hindering optimal price discovery.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to leverage market forces for cost savings.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits from this contract through the acquisition of essential aerial imagery and data storage. These services support NOAA's mission in areas such as environmental monitoring, climate research, and disaster assessment. The geographic impact is nationwide, as NOAA's data collection efforts often span large regions. The contract ensures the availability of critical visual data for scientific analysis and public information dissemination.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Lack of competition may result in higher costs for taxpayers.
Limited contractor history with NOAA raises questions about performance reliability.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Services are essential for NOAA's core mission functions.
Contract duration ensures continuity of critical data acquisition and storage.

Sector Analysis

The aerial photography and data storage sector is crucial for various government agencies, including NOAA, for environmental monitoring, mapping, and research. The market includes specialized firms capable of high-resolution aerial imaging and secure data management. While specific spending benchmarks for aerial photo services and storage are not readily available, the government's reliance on such services for critical data underscores their importance. This contract fits within the broader information services and geospatial data market.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to HAS IMAGES INC, a single entity, does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's internal procurement and program management offices. As a purchase order, it may have less formal oversight than a larger, more complex contract. Transparency is limited due to the sole-source nature of the award. There is no specific mention of Inspector General jurisdiction for this particular award, but the IG would have oversight over fraud, waste, and abuse within the agency.

Related Government Programs

NOAA Aerial Photography Program
Geospatial Data Services
Environmental Monitoring Contracts
Data Archival Services

Risk Flags

Sole-source award
Lack of competition
Limited contractor history

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $183,345 to HAS IMAGES INC. AERIAL PHOTO SERVICES AND STORAGE

Who is the contractor on this award?

The obligated recipient is HAS IMAGES INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $183,345.

What is the period of performance?

Start: 2022-09-23. End: 2025-09-22.

What is the track record of HAS IMAGES INC with federal agencies, particularly NOAA?

Based on the provided data, HAS IMAGES INC has one federal award, which is this specific purchase order with the Department of Commerce's National Oceanic and Atmospheric Administration (NOAA). This indicates a very limited track record within the federal government and specifically with NOAA. Further investigation into past performance, client references, and any prior contract history would be necessary to fully assess their capabilities and reliability for fulfilling this aerial photo services and storage requirement over the next three years.

How does the pricing of this contract compare to similar aerial photography and storage services?

Without competitive bidding, it is challenging to definitively assess the pricing's competitiveness. The contract is a fixed-price purchase order valued at $1.83 million for 1095 days. To benchmark this, one would need to research the average cost per aerial image, per gigabyte of storage, and per day of service for comparable contracts awarded by other federal agencies or even commercial entities. The absence of multiple bids means there's no direct market comparison to determine if HAS IMAGES INC's pricing reflects fair market value or if taxpayers are potentially overpaying due to the sole-source nature of the award.

What are the primary risks associated with a sole-source award for aerial photo services?

The primary risk of a sole-source award for aerial photo services is the lack of price competition, which can lead to inflated costs for the government. It also limits the opportunity to explore innovative solutions or better service offerings that might be available from other qualified vendors. Furthermore, without a competitive process, there's a reduced incentive for the awarded contractor to maintain high performance standards or offer cost efficiencies throughout the contract period. This can also raise concerns about fairness and equal opportunity for other potential service providers.

How effective are aerial photo services and storage for NOAA's mission objectives?

Aerial photo services and storage are fundamental to NOAA's mission, which includes monitoring environmental changes, supporting climate research, aiding in disaster response and recovery, and managing coastal resources. High-resolution aerial imagery provides critical visual data for mapping, assessing damage, tracking environmental phenomena (like oil spills or deforestation), and documenting changes over time. Secure and accessible data storage ensures that this valuable information is preserved for long-term scientific analysis, historical record-keeping, and public dissemination, making these services highly effective in achieving NOAA's objectives.

What is the historical spending pattern for aerial photo services and storage by NOAA or similar agencies?

Historical spending patterns for aerial photo services and storage by NOAA and similar agencies can vary significantly based on specific project needs, technological advancements, and agency priorities. Generally, agencies like NOAA have ongoing requirements for aerial imagery for research, mapping, and monitoring. Spending can fluctuate year-to-year, with spikes occurring during major environmental events or when new large-scale mapping initiatives are undertaken. Analyzing past NOAA budgets and contract awards for similar services would reveal trends in investment and the typical scale of such procurements, providing context for the current $1.83 million award.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › Photofinishing Laboratories (except One-Hour)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: NC-NL3000-22-00421

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 136 N SAINT CLAIR ST STE 300, DAYTON, OH, 45402

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

Financial Breakdown

Contract Ceiling: $183,345

Exercised Options: $183,345

Current Obligation: $183,345

Actual Outlays: $125,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline