HHS OIG awards $3.5M for Digital Evidence Management and Body-Worn Cameras to Axon Enterprise
Contract Overview
Contract Amount: $3,536,973 ($3.5M)
Contractor: Axon Enterprise, Inc.
Awarding Agency: Department of the Interior
Start Date: 2023-09-15
End Date: 2026-09-14
Contract Duration: 1,095 days
Daily Burn Rate: $3.2K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE DIGITAL EVIDENCE MANAGEMENT SYSTEM (DEMS) AND BODY-WORN CAMERA (BWC) SOLUTION FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE INSPECTOR GENERAL (OIG)/OFFICE OF INVESTIGATIONS.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85255
State: Arizona Government Spending
Plain-Language Summary
Department of the Interior obligated $3.5 million to AXON ENTERPRISE, INC. for work described as: ENTERPRISE DIGITAL EVIDENCE MANAGEMENT SYSTEM (DEMS) AND BODY-WORN CAMERA (BWC) SOLUTION FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE INSPECTOR GENERAL (OIG)/OFFICE OF INVESTIGATIONS. Key points: 1. The contract focuses on critical evidence management and body-worn camera solutions for HHS OIG. 2. Axon Enterprise, a known provider in this space, is the sole awardee. 3. The award is a Purchase Order with a Firm Fixed Price contract type. 4. The duration of the contract is 1095 days, ending in September 2026.
Value Assessment
Rating: fair
The contract value of $3.5M for a 3-year period for DEMS and BWC solutions appears within a reasonable range for specialized technology and services. Benchmarking against similar federal procurements for evidence management systems and body cameras would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP, indicating a limited competition approach. This method may not have explored the full range of available solutions or pricing options, potentially impacting price discovery.
Taxpayer Impact: The limited competition may result in taxpayers paying a premium if alternative, more cost-effective solutions were not considered.
Public Impact
Enhances investigative capabilities for HHS OIG through digital evidence management. Body-worn cameras improve transparency and accountability in law enforcement activities. Ensures secure storage and retrieval of sensitive digital evidence. Supports the mission of the Office of Inspector General in combating fraud, waste, and abuse.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Reliance on a single vendor could create future lock-in.
- Need for clear performance metrics to ensure effectiveness.
Positive Signals
- Addresses critical needs for evidence management and BWC.
- Utilizes a reputable vendor with established technology.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
The procurement falls within the IT and professional services sector, specifically related to digital evidence management and surveillance technology. Spending benchmarks for similar systems vary widely based on scope, features, and vendor, but this award appears to be a significant investment for a specialized OIG function.
Small Business Impact
The awardee, Axon Enterprise, Inc., is a large business. There is no indication in the provided data that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of the Interior acted as the contracting agency for this award to HHS OIG. Standard federal procurement oversight processes should apply, ensuring compliance with regulations and proper use of funds.
Related Government Programs
- Audio and Video Equipment Manufacturing
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Limited competition may result in higher costs.
- Potential for vendor lock-in.
- Lack of transparency in the selection process.
- Need for robust performance monitoring.
Tags
audio-and-video-equipment-manufacturing, department-of-the-interior, az, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $3.5 million to AXON ENTERPRISE, INC.. ENTERPRISE DIGITAL EVIDENCE MANAGEMENT SYSTEM (DEMS) AND BODY-WORN CAMERA (BWC) SOLUTION FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE INSPECTOR GENERAL (OIG)/OFFICE OF INVESTIGATIONS.
Who is the contractor on this award?
The obligated recipient is AXON ENTERPRISE, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $3.5 million.
What is the period of performance?
Start: 2023-09-15. End: 2026-09-14.
What specific features and capabilities of Axon's DEMS and BWC solution justify the $3.5M price point compared to potential alternatives?
The justification for the $3.5M price point likely stems from Axon's integrated platform, advanced analytics, secure cloud storage, and comprehensive BWC hardware with features like real-time situational awareness. These specialized capabilities, tailored for law enforcement and investigative bodies, often command premium pricing due to R&D investment, proprietary technology, and robust support services. A detailed feature-by-feature comparison against other market offerings would be needed to fully assess value.
What are the potential risks associated with a limited competition award for critical evidence management systems?
A limited competition award for critical systems like DEMS and BWC carries risks of inflated pricing due to lack of competitive pressure, potential vendor lock-in limiting future flexibility, and the possibility that a more innovative or cost-effective solution from an uncompeted vendor might have been overlooked. It also raises concerns about whether the government fully leveraged market competition to achieve the best possible value and technological advancement.
How will the effectiveness of the DEMS and BWC solution be measured to ensure it meets HHS OIG's investigative and accountability goals?
Effectiveness will likely be measured through key performance indicators (KPIs) outlined in the contract. These could include system uptime, data integrity, evidence chain of custody compliance, user adoption rates, response times for evidence retrieval, and the successful integration of BWC footage into case files. Regular performance reviews and user feedback sessions will be crucial to ensure the system adequately supports the OIG's mission and enhances investigative outcomes.
Industry Classification
NAICS: Manufacturing › Audio and Video Equipment Manufacturing › Audio and Video Equipment Manufacturing
Product/Service Code: PHOTOGRAPHIC EQPT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 140D0423Q0708
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 17800, NORTH 85TH STREET, SCOTTSDALE, AZ, 85255
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,543,753
Exercised Options: $3,536,973
Current Obligation: $3,536,973
Actual Outlays: $3,536,973
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-09-15
Current End Date: 2026-09-14
Potential End Date: 2028-09-14 00:00:00
Last Modified: 2026-01-06
More Contracts from Axon Enterprise, Inc.
- TD 24066 Taser 10 Cyclical Replacement Plus 6-BAY Dock and Core, Contract - 15M10424DA4700002 Shipping Information: Refer to Attachment "export to Axon" Spreadsheet for Dropship Locations. COR: KEN Fuller JR., Kenneth.fuller@usdoj.gov — $14.0M (Department of Justice)
- Idvrs / Body Worn Cameras (BWS) — $8.3M (Department of Homeland Security)
- Body Worn Cameras for the Office of Firearms and Tactical Programs (oftp) Field USE — $7.2M (Department of Homeland Security)
- Procurement of Congressional Mandated Body Worn Camera (BWC) Commodities and Services to Include Automatically Activated BWC Recording Device Kits, Docking Stations, Video Management System (VMS) Software, and Cloud Storage Licenses to Support LAW EN — $5.1M (Department of Homeland Security)
- Information Technology Division (ITD) / Body-Worn Camera Program Office (bwcpo) Enterprise License Agreement (ELA) for the Axon Evidence High Authorized Certified Digital Evidence Management System (dems) — $4.4M (Department of Justice)
Other Department of the Interior Contracts
- Department of Health and Human Services, Administration of Children and Families, Office of Refugee Resettlement's Legal Services for Unaccompanied Children — $832.4M (Acacia Center for Justice)
- Military Family Life Counseling Program Igf::ot::igf — $638.8M (MHN Government Services LLC)
- Military Family Life Counseling Program — $637.0M (Magellan Healthcare Inc)
- Grants Program Solutions and Information Technology Support Services — $446.3M (Guidehouse Digital LLC)
- THE Purpose of This Requirement for Grants Program Solutions and IT Support Services IS to Provide Efficient and Effective Grant, Financial, and Contract Management Services, IT Solutions, and Support to the Grantsolutions and ITS Partners — $403.1M (Guidehouse Inc.)