DOJ awards $14M contract for TASER replacement and accessories to Axon Enterprise, Inc

Contract Overview

Contract Amount: $14,042,160 ($14.0M)

Contractor: Axon Enterprise, Inc.

Awarding Agency: Department of Justice

Start Date: 2024-01-26

End Date: 2027-01-25

Contract Duration: 1,095 days

Daily Burn Rate: $12.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 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

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85255

State: Arizona Government Spending

Plain-Language Summary

Department of Justice obligated $14.0 million to AXON ENTERPRISE, INC. for work described as: 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 Key points: 1. Contract awarded for cyclical replacement of TASER devices and related accessories. 2. Sole-source award to Axon Enterprise, Inc., raising questions about competition. 3. Contract duration of 1095 days (3 years) with a firm fixed price. 4. Delivery order under a larger contract vehicle, details of which are not provided. 5. Focus on equipment replacement suggests ongoing operational needs for law enforcement. 6. Shipping to multiple dropship locations indicates broad geographic distribution.

Value Assessment

Rating: fair

The contract value of $14.04 million for TASER replacement and accessories appears to be within a reasonable range for law enforcement equipment procurement, especially considering the sole-source nature which often leads to higher prices. Without access to the base contract or pricing for comparable sole-source procurements, a definitive value-for-money assessment is challenging. However, the firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This approach is typically used when a specific product or service is only available from a single source, or in cases of urgent need. The lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed procurement.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, as the government did not leverage market forces to secure the best possible price.

Public Impact

The U.S. Marshals Service benefits from updated TASER equipment, enhancing officer safety and operational effectiveness. Services delivered include the replacement of existing TASER devices and the provision of associated accessories like a 6-bay dock. The contract has a nationwide geographic impact, with equipment being shipped to various dropship locations across the U.S. The contract supports the operational readiness of federal law enforcement personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of transparency regarding the base contract vehicle used for this delivery order.
Potential for higher costs due to lack of competition.

Positive Signals

Firm fixed-price contract provides cost certainty.
Addresses cyclical replacement needs, ensuring operational continuity.
Equipment is critical for law enforcement safety and effectiveness.

Sector Analysis

This contract falls within the broader defense and public safety sector, specifically related to law enforcement equipment. The market for less-lethal weapons and related accessories is dominated by a few key manufacturers. Axon Enterprise, Inc. is a significant player in this space. Benchmarking this spending against other federal agencies' procurements of similar equipment would provide further context on pricing and value.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests that small businesses were not specifically targeted for this procurement, and their role, if any, would likely be as subcontractors to the prime contractor, Axon Enterprise, Inc. Further analysis would be needed to determine subcontracting plans and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement and contract management processes, specifically within the U.S. Marshals Service. The firm fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is limited by the sole-source award and the lack of detailed public information on the base contract. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Law Enforcement Equipment Procurement
Less-Lethal Weapons Systems
Department of Justice Contracts
U.S. Marshals Service Operations

Risk Flags

Sole-source award
Lack of competitive bidding
Limited public data on base contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14.0 million to 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

Who is the contractor on this award?

The obligated recipient is AXON ENTERPRISE, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2024-01-26. End: 2027-01-25.

What is the track record of Axon Enterprise, Inc. in supplying similar equipment to federal agencies?

Axon Enterprise, Inc. has a well-established track record of supplying TASER devices, body cameras, and related software solutions to numerous federal, state, and local law enforcement agencies across the United States. They are a primary provider of these types of less-lethal weapons and associated technologies. Their history includes numerous contracts with agencies like the Department of Justice, Department of Homeland Security, and others. While their products are widely adopted, the specific pricing and terms of individual contracts can vary significantly based on volume, contract type, and competitive landscape at the time of award. Past performance data, if publicly available through contract databases, would offer more granular insights into their pricing trends and reliability for similar procurements.

How does the per-unit cost of the TASERs and accessories in this contract compare to market rates or similar federal contracts?

Determining the precise per-unit cost is challenging without a detailed breakdown of the $14.04 million award into specific items (e.g., number of TASERs, number of 6-bay docks, other accessories). However, given this was a sole-source award to Axon Enterprise, Inc., it is probable that the per-unit costs are at the higher end of the spectrum compared to what might be achieved through a competitive bidding process. Federal contract databases (like FPDS or SAM.gov) might contain records of previous, potentially competed, awards for similar TASER models or accessories to Axon or other manufacturers. Benchmarking against those historical prices, adjusted for inflation and quantity, would be necessary for a comprehensive comparison. Without such data, it's difficult to definitively state if the pricing represents excellent or questionable value.

What are the primary risks associated with a sole-source award for critical law enforcement equipment?

The primary risks associated with a sole-source award for critical law enforcement equipment like TASERs include: 1. **Higher Costs:** The absence of competition typically leads to higher prices as the government cannot leverage market forces to negotiate the best possible deal. 2. **Limited Innovation:** Sole-sourcing can disincentivize innovation from other potential suppliers who are locked out of the market. 3. **Vendor Lock-in:** The agency becomes dependent on a single supplier, potentially limiting future flexibility and increasing switching costs if a better alternative emerges. 4. **Reduced Transparency:** Sole-source procurements often have less public scrutiny, making it harder to assess fairness and value. 5. **Potential for Complacency:** The sole-source provider may become complacent regarding service quality or product improvement, knowing there is no immediate competitive threat.

What is the expected program effectiveness or impact of replacing TASER devices?

Replacing TASER devices is expected to enhance program effectiveness by ensuring that law enforcement officers are equipped with reliable, up-to-date less-lethal force options. Modern TASERs often incorporate improved safety features, longer battery life, and better data logging capabilities compared to older models. This cyclical replacement ensures that officers have access to technology that is less prone to malfunction, thereby increasing officer safety and the safety of the public during encounters. Furthermore, updated equipment can improve compliance with use-of-force policies and provide more accurate records of device deployment, aiding in accountability and training.

How does this $14M contract compare to historical federal spending on TASERs or similar equipment by the Department of Justice?

Analyzing historical spending requires access to comprehensive federal procurement data. The Department of Justice, encompassing agencies like the FBI, DEA, ATF, and the U.S. Marshals Service, collectively spends significant amounts on law enforcement equipment annually. A $14 million award for TASER replacement and accessories, while substantial, needs to be viewed in the context of the total DOJ budget and its equipment procurement needs. If the DOJ has previously awarded similar-sized contracts for TASERs, or if this represents a significant increase or decrease in spending for this specific item category, it would provide valuable context. Without specific historical data points for comparison, it's difficult to ascertain if this contract represents a trend or an anomaly in DOJ's spending patterns for such equipment.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15M10423RA4700018

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: $24,194,867

Exercised Options: $14,042,160

Current Obligation: $14,042,160

Actual Outlays: $3,668,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M10424DA4700002

IDV Type: IDC

Timeline