VA Awards $3.39M Axon Subscription Services Contract for VISN 22

Contract Overview

Contract Amount: $3,388,784 ($3.4M)

Contractor: Axon Enterprise, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AXON SUBSCRIPTION SERVICES VISN 22

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85255

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.4 million to AXON ENTERPRISE, INC. for work described as: AXON SUBSCRIPTION SERVICES VISN 22 Key points: 1. Contract awarded to Axon Enterprise, Inc. for computing infrastructure and related services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is three years, ending December 31, 2026. 4. This award falls under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services NAICS code.

Value Assessment

Rating: good

The contract value of $3.39 million over three years appears reasonable given the services provided. Benchmarking against similar IT infrastructure and data processing contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential IT services, with competition expected to ensure value for money.

Public Impact

Veterans in VISN 22 will benefit from improved IT infrastructure supporting healthcare delivery. The contract ensures continuity of critical data processing and hosting services. This investment supports the Department of Veterans Affairs' technological modernization efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is critical for government operations, and benchmarks vary widely based on service scope and duration.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved in the bidding process or as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. The use of full and open competition suggests a structured procurement process aimed at accountability.

Related Government Programs

Risk Flags

Tags

computing-infrastructure-providers-data-, department-of-veterans-affairs, az, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.4 million to AXON ENTERPRISE, INC.. AXON SUBSCRIPTION SERVICES VISN 22

Who is the contractor on this award?

The obligated recipient is AXON ENTERPRISE, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What specific IT services are included under 'AXON SUBSCRIPTION SERVICES' and how do they directly support VISN 22 operations?

The contract details are limited, but 'AXON SUBSCRIPTION SERVICES' likely refers to software licenses, cloud-based services, or managed IT solutions provided by Axon Enterprise, Inc. These services are crucial for VISN 22's operational efficiency, potentially including electronic health records management, data analytics for patient care, or secure communication platforms, all vital for delivering healthcare services to veterans.

What is the potential risk of vendor lock-in or price escalation given the specialized nature of subscription-based IT services?

Subscription-based IT services can pose a risk of vendor lock-in due to data integration and proprietary platforms. Price escalation is also a concern, especially upon contract renewal. However, the 'full and open competition' clause suggests that the VA actively sought competitive bids, which should mitigate these risks by ensuring market-based pricing and providing opportunities to switch vendors if necessary.

How does this contract contribute to the overall effectiveness and modernization of the VA's IT infrastructure?

This contract is likely a component of the VA's broader IT modernization strategy, ensuring access to up-to-date computing infrastructure and data processing capabilities. By securing these services through a competitive process, the VA aims to enhance the effectiveness of its technological backbone, supporting better data management, improved system reliability, and potentially enabling the adoption of new digital health solutions for veterans.

Industry Classification

NAICS: InformationComputing Infrastructure Providers, Data Processing, Web Hosting, and Related ServicesComputing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10X22R0060

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 17800 N 85TH ST, 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: $4,516,562

Exercised Options: $3,388,784

Current Obligation: $3,388,784

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X22D0024

IDV Type: IDC

Timeline

Start Date: 2024-01-01

Current End Date: 2026-12-31

Potential End Date: 2027-12-31 00:00:00

Last Modified: 2026-04-06

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