DoD awards $8.36M for vehicle telematics licensing, with Geotab USA Inc. as the sole awardee

Contract Overview

Contract Amount: $8,364,153 ($8.4M)

Contractor: Geotab USA Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-30

End Date: 2026-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VEHICLE TELEMATICS LICENSING

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $8.4 million to GEOTAB USA INC for work described as: VEHICLE TELEMATICS LICENSING Key points: 1. Value for money appears fair given the 3-year duration and firm-fixed-price structure. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk indicators are low due to the established nature of telematics and a single award. 4. Performance context is a delivery order under a larger contract, indicating phased execution. 5. Sector positioning is within IT/Communications Equipment, a common area for government procurement.

Value Assessment

Rating: fair

The contract's value of $8.36 million over three years for vehicle telematics licensing suggests a moderate annual cost. Benchmarking against similar telematics contracts is challenging without more specific service details. However, the firm-fixed-price structure provides cost certainty for the Department of Defense. The award to Geotab USA Inc. indicates they were selected based on their proposal and pricing within the competitive framework.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. While the data indicates a single award, the initial competition phase likely involved multiple bidders vying for the opportunity. The level of competition at the outset is crucial for ensuring fair market pricing and encouraging innovative solutions.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for government services.

Public Impact

The Department of the Air Force benefits from enhanced vehicle tracking and management capabilities. Services delivered include licensing for vehicle telematics systems, likely for fleet management and operational efficiency. Geographic impact is primarily within Illinois, where the contract is managed or services are deployed. Workforce implications are minimal, likely affecting a small number of logistics or fleet management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the telematics system is proprietary and difficult to migrate from.
Dependence on a single vendor for critical fleet management data could pose a risk if the vendor experiences service disruptions.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust initial selection process.
Delivery order structure allows for phased implementation and potential adjustments.

Sector Analysis

Vehicle telematics falls within the broader Information Technology and Communications Equipment sector. This sector is characterized by rapid technological advancements and a wide range of service providers. Government spending in this area supports modernization efforts, operational efficiency, and data-driven decision-making for various agencies. Comparable spending benchmarks would depend on the specific features and scale of the telematics solution deployed.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The primary focus was on full and open competition.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Fleet Management Systems
Vehicle Tracking Services
Communications Equipment Procurement
Department of Defense IT Services

Risk Flags

Potential vendor lock-in
Data security and privacy concerns
Reliance on a single provider for critical data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.4 million to GEOTAB USA INC. VEHICLE TELEMATICS LICENSING

Who is the contractor on this award?

The obligated recipient is GEOTAB USA INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $8.4 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-29.

What is the specific functionality and scope of the 'VEHICLE TELEMATICS LICENSING' being procured?

The provided data indicates the procurement is for 'VEHICLE TELEMATICS LICENSING' with a contract value of $8,364,152.63 awarded to GEOTAB USA INC. Telematics typically involves the transmission of data from vehicles using sensors and GPS to monitor location, performance, driver behavior, and maintenance needs. This licensing likely grants the Department of the Air Force the right to use Geotab's software platform and associated services for managing its vehicle fleet. The specific functionalities could include real-time tracking, route optimization, fuel consumption monitoring, diagnostic alerts, and compliance reporting. Without further details on the Statement of Work, the precise scope remains general, but it is clearly aimed at enhancing fleet operational efficiency and management.

How does the $8.36 million contract value compare to similar telematics licensing agreements within the federal government or private sector?

Benchmarking the $8.36 million contract value for vehicle telematics licensing is challenging without granular details on the number of vehicles covered, the specific features licensed, and the contract duration beyond the stated 1095 days (approximately 3 years). However, for a large federal agency like the Department of Defense, managing a substantial fleet, this figure appears within a reasonable range for a comprehensive telematics solution. Industry reports suggest that enterprise-level telematics solutions can range from tens to hundreds of dollars per vehicle per month, depending on complexity. If this contract covers thousands of vehicles, the annual cost would be in the millions, aligning with the total award value. The firm-fixed-price nature suggests a defined scope, which aids in cost control compared to cost-plus contracts.

What are the potential risks associated with relying on Geotab USA Inc. for critical vehicle telematics data?

The primary risks associated with relying on Geotab USA Inc. for critical vehicle telematics data include vendor viability, data security, and potential service disruptions. If Geotab were to experience financial instability, undergo acquisition by a competitor, or face significant operational issues, it could impact the continuity of service for the Department of the Air Force. Data security is paramount; any breach of the telematics data could expose sensitive information about military vehicle movements and operations. Furthermore, reliance on a single vendor's platform can lead to vendor lock-in, making it difficult and costly to switch providers if performance degrades or needs change. The firm-fixed-price nature of this delivery order mitigates some financial risk, but operational and data integrity risks remain.

What is the historical spending pattern for vehicle telematics or similar fleet management technologies by the Department of the Air Force?

Historical spending data for vehicle telematics and fleet management technologies by the Department of the Air Force is not directly available in the provided snippet. However, federal agencies, including the DoD, have increasingly invested in such technologies to improve efficiency, reduce costs, and enhance operational awareness across their vast vehicle fleets. This trend is driven by mandates for better asset management and the availability of advanced technological solutions. The current $8.36 million award for a 3-year period suggests a significant, ongoing commitment to telematics. Past procurements might have involved different vendors, technologies, or contract structures, potentially including pilot programs or smaller-scale deployments before consolidating into larger contracts like this one.

How does the 'full and open competition' designation ensure value for taxpayers in this specific contract?

The 'full and open competition' designation is a cornerstone of ensuring value for taxpayers. It mandates that the Department of the Air Force solicit bids from all responsible sources, preventing favoritism and encouraging a wide range of companies to compete. This broad competition typically drives down prices as vendors strive to offer the most attractive terms and pricing to win the contract. It also fosters innovation, as companies are incentivized to develop superior products or services to gain a competitive edge. For this $8.36 million telematics licensing contract, full and open competition means that taxpayers benefit from the government having explored the market thoroughly, likely securing a more cost-effective solution than if the contract had been awarded through a limited or sole-source process.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 621 NORTH AVE NE STE C170, ATLANTA, GA, 30308

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $8,364,153

Exercised Options: $8,364,153

Current Obligation: $8,364,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F164GA

IDV Type: FSS

Timeline