Skip to comments.Amazon Loses Their State Department Kindle Contract(What am I missing?)
Posted on 08/17/2012 3:37:42 PM PDT by mdittmar
The US State Department is now turning back on a contract they forged with Amazon 2 months ago a deal which would have earned the Seattle company $16.5 Million and the US government a load of Kindle Touches to hand out to US embassies the world over.
Today, the State Department canceled this contract in an announcement on their website.
US Department of State solicitation (Request for Proposals) SAQMMA12R0272 for Amazon e-Readers, Content Management, and Logistics is cancelled and the Justification and Approval (J&A) to award contract SAQMMA12D0131 on a sole-source basis is withdrawn. The Department of State intends to conduct additional market research and re-examine its requirements for this program.
Amazon was able to beat out one of their largest competitors, Apple, when they were granted this contract in June. Originally, the government was set to use the new Kindle Touch devices in English language programs in their embassies overseas. Of the two companies, Amazon was seen as more willing to participate with the Governments terms and meet the strict requirements. Apples iPad, on the other hand, was seen as insecure, power hungry and primarily a consumption device.
In a June statement concerning the Governments choice to go Amazon, a State document reads: The additional features [of the iPad] are not only unnecessary, but also present unacceptable security and usability risks for the governments needs in this particular project.
Critically, the Apple iPad falls short on two requirements: the centrally managed platform for registration and content delivery, and battery life.
At the time, the State Department was impressed with the Kindles 3G connectivity, long lasting battery life (made possible by the e-ink display) and its text-to-speech functionality. During the life of their $16.5 Million contract, the State Department was set to purchase more than 2,500 Kindle Touches over the next 5 years.
The DoS has identified the Amazon Kindle as the only e-Reader on the market that meets the Governments needs, said the State Department in their June contract.
Amazon is the only company possessing the essential capabilities required by the Government.
Its not yet clear why the State Department has decided to cancel their contract with Amazon or why they didnt decide to simply renegotiate.
As pointed out by VentureBeat, such a sudden move could indicate the Government is willing to take a second look at Apples iPad offerings. Apple is expected to be releasing a new, smaller iPad sometime this year, near the same size as the Amazon Kindle Touch.
The rumored, smaller Apple iPad Mini is expected to have a screen size somewhere between 7 and a half to 8 inches diagonally. Additionally, this new, smaller tablet is expected to ship with two cameras, front and back, in order to facilitate video conferencing. Many have speculated Apple will release such a tablet in the face of competition from Amazons Kindle Fire tablet as well as Googles Nexus 7 tablet. The Cupertino company is expected to hold a press event on September 12th, where they could announce their new iPhone and perhaps this new tablet. No official word from Apple has been given on either of these announcements.
149x2,500 Kindle Touch 3Gs= $372,500,yet this contract was for $16.5 Million,what am I missing?
Postage and handling? The "vig?"
Amazon should sue big time. You make a deal, you should honor it.
Presumably for the life of the contract, Amazon would be delivering free content to all those Kindles.
$16,127,500.00, or do I need a new battery?
Content,like music,books etc.?
Wouldn’t know the details.
But if you consider that just downloading the New York Times, at a buck a day for each Kindle would cost almost a million per year, throw in all the major newspapers and other relevant Americana and the value would easily surpass the $16 million dollars that Amazon would have made.
Probably includes content and model upgrades as they become available. They weren’t the only bidder.
Amazon came out pro-gay marriage a month or so ago, so beats me. Maybe it wasn’t enough?
Not clear? LOL. Why not call Apple Legal, they'll clear it up for ya.
You're missing the fact that this was a State Department contract, Hillary is Secretary of State, Hillary is running for president this year (oh yes she is), Hillary denied Apple the bloated payoff contract they wanted for themselves, and Apple called up Hillary and said, "you sure you want to do that"?
“You make a deal, you should honor it.”
You have to remember this is Barry Soetoro’s defense dept.
State dept. that is.
Just demented apparatchiks being demented apparatchiks.
Content, custom programming, ongoing technical support?
Just guessing, but I bet I’m right.
OK, that’s funny right there! lol
More interesting to me is the convenience of only the Kindle being able to meet spec as written. iPad and others weren't considered since they are deemed tablets, not eReaders, and the Barnes-and-Noble Nook lacked a certain feature.
Holder's DOJ just happens to have an antitrust suit based on complaints initiated by Amazon who'd built its ebook dominance by taking loses on its Kindle ecosystem and ebooks, making fair competition from B&N, and others, unsustainable.
Between this questionable contract for State and DOJ acting as Amazon's hired gun against the free market, we must ask why is Amazon one of this administration's crony capitalist partners?
Here's what you missed:
US Department of State solicitation (Request for Proposals) SAQMMA12R0272 for Amazon e-Readers, Content Management, and Logistics is cancelled and the Justification and Approval (J&A) to award contract SAQMMA12D0131 on a sole-source basis is withdrawn. The Department of State intends to conduct additional market research and re-examine its requirements for this program.NO OTHER devices were allowed to be proposed in the solicitation. They requested other vendors to propose bids to provide AMAZON e-readers, i.e., Amazon Kindle Touch devices, and no one bid, except AMAZON. There was no way they could. They custom designed the bid to exclude ALL OTHER DEVICES except the Kindle Touch, and ALL OTHER VENDORS except Amazon (only Amazon can provide content!) and Amazon high-balled the bid! Other potential suppliers called foul.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.