PaidContent reportat that the US government has signed a $16.5 million no-bid contract with Amazon to provide Kindle Touch units pre-loaded with 50 e-book titles each for use in its overseas language-education program. It starts with an order of 2,500 devices, but could include more over the next five years, and additional content, up to the total monetary value of the contract. The government is reportedly getting the devices at 10% off retail price.

The government justified its decision to award Amazon the contract by noting that the Kindle was the only e-reader currently on the market that has all the capabilities the government is looking for—international 3G capability, text-to-speech, and long battery life. It also noted that the iPad’s central registration authority and short battery life compared to e-ink tablets in particular eliminated it from the running.

The government certainly has been kind to Amazon lately, hasn’t it? Between this contract and the DoJ’s actions against the Agency Five publishers, it seems that Bezos has some friends in high places. But on the other hand, if these really are the only devices that do what the government wants, and they’re getting a good value for their money, it might not be such a bad thing after all.

6 COMMENTS

  1. 16.5 million divided by the 2500 Kindles purchased is $6600.

    If they purchased the most expensive Kindle Touch they are $189.

    $6600 – $189 = $6411

    There are 50 books loaded on the Kindle according to the story.

    $6411 / 50 = $128.22 per book.

    • Um, did you two not actually read what I wrote? The $16.5 million figure is for the Kindles already purchased plus other Kindles and books over the next five years, up to the total value of the program. The original article to which I linked has a couple of possible cost breakdowns based on hypothetical numbers of Kindles ordered in the future.

      And just as iPads didn’t meet their needs based on battery life, I would imagine any other color LCD tablet wouldn’t either.

  2. A lot of uninformed speculation due to lack of specific data about this contract it seems to me. It’s clear the battery thing was only one small aspect of the reason why the iPad was ruled out. Hardly surprising considering their actual needs are met by a simple eReader. Why they would buy ever buy iPads for this program beats me.
    And I personally don’t see what the dig at Amazon for what is claimed to be a benefit to them from the recent DoJ action is based on. Amazon hating seems to be the only solution.

  3. Actually, the State Department isn’t buying Kindles.
    They signed a contract for international *services and support* that just *happens* to *also* serve as a vehicle for Embassies and other State Department facilities to order Kindles.
    Check here:
    http://www.theatlanticwire.com/global/2012/06/state-department-buying-english-teaching-kindles-6600-each/53407/#

    Or here:
    http://www.infodocket.com/2012/06/11/u-s-state-department-buys-2500-kindles-16-5-million-no-bid-contract-for-libraries-and-ed-centers/
    …where you can actually read the government specs and rationale.
    Which is quite reasonable and solid: they need an *integrated* system for “push”-deployment of DoS in-house documents as well as licensed 3rd party commercial content, worldwide, via WiFi *and* 3G for in-the-field use.
    Now, oh wise Amazon haters: who else can deliver those features today, at *all*?
    Push deliver + 3G? “Hello? Bueller?”

    It’s an election year! Of course the thing was vetted to within an inch of the Contracting Officer’s life! They have a need and they found an answer, they jumped through all legal hoops and signed the deal. End of story. Almost…

    Oh, and by the way: lost in all the grumbling and Proxmiring is the real news: Amazon is going to ship Kindles with *front lights* to the State Department.
    AKA, Kindle 6.

    Not a rumor, not a hoax; it’s right there in the contract.

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