Axon Enterprise (NASDAQ:AXON) is reportedly the only company the Drug Enforcement Administration is considering for a new contract to provide body cameras, charging and docking stations, cloud storage, and evidence database management.

The agency is negotiating a sole-source contract with the company because the DEA wants direct streaming access to the system, which only Axon can provide.

Although the size of the contract is not specified, the posting to the federal government's System for Award Management (SAM) site indicates it will be more than $10,000 but less than $250,000.

Police officer access data on a monitor

Image source: Axon Enterprise.

One of a kind

The DEA says it needs not only body cameras for its agents, but also an evidence management system that can capture and store video, photographic, and audio evidence, securely host it in the cloud, and make it accessible to manage and share.

The agency notes is the only FedRAMP-authorized software that allows for digital content acquisition and sharing, but offers AI-powered redaction capabilities. It's also compatible with other third-party data collection from mobile phones. The FedRAMP program allows for providing security solutions across U.S. government agencies.

The DEA says Axon's Evidence also allows for case sharing with various other federal government entities, especially the Executive Office for United States Attorneys, which has standardized on the system.

The Bureau of Alcohol, Tobacco, Firearms & Explosives recently issued a contract to Axon looking for the same capabilities.

The DEA does say if another company can meet the requirements, it should submit notice, but the contract shows just how important to Axon's business its vertical integration has become.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.