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Saturday, September 20, 2014 9:27:46 PM
It is not the fees that APDN charges per year per supplier is expensive.
After the initial mandate, authorized distributors/manufacturers stopped supplying to DLA who opposed the mandate. So the middle layers jacked up the prices and hence it became costly for DLA. You can figure it out if you check the total awards amount so far in 2014 and total awards amount in 2013. I guess it already went beyond the total amount of orders in 2013.
I don't think the revenue from DLA for marking fsc5962 items will go down substantially after 15,Dec 2015.It may be at 60% of current revenue. That makes it $1.2 million.
Revenue from the following sources will be as below for 2015 -
Total - $4.93 mill(minimum) which will be greater than 2014 revenue
- MDA phase 2 - $480k
- DLA fsc5962 - $1.2 mill
- DLA development for 6 FSGs - $2.25 mill
- others - $1 mill
Once mandate is expanded to 6 FSGs that means 42 FSCs...and all suppliers agree for DNA marking
If we assume 21 FSCs generate revenue of $1.2 mill each and other 21 FSCs generate revenue of 600k each $37,800,000 - $37.8 million
These are just guesses .Nobody knows how much DLA pays APDN for each supplier for each FSC after Aug 2016.
Recent APDN News
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