Motorola Solutions awarded $28.9M delivery order for communications equipment, with no competition

Contract Overview

Contract Amount: $28,938,716 ($28.9M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-27

End Date: 2021-09-30

Contract Duration: 1,829 days

Daily Burn Rate: $15.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: E-ELMR DELIVERY ORDER 0001, MINIMUM GUARANTEED AMOUNT.

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $28.9 million to MOTOROLA SOLUTIONS, INC. for work described as: E-ELMR DELIVERY ORDER 0001, MINIMUM GUARANTEED AMOUNT. Key points: 1. The contract was awarded on a non-competitive basis, raising questions about potential overpayment and lack of market-driven pricing. 2. The duration of the contract (over 5 years) suggests a long-term need for these communications equipment services. 3. The fixed-price contract type offers some cost certainty, but the absence of competition limits the government's ability to secure the best possible value. 4. The specific nature of the equipment and its intended use within the Department of the Army are not detailed, making a precise value assessment difficult. 5. The contract's value is significant, representing a substantial investment in communication infrastructure for the military. 6. The lack of small business participation noted (ss: false, sb: false) suggests limited opportunities for smaller firms in this specific award.

Value Assessment

Rating: questionable

Benchmarking the value of this delivery order is challenging without detailed specifications of the communications equipment and its intended use. However, the absence of competition is a significant red flag. Typically, competitive bidding drives down prices and ensures value for money. A sole-source or non-competed award like this one means the government likely paid a premium compared to what could have been achieved through a competitive process. Without comparative data on similar equipment procured competitively, it's difficult to quantify the exact value gap, but the lack of competition inherently suggests a questionable value proposition for taxpayers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or non-competitive procurement. This means that only one vendor, Motorola Solutions, Inc., was solicited or considered for this delivery order. The reasons for this lack of competition are not provided in the data, but it could stem from various factors such as a specific technical requirement, a previous contract vehicle, or a perceived lack of alternatives. The limited competition significantly hinders price discovery and may lead to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid more than necessary due to the absence of competitive pressure. Without multiple bids, there's no guarantee that Motorola Solutions offered the most cost-effective solution available in the market.

Public Impact

The Department of the Army is the primary beneficiary, receiving critical communications equipment. This award supports the operational readiness and communication capabilities of military personnel. The contract's geographic impact is likely focused on military installations where the equipment is deployed, potentially nationwide or at specific operational theaters. The workforce implications are primarily for Motorola Solutions, Inc., potentially involving manufacturing, logistics, and technical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price fairness and potential overspending.
Limited transparency regarding the justification for a sole-source award.
Absence of small business involvement in this specific delivery order.

Positive Signals

The firm fixed-price contract type provides cost predictability for the government.
The contract is awarded to a known entity (Motorola Solutions), potentially indicating established reliability.
The long contract duration suggests a stable and ongoing need for the equipment.

Sector Analysis

The procurement falls under the 'Other Communications Equipment Manufacturing' sector (NAICS 334290). This sector encompasses establishments primarily engaged in manufacturing communication equipment, excluding telephone and telegraph apparatus. The market for military communications equipment is often specialized, with a few key players like Motorola Solutions dominating due to specific technological capabilities, security clearances, and established relationships with defense agencies. Benchmarking against similar large-scale, non-competed defense communication contracts is difficult due to proprietary information and unique requirements, but the value suggests a significant investment in advanced communication systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that opportunities for small business participation, either as prime contractors or subcontractors, were not explicitly prioritized or mandated for this specific delivery order. Given the nature of large defense contracts, there's often a potential for subcontracting opportunities, but the lack of a specific set-aside suggests these may not have been actively pursued or may not have been feasible for this particular requirement. This limits the direct economic benefit to the small business ecosystem for this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and financial management oversight mechanisms. As a delivery order under a larger contract, its execution is monitored by the contracting officer and relevant program managers within the Department of the Army. Transparency regarding the justification for the sole-source award and the specific performance metrics would be crucial for accountability. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or award process.

Related Government Programs

Department of Defense Communications Systems
Military Radio and Telecommunications Equipment
Tactical Communication Systems
Secure Communication Networks

Risk Flags

Non-competitive award
Lack of price competition
Potential for overpayment
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.9 million to MOTOROLA SOLUTIONS, INC.. E-ELMR DELIVERY ORDER 0001, MINIMUM GUARANTEED AMOUNT.

Who is the contractor on this award?

The obligated recipient is MOTOROLA SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $28.9 million.

What is the period of performance?

Start: 2016-09-27. End: 2021-09-30.

What is the specific type of communications equipment being procured and its intended military application?

The provided data does not specify the exact type of communications equipment or its intended military application beyond the general NAICS code 'Other Communications Equipment Manufacturing.' This lack of detail makes it challenging to assess the technical necessity or the criticality of the equipment for specific military operations. Understanding the application (e.g., tactical radios, secure network infrastructure, command and control systems) would allow for a more informed evaluation of the contract's strategic importance and potential risks associated with its sole-source procurement. Without this information, we assume it pertains to essential communication capabilities for the Department of the Army.

What was the justification for awarding this contract on a non-competitive basis?

The data explicitly states 'CT: NOT COMPETED,' indicating a sole-source or non-competitive award. However, the specific justification for this approach is not provided. Common reasons for non-competitive awards include unique capabilities of a single source, urgent and compelling needs where competition is not feasible, or follow-on work to a previous contract where only one vendor can provide the necessary integration. Without the official justification document (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it is impossible to verify the validity of the non-competitive decision and assess whether it was truly in the government's best interest or if alternative solutions were overlooked.

How does the awarded amount of $28.9 million compare to similar non-competed or competitively procured communications equipment contracts for the Department of Defense?

Direct comparison is difficult without knowing the specific equipment and its capabilities. However, $28.9 million for over five years of delivery orders represents a substantial investment. Non-competed contracts inherently carry a higher risk of inflated pricing compared to competitive ones. If this equipment were procured competitively, it's plausible that the price could have been significantly lower, potentially in the range of 10-30% less, depending on market dynamics and the number of bidders. The lack of competitive benchmarking makes it hard to pinpoint the exact value-for-money, but the non-competitive nature suggests a potential premium.

What are the potential risks associated with relying on a single vendor for critical communications equipment over a five-year period?

Relying on a single vendor like Motorola Solutions for critical communications equipment over five years presents several risks. Firstly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if issues arise or better alternatives emerge. Secondly, the lack of competition can lead to complacency from the vendor regarding service quality and innovation. Thirdly, supply chain disruptions affecting Motorola Solutions could directly impact the Department of the Army's communication capabilities. Finally, without competitive pressure, there's a persistent risk that the government may not be receiving the most up-to-date technology or the best possible pricing throughout the contract's duration.

What is Motorola Solutions' track record with the Department of Defense, particularly concerning large sole-source contracts?

Motorola Solutions, Inc. is a well-established provider of communication solutions, including for public safety and defense sectors. They have a history of securing significant contracts with various government agencies, including the Department of Defense. While specific details on their track record with large sole-source contracts are not provided here, their continued presence in the defense market suggests a generally satisfactory performance history. However, the nature of sole-source awards means that detailed public scrutiny of their pricing and performance relative to competitive alternatives is often limited, making a comprehensive assessment of their track record in such instances challenging.

What are the implications of this contract for future spending on similar communications equipment by the Department of the Army?

This delivery order, valued at $28.9 million over five years and awarded non-competitively, sets a precedent for future spending on similar communications equipment. It signals to the market that the Department of the Army may continue to rely on Motorola Solutions for these specific needs, potentially discouraging other vendors from investing in developing competing solutions for this particular niche. Future procurements might also default to a non-competitive approach unless a conscious effort is made to introduce competition. This could lead to sustained higher costs and potentially slower adoption of technological advancements compared to a more competitive environment.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 809 PINNACLE DR STE G, LINTHICUM HEIGHTS, MD, 21090

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,938,716

Exercised Options: $28,938,716

Current Obligation: $28,938,716

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J16D0088

IDV Type: IDC

Timeline