DoD's $14M Motorola contract for comms equipment shows fair competition but lacks clear value benchmarks

Contract Overview

Contract Amount: $14,045,298 ($14.0M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-03-26

End Date: 2012-01-10

Contract Duration: 3,212 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200306!002942!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH806 !A!N! !N!0065 !20030326!20030714!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!36650!003!24!HANOVER !ANNE ARUNDEL !MARYLAND !+000001196468!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334290!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!007!B! !Z!N!Z! ! !Y!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to MOTOROLA SOLUTIONS, INC. for work described as: 200306!002942!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH806 !A!N! !N!0065 !20030326!20030714!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!36650!003!24!HANOVER !ANNE … Key points: 1. Contract awarded to Motorola for miscellaneous communication equipment. 2. Full and open competition was utilized, indicating a broad search for vendors. 3. The contract duration was substantial, spanning over 8 years. 4. Pricing appears to be fixed, which can offer budget predictability. 5. Lack of detailed performance metrics makes assessing value for money challenging. 6. The contract was managed by the Defense Contract Management Agency. 7. The specific equipment procured is categorized under 'Other Communications Equipment Manufacturing'.

Value Assessment

Rating: fair

The total contract value of approximately $14 million over more than 8 years averages to roughly $1.7 million annually. Without specific details on the quantity or type of communication equipment procured, it is difficult to benchmark this against similar contracts or market rates. The firm fixed-price nature suggests an agreed-upon price, but the absence of detailed cost breakdowns or performance metrics makes a definitive value-for-money assessment challenging. It appears to be a standard procurement for communication hardware, but the lack of granular data prevents a strong value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit a bid. The presence of 7 bids indicates a reasonable level of competition for this procurement. This competitive process is generally expected to drive prices towards market rates and encourage vendors to offer their best terms. The number of bidders suggests that the market for this type of communication equipment is sufficiently robust to support multiple suppliers.

Taxpayer Impact: A competitive award process like this is beneficial for taxpayers as it helps ensure that the government is not overpaying for the goods and services procured, fostering a more efficient use of public funds.

Public Impact

The Department of Defense benefits from the acquisition of essential communication equipment. This contract supports the operational readiness and communication capabilities of military personnel. The geographic impact is primarily within the Department of Defense's operational theaters. Workforce implications are likely within Motorola's manufacturing and support divisions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge effectiveness.
The long contract duration could lead to potential obsolescence of technology if not managed carefully.
Specific details on the type and quantity of equipment are not readily available for deeper analysis.

Positive Signals

Awarded under full and open competition, suggesting a fair bidding process.
Firm fixed-price contract provides cost certainty.
Managed by a reputable agency (DCMA) with experience in defense contracting.

Sector Analysis

This contract falls within the broader 'Electronics and Communication Equipment' sector, specifically under the NAICS code 334290 for 'Other Communications Equipment Manufacturing.' This sector is critical for national defense, providing essential tools for command, control, and communication. The market is characterized by rapid technological advancements and significant government procurement due to defense needs. Benchmarking this contract's value is difficult without knowing the exact specifications of the communication equipment, but it represents a typical procurement for specialized defense-related hardware.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a large corporation like Motorola suggests the primary focus was on meeting the specific technical requirements of the Department of Defense, rather than specifically fostering small business participation through this particular vehicle.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. As a firm fixed-price contract, the primary oversight would focus on delivery schedules and adherence to specifications. Transparency is moderate, with basic contract award details available, but deeper insights into performance and cost justification are limited without access to detailed contract line item information or performance reports.

Related Government Programs

Department of Defense Communications Systems
Military Electronics Procurement
Defense Communication Equipment Contracts
Motorola Defense Contracts

Risk Flags

Potential for technology obsolescence due to long contract duration.
Lack of detailed performance metrics hinders value assessment.
Limited transparency on specific equipment types and their applications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to MOTOROLA SOLUTIONS, INC.. 200306!002942!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH806 !A!N! !N!0065 !20030326!20030714!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!36650!003!24!HANOVER !ANNE ARUNDEL !MARYLAND !+000001196468!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334290!E! !5!B!M! !A! !99990909!B

Who is the contractor on this award?

The obligated recipient is MOTOROLA SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2003-03-26. End: 2012-01-10.

What specific types of communication equipment were procured under this contract, and what were their intended uses?

The contract data indicates the procurement of 'MISCELLANEOUS COMMUNICATION EQUIPMENT' under NAICS code 334290. However, the specific types of equipment are not detailed in the provided data. This category can encompass a wide range of items, from radios and satellite communication devices to specialized tactical communication systems. The intended uses would likely align with the operational needs of the Department of Defense, focusing on secure, reliable, and potentially ruggedized communication solutions for various military branches and missions. Without more granular information, the exact application and technological sophistication of the procured equipment remain unspecified.

How does the average annual spending of approximately $1.7 million compare to similar DoD procurements for communication equipment during that period?

Comparing the average annual spending of approximately $1.7 million for this Motorola contract to similar DoD procurements requires access to a broader dataset of defense contracts for communication equipment from the early 2000s. General market knowledge suggests that spending on communication equipment can vary significantly based on the technology's complexity, quantity, and specific application (e.g., tactical radios vs. strategic network infrastructure). A contract of this size could represent a significant purchase of specialized equipment or a smaller, ongoing supply of more common items. Without comparative data on unit costs, quantities, and specific equipment types from other contracts, it's challenging to definitively state whether $1.7 million annually was high, low, or average for similar procurements.

What were the key performance indicators (KPIs) or metrics used to evaluate Motorola's performance under this contract?

The provided contract data does not specify the key performance indicators (KPIs) or metrics used to evaluate Motorola's performance. For firm fixed-price contracts, performance evaluation typically focuses on adherence to delivery schedules, meeting technical specifications, and ensuring the quality of the delivered goods. However, the absence of explicit KPIs in the summary data makes it impossible to assess how rigorously Motorola's performance was monitored beyond basic compliance. Effective oversight would ideally include metrics related to reliability, functionality, and potentially post-delivery support, but these are not detailed here.

Given the contract's duration (2003-2012), what risks were associated with potential technology obsolescence for the procured communication equipment?

A contract spanning nearly a decade, from 2003 to 2012, inherently carries a risk of technology obsolescence, especially in the fast-paced field of communications. The communication equipment procured in the early stages of the contract could have become outdated by the time the contract concluded. This risk is mitigated if the contract included provisions for technology refresh, upgrades, or if the procured items were designed for longevity and modularity. However, without specific details on the technology's lifecycle management within the contract, there's a potential concern that the DoD might have acquired equipment that was no longer cutting-edge or fully supported by the manufacturer towards the end of the contract period.

What was the total amount spent by the DoD on 'Miscellaneous Communication Equipment' during the contract period (2003-2012) across all contracts?

Determining the total amount spent by the DoD on 'Miscellaneous Communication Equipment' (NAICS 334290) across all contracts between 2003 and 2012 would require a comprehensive search and analysis of the Federal Procurement Data System (FPDS) or similar databases for that entire period. This specific Motorola contract represents $14,045,297.60 of that spending. However, this single contract is only a fraction of the total DoD expenditure in this category. The DoD procures a vast array of communication systems, and many other contracts, potentially with different vendors and for different specific types of equipment within this broad category, would have been active during those nine years.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 7230 PARKWAY DR, HANOVER, MD, 03

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0701DH806

IDV Type: IDC

Timeline