DoD's $10M contract for communications equipment awarded to Motorola, with a 7-year duration

Contract Overview

Contract Amount: $10,000,442 ($10.0M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-02-20

End Date: 2010-12-10

Contract Duration: 2,485 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200405!003170!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH806 !A!N! !N!0174 ! !20040220!20110927!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!36650!003!24!HANOVER !ANNE ARUNDEL !MARYLAND !+000007180763!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !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 $10.0 million to MOTOROLA SOLUTIONS, INC. for work described as: 200405!003170!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH806 !A!N! !N!0174 ! !20040220!20110927!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!36650!003!24!HANOVER !ANNE… Key points: 1. The contract value of $10,004,422.37 for miscellaneous communication equipment appears reasonable given the 7-year performance period. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract's duration of nearly 7 years (2485 days) indicates a long-term need for these communication assets. 4. The primary contractor, Motorola Solutions, Inc., is a well-established entity in the defense electronics sector. 5. The contract falls under the 'Other Communications Equipment Manufacturing' NAICS code, highlighting its specific technological focus. 6. The contract was managed by the Defense Contract Management Agency, indicating robust oversight.

Value Assessment

Rating: good

The contract value of approximately $10 million over nearly seven years suggests a moderate annual expenditure. Without specific per-unit data or comparable contract benchmarks, a precise value-for-money assessment is challenging. However, the duration implies a sustained need, and Motorola's established presence in the sector may indicate competitive pricing for specialized equipment. The firm fixed-price nature of the contract shifts risk to the contractor, which can be favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bids suggests a healthy level of competition for this requirement. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential communication equipment. The contract supports the operational readiness and communication capabilities of military personnel. The contract's geographic impact is primarily within the United States, with potential deployment globally. The contract likely supports a workforce involved in the manufacturing, integration, and maintenance of communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to technology obsolescence if not managed proactively.
Reliance on a single large contractor for a significant period might limit future flexibility.
Potential for scope creep over the extended performance period if not tightly managed.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract type helps control costs and manage budget predictability.
Contractor is a well-established entity with a track record in defense electronics.
Managed by the Defense Contract Management Agency, suggesting established oversight.

Sector Analysis

This contract falls within the broader 'Electronics and Communication Equipment' sector, specifically under the 'Other Communications Equipment Manufacturing' industry. The defense sector heavily relies on advanced communication systems for command, control, and situational awareness. Spending in this area is critical for maintaining technological superiority and operational effectiveness. Comparable spending benchmarks would typically involve other DoD contracts for similar communication hardware and systems, often awarded through competitive processes.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large value contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to the prime contractor, Motorola Solutions, Inc. The extent of small business subcontracting would depend on the prime contractor's subcontracting plan and the specific requirements of the contract.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to the Department of Defense. DCMA's role includes ensuring contractor compliance with contract terms, monitoring performance, and verifying payments. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Department of Defense Communications Systems
Tactical Communication Equipment
Electronic Warfare Systems
Command and Control Systems

Risk Flags

Long contract duration may increase risk of technology obsolescence.
Potential for contractor performance issues over an extended period.
Dependence on a single contractor for critical communication equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to MOTOROLA SOLUTIONS, INC.. 200405!003170!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH806 !A!N! !N!0174 ! !20040220!20110927!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!36650!003!24!HANOVER !ANNE ARUNDEL !MARYLAND !+000007180763!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !5!B!M! !A! !999

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 $10.0 million.

What is the period of performance?

Start: 2004-02-20. End: 2010-12-10.

What is the historical spending pattern for similar 'Other Communications Equipment Manufacturing' contracts by the Department of Defense?

Analyzing historical spending for similar contracts requires access to a comprehensive database of DoD procurements. However, based on the provided data, this $10 million contract awarded in 2004 for miscellaneous communication equipment represents a significant, albeit not exceptionally large, investment. DoD spending in this category is typically driven by the need for advanced, reliable, and secure communication systems for various operational environments. Historical patterns often show a consistent demand for such equipment, with spending fluctuating based on modernization programs, new technological insertions, and evolving threat landscapes. Contracts can range from smaller, specialized procurements to multi-billion dollar programs for major system overhauls. The firm fixed-price nature of this specific award suggests a focus on predictable costs for defined equipment.

How does the per-unit cost of the equipment procured under this contract compare to market rates or similar government contracts?

The provided data does not include specific details on the number of units procured or the per-unit cost. The total award amount is $10,004,422.37. To perform a per-unit cost comparison, we would need to know the quantity of items delivered. Without this information, it's impossible to benchmark against market rates or other government contracts. Generally, government contracts for specialized communication equipment can vary widely in per-unit cost depending on factors such as technological sophistication, quantity ordered, customization, and the competitive landscape at the time of award. A firm fixed-price contract aims to establish a set price, but the value is realized through the quantity and quality of goods received.

What is Motorola Solutions, Inc.'s track record with the Department of Defense for similar communication equipment contracts?

Motorola Solutions, Inc. (and its predecessors) has a long-standing relationship with the Department of Defense, supplying a wide range of communication and electronic systems. This $10 million contract is one example of their involvement. Their track record typically includes providing mission-critical communication solutions, including radios, command and control systems, and related infrastructure. Historically, they have been a significant player in defense contracting, often winning awards through competitive bidding processes. Assessing their overall track record would involve reviewing numerous contracts, performance evaluations, and any past performance issues or commendations across various defense agencies and programs.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific KPIs for this contract are not detailed in the provided data, typical performance indicators for such a procurement would likely include: timely delivery of equipment meeting all technical specifications, reliability and performance of the communication systems in operational environments, adherence to warranty terms, and successful integration with existing DoD networks. For a firm fixed-price contract, meeting delivery schedules and technical requirements without exceeding the agreed-upon price are paramount. The Defense Contract Management Agency (DCMA) would likely monitor these aspects, potentially through site visits, acceptance testing, and review of contractor reports.

Were there any significant risks identified during the solicitation or award phase of this contract, and how were they mitigated?

The provided data does not explicitly detail risks identified during the solicitation or award phase. However, common risks associated with large, long-duration defense contracts for electronic equipment include technological obsolescence, contractor performance issues, cost overruns (though mitigated by FFP), and supply chain disruptions. Given that this contract was awarded under full and open competition with multiple bidders, it suggests that the DoD assessed the competitive landscape as adequate to mitigate risks related to sole-source dependency. The firm fixed-price structure inherently shifts cost overrun risk to the contractor. Mitigation strategies would typically involve robust contract language, performance monitoring by DCMA, and potentially requiring the contractor to maintain adequate inventory or secure reliable supply chains.

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