DoD Awards Motorola $14M for Communications Equipment, Raising Oversight Questions
Contract Overview
Contract Amount: $14,017,171 ($14.0M)
Contractor: Motorola Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-01-12
End Date: 2009-09-30
Contract Duration: 1,722 days
Daily Burn Rate: $8.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200504!001698!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH806 !A!N! !N!0239 ! !20050112!20060406!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DR 3!COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000012767600!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !5!B!M! !A! !20200930!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: 200504!001698!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH806 !A!N! !N!0239 ! !20050112!20060406!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DR 3!COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWA… Key points: 1. Contract awarded to Motorola Solutions, Inc. for $14.02M. 2. The contract falls under the 'Other Communications Equipment Manufacturing' NAICS code. 3. Competition was full and open, but contract duration and fixed-price nature warrant scrutiny. 4. The award was made by the Department of the Army, a major DoD component.
Value Assessment
Rating: fair
The contract value of $14.02 million for communications equipment appears within a reasonable range for similar DoD procurements. However, without specific unit details, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value, though the contract's duration and fixed-price terms could impact long-term cost-effectiveness.
Public Impact
Military communications capabilities are enhanced through this procurement. Taxpayer funds are being utilized for essential defense equipment. Potential for technology upgrades in communication systems. Ensures operational readiness for deployed forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 1722 days (approx. 4.7 years) may exceed typical needs for equipment procurement.
- Fixed-price contract type can lead to cost overruns if requirements change or are poorly defined.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Procurement supports critical Department of Defense needs.
- Contract awarded to a known entity in the communications sector.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically for 'Other Communications Equipment Manufacturing'. Spending in this area is substantial within the DoD, supporting a wide range of tactical and strategic communication needs.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract's duration and fixed-price nature suggest a need for robust oversight to ensure performance and manage any potential scope creep or cost adjustments effectively.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (1722 days).
- Fixed-price contract type.
- Lack of specific detail on equipment procured.
- No explicit small business set-aside identified.
Tags
other-communications-equipment-manufactu, department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to MOTOROLA SOLUTIONS, INC.. 200504!001698!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0701DH806 !A!N! !N!0239 ! !20050112!20060406!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DR 3!COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000012767600!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !5!B!M! !A! !202
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 $14.0 million.
What is the period of performance?
Start: 2005-01-12. End: 2009-09-30.
What specific communication equipment is being procured, and how does it align with current military modernization efforts?
The contract specifies 'MISCELLANEOUS COMMUNICATION EQUIPMENT' under NAICS code 334290. While the exact items are not detailed, such procurements typically support tactical radios, satellite communication components, or network infrastructure. Alignment with modernization efforts would depend on the specific technological capabilities of the equipment and its integration into broader command and control systems.
Given the fixed-price contract and 4.7-year duration, what are the primary risks to cost control and value for money?
The primary risks include potential for the government to overpay if market prices decrease significantly during the contract period, or if the fixed price does not adequately account for evolving technological requirements. Scope creep, where additional features or services are added without commensurate price adjustments, is also a risk. Effective oversight is crucial to mitigate these.
How does the performance of Motorola Solutions on similar contracts inform the assessment of this award's effectiveness?
Assessing effectiveness requires examining Motorola Solutions' past performance on comparable DoD contracts. Factors like on-time delivery, adherence to specifications, and post-delivery support are key indicators. Without specific performance data for this contractor on similar agreements, the effectiveness of this particular award remains partially undetermined, though their established presence suggests a baseline capability.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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
Start Date: 2005-01-12
Current End Date: 2009-09-30
Potential End Date: 2011-09-27 00:00:00
Last Modified: 2008-02-01
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