DoD awards $33.2M for generic equipment, raising questions on value and competition effectiveness
Contract Overview
Contract Amount: $33,273,035 ($33.3M)
Contractor: Motorola Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-02-28
End Date: 2010-03-10
Contract Duration: 1,106 days
Daily Burn Rate: $30.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GENERIC EQUIPMENT PURCHASE FOR OFFUTT AFB AND USMC 29 PALMS
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $33.3 million to MOTOROLA SOLUTIONS, INC. for work described as: GENERIC EQUIPMENT PURCHASE FOR OFFUTT AFB AND USMC 29 PALMS Key points: 1. Spending of $33.2M on generic equipment for Offutt AFB and USMC 29 Palms. 2. Motorola Solutions, Inc. is the sole contractor. 3. Contract awarded via full and open competition, but delivery order structure warrants scrutiny. 4. Potential for inflated pricing due to limited delivery order competition. 5. Sector context: Other Communications Equipment Manufacturing.
Value Assessment
Rating: fair
The $33.2M award for generic equipment appears high given the nature of the goods. Benchmarking against similar, non-specific equipment purchases is difficult without more detail on the exact items procured.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the initial contract was full and open, the use of multiple delivery orders (6 total) could limit true price discovery and competition for specific needs. This structure may not always yield the best value.
Taxpayer Impact: Taxpayer funds are utilized for this procurement. The effectiveness of the competition method in securing optimal pricing is uncertain, potentially leading to suboptimal value.
Public Impact
Military bases receive essential equipment, supporting operational readiness. Taxpayer dollars are allocated, necessitating efficient and effective spending. The procurement process impacts the defense industrial base and contractor performance. Transparency in defense spending is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific equipment details hinders value assessment.
- Delivery order structure may limit competition.
- Sole contractor for delivery orders raises concerns about price.
- Potential for overspending on generic items.
Positive Signals
- Initial contract awarded through full and open competition.
- Contract supports critical military infrastructure.
- Fixed-price contract provides some cost certainty.
Sector Analysis
The 'Other Communications Equipment Manufacturing' sector encompasses a broad range of products. Benchmarking spending requires precise identification of the equipment type. This award represents a significant investment within this category.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, Motorola Solutions, Inc., is a large corporation, suggesting limited direct opportunities for small businesses in this particular award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, oversees this contract. Oversight should focus on ensuring the delivery orders represent fair and reasonable pricing and that the equipment meets specified requirements.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of specificity in equipment description.
- Potential for limited competition in delivery orders.
- High award amount for 'generic' items.
- Sole contractor for delivery orders.
- No indication of small business participation.
Tags
other-communications-equipment-manufactu, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.3 million to MOTOROLA SOLUTIONS, INC.. GENERIC EQUIPMENT PURCHASE FOR OFFUTT AFB AND USMC 29 PALMS
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 $33.3 million.
What is the period of performance?
Start: 2007-02-28. End: 2010-03-10.
What specific 'generic equipment' was procured, and how does its cost compare to similar items from other manufacturers or previous purchases?
The provided data lacks specificity regarding the 'generic equipment.' Without detailed item descriptions, specifications, and quantities, a precise cost comparison is impossible. Further analysis would require access to the contract's line item details and potentially market research reports to benchmark pricing against comparable commercial or government off-the-shelf items.
How effectively did the full and open competition translate into competitive pricing across the six delivery orders?
While the initial contract was awarded competitively, the subsequent six delivery orders to a single contractor, Motorola Solutions, Inc., raise questions about ongoing price discovery. The effectiveness of competition for these orders depends on whether competitive quotes were solicited or if they were sole-source modifications, potentially leading to less favorable pricing for the government.
What is the long-term strategic value of this generic equipment purchase for Offutt AFB and USMC 29 Palms, beyond immediate operational needs?
The long-term strategic value is unclear without knowing the equipment's function and lifespan. If it's standard, replaceable communication gear, its value lies in maintaining baseline operational capability. However, if it represents a technology gap or a non-standard solution, its strategic value could be limited, potentially requiring future upgrades or replacements sooner than anticipated.
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: 6
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 7230 PARKWAY DR, HANOVER, MD, 21076
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,466,991
Exercised Options: $33,466,991
Current Obligation: $33,273,035
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0701DH806
IDV Type: IDC
Timeline
Start Date: 2007-02-28
Current End Date: 2010-03-10
Potential End Date: 2010-03-10 00:00:00
Last Modified: 2016-05-09
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