Interior Department awards $77.3M contract for Motorola radios to AEG GROUP INC

Contract Overview

Contract Amount: $77,303 ($77.3K)

Contractor: AEG Group Inc

Awarding Agency: Department of the Interior

Start Date: 2026-04-10

End Date: 2026-06-01

Contract Duration: 52 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MI-MARQUETTE BS-MOTOROLA RADIOS

Place of Performance

Location: GRAYSLAKE, LAKE County, ILLINOIS, 60030

State: Illinois Government Spending

Plain-Language Summary

Department of the Interior obligated $77,303.4 to AEG GROUP INC for work described as: MI-MARQUETTE BS-MOTOROLA RADIOS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for a fixed price, which helps manage cost certainty. 3. The duration of 52 weeks indicates a medium-term need for the equipment. 4. The award to AEG GROUP INC. represents a significant procurement for communication equipment. 5. The North American Industry Classification System (NAICS) code 334220 points to the manufacturing of radio and television broadcasting and wireless communications equipment. 6. The contract is a delivery order, implying it's part of a larger agreement or schedule.

Value Assessment

Rating: fair

The contract value of $77.3 million for 52 weeks of Motorola radios appears to be within a reasonable range for specialized communication equipment, though a direct comparison to similar large-scale radio procurements is difficult without more detailed specifications. The firm fixed-price structure provides cost predictability for the government. Benchmarking the value would require understanding the specific model, quantity, and features of the Motorola radios procured, as well as the associated support and maintenance included.

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 2 bids suggests a moderate level of competition for this specific procurement. While two bidders participated, the extent to which this represents robust competition is unclear without knowing the number of potential bidders or the complexity of the requirements. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially leading to lower prices than sole-source or limited competitions.

Public Impact

The U.S. Fish and Wildlife Service benefits from this contract by acquiring essential communication equipment. The radios are likely to be used for operational purposes, potentially including law enforcement, search and rescue, and general communication in remote or critical areas. The geographic impact is primarily within Illinois, where the contractor is located, but the radios will likely be deployed nationwide by the Fish and Wildlife Service. The contract supports the workforce within the wireless communications equipment manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids received could indicate potential barriers to entry or a niche market.
The specific model and quantity of radios are not detailed, making it difficult to assess if the best value was achieved.
Reliance on a single manufacturer (Motorola) for radios, even if procured through a reseller, might limit future flexibility or price negotiation if not managed carefully.

Positive Signals

Awarded through full and open competition, which is a positive indicator for market fairness.
Firm fixed-price contract type helps control costs and provides budget certainty.
The contract is for essential communication equipment, supporting critical government operations.

Sector Analysis

The contract falls within the broader telecommunications equipment manufacturing sector, specifically focusing on wireless communication devices. This sector is characterized by rapid technological advancements and significant investment in research and development. The market size for such equipment is substantial, driven by public safety, commercial, and defense needs. This procurement by the U.S. Fish and Wildlife Service represents a specific demand within this sector for reliable communication tools.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, AEG GROUP INC., is likely a larger entity, and the contract does not appear to be structured to specifically foster small business participation through subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Fish and Wildlife Service contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected during the contract's performance or closeout.

Related Government Programs

Federal Law Enforcement Radio Communications
Public Safety Communications Equipment Procurement
Department of the Interior Communications Systems
Wireless Communication Infrastructure

Risk Flags

Limited competition (2 bidders)
Potential for supply chain issues impacting delivery
Risk of technology obsolescence
Contract value requires careful performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $77,303.4 to AEG GROUP INC. MI-MARQUETTE BS-MOTOROLA RADIOS

Who is the contractor on this award?

The obligated recipient is AEG GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $77,303.4.

What is the period of performance?

Start: 2026-04-10. End: 2026-06-01.

What is the track record of AEG GROUP INC. in fulfilling federal contracts, particularly for communication equipment?

Information regarding AEG GROUP INC.'s specific track record with federal contracts, especially for communication equipment, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes or terminations, and their experience with similar procurements. Without this data, it's difficult to gauge their reliability and past success in delivering comparable goods or services to government agencies. Further research into federal procurement databases and agency performance records would be necessary to establish a clear picture of their performance history.

How does the awarded price of $77.3 million compare to similar procurements for Motorola radios by other federal agencies?

Directly comparing the $77.3 million award for Motorola radios without specific details on the quantity, model, features, and duration makes a precise value-for-money assessment challenging. However, the contract is for a 52-week period, suggesting a significant quantity or high-value equipment. To benchmark this, one would need to identify comparable contracts for similar Motorola radio systems procured by agencies like the FBI, DEA, or other law enforcement and public safety entities. Analyzing the price per unit, included services (like maintenance or software), and overall scope of work in those comparable contracts would reveal whether this award represents a competitive price point or if it appears inflated. The firm fixed-price nature provides some cost control, but the initial negotiated price is key.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential supply chain disruptions affecting Motorola's ability to deliver the radios, technical obsolescence if the chosen models become outdated quickly, and the possibility that the limited competition (2 bidders) might not have yielded the absolute lowest price. Mitigation strategies likely involve the firm fixed-price contract, which shifts some cost risk to the contractor. The government may also have clauses for delivery delays or performance failures. Ensuring clear technical specifications and potentially including options for future upgrades or maintenance could also mitigate obsolescence and ensure long-term usability. The contracting agency's oversight and monitoring of contractor performance are crucial for identifying and addressing risks proactively.

What is the expected effectiveness of these Motorola radios in supporting the U.S. Fish and Wildlife Service's mission?

Motorola is a well-established provider of communication systems, particularly for public safety and critical infrastructure. The effectiveness of these radios will depend on their specific capabilities matching the operational needs of the U.S. Fish and Wildlife Service (FWS). If the radios are intended for use in remote areas, their range, durability, and battery life will be critical. For law enforcement functions, features like encryption, GPS tracking, and interoperability with other systems are important. Assuming the FWS has specified requirements that align with Motorola's product offerings, these radios are expected to enhance situational awareness, improve coordination among personnel, and support emergency response, thereby contributing to the FWS's conservation and law enforcement missions.

How has federal spending on radio and wireless communications equipment evolved over the past five years, and where does this contract fit in?

Federal spending on radio and wireless communications equipment has generally remained robust, driven by the continuous need for secure and reliable communication systems across various agencies, including law enforcement, defense, and emergency services. This $77.3 million contract for Motorola radios represents a significant, albeit specific, investment within this broader category. While historical spending patterns for the U.S. Fish and Wildlife Service specifically on radios are not provided, this award suggests a substantial need for upgraded or new communication capabilities. The overall trend in federal spending likely reflects a move towards more advanced, data-capable wireless technologies, and this contract likely contributes to maintaining or enhancing that capability for the FWS.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140F1G26Q0024

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34021 N US HWY 45 STE B, GRAYSLAKE, IL, 60030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $77,303

Exercised Options: $77,303

Current Obligation: $77,303

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B04C19D00000008

IDV Type: IDC

Timeline