DOJ's DEA awards $128K for MARCS radio services, a sole-source purchase order with a one-year term

Contract Overview

Contract Amount: $128,100 ($128.1K)

Contractor: Ohio Department of Administrative Services

Awarding Agency: Department of Justice

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $352/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICES ON OHIO MULTIPLE AGENCY RADIO COMMUNICATIONS SYSTEMS - MARCS - 426 SUBSCRIBER ID'S FEES APPLIED TO EXPENSES FOR VOICE RADIOS USED ON THE OHIO MARCS PERIOD OF PERFORMANCE 07/01/2025 TO 06/30/2026

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43215

State: Ohio Government Spending

Plain-Language Summary

Department of Justice obligated $128,100 to OHIO DEPARTMENT OF ADMINISTRATIVE SERVICES for work described as: SERVICES ON OHIO MULTIPLE AGENCY RADIO COMMUNICATIONS SYSTEMS - MARCS - 426 SUBSCRIBER ID'S FEES APPLIED TO EXPENSES FOR VOICE RADIOS USED ON THE OHIO MARCS PERIOD OF PERFORMANCE 07/01/2025 TO 06/30/2026 Key points: 1. The contract's value is relatively small, suggesting a focused service need rather than a large-scale program. 2. As a sole-source award, there's a lack of competitive pressure to drive down costs or ensure optimal value. 3. The short, one-year performance period indicates a need for immediate service or a trial basis. 4. Limited public data makes it difficult to benchmark pricing or assess overall value for money. 5. The contract supports essential communication infrastructure for law enforcement operations. 6. Ohio's MARCS system is a critical state-level asset, and this contract ensures its continued functionality for federal users.

Value Assessment

Rating: questionable

Given the sole-source nature of this award, a direct comparison to similar competitively bid contracts is not feasible. The price of $128,100 for one year of subscriber ID fees for voice radios on the Ohio MARCS system is difficult to assess without detailed service level agreements and usage metrics. However, the absence of competition raises concerns about whether the government secured the best possible price and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the agency identified a specific vendor and did not solicit bids from other potential suppliers. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that pricing and service terms were negotiated directly with the selected vendor.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The absence of multiple bids means there was no market pressure to ensure the lowest possible price for these radio services.

Public Impact

Federal law enforcement agencies, specifically the Drug Enforcement Administration (DEA), will benefit from continued access to critical radio communication services. The services provided ensure the operational capability of DEA agents utilizing the Ohio MARCS system. The geographic impact is primarily within Ohio, where the MARCS system is deployed. This contract supports the existing communication infrastructure relied upon by federal personnel operating in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits potential cost savings for taxpayers.
Sole-source awards can sometimes lead to higher prices than competitively bid contracts.
Limited transparency into the justification for a sole-source award.

Positive Signals

Ensures continuity of essential communication services for law enforcement.
Supports a critical state-level communication infrastructure (MARCS) utilized by federal agencies.
The contract term is short, limiting long-term financial commitment risk.

Sector Analysis

This contract falls within the telecommunications and government support services sector. The Ohio MARCS system is a statewide interoperable public safety radio system. Federal agencies often leverage state and local communication networks to enhance operational capabilities and interoperability, especially when operating within specific geographic areas. Spending on such services is generally consistent with the need for reliable communication infrastructure for public safety and law enforcement.

Small Business Impact

This contract does not appear to involve a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. The focus is on a specific service for a federal agency, and the award mechanism does not suggest a deliberate effort to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Drug Enforcement Administration (DEA) and the Department of Justice (DOJ). As a purchase order, it is subject to internal procurement policies and financial controls. Transparency is limited due to the sole-source nature and the lack of detailed public documentation regarding the justification and negotiation process. Inspector General oversight would apply if any irregularities or potential fraud were suspected.

Related Government Programs

Federal Law Enforcement Communications
State and Local Government Technology Contracts
Public Safety Radio Systems
Interoperable Communications

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency into pricing and service details.
Potential for non-optimal value due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $128,100 to OHIO DEPARTMENT OF ADMINISTRATIVE SERVICES. SERVICES ON OHIO MULTIPLE AGENCY RADIO COMMUNICATIONS SYSTEMS - MARCS - 426 SUBSCRIBER ID'S FEES APPLIED TO EXPENSES FOR VOICE RADIOS USED ON THE OHIO MARCS PERIOD OF PERFORMANCE 07/01/2025 TO 06/30/2026

Who is the contractor on this award?

The obligated recipient is OHIO DEPARTMENT OF ADMINISTRATIVE SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $128,100.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available to provide the required supplies or services, or when there is a compelling urgency that prevents competition. For a service like subscriber ID fees on a specific radio system (MARCS), the justification might stem from the unique nature of the system, existing integration, or a requirement for specialized support only available from the incumbent provider or system administrator. Without further documentation from the agency, the precise reason remains speculative but likely relates to the proprietary or specialized nature of the MARCS system access.

How does the cost of these subscriber ID fees compare to similar services on other state radio systems?

Directly comparing the cost of these subscriber ID fees to similar services on other state radio systems is challenging without more granular data. The provided information only states a total award amount of $128,100 for 426 subscriber IDs over a one-year period. To make a meaningful comparison, we would need to know the specific features and service levels included in the MARCS subscriber fees, the data transmission capabilities, voice quality standards, and any included support or maintenance. Additionally, the size and technological sophistication of other state radio systems vary significantly. A competitive analysis would require identifying comparable systems and obtaining their pricing structures for similar user access, which is not publicly available for this specific contract.

What are the risks associated with relying on a sole-source provider for critical communication services?

Relying on a sole-source provider for critical communication services presents several risks. Firstly, there is a significant risk of paying inflated prices due to the lack of competitive bidding, as the provider faces no market pressure to offer the best value. Secondly, there's a potential for reduced service quality or innovation, as the provider may become complacent without the threat of losing business to competitors. Thirdly, dependency on a single vendor can create vulnerabilities; if the vendor experiences financial difficulties, operational issues, or decides to discontinue the service, the government agency could face severe disruptions. Finally, sole-source awards can limit flexibility and make it difficult to switch to more advanced or cost-effective solutions in the future.

What is the historical spending pattern for these MARCS radio services by the DEA?

The provided data does not include historical spending patterns for these specific MARCS radio services by the DEA. This is a single contract award for the period of July 1, 2025, to June 30, 2026. To analyze historical spending, we would need access to previous contract awards for the same or similar services from the DEA or other agencies utilizing the MARCS system. Without this historical context, it is impossible to determine if the current award amount represents an increase, decrease, or stable spending trend. Further investigation into federal procurement databases or agency budget reports would be necessary to establish a spending history.

How does the Drug Enforcement Administration (DEA) typically procure communication services?

The Drug Enforcement Administration (DEA), like other federal law enforcement agencies, procures communication services through various methods, often dictated by the specific technology, urgency, and scale of the requirement. Common procurement methods include competitive solicitations (e.g., Requests for Proposals, Invitations for Bids) for established technologies and services, where multiple vendors can compete. For specialized or unique needs, sole-source or limited competition awards may be utilized, often requiring detailed justification. The DEA also leverages existing government-wide contracts (GWACs) or interagency agreements to acquire communication solutions. The specific method used, as seen with this MARCS contract, depends heavily on factors like system interoperability, existing infrastructure, and the availability of qualified vendors in the market.

Industry Classification

NAICS: Public Administration › Executive, Legislative, and Other General Government Support › Other General Government Support

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 E BROAD ST, COLUMBUS, OH, 43215

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $128,100

Exercised Options: $128,100

Current Obligation: $128,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline