DOJ's $1.3B MARCS Radio Service contract awarded to Ohio DAS for 3 years

Contract Overview

Contract Amount: $130,400 ($130.4K)

Contractor: Ohio Department of Administrative Services

Awarding Agency: Department of Justice

Start Date: 2023-10-01

End Date: 2026-12-31

Contract Duration: 1,187 days

Daily Burn Rate: $110/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY23-26 D60 MARCS RADIO SERVICE

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43215

State: Ohio Government Spending

Plain-Language Summary

Department of Justice obligated $130,400 to OHIO DEPARTMENT OF ADMINISTRATIVE SERVICES for work described as: FY23-26 D60 MARCS RADIO SERVICE Key points: 1. Contract aims to provide critical radio communication services for the U.S. Marshals Service. 2. Awarded to a state agency, raising questions about typical federal procurement channels. 3. The contract's duration and value suggest a significant, long-term reliance on these services. 4. Limited public information on the specific performance metrics and value for money. 5. Competition dynamics are unclear given the award to a state entity. 6. Potential risks include vendor lock-in and ensuring interoperability with federal systems.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its unique nature, being awarded to a state agency rather than a traditional federal contractor. The total value of $1.304 billion over approximately three years indicates a substantial investment. Without comparable federal contracts for similar radio services or detailed cost breakdowns, assessing the pricing and overall value for money is difficult. Further analysis would require understanding the specific services provided and the underlying cost structure compared to market rates for comparable state or commercial offerings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The procurement method is listed as 'COMPETED UNDER SAP' (Small Acquisition Program), which typically implies a simplified acquisition procedure for smaller dollar values. However, the substantial award amount of $1.304 billion seems to contradict this classification. It is unclear how this contract was competed, the number of bidders involved, or if it was a sole-source award to the Ohio Department of Administrative Services. The lack of clarity on the competition level makes it difficult to assess its impact on price discovery and ensure the best possible value was obtained.

Taxpayer Impact: The ambiguity surrounding the competition level for this large contract raises concerns for taxpayers. If the competition was limited or not fully transparent, it could mean that taxpayers did not benefit from the most competitive pricing achievable through a broader bidding process.

Public Impact

The U.S. Marshals Service and its personnel are the primary beneficiaries, receiving essential communication capabilities. This contract supports the operational effectiveness of federal law enforcement agencies. The services are likely to have a nationwide geographic impact, given the Marshals Service's scope. It ensures the continuity of critical communication infrastructure for federal law enforcement operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency in the procurement process for a contract of this magnitude.
Potential for cost overruns if not managed effectively due to the large scale.
Dependence on a single state agency for critical federal communication services could pose risks.
Ensuring compliance with federal data security and privacy standards by a state entity.

Positive Signals

Awarding to a state agency may leverage existing, potentially cost-effective infrastructure.
The contract provides a stable, long-term communication solution for a vital federal agency.
Firm Fixed Price contract type offers cost certainty for the government.

Sector Analysis

This contract falls within the 'Other Communications Equipment Manufacturing' sector, specifically related to specialized radio services. The market for such services is often characterized by a mix of large defense contractors and specialized communication providers. The federal government is a significant consumer of communication technology and services, with spending often driven by national security, law enforcement, and public safety needs. Benchmarking this contract's value against similar large-scale federal radio system procurements would provide better context, but such data is not readily available.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the award to a state agency, it is unlikely that small businesses will be directly involved as prime contractors. Subcontracting opportunities for small businesses are not specified in the provided data, and their participation would depend on the Ohio Department of Administrative Services' procurement practices and any flow-down requirements.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided information. As it is awarded to the Ohio Department of Administrative Services, oversight would likely involve inter-agency agreements and potentially state-level review processes. Transparency regarding performance, expenditures, and adherence to terms would be crucial. The Inspector General for the Department of Justice may have jurisdiction, depending on the nature of the services and federal funding flow.

Related Government Programs

Federal Law Enforcement Communications
Public Safety Radio Systems
Department of Justice IT Procurement
State and Local Government Partnerships

Risk Flags

Procurement method unclear for large value award.
Awardee is a state agency, not a typical federal contractor.
Limited public information on competition details.
Potential for cost overruns or overpayment due to contract scale and structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $130,400 to OHIO DEPARTMENT OF ADMINISTRATIVE SERVICES. FY23-26 D60 MARCS RADIO SERVICE

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 (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $130,400.

What is the period of performance?

Start: 2023-10-01. End: 2026-12-31.

What specific communication services are included under the D60 MARCS Radio Service contract?

The provided data indicates the contract is for 'D60 MARCS RADIO SERVICE' and falls under 'Other Communications Equipment Manufacturing.' While specific details are limited, MARCS (Multi-Agency Radio Communication System) typically refers to a statewide public safety radio network. For the U.S. Marshals Service, this likely entails providing secure, reliable, and interoperable voice and data communication services essential for their law enforcement operations. This could include radio hardware, network infrastructure, maintenance, software, and potentially dispatch services. The exact scope would be detailed in the contract's statement of work, which is not publicly available in this dataset.

How does the award to the Ohio Department of Administrative Services align with federal procurement norms?

Awarding a significant federal contract to a state agency is not a typical procurement norm, which usually involves contracting with private sector companies. This suggests a unique arrangement, possibly leveraging existing state infrastructure or a specific partnership agreement. The 'COMPETED UNDER SAP' designation is also unusual for a contract valued at over $1.3 billion, typically reserved for much smaller acquisitions. This raises questions about the procurement process, whether it was a direct agreement, a grant, or a specialized intergovernmental purchase. Further investigation into the justification for this procurement method and awardee is warranted to understand its compliance with federal acquisition regulations.

What are the potential risks associated with a Firm Fixed Price contract of this magnitude?

A Firm Fixed Price (FFP) contract aims to provide cost certainty for the government by locking in the price. However, for a contract of this magnitude ($1.304 billion), risks can still arise. If the contractor (Ohio DAS) underestimates costs or encounters unforeseen issues, they may seek contract modifications or face financial strain, potentially impacting service delivery. Conversely, if the price was set too high due to insufficient competition or inaccurate cost estimation, the government might overpay. Effective management and oversight are crucial to ensure the contractor performs within the fixed price while delivering the required services, and to mitigate risks of scope creep or performance deficiencies.

What is the historical spending pattern for similar radio communication services by the U.S. Marshals Service?

Historical spending data for similar radio communication services by the U.S. Marshals Service is not provided in the current dataset. Understanding past expenditures on communication systems would offer valuable context for evaluating the current $1.304 billion award. Without this historical perspective, it is difficult to determine if this contract represents an increase, decrease, or stable level of investment in such services. Analyzing previous contracts, their durations, values, and the technologies employed would be necessary to establish a baseline for comparison and assess trends in federal spending on law enforcement communications.

How does the 'Other Communications Equipment Manufacturing' classification impact the understanding of this contract?

The classification 'Other Communications Equipment Manufacturing' suggests the contract involves the provision or manufacturing of communication equipment, potentially including radios, antennas, or related hardware, as well as associated services. This broad category implies that the contract might encompass more than just service provision, possibly including the supply of physical assets. It differentiates the contract from pure service contracts (like IT services) or construction. Understanding this classification is key to assessing the nature of the goods and services procured, the types of vendors typically involved in this sector, and the relevant market dynamics and pricing benchmarks.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15M10222RA4700153

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 E BROAD ST FL 39, 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: $131,366

Exercised Options: $131,366

Current Obligation: $130,400

Actual Outlays: $52,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline