DOJ's $1.26M Motorola radio contract awarded to sole bidder, raising competition concerns

Contract Overview

Contract Amount: $126,300 ($126.3K)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $173/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IOD-GLRFTF: MOTOROLA STARCOM21 RADIO SOLUTIONS CF: APC-FY22-000184

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60661

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $126,300 to MOTOROLA SOLUTIONS, INC. for work described as: IOD-GLRFTF: MOTOROLA STARCOM21 RADIO SOLUTIONS CF: APC-FY22-000184 Key points: 1. Contract awarded to a single bidder, limiting price discovery and potentially increasing costs. 2. Firm Fixed Price contract type offers cost certainty but may not capture all potential efficiencies. 3. The contract duration of 729 days suggests a need for sustained radio communication services. 4. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller value procurements. 5. The specific Product Service Code (PSC) is missing, hindering detailed analysis of the goods/services procured. 6. Geographic location of the award is Illinois, potentially impacting regional communication infrastructure.

Value Assessment

Rating: questionable

The contract value of $1.26 million is relatively modest. However, without a competitive bidding process, it is difficult to assess if this represents fair market value. Benchmarking against similar radio communication equipment procurements would be necessary to determine if the pricing is competitive. The lack of competition is a primary driver for this questionable value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under Simplified Acquisition Procedures (SAP) and appears to have had only one bidder, Motorola Solutions, Inc. While SAP is intended for smaller purchases, the lack of multiple bids raises concerns about the extent of competition. It is unclear if other vendors were solicited or if there were specific justifications for a sole-source award within the SAP framework.

Taxpayer Impact: A sole-source award, even under SAP, means taxpayers did not benefit from competitive pricing that could have potentially lowered the overall cost of the radio solutions.

Public Impact

Law enforcement agencies, specifically the U.S. Marshals Service, will benefit from enhanced radio communication capabilities. The contract ensures the provision of radio and wireless communication equipment, crucial for operational effectiveness. The geographic impact is centered in Illinois, supporting federal law enforcement operations within that state. Workforce implications include ensuring federal agents have reliable communication tools for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices for taxpayers.
Sole-source award within SAP framework warrants further investigation into procurement process.
Absence of PSC data limits detailed understanding of procured items.
Contract duration could be optimized if competitive bidding were employed.

Positive Signals

Award to established vendor Motorola Solutions, Inc. suggests potential for reliable equipment.
Firm Fixed Price contract provides budget predictability for the U.S. Marshals Service.
Contract supports critical law enforcement communication needs.

Sector Analysis

The contract falls within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector. This sector is characterized by rapid technological advancements and significant investment in infrastructure. Federal spending in this area supports national security, public safety, and critical infrastructure communications. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar radio systems, considering factors like system complexity, user base, and geographic coverage.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Motorola Solutions, Inc. engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal audit and compliance functions, as well as the U.S. Marshals Service's program management. Transparency is limited by the lack of detailed procurement documentation available in this summary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Law Enforcement Communications Systems
Public Safety Radio Networks
Wireless Communication Equipment Procurement
Department of Justice IT Spending

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Procurement Method

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $126,300 to MOTOROLA SOLUTIONS, INC.. IOD-GLRFTF: MOTOROLA STARCOM21 RADIO SOLUTIONS CF: APC-FY22-000184

Who is the contractor on this award?

The obligated recipient is MOTOROLA SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $126,300.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the track record of Motorola Solutions, Inc. in fulfilling federal contracts for similar radio systems?

Motorola Solutions, Inc. is a well-established provider of communication solutions, including public safety radio systems, for government agencies. They have a long history of supplying equipment and services to various federal entities, including law enforcement and defense. Their track record generally includes delivering complex communication networks and devices. However, specific performance metrics for past federal contracts, such as on-time delivery, adherence to budget, and system reliability, would require a deeper dive into contract databases and performance reports. Given their market position, they are often a primary, and sometimes sole, source for certain advanced radio technologies.

How does the awarded price compare to market rates for similar radio solutions?

Directly comparing the awarded price of $1.26 million to market rates is challenging without knowing the exact specifications of the 'MOTOROLA STARCOM21 RADIO SOLUTIONS' and the quantity of units procured. However, the fact that this was a sole-source award under SAP suggests that a competitive bidding process, which typically drives prices down, did not occur. To benchmark effectively, one would need to identify comparable contracts awarded through full and open competition for similar radio systems, considering factors like system features, capacity, and support services. Without such comparisons, it's difficult to definitively state if the price is advantageous or disadvantageous to the government.

What are the primary risks associated with a sole-source award in this context?

The primary risks associated with a sole-source award, as seen in this case, include the potential for inflated pricing due to the absence of competitive pressure. Taxpayers may end up paying more than necessary. Another risk is a lack of innovation, as the government is not exposed to potentially better or more cost-effective solutions from other vendors. Furthermore, reliance on a single vendor can create long-term dependencies and potential vulnerabilities if that vendor faces financial difficulties or changes its product strategy. Ensuring the vendor's continued commitment and competitive pricing over the life of the contract becomes a critical oversight function.

How effective are SAP procurements in ensuring value for money when competition is limited?

Simplified Acquisition Procedures (SAP) are designed for efficiency and speed in procuring goods and services below certain dollar thresholds (currently $250,000, though this contract exceeds that, suggesting it might have been under older thresholds or specific exceptions). While SAP can streamline the process, its effectiveness in ensuring value for money is heavily dependent on the level of competition. When SAP is used with limited or sole-source competition, the potential for obtaining the best value is significantly reduced. Agencies are expected to promote competition to the maximum extent practicable, even within SAP. If competition is inherently limited due to the nature of the product or market, agencies should explore other contracting strategies or justifications for sole-source awards.

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

Analyzing historical spending patterns for radio communication solutions by the U.S. Marshals Service would involve examining past contract awards for similar equipment and services. This would reveal trends in vendor selection, contract values, and procurement methods (e.g., competitive vs. sole-source). A review might show a consistent reliance on specific vendors like Motorola Solutions, Inc., or a shift towards different technologies over time. Understanding historical spending helps contextualize current awards, identify potential areas for cost savings through increased competition, and forecast future needs. Without access to specific historical data for the Marshals Service, it's difficult to provide precise patterns.

What are the implications of the contract duration (729 days) on the overall cost and technology lifecycle?

A contract duration of 729 days (approximately two years) for radio solutions implies a need for sustained operational capability. From a cost perspective, a longer duration can sometimes offer better pricing stability if negotiated upfront. However, in rapidly evolving technology sectors like wireless communications, a two-year term might mean the government is locked into technology that could become outdated or less efficient compared to newer market offerings. This duration needs to be balanced against the time required for procurement processes and the expected lifespan of the technology. Shorter, more frequent contract cycles might allow for quicker adoption of advancements but could increase administrative burden and potentially lead to less favorable pricing if competition is not consistently pursued.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15M10222QA4700135

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 809 PINNACLE DR STE G, LINTHICUM HEIGHTS, MD, 21090

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $126,300

Exercised Options: $126,300

Current Obligation: $126,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15M10222AA4701867

IDV Type: BPA

Timeline