DHS awards $45.9M for Motorola radios, facing questions on value and competition

Contract Overview

Contract Amount: $45,908,580 ($45.9M)

Contractor: Tribalco LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-18

End Date: 2022-09-18

Contract Duration: 730 days

Daily Burn Rate: $62.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PORTABLE AND MOBILE RADIOS FROM MOTOROLA. TO HAVE ENCRYPTION. BACKWARDS CAPABILITY TO OTHER NON-MOTOROLA DEVICES. AND BATTERIES.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $45.9 million to TRIBALCO LLC for work described as: PORTABLE AND MOBILE RADIOS FROM MOTOROLA. TO HAVE ENCRYPTION. BACKWARDS CAPABILITY TO OTHER NON-MOTOROLA DEVICES. AND BATTERIES. Key points: 1. The contract's value proposition is unclear without detailed performance metrics and comparisons to similar radio systems. 2. Full and open competition was utilized, but the limited number of bids raises concerns about effective price discovery. 3. Potential risks include vendor lock-in due to encryption requirements and backward compatibility demands. 4. The contract duration of two years suggests a need for ongoing evaluation of technological advancements in radio communication. 5. This spending falls within the broader category of communications equipment manufacturing, a sector with diverse technological offerings. 6. The reliance on a specific brand (Motorola) for encryption and compatibility may limit future flexibility and cost-saving opportunities.

Value Assessment

Rating: fair

The total award of $45.9 million over two years for portable and mobile radios, including encryption and backward compatibility, appears substantial. Benchmarking this against similar government procurements for advanced communication systems is difficult without more specific details on the technical specifications and quantities. The firm-fixed-price nature suggests cost certainty, but the overall value for money hinges on the system's performance, reliability, and long-term operational costs, which are not detailed here. The per-unit cost is not readily calculable without quantity information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, only three bids were received. While competition was allowed, the low number of bidders might suggest barriers to entry, such as specialized technical requirements or the dominance of a few key players in the market for encrypted radios. This limited competition could potentially impact the government's ability to secure the most competitive pricing.

Taxpayer Impact: A limited number of bidders, even under full and open competition, can lead to higher prices for taxpayers if the market is not sufficiently competitive or if the technical requirements favor a small number of vendors.

Public Impact

Immigration and Customs Enforcement (ICE) personnel will benefit from enhanced communication capabilities through these radios. The radios are intended for secure voice communication, critical for law enforcement and border security operations. The geographic impact is likely nationwide, supporting ICE operations across various field offices. The acquisition supports the technology infrastructure necessary for federal law enforcement workforces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specific encryption and backward compatibility requirements favoring Motorola.
Limited competition (3 bidders) may have resulted in suboptimal pricing.
The need for encryption and specific compatibility could limit future technology upgrades or alternative solutions.
Lack of detailed performance metrics makes it difficult to assess the true value for money.

Positive Signals

Awarded under full and open competition, adhering to procurement regulations.
Firm-fixed-price contract provides cost certainty for the government.
Includes backward compatibility, potentially easing integration with existing non-Motorola systems.
Addresses critical communication needs for a federal law enforcement agency.

Sector Analysis

This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. This industry is characterized by rapid technological advancements, particularly in areas like digital communication, encryption, and interoperability. Government spending in this sector often focuses on secure and reliable communication systems for public safety, defense, and law enforcement. Comparable spending benchmarks are difficult to establish without knowing the specific technical capabilities and quantities of radios procured, but large-scale procurements for encrypted communication systems can range from tens to hundreds of millions of dollars.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the specialized nature of encrypted communication systems and the potential requirements for specific technical expertise and certifications, it is possible that larger, established defense or communications contractors were the primary participants. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless specific subcontracting plans were mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. The Department of Homeland Security (DHS) also has an Office of Inspector General (OIG) that conducts audits and investigations into departmental spending to ensure accountability and prevent waste, fraud, and abuse. Transparency is facilitated through contract databases like FPDS, where basic award information is published. However, detailed performance reports and audits are not always publicly accessible.

Related Government Programs

DHS Radio Communications Systems
ICE Law Enforcement Technology
Federal Secure Communications Procurement
Wireless Communication Equipment Contracts
Encryption Technology Acquisition

Risk Flags

Limited competition despite full and open process.
Potential for vendor lock-in.
Lack of detailed performance metrics for value assessment.
Unclear per-unit cost without quantity information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $45.9 million to TRIBALCO LLC. PORTABLE AND MOBILE RADIOS FROM MOTOROLA. TO HAVE ENCRYPTION. BACKWARDS CAPABILITY TO OTHER NON-MOTOROLA DEVICES. AND BATTERIES.

Who is the contractor on this award?

The obligated recipient is TRIBALCO LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $45.9 million.

What is the period of performance?

Start: 2020-09-18. End: 2022-09-18.

What is the specific model of Motorola radios procured, and what are their key technical specifications, particularly regarding encryption standards and backward compatibility features?

The provided data does not specify the exact model of Motorola radios. However, the description indicates they must have encryption capabilities and backward compatibility with non-Motorola devices. Encryption standards can vary widely, from AES-256 to proprietary algorithms, impacting security levels and interoperability. Backward compatibility often refers to the ability to communicate with older radio systems or different frequency bands. Without the specific model and detailed technical specifications, it's impossible to fully assess the suitability and security of the procured equipment. Further investigation would require accessing the contract's statement of work or technical exhibits.

How does the per-unit cost of these radios compare to similar encrypted radio systems purchased by other federal agencies or state/local law enforcement?

The provided data does not include the quantity of radios purchased, making it impossible to calculate a per-unit cost. The total award is $45.9 million. To perform a meaningful comparison, one would need to know the number of units procured and their specific configurations (e.g., portable vs. mobile, battery life, feature sets). Benchmarking would involve accessing similar contract awards from agencies like the FBI, DEA, or large state police departments that procure encrypted radio systems. Without this comparative data, assessing whether the $45.9 million represents a good value on a per-unit basis is not feasible.

What are the potential risks associated with the requirement for backward compatibility with non-Motorola devices, and how might this impact future upgrades or interoperability?

The requirement for backward compatibility with non-Motorola devices, while potentially easing integration with existing infrastructure, introduces several risks. It could lead to vendor lock-in, as the system might be designed around specific interfaces or protocols that only Motorola can fully support. This could limit the government's ability to switch to different vendors or adopt newer, potentially more cost-effective technologies in the future. Furthermore, ensuring seamless and secure backward compatibility can be technically challenging and may require ongoing maintenance or specific software/hardware add-ons, increasing long-term costs. It might also compromise the overall security posture if older, less secure protocols are involved.

Given that only three bids were received under full and open competition, what factors might have deterred other potential bidders, and what is the implication for price competition?

Several factors could have deterred potential bidders despite the 'full and open' designation. These might include highly specific technical requirements (e.g., proprietary encryption algorithms, unique backward compatibility needs) that favor incumbent or specialized manufacturers like Motorola. High research and development costs associated with advanced encryption and interoperability features could also be a barrier. Furthermore, the contract's duration and potential for follow-on work might have been insufficient to justify the investment for some companies. The implication of only three bidders is a reduced level of price competition. This scenario increases the risk that the awarded price may not be the lowest achievable, as the government has fewer options to negotiate with and less leverage to drive down costs.

What is the track record of TRIBALCO LLC in delivering complex communication systems, particularly those involving encryption and interoperability, to federal agencies?

Information regarding TRIBALCO LLC's specific track record with complex communication systems, especially those involving encryption and interoperability, is not detailed in the provided data. A thorough assessment would require reviewing their past performance on similar contracts, including client satisfaction, on-time delivery, adherence to technical specifications, and any history of contract disputes or performance issues. Federal procurement databases (like SAM.gov or FPDS) might contain past performance information or ratings. Without this context, it's difficult to evaluate their capability to successfully execute this particular $45.9 million award.

How does this $45.9 million award for radios compare to historical spending by DHS or ICE on similar communication equipment over the past five years?

To compare this $45.9 million award to historical spending, one would need to analyze DHS and ICE procurement data for radio communication equipment over the last five years. This analysis should focus on contracts with similar technical requirements (encryption, interoperability) and contract types (firm-fixed-price). It would involve querying databases like FPDS to identify relevant awards, their values, and durations. A higher or lower spending trend in this area could indicate changes in agency needs, technological adoption, or procurement strategies. Without access to this historical data, it's impossible to determine if this award represents an increase, decrease, or average level of spending for such equipment.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tribalco, LLC

Address: 7735 OLD GEORGETOWN RD FL 12, BETHESDA, MD, 20814

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

Financial Breakdown

Contract Ceiling: $58,883,059

Exercised Options: $54,190,785

Current Obligation: $45,908,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B04C19D00000021

IDV Type: IDC

Timeline