DHS awards $37.5M contract to Motorola Solutions for TSA LMR upgrade, operations, and maintenance

Contract Overview

Contract Amount: $37,474,581 ($37.5M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-03-06

End Date: 2025-03-05

Contract Duration: 1,825 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TSA LMR UPGRADE, OPERATIONS, AND MAINTENANCE

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.5 million to MOTOROLA SOLUTIONS, INC. for work described as: TSA LMR UPGRADE, OPERATIONS, AND MAINTENANCE Key points: 1. Contract value of $37.5M over 5 years for critical communication systems. 2. Full and open competition suggests a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs. 4. Awarded to a single vendor, Motorola Solutions, Inc. 5. Performance period spans 5 years, indicating a long-term need. 6. The contract supports essential operations for the Transportation Security Administration.

Value Assessment

Rating: good

The contract value of $37.5M over five years for LMR (Land Mobile Radio) systems appears reasonable given the critical nature of TSA operations. Benchmarking against similar large-scale communications infrastructure projects is challenging without more specific details on the scope of 'upgrade, operations, and maintenance.' However, the firm fixed-price structure is a positive indicator for cost control. The number of bids received (2) is on the lower side for a full and open competition, which could warrant further investigation into pricing competitiveness.

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 a bid. However, only two bids were received. While full and open competition is generally preferred for maximizing price discovery, a low number of bidders can sometimes suggest market concentration or high barriers to entry for potential competitors. This limited competition might have influenced the final pricing.

Taxpayer Impact: The limited number of bidders in this full and open competition could mean that taxpayers did not benefit from the most competitive pricing possible. Further analysis of the bids submitted would be necessary to confirm if the price achieved was indeed optimal.

Public Impact

Benefits TSA personnel by providing reliable and upgraded communication systems. Ensures continued operational effectiveness for airport security and passenger screening. Supports the broader Department of Homeland Security's mission. Impacts federal employees working within TSA's operational framework. Geographic impact is nationwide, covering all airports and TSA operational areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition may indicate potential market concentration or barriers to entry.
The specific scope of 'upgrade, operations, and maintenance' is broad and requires detailed understanding for full value assessment.

Positive Signals

Firm Fixed Price contract type helps to mitigate cost overruns.
Long-term contract (5 years) provides stability for essential communication services.
Awarded under full and open competition, adhering to procurement best practices.

Sector Analysis

This contract falls within the telecommunications and broadcasting equipment manufacturing sector, specifically related to wireless communications. The market for public safety and government communication systems is often dominated by a few large players due to high R&D costs and specialized requirements. The $37.5M value is significant for a single contract but represents a portion of the overall federal spending on communication infrastructure, which is a multi-billion dollar market annually.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business) flag is false and the 'ss' (small business set-aside) flag is also false. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the prime contractor, Motorola Solutions, Inc., is not mandated to subcontract a specific portion of this work to small businesses under this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). As a delivery order under a larger contract vehicle, oversight mechanisms would likely include performance monitoring, quality assurance checks, and financial reviews by contracting officers and program managers. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DHS Communications Systems Contracts
TSA Technology Modernization Programs
Federal Law Enforcement Radio Systems
Public Safety Communications Infrastructure

Risk Flags

Limited competition (2 bidders) in a full and open solicitation.
Potential for vendor lock-in due to market concentration in LMR systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.5 million to MOTOROLA SOLUTIONS, INC.. TSA LMR UPGRADE, OPERATIONS, AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is MOTOROLA SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $37.5 million.

What is the period of performance?

Start: 2020-03-06. End: 2025-03-05.

What is the specific nature of the 'upgrade' being performed on the TSA's LMR system?

The provided data does not detail the specific technical aspects of the 'upgrade' to the TSA's Land Mobile Radio (LMR) system. Typically, LMR upgrades can involve transitioning to newer digital technologies, expanding coverage areas, enhancing encryption for security, improving interoperability with other agencies, or replacing aging hardware components. Without further documentation, it's difficult to ascertain the exact technological advancements or the scope of the modernization. This information is crucial for understanding the full value proposition and potential long-term benefits of the contract beyond basic operations and maintenance.

How does the $37.5M contract value compare to historical spending on TSA LMR systems?

Historical spending data for TSA's LMR systems is not provided in the current dataset. To assess the value of this $37.5M contract, a comparative analysis of previous contracts for similar LMR services, upgrades, and maintenance would be necessary. Factors such as inflation, technological advancements, and changes in operational requirements over time would need to be considered. A trend analysis of TSA's investment in communication infrastructure would offer context on whether this award represents an increase, decrease, or stable level of spending for these critical services.

What are the key performance indicators (KPIs) for this contract, and how is Motorola Solutions' performance being measured?

The provided contract data does not specify the Key Performance Indicators (KPIs) or the detailed performance measurement plan for this contract. In government contracts, especially for critical infrastructure like LMR systems, KPIs often include metrics such as system uptime, response times for maintenance, signal quality, adherence to security protocols, and successful completion of upgrade milestones. Performance is typically monitored by the contracting officer's representative (COR) through regular reports, site visits, and user feedback. Failure to meet KPIs can result in penalties or contract termination.

What is Motorola Solutions' track record with similar federal communication system contracts?

Motorola Solutions, Inc. is a well-established provider of communication systems, including LMR, for government and public safety agencies. They have a significant track record in delivering and maintaining such systems for various federal entities, including defense, law enforcement, and transportation sectors. While specific details of past TSA contracts or similar large-scale federal projects are not in this dataset, their market presence suggests extensive experience. A deeper dive into their contract history with agencies like DHS, FBI, or DoD would provide a more comprehensive view of their performance and reliability.

Given only two bidders, what is the risk of vendor lock-in or reduced future competition?

The fact that only two bids were received for this 'full and open competition' contract does present a potential risk of vendor lock-in and reduced future competition. If Motorola Solutions is the incumbent or a dominant player in the LMR market for TSA, it may be difficult for new or smaller competitors to enter and challenge their position. This situation can lead to higher prices in subsequent contract renewals or modifications, as the government may have fewer viable alternatives. Proactive market research and efforts to foster competition among a wider range of vendors are crucial to mitigate this risk.

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: 2

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: $51,616,160

Exercised Options: $46,383,964

Current Obligation: $37,474,581

Actual Outlays: $22,701,167

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B04C19D00000010

IDV Type: IDC

Timeline