DOJ's $64M Motorola contract for LMR maintenance shows fair value despite limited competition

Contract Overview

Contract Amount: $64,239,505 ($64.2M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2013-09-28

End Date: 2019-10-31

Contract Duration: 2,224 days

Daily Burn Rate: $28.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF - LAND MOBILE RADIO MAINTENANCE

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $64.2 million to MOTOROLA SOLUTIONS, INC. for work described as: IGF::CT::IGF - LAND MOBILE RADIO MAINTENANCE Key points: 1. Contract value appears reasonable given the specialized nature of Land Mobile Radio (LMR) systems. 2. The contract was awarded via full and open competition, suggesting a competitive process. 3. Performance risk appears low due to the established nature of the technology and contractor. 4. The contract duration of over 6 years provides stability for critical communications infrastructure. 5. This spending falls within the broader category of communications equipment and services for law enforcement. 6. The fixed-price contract type helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract's total value of approximately $64.2 million over its life appears reasonable for maintaining critical Land Mobile Radio (LMR) systems. While direct comparisons are difficult without specific service level agreements and equipment details, the price per year is roughly $9.1 million. This is within a typical range for specialized telecommunications maintenance contracts supporting federal agencies. The firm fixed-price structure provides cost predictability, which is a positive indicator of value.

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. This suggests a robust bidding process. However, the number of actual bidders is not specified in the provided data, which limits a deeper assessment of the competitive intensity. A high level of competition generally leads to better pricing and terms for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best possible pricing and service through market forces, preventing potential overcharges associated with less competitive solicitations.

Public Impact

This contract directly supports the Drug Enforcement Administration (DEA) and other Department of Justice components by ensuring the operational readiness of their Land Mobile Radio (LMR) communication systems. The services provided are critical for law enforcement operations, enabling secure and reliable voice communications for agents in the field. The geographic impact is nationwide, as DEA agents operate across the United States and potentially in international locations requiring robust communication. The contract ensures the continued employment of personnel involved in the maintenance, repair, and support of these specialized communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of true competitive pressure.
Potential for vendor lock-in if specialized knowledge or equipment is required for maintenance.
Reliance on a single contractor for critical communication infrastructure could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a fair market process.
Firm fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
The contractor, Motorola Solutions, Inc., is a well-established provider of LMR systems, indicating experience and reliability.
The contract duration of over 6 years allows for consistent support of essential communication services.

Sector Analysis

This contract falls within the Telecommunications Equipment and Services sector, specifically focusing on the manufacturing and maintenance of radio and wireless communications equipment. The market for public safety communication systems, including LMR, is specialized and often dominated by a few key players like Motorola Solutions. Spending benchmarks for similar federal contracts supporting critical communication infrastructure can vary widely based on system complexity, geographic coverage, and service level agreements.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that small businesses were not specifically targeted for this contract. There is no information on subcontracting plans, so the impact on the small business ecosystem is not directly discernible from this data alone. Larger contracts like this often involve prime contractors who may or may not utilize small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Drug Enforcement Administration (DEA) or the relevant Department of Justice component. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful service delivery. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Law Enforcement Communications
Public Safety Radio Systems
Department of Justice IT and Communications Procurement
Wireless Communications Equipment Maintenance
DEA Operational Support Contracts

Risk Flags

Potential for vendor lock-in
Technological obsolescence risk
Reliance on single provider for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $64.2 million to MOTOROLA SOLUTIONS, INC.. IGF::CT::IGF - LAND MOBILE RADIO MAINTENANCE

Who is the contractor on this award?

The obligated recipient is MOTOROLA SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $64.2 million.

What is the period of performance?

Start: 2013-09-28. End: 2019-10-31.

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

Motorola Solutions, Inc. has a long-standing and extensive track record in providing Land Mobile Radio (LMR) systems and associated maintenance services to various federal agencies, including law enforcement and public safety organizations. Their experience spans decades, covering the deployment, operation, and sustainment of critical communication networks. Federal procurement databases often show numerous awards to Motorola for similar services, indicating a consistent ability to meet government requirements. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive performance history. However, as with any large contractor, there may be instances of past performance issues or disputes that would require deeper investigation into individual contract histories.

How does the pricing of this contract compare to other federal LMR maintenance contracts awarded around the same period?

Benchmarking the pricing of this $64.2 million contract against other federal LMR maintenance contracts requires access to detailed comparative data, which is not fully available in the provided snippet. Factors such as system complexity, geographic scope, service level agreements (SLAs), and the specific technologies involved can significantly influence pricing. Generally, contracts awarded through full and open competition tend to reflect market rates more accurately than sole-source awards. The annual value of approximately $9.1 million for this contract appears within a reasonable range for maintaining complex, nationwide communication systems. However, a precise comparison would necessitate analyzing contracts with similar scope, duration, and service requirements from agencies like the FBI, DHS, or other federal entities that rely on LMR technology.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance degradation of the LMR systems, technological obsolescence, and contractor dependency. If Motorola Solutions fails to provide adequate maintenance, the critical communication capabilities of the DEA could be compromised, impacting operational effectiveness and officer safety. Technological obsolescence is a risk as LMR technology evolves, potentially making the current systems outdated. Contractor dependency arises because specialized knowledge and equipment are often required for LMR maintenance, making it difficult to switch providers quickly. Mitigation strategies include the firm fixed-price contract type, which incentivizes the contractor to perform efficiently, and the full and open competition award, which theoretically selects a capable provider. The contract's duration also allows for performance monitoring over time, and the government likely has clauses for addressing performance deficiencies or terminating the contract for cause if necessary.

How effective is the Land Mobile Radio (LMR) system supported by this contract in meeting the DEA's operational needs?

The effectiveness of the LMR system supported by this contract is crucial for the DEA's operational needs, as these systems provide reliable, secure voice communications for agents in the field. LMR systems are designed for mission-critical operations, offering features like group calls, emergency alerts, and robust performance in challenging environments where cellular networks might fail. The fact that the DEA continues to invest in maintenance for these systems, awarding a multi-year contract, suggests they are considered essential and effective for current operations. However, the long-term effectiveness may depend on the system's ability to integrate with newer technologies (like P25 standards or LTE) and adapt to evolving communication requirements. Without specific performance metrics or user feedback, a definitive assessment of 'effectiveness' is challenging, but the continued reliance on LMR points to its ongoing utility.

What are the historical spending patterns for LMR maintenance within the Department of Justice?

Historical spending patterns for Land Mobile Radio (LMR) maintenance within the Department of Justice (DOJ) likely show consistent investment in these critical communication systems over many years. Agencies within the DOJ, such as the DEA, FBI, and others, rely heavily on LMR for their field operations. Spending would typically fluctuate based on the age of the deployed systems, the need for upgrades, and the specific maintenance contracts in place. Contracts for LMR maintenance are often long-term due to the specialized nature of the equipment and the need for continuity. The $64.2 million awarded to Motorola Solutions represents a significant, but potentially typical, expenditure for a large component like the DEA over a multi-year period. Analyzing historical data would reveal trends in contract values, durations, and the primary service providers utilized by the DOJ for LMR support.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7031 COLUMBIA GATEWAY DR FL 3, COLUMBIA, MD, 21046

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: $83,111,931

Exercised Options: $73,042,836

Current Obligation: $64,239,505

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSSS0112D0002

IDV Type: IDC

Timeline