DOJ's $58M mobile radio contract awarded to Motorola Solutions, Inc. without competition

Contract Overview

Contract Amount: $57,928,870 ($57.9M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2009-09-28

End Date: 2011-03-28

Contract Duration: 546 days

Daily Burn Rate: $106.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MOBILE AND PORTABLE RADIO EQUIPMENT FOR DEPARTMENT OF JUSTICE AND ITS COMPONENTS.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $57.9 million to MOTOROLA SOLUTIONS, INC. for work described as: MOBILE AND PORTABLE RADIO EQUIPMENT FOR DEPARTMENT OF JUSTICE AND ITS COMPONENTS. Key points: 1. The contract awarded to Motorola Solutions, Inc. for mobile and portable radio equipment represents a significant investment in the Department of Justice's communication infrastructure. 2. The sole-source nature of this award raises questions about potential price inflation and the absence of competitive pressure to ensure optimal value for taxpayer funds. 3. A lack of competition increases the risk of vendor lock-in and limits opportunities for exploring alternative or more cost-effective communication solutions. 4. The contract duration of 546 days suggests a need for ongoing support and potential for follow-on procurements, highlighting the long-term implications of this award. 5. The procurement falls under the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' NAICS code, indicating a focus on specialized communication hardware. 6. The contract's fixed-price nature aims to provide cost certainty, but the absence of competition may have prevented a more favorable price point. 7. The award was made to a single bidder, Motorola Solutions, Inc., suggesting a lack of broader market engagement for this specific requirement.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to definitively assess the value for money. The contract's value of approximately $57.9 million over its duration suggests a substantial investment. Benchmarking against similar sole-source procurements for radio equipment is challenging due to the unique nature of such awards. However, the absence of competition inherently limits the government's ability to secure the most advantageous pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Motorola Solutions, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium for this equipment and service due to the absence of competitive pressure. The government missed an opportunity to leverage competition to drive down prices and potentially secure better terms.

Public Impact

The Department of Justice and its various components are the primary beneficiaries, receiving essential mobile and portable radio communication equipment. This equipment is critical for law enforcement, investigative activities, and inter-agency communication, supporting the core mission of the DOJ. The services delivered likely include the provision, maintenance, and potentially training related to the radio systems, ensuring operational readiness. The geographic impact is likely nationwide, supporting DOJ operations across various field offices and jurisdictions. The contract supports the workforce within the DOJ by providing reliable communication tools necessary for their daily operations and safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price negotiation and potential cost savings.
Lack of competition may indicate a lack of market research or a pre-determined vendor relationship.
Potential for vendor lock-in, making future procurements more difficult and costly.
Absence of competitive benchmarking makes it hard to verify fair and reasonable pricing.
Limited transparency into the decision-making process for awarding a sole-source contract.

Positive Signals

Contract provides critical communication equipment for national security and law enforcement functions.
Fixed-price contract offers some level of cost predictability for the government.
Motorola Solutions is a known provider in the public safety radio market, suggesting potential for reliable equipment.
The contract supports essential operational capabilities for the Department of Justice.

Sector Analysis

The market for mobile and portable radio equipment is a specialized segment within the broader telecommunications and electronics manufacturing industry. This sector is characterized by high technological requirements, stringent performance standards, and often involves significant research and development. Government procurements, particularly for public safety and defense, represent a substantial portion of this market. Comparable spending benchmarks are difficult to establish without detailed specifications and competitive bid data, but large-scale procurements for critical communication systems can run into tens or hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the sole-source nature of the award to a large corporation like Motorola Solutions, Inc. suggests limited direct subcontracting opportunities for small businesses through a competitive process. While Motorola may engage small businesses in its supply chain, this contract itself does not appear designed to foster direct small business participation or set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement and contract management offices. The contract's fixed-price nature provides some cost control, but the lack of competition limits the effectiveness of price oversight. Transparency is reduced due to the sole-source award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

Department of Justice Communications Systems
Public Safety Radio Networks
Law Enforcement Equipment Procurement
Federal Wireless Communications
Mobile Radio Technology Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $57.9 million to MOTOROLA SOLUTIONS, INC.. MOBILE AND PORTABLE RADIO EQUIPMENT FOR DEPARTMENT OF JUSTICE AND ITS COMPONENTS.

Who is the contractor on this award?

The obligated recipient is MOTOROLA SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $57.9 million.

What is the period of performance?

Start: 2009-09-28. End: 2011-03-28.

What is the track record of Motorola Solutions, Inc. in fulfilling similar federal contracts, particularly sole-source awards?

Motorola Solutions, Inc. has a long history of providing communication systems to government agencies, including the Department of Justice. They are a major player in the public safety radio market. While specific data on their sole-source contract fulfillment is not detailed here, their extensive experience suggests a capacity to deliver. However, the absence of competition in this specific award means that performance metrics and pricing cannot be benchmarked against other potential providers for this particular requirement. Federal procurement databases often show numerous contracts awarded to Motorola Solutions across various agencies, indicating a significant presence. A deeper analysis would involve reviewing past performance evaluations and any disputes or issues encountered on prior similar contracts.

How does the pricing of this contract compare to market rates for similar mobile and portable radio equipment, considering it was sole-sourced?

Directly comparing the pricing of this sole-sourced contract to market rates is challenging because competitive bidding, which typically drives prices down, was absent. Without competing bids, it's difficult to ascertain if the government secured the most advantageous pricing. Motorola Solutions, Inc. is a major supplier, and their pricing structures can vary based on volume, features, and support agreements. To assess value, one would ideally compare this contract's unit costs and overall value against publicly available pricing for comparable equipment from other vendors or against historical data from previously competed contracts for similar systems. The lack of competition inherently raises concerns that the price may not be as competitive as it could have been in a fully open market.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with a sole-source award of this magnitude include potential overpayment due to the lack of competitive pricing pressure, vendor lock-in which can make future procurements more expensive and less flexible, and reduced innovation as there is less incentive for the vendor to offer cutting-edge solutions when competition is absent. There's also a risk of reduced transparency in the procurement process and potentially less rigorous scrutiny of the vendor's proposed costs and technical approach. Furthermore, if the sole-source justification is weak or if the vendor fails to perform adequately, the government has limited recourse compared to a competitive scenario where alternative vendors could be engaged.

What is the historical spending pattern for mobile and portable radio equipment within the Department of Justice?

Historical spending on mobile and portable radio equipment within the Department of Justice likely shows a consistent need for these communication tools, given the operational requirements of its various components like the FBI, DEA, and Marshals Service. While this specific contract is for approximately $57.9 million, broader spending patterns would encompass numerous smaller awards, sustainment contracts, and upgrades over time. Analyzing historical data would reveal trends in technology adoption, vendor reliance, and overall budget allocation for such equipment. It's probable that Motorola Solutions, Inc. and other major providers have historically received significant portions of this spending, especially for mission-critical systems. Understanding these patterns is crucial for forecasting future needs and identifying potential areas for cost optimization.

What are the implications of this contract being awarded under a Firm Fixed Price (FFP) contract type, especially given the sole-source nature?

A Firm Fixed Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. This provides cost certainty for the government, as the total cost is known upfront. However, when combined with a sole-source award, the benefit of cost certainty is somewhat diminished. The government is locked into a price without the assurance that it is the most competitive price achievable. While the FFP structure protects the government from cost overruns by the contractor, the initial price itself might be higher than it would have been in a competitive environment. The contractor assumes the risk of cost overruns, but the government assumes the risk of paying a non-competitive price.

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: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7031 COLUMBIA GATEWAY DR 3RD FL, COLUMBIA, MD, 03

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

Financial Breakdown

Contract Ceiling: $57,928,870

Exercised Options: $57,928,870

Current Obligation: $57,928,870

Parent Contract

Parent Award PIID: DJDEA09C0007

IDV Type: IDC

Timeline