DoD's $12.8M Motorola contract for telecom equipment saw limited competition, raising value concerns

Contract Overview

Contract Amount: $12,852,958 ($12.9M)

Contractor: Motorola Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-09-30

End Date: 2007-06-30

Contract Duration: 273 days

Daily Burn Rate: $47.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TAS::21 2020::TAS 200612!000665!5700!FA4890!ACCCONS/CC !GS35F0004L !C!N! !N!FA489006F0091! !20060930!20070801!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DR 3!COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000013435805!N!N!000000000000!5805!TELEPHONE AND TELEGRAPH EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! !5700! !0001! !

Place of Performance

Location: LANGLEY AFB, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to MOTOROLA SOLUTIONS, INC. for work described as: TAS::21 2020::TAS 200612!000665!5700!FA4890!ACCCONS/CC !GS35F0004L !C!N! !N!FA489006F0091! !20060930!20070801!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DR 3!COLUMBIA !MD!21046!19125!027!24!COLUMBI… Key points: 1. The contract's value appears high relative to its short duration and limited competition. 2. Competition was not fully open, suggesting potential for better pricing through broader outreach. 3. The specific equipment procured is critical for communication infrastructure, but its exact use is not detailed. 4. Performance risks are not explicitly detailed, but limited competition can sometimes correlate with higher prices. 5. This contract falls within the broader electronics and communication equipment sector. 6. The price per unit is not readily benchmarkable without more specific product details.

Value Assessment

Rating: questionable

The total award amount of $12,852,957.51 for a 9-month period raises questions about value for money, especially given the limited competition. Without specific details on the quantity and type of telephone and telegraph equipment, it's difficult to benchmark against similar contracts. However, the relatively high total cost for a short duration suggests a potentially inflated per-unit cost or a scope that might have been achievable at a lower price point with more robust competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the data indicates only one award was made, suggesting that while the opportunity was open, only one offer was deemed suitable or submitted. This could imply a specialized requirement or a lack of market interest from multiple vendors, potentially limiting the competitive pressure on pricing.

Taxpayer Impact: While full and open competition was advertised, the outcome of a single award means taxpayers may not have benefited from the full potential of competitive bidding to drive down costs.

Public Impact

The primary beneficiaries are likely military personnel and operations requiring secure and reliable communication systems. The contract delivered telephone and telegraph equipment, essential for command and control infrastructure. The geographic impact is primarily within Department of Defense operations, with potential implications for bases or deployed units. Workforce implications are indirect, relating to the maintenance and operation of the procured communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment due to limited competitive bids despite 'full and open' status.
Lack of detailed product specifications makes it hard to assess true market value.
Short contract duration for a significant dollar amount warrants scrutiny of unit pricing.

Positive Signals

Awarded under 'full and open competition', indicating an attempt to solicit broad market participation.
Contractor is a known entity in the telecommunications equipment space.
Procurement of essential communication equipment supports critical defense functions.

Sector Analysis

This contract falls under the broader 'Electronics and Communication Equipment' sector, specifically related to telecommunications hardware. The North American Industry Classification System (NAICS) code 334111 (Electronic Computer Manufacturing) is listed, though 334210 (Telephone Apparatus Manufacturing) might be more precise for 'Telephone and Telegraph Equipment'. Spending in this sector is substantial within the DoD, supporting everything from tactical communications to base infrastructure. Benchmarking is difficult without precise product details, but contracts for communication hardware can range from thousands to millions depending on scale and technology.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting goals. The primary contractor, Motorola Solutions, Inc., is a large business. Therefore, the direct impact on the small business ecosystem is likely minimal, and there's no explicit mechanism for small business participation evident in the provided data.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's existing procurement regulations and potentially the Inspector General's office if specific concerns arise regarding fraud, waste, or abuse. Transparency is limited by the available data; while the award is public, detailed justifications for the pricing or specific performance metrics are not provided. Accountability rests with the contracting officers and program managers within the Air Force.

Related Government Programs

Defense Communications Systems
Tactical Communication Equipment
Telecommunications Infrastructure Procurement
DoD Electronics and Equipment Contracts

Risk Flags

Potential for suboptimal pricing due to limited competition.
Lack of detailed product specification hinders value assessment.
High award value for a short contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to MOTOROLA SOLUTIONS, INC.. TAS::21 2020::TAS 200612!000665!5700!FA4890!ACCCONS/CC !GS35F0004L !C!N! !N!FA489006F0091! !20060930!20070801!069373090!005527247!001325463!N!MOTOROLA, INC !7031 COLUMBIA GATEWAY DR 3!COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000013435805!N!N!000000000000!5805!TELEPHONE AND TELEGRAPH EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !334220!E

Who is the contractor on this award?

The obligated recipient is MOTOROLA SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2006-09-30. End: 2007-06-30.

What specific type of telephone and telegraph equipment was procured under this contract?

The provided data indicates the procurement was for 'TELEPHONE AND TELEGRAPH EQUIPMENT' under NAICS code 334111 (Electronic Computer Manufacturing), though a more specific code like 334210 (Telephone Apparatus Manufacturing) might be applicable. However, the exact models, quantities, and technical specifications of the equipment are not detailed in the available information. This lack of specificity makes it challenging to perform a precise value analysis or compare it directly to market prices for specific hardware.

How does the $12.8M award compare to similar contracts for communication equipment within the DoD?

Comparing this $12.8M award requires more granular data on the specific equipment and contract type. However, for a 9-month delivery order (273 days) for telecommunications hardware, this amount is substantial. Similar contracts for large-scale communication systems or infrastructure upgrades can reach tens or hundreds of millions, but for discrete equipment sets, this value suggests either a significant quantity of devices or high-end, specialized technology. Without knowing the exact nature of the 'telephone and telegraph equipment,' a direct comparison is difficult, but the value warrants scrutiny regarding the unit cost and necessity.

What were the key performance indicators (KPIs) or performance standards for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or performance standards for this contract. Typically, contracts for equipment would include metrics related to delivery timelines, functionality, reliability, and adherence to technical specifications. The absence of this information in the summary data limits the ability to assess the contractor's performance objectively and determine if the equipment met the government's operational needs effectively.

What is the track record of Motorola Solutions, Inc. in fulfilling similar DoD contracts?

Motorola Solutions, Inc. has a significant history of providing communication equipment and services to government agencies, including the Department of Defense. They are a well-established player in the public safety and defense communications market. While this specific contract award is for a defined period and amount, their broader track record suggests experience in delivering complex communication solutions. However, a detailed analysis would require examining past performance reviews, contract modifications, and any disputes or overruns on their numerous other government contracts.

Were there any identified risks or challenges associated with this specific contract award?

The provided data does not explicitly list identified risks or challenges associated with this contract award. However, potential risks can be inferred. The limited number of bids received under 'full and open competition' could indicate potential market challenges, such as a lack of vendor interest or highly specialized requirements that only a few could meet. This situation can sometimes lead to higher prices than might be achieved in a more crowded field. Additionally, the short duration (9 months) for a significant dollar amount might suggest a need for rapid deployment, which can introduce schedule risks if not managed properly.

How has spending on 'Telephone and Telegraph Equipment' evolved within the Air Force over time?

Analyzing the historical spending trends for 'Telephone and Telegraph Equipment' within the Air Force requires access to historical contract databases beyond the single data point provided. This contract represents a $12.8M expenditure in FY2006/2007. To understand the evolution, one would need to track spending on similar equipment categories (e.g., communication systems, network hardware) across multiple fiscal years. Factors influencing spending include technological advancements, changes in military operational requirements, and budget allocations. Without broader historical data, it's impossible to determine if this contract represents a typical, increased, or decreased level of spending for this category.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0004L

IDV Type: FSS

Timeline